Norway, Switzerland, Iceland and Liechtenstein make an approach, writes Alan Peat
THERE'S A possibility of another free trade agreement for SA with an approach just having been made by the European Union Free Trade Area (EFTA).
This group - Norway, Switzerland, Iceland and Liechtenstein - is looking to discuss the possibility of creating a free trade area (FTA) with SA.
Such an agreement would add these other European states to the 15 members of the European Union (EU), SA having had a free trade agreement with the EU operational since January 1 last year.
SA already enjoys Generalised System of Preference (GSP) benefits from Norway and Switzerland, according to Riaan de Lange of Deloitte & Touche Trade and Investment Solutions.
Under the GSP, our exports are granted preferential market access into those markets, he told FTW.
The conclusion of an agreement with EFTA would benefit SA business in that it would expand the access of our exports to Europe.
Another motivation for concluding such an agreement, De Lange added, comes from Mexico last year having concluded FTAs with both the EU and EFTA.
As a result, he said, Mexican exporters already have access to the markets of the major European countries.
There is also an attractive carrot being dangled by the four countries.
Said De Lange: To entice SA to conclude this agreement, EFTA has indicated that - unlike the EU accord that is being phased in over several years - they would be prepared to offer SA immediate access to their market.
This while SA would
be able to phase in its
obligations.
Copyright Now Media (Pty) Ltd
No article may be reproduced without the written permission of the editor
To respond to this article send your email to joyo@nowmedia.co.za
