Navigating the complex web of trade agreements

Imports into South Africa
are either supported or
restricted through a complex
web of trade agreements with
different countries around
the world.
These agreements or
protocols are administered
by the South African
Revenue Service in terms
of the Customs and Excise
Act, 1964. Among the most
important agreements listed
in Schedule No 10 to the
Customs and Excise Act,
1964 are:
TDCA
The trade
relationship
between South
Africa and the EU is
currently governed by a
free trade agreement, the
Trade Development and
Co-operation Agreement
(TDCA), which covers 90% of
bilateral trade.
The EU is by far South
Africa’s most important
development partner,
providing for 70% of all
external assistance funds,
according to the European
Commission.
Southern African
Development
Community (SADC)
The objective is to promote
trade between member
countries by creating a free
trade area. Member countries
are Angola, Botswana,
the Democratic Republic
of Congo (DRC), Lesotho,
Madagascar, Malawi,
Mauritius, Mozambique,
Namibia, Seychelles, South
Africa, Swaziland, Tanzania,
Zambia and Zimbabwe.
Twelve of the 15 SADC
member states are part
of the Free Trade Area,
with Angola, the DRC
and Seychelles remaining
“outside,” according to the
official SADC website.
A phased programme
of tariff reductions, which
started in 2001, has seen
reduced or zero tariffs in 85%
of intra-regional trade of
goods originating in member
states.
Goods are accepted as
originating in a member
state if they have been
wholly produced in the
member state or if materials
obtained outside of the state
have “undergone sufficient
working or processing”.
South African
manufacturers importing
raw or semi-finished inputs
from member states would be
eligible to apply for duty-free
exports into member states.
Agricultural imports into
South Africa are, however,
subject to a number of nontariff
barriers, according to
member states.
Agoa
The
agreement
between
South Africa and the United
States of America has been in
the news as South Africa tried
to put restrictions on some
American imports. Under
pressure from the USA South
Africa in November signed an
agreement with the USA to
allow the importation of
65 000 tons of chicken a year.
Restrictions on the
importation of American
beef and pork products have
also been lifted, according
to dti spokesperson Sidwell
Medupe.
While South Africa’s
exports to the United States
have been increasing over
the past five years, imports
from the US have declined
across most categories during
the same period, according
to trade statistics provided
by the US Census Bureau’s
Foreign Trade programme.
Southern African
Customs Union
Agreement (Sacu)
The Southern African
Customs Union Agreement
between Botswana, Lesotho,
Namibia, South Africa and
Swaziland has created a
common customs area, and
is the world’s oldest customs
union.
Goods that are grown,
produced or manufactured
within the customs area are
not subject to duties when
exported to another Sacu
member.
China
A Memorandum
of Understanding
exists between South Africa
and China on promoting
Bilateral Trade and Economic
Co-operation.
The two countries signed
a customs agreement in
2013 which commits them
to “provide each other with
administrative assistance
for the proper application
of Customs law, for the
prevention, investigation
and combating of Customs
offences and to ensure the
security of the international
trade supply chain.”
EFTA
The European Free Trade
Association (EFTA) consists
of Iceland, Liechtenstein,
Norway and Switzerland. A
free trade agreement between
EFTA and Sacu came into
force in May 2008. A meeting
of the joint committee in April
2015 resolved to review the
agreement in light of other
trade pacts signed by the
different parties.