SA also concerned about levies on goods after they have passed customs SOUTH AFRICA will not be pushed into signing a Free Trade Agreement with the European Union without receiving a good deal in return.
Department of Trade and Industry European Desk director Wilhelm Smalberger says South African exporters will encounter many obstacles if the European offer is accepted at face value.
These include the exclusion of 40% of local agricultural products, secondary levies on goods, and conditions attached to the source of manufactured inputs.
We are not equal partners with the EU. But our first objective is to improve our market access to their products, he said.
Smalberger said South Africa would pursue the list of excluded products: Obviously agriculture is very important to us. We will be very focused in our approach, he said.
South Africa was also concerned about levies on goods after they have passed customs. For instance, foods with a sugar content were taxed, which meant local sweets, chocolates and foodstuffs would be penalised.
South Africa would also have to be careful about conditions relating to country oforigin. Most local manufacturers depended on at least some imported components. This could result in the total product being heavily taxed by the EU.
He said talks would probably resume at the end of October.
In consultation with business and labour we are finalising an offensive and defensive strategy, he said.
This would entail deciding what tariffs against specific EU products would be lowered, and targeting specific South African exports headed for Europe.
