Sacu gets preferential access to four new markets

Alan Peat FOUR NEW countries will grant exporters from the Southern African Customs Union (SACU) preferential access to their markets from next year. SA exporters al ready have preferential access to 25 European countries through the SA-European Union (EU) free trade agreement (FTA). But the recent conclusion of an FTA between SACU and the European Free-Trade Association (EFTA) will mean SA exporters would also gain preferential access to a further four European countries - Switzerland, Norway, Iceland and Liechtenstein being the members of EFTA. Although seen as relatively small, they are considered wealthy markets that provide ideal opportunities for niche or high value goods with higher margins, according to trade and customs consultants, Deloitte. “The rules of origin have been relaxed,” said their report, “which is great news for the SA clothing manufacturers - as imported fabrics used in clothing may still qualify for the duty-free and quota-free access to EFTA members.” EFTA and SACU anticipate the agreement will be ratified on July 8, 2006.