Eu Trade Agreements With South Africa

It wanted to ensure that the provisions did not go beyond the provisions of the new competition policy and the new competition law. It provides for consultation mechanisms to try to take into account the interests of each party in the application of domestic law. It does not regulate the provision of state aid, services and public procurement, as proposed by the EU. Manufactured goods account for about 86% of SA`s total exports to the EU. Although the EU`s average tariff levels for industrial products are low, the removal of tariffs will nevertheless provide a relative advantage for SA exporters over some of their competitors in the EU market. The EU will abolish its industrial tariffs either immediately or within three years of the agreement`s entry into force. The same applies to most sensitive textile and clothing products (only about 20% of SA`s textile exports to the EU will expire over a long period of time, six years after the agreement comes into force. With the entry into force of the agreement, tariffs on automotive components will be lowered to 50% of the MFN rates applied by the EU. Other products, such as ferrochrome with duty withdrawals from Grade 4, will continue to have a duty-free global quota. Only six aluminum lines remain on the reserve list. However, products on the reserve list are checked. South Africa, the region`s largest economy, had already reached a bilateral agreement with the EU. It argues that improving access to the EU market for its agricultural products has been crucial to its decision to accept the EPA, rather than continuing under its existing „Trade, Development and Cooperation Agreement“ (TDCA).

The European Commission reports annually on the implementation of its main trade agreements in the previous calendar year. With regard to the accumulation under the Lomé Convention – that is, trade to SA to all ACP countries to the EU – the EU has committed to repeal the current ad hoc regime with regard to SA and to replace it with a diagonal accumulation by SA. This means that ACP countries, including BLNS, will be able to combine with materials that have acquired their original SA status. 2. South Africa will end the use of the appellations „port“ and „sherry“ in all export markets within five years, except in the case of non-SACU-SADC countries where an eight-year exit period would apply.