EU trade policy: EFTA, Turkey and EUROMED agreements
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EU trade policy: EFTA, Turkey and EUROMED agreements

EU trade policy: EFTA, Turkey and EUROMED agreements
Isabelle Ramdoo, ECDPM Presentation
MEXA Workshop, 27 July 2012

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EU trade policy: EFTA, Turkey and EUROMED agreements EU trade policy: EFTA, Turkey and EUROMED agreements Presentation Transcript

  • EU Trade Policy EFTA,Turkey and EUROMED Agreements Isabelle Ramdoo, ECDPM MEXA Workshop, 27 July 2012 Labourdonnais Hotel
  • Overview of Presentation 1. European Free Trade Area a) EFTA and the EU b)EFTA as a potential market 2. Turkey a)EU – Turkey Customs Union b)Turkey Mauritius FTA c)Turkey safeguard on woven fabrics and apparel 3. Euromed Agreements a)Tunisia – Morocco – Egypt 4. EU – South Africa : TDCAECDPM Page 2
  • European Free Trade Association 1. EFTA and the EU • The 4 EFTA countries are Iceland, Liechtenstein, Norway and Switzerland • They signed an European Economic Area Agreement in 1994 with the EU, allowing them to participate in EU’s internal market • It covers free movement of goods for industrial products. Tariff reductions are applicable for agriculture and fish and fish products Fish fillets, fresh, fish prepared and Tariffs applied by EU Tuna, skip jack frozen, chilled preserved EEA 5.4% 7.2% 7.2% MFN 18.0% 24.0% 24.0% EPA Mauritius 0.0% 0.0% 0.0% • EEA is not a customs union, and therefore each EFTA country applies its own rate of duty to all third countries.ECDPM Page 3
  • EFTA as a potential market: trade relations with third countries • EFTA has concluded 24 FTAs with a total of 33 partner countries and territories outside the EU: Albania, Canada, Chile, Colombia, Croatia, Egypt, the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), Hong Kong, Israel, Jordan, Korea, Lebanon, Macedonia, Mexico, Montenegro, Morocco, Palestinian Authority, Peru, Serbia, Singapore, the Southern African Customs Union (Botswana, Lesotho, Namibia, South Africa and Swaziland), Tunisia, Turkey and Ukraine. • Negotiations are on going with Bosnia, Central American States, India and Indonesia, Russia, Belarus and Kazakhstan. Negotiations are expected to be launched with Vietnam. • EFTA has signed a Joint Declaration on Cooperation with Mauritius. This is not an FTA • FTAs provides for free trade in industrial goods, including fish and other marine products; and tariff reductions in processed agricultural products;ECDPM Page 4
  • • Imports of textiles from selected EFTA countries :Norway T Shirts Cotton Denim T Shirts Pull Pull Shirts Norway Yarn Man Trousers Fabric Fabric Cotton Wool Cotton Cotton made Total imports 2,543 109 27 105,447 148,432 2,520 138,633 146,051 73,272 (€ 000) China 1.5% 18.3% 18.5% 32.0% 34.1% 35.8% 61.3% 25.3% 41.0% Bangladesh 25.2% 13.1% 11.1% 5.8% Turkey 14.4% 18.4% 7.1% 15.7% 6.7% Germany 48.6% Italy 18.6% 18.5% 5.3% 12.6% 11.2% 2.0% tunisia 6.4% Pakistan 6.0% India 5.1% 1.9% 2.8% 14.6% UK 13.0% 16.5% Lithuania 12.1% 1.6% Peru 6.0% US 15.6% Sweden 13.8% 3.7% 8.3% Hong Kong 18.0%ECDPM Page 5
  • Tariffs applied by Norway on textile products T shirts Norway Cotton Denim T Shirts Pull Shirts Yarn man Pull wool Trousers Tariffs Fabric Fabric Cotton cotton cotton made MFN 0.0% 0.0% 0.0% 10.7% 10.7% 10.7% 10.7% 10.7% 10.7% GSP Rate (including 0.0% 0.0% 0.0% 10.7% 10.7% 10.7% 10.7% 0% 0% MRU) LDCs 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Countries having FTAs with Norway Egypt 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Morocco 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Peru 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Mexico 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% SACU 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Tunisia 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Turkey 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%ECDPM Page 6
  • Norway GSP Scheme and Rules of Origin • GSP applies to all developing countries Coverage: • Prepared or preserved fish benefit from 100% reduction from MFN • T-shirts, jerseys and pulls (Ch 61.09; 69.10) are excluded from GSP • Trousers and shirts (Ch 62) : GSP = 0% • LDCs have duty free, including from excluded products General Rules - Change in tariff heading – i.e when all the imported materials (non- originating materials) used are classified in a HS tariff heading (4 digits) different from the tariff heading under which the exported product is classified, except when specified in the specific rule - Chapter 3 : fresh fish – wholly obtained; - Chapter 16: Canned tuna, prepared, preserved fish: fish to be wholly obtained. - Yarn: silk – manufacture from raw silk; - Woven fabric – manuf. from natural fibres (double stage transformation) - T shirts & pull (Ch 61) – Manufacture from natural fibres - Shirts (Ch 62) – Manufacture from yarn (double stage transformation)ECDPM Page 7 -
  • Value tolerance – 10% of ex works price (except where specified otherwise) Cumulation: All countries must be GSP beneficiary; 3 types: 1.Bilateral – with Norway 2.Regional – between developing countries forming a regional grouping, at the request of the country and upon approval. 3.Diagonal – between Norway, EU and Switzerland and beneficiary country (except in Ch 1 – 24). It implies that materials originating in Norway, EU and Switzerland can be incorporated in goods produced in a GSP country, when the final product is exported to Norway, EU and Switzerland. Derogation possible for LDCs only, if justified for economic development purposesECDPM Page 8
  • Switzerland – Textile imports from main markets Cotton Denim T Shirts T Shirts Pull Pull Shirts Switzerland Yarn Trousers Fabric Fabric Cotton Man made Wool Cotton Cotton Total imports 3,172 9,427 314 190,532 114,052 5,453 409,445 379,964 165,403 (€ 000) China 6.4% 4.5% 4.3% 8.0% 12.4% 11.2% 7.8% Bangladesh 9.2% 11.2% 8.4% 7.1% Turkey 4.5% 4.5% 5.1% 3.4% 9.9% Germany 30.6% 11.6% 44.9% 38.7% 55.0% 26.4% 36.8% 29.2% Italy 3.0% 44.1% 7.9% 6.0% 53.1% 12.4% 21.1% Belgium 13.7% France 22.5% 4.2% 3.7% 7.7% 5.7% Madagascar 3.8% Japan 17.8% Spain 7.3% Austria 13.5% India 4.8% 8.8% 4.5% Pakistan 3.7% UK 5.8% Denmark 26.5% Peru 4.0% Estonia 19.1%ECDPM Page 9
  • Tariffs applied by Switzerland: Note duties are specific Cotton Denim T Shirts T Shirts Man Pull Pull Shirts Switzerland Yarn Trousers Fabric* Fabric* Cotton made Wool Cotton Cotton CHF CHF 26 - CHF130/1 CH CHF CHF 391/100 CHF CHF CHF MFN Duty 306/100 46/100 kg 00 kg 75/100 kg 152/100 kg kg 120/100 kg 182/100 kg 200/100 kg kg CHF CHF CHF 13 CHF CHF CHF CHF CHF 91/100 CHF GSP 37.5/100k 153/100 23/100 kg 65/100 kg 76/100 kg 195.5/100 kg 60/100 kg kg 100/100 kg g kg China MFN MFN MFN MFN MFN MFN MFN MFN MFN Countries having an FTA with Switzerland Morocco 0 0 0 0 0 0 0 0 0 Tunisia 0 0 0 0 0 0 0 0 0 Turkey 0 0 0 0 0 0 0 0 0 Egypt 0 0 0 0 0 0 0 0 0 SACU 0 0 0 0 0 0 0 0 0 * for fabric, when manufactured from handlooms from Pak, Sri Lanka, India and China, Duty =0%ECDPM Page 10
  • Rules of origin applied by Switzerland • Since 2011, Swiss RoO for industrial products are identical to EU RoO; i.e differentiation between developing countries and LDCs • For agricultural products (HS chapters 1 to 24), the rules of origin are specific to the Swiss GSP and apply the method of tariff heading change (HS 4-digit level) with the exception of four products, i.e. HS 1108 (starches), 1901 (malt extract), 1904 (cereal products), and 1905 (bread, pastry, cakes). • General value tolerance: 15% ex-works price, with the exception of textile and clothing, where specific rules apply Derogation possible for LDCs only, if justified for economic development purposesECDPM Page 11
  • Cumulation: - Bilateral, between Switzerland and beneficiary country; - Diagonal, with Norway, EU and Turkey (with Turkey, not yet in force) - limited to industrial products of HS Chapters 25-97 - Regional – between countries belonging to same regional group provided that a request is made and approved by Switzerland and there is sufficient processing. Products of chapters 50 to 63 and HS 6401 to 6405 are excluded from regional cumulation .ECDPM Page 12
  • Imports from Norway and Switzerland – Fish and Fish products Fish Fish fish fish fillets, fillets, Tuna, prepared Tuna, skip prepared Norway fresh, Switzerland fresh, skip jack and jack and frozen, frozen, preserved preserved chilled chilled Total Total imports 49,917 10,649 31,503 Imports (€ 79,270 8,509 16,779 (€’000) ‘000) China 34.4% Vietnam 17.2% Russia 13.9% Thailand 12.3% 85.9% 0.3% Germany 10.6% 34.0% 16.2% Poland 6.8% Denmanrk 9.2% 5.9% Faroe Isl 5.8% Russia 9.2% Vietnam 3.5% 4.8% China 8.7% Italy 2.7% Philippines 2.5% Italy 17.0% 15.9% Portugal 1.0% Spain 36.8% Sweden 71.9% Morocco 7.4% France 8.6% France 2.5% 23.2% Denmark 4.6% Japan 3.3% Netherlands 16.8%ECDPM Page 13
  • Tariffs applied by Switzerland and Norway Fish fillets, fresh, fish prepared and Norway Tuna, skip jack frozen, chilled preserved MFN 0.0% 0.0% 0.0% GSP Rate (including MRU) 0.0% 0.0% 0.0% LDCs 0.0% 0.0% 0.0% Countries havinf FTA 0.0% 0.0% 0.0% Fish fillets, fresh, fish prepared and Switzerland Tuna, skip jack frozen, chilled preserved MFN None None CHF 0 -13.00/100kg GSP None None None Countries having FTAs None None None Rules of origin: fish fillets: Wholly obtained Tuna and prepared fish: fish must be wholly obtainedECDPM Page 14
  • 2. TURKEY 1. EU – Turkey Customs Union • A Customs Union between Turkey and the EU entered into force in December 1995. • The scope of the customs union with Turkey is limited to industrial products and processed agricultural products. • Some products do not fall within the scope of the customs union: they remain subject to a preferential treatment based on origin. These are agricultural products and coal and steel • In a nutshell: Turkey – EU CU covers textile and apparel but does not cover fish and fish productsECDPM Page 15
  • Exports of Turkish textile products to main markets Tariffs: duty free T Shirts T Shirts Pull Shirts Denim Cotton Pull Trousers Yarn Cotton Man Made Cotton Cotton Fabric Fabric Wool Total Exports 1,951,195 1,102,113 1,034,069 674,244 494,457 316,756 53,916 6,170 5,241 to world (€ 000) EU 87.1% 82.1% 81.7% 86.0% 74.0% 35.5% 53.9% 84.5% 66.1% Hong Kong 8.3% Freezones 21.7% Morocco 4.3% Tunisia 17.9% Egypt 10.9% Russia 1.1% 2.8% 8.7% US 0.9% 1.1% 4.3% Iraq 10.9%ECDPM Page 16
  • Fish and fish products: Exports from Turkey to main markets Tariffs: Duty free Fish fillets, fresh, frozen, fish prepared and Tuna, skip jack chilled preserved Total Exports to world (€ 000) 43,720 291 6,190 EU 86.7% 55.3% 80.4% US 7.6% 20.3% 5.5% Azerbaijan 13.0%ECDPM Page 17
  • Rules of origin: For industrial products – Movement of goods within customs unions is not based on their originating status but on the fact that they comply with provisions on free circulation For agricultural products – pan-Euro-Mediterranean Protocol Vessel requirements (all conditions must be fulfilled): - Registration and flag - Ownership: 50% by nationals; or companies headquarted in Turkey or EU where executive staff (managers, board members etc) must be nationals; - Masters and officials are nationals - At least 75% of crew must be nationals Value tolerance: 10% of ex-works price Derogation: NoneECDPM Page 18
  • Cumulation: Simplification to cover, EU27, EFTA (Iceland, Liechtenstein Mediterranean countries (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia, Palestine, West Bank and Gaza) - 42 countries in total. Key elements: - Bilateral cumulation – between EU and Turkey; - Full cumulation between European Economic Area (EU27 + Iceland, Liechtenstein, Norway), Turkey, Algeria, Morocco, Tunisia - Diagonal cumulation – with other Euro Med countries having FTAs among themselves and identical rules of originECDPM Page 19
  • 2. Turkey as a potential market 1. Mauritius – Turkey FTA Mauritius signed an trade agreement with Turkey in 2011. The Agreement has not yet entered into force. What has been obtained? Turkey Cotton Denim T Shirts T shirts Shirts Yarn Pull wool Pull cotton Trousers Tariffs Fabric Fabric Cotton man made cotton MFN 3.8% 8% 8% 12% 12% 12% 12% 12% 12% GSP 3% 6.4% 6.4% 9.6% 9.6% 9.6% 9.6% 9.6% 9.6% Mauritius 25% per 25% per 25% per year 25% per year 25% per year FTA from year from year from from entry from entry from entry date of 0% 0% 0% 0% entry into entry into into force of into force of into force of entry into force of force of agreement agreement agreement force agreement agreement Fish fillets, fresh, frozen, fish prepared and Turkey chilled Tuna, skip jack preserved MFN 30% 80% 80% GSP N0 Preferences 100% reduction on MFN on 20% reduction on MFN (no 50% reduction on MFN rate Mauritius FTA 100 KG quota limits) for 100 kgECDPM Page 20
  • Mauritius Turkey FTA – Rules of Origin Value tolerance: 15% ex works price General Derogation: possible for development purposes Derogation for tuna: annual quota of 3.000 tonnes for preserved tuna and tuna loins and 2.000 tonnes for fish fillets (valid for 7 years, with possibility of renewal) Vessels: Registration and flag requirements; and at least one of the following: - ownership: 50% national - Owned by companies with HO in country + 50 % ownership by nationals Cumulation: Bilateral Diagonal – as with EPA, Mauritius can source its products with Turkey or EU or EPA countries, provided they are sufficiently processed With neighbouring countries, provided a PTA is applicable, the RoO are similar and countries have concluded an agreement on customs cooperationECDPM Page 21
  • Specific rules: Textiles • Yarn – Manufacture from raw silk • Fabric – single stage transformation – manufacture from yarn • T Shirts and pullovers – single stage transformation - manufacture from fabric • Trousers and Shirts – single stage transformation - manufacture from fabricECDPM Page 22
  • Special safeguard measure applicable on textiles • In January 2011, Turkey initiated safeguard procedures regarding imports of woven fabric and apparel • Approved by Turkish Authorities in September 2011 Turkey Cotton Denim T Shirts T shirts man Shirts special Pull wool Pull cotton Trousers Fabric Fabric Cotton made cotton safeguard MFN 8% 8% 12% 12% 12% 12% 12% 12% Countries other than EU MFN + MFN + MFN + MFN + 40% MFN + 40% MFN + 40% MFN + 40% MFN + 40% and FTA 30% 30% 40% countries MFN + MFN + MFN + GSP MFN + 37% MFN + 37% MFN + 37% MFN + 37% MFN + 37% 28% 28% 37% MFN + MFN + MFN + LDCs MFN + 27% MFN + 27% MFN + 27% MFN + 27% MFN + 27% 21% 21% 27% • The safeguard currently applies to Mauritius but will be lifted as soon as the the FTA will enter into forceECDPM Page 23
  • 3. EUROMED Agreements: Case of Tunisia, Morocco and EgyptECDPM Page 24
  • Key elements of the EU Med Agreements 1. Coverage: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Tunisia, Palestine, Turkey, Syria (not signed)ECDPM Page 25
  • • Cover essentially trade in goods, being complemented with a number of additional negotiations to open up additional agricultural trade; • Duty-free access to the EU for Med industrial products and around 80% of agricultural produce • Common rules to allow cumulation of origin within the Euromed and beyond. • Regional convention on PanEuroMed preferential rules of origin agreed in 2011 • However: proper implementation of the requires complete South-South FTA networkECDPM Page 26
  • 1. Tunisia Exports of selected textile products of Tunisia to main markets Tariffs: duty free on all selected products below T Shirts T Shirts Shirts Pull Denim Pull Cotton Trousers Yarn Cotton Man Made Cotton cotton Fabric Wool fabric Total Exports to world (€ 495,427 276,907 100,246 60,256 53,344 35,681 22,873 24 48 000) EU 97.1% 99.8% 98.3% 99.3% 95.4% 42.7% 100.0% 0.0% 100.0% fish prepared and Fish fillets, fresh, Tuna, skip jack preserved frozen, chilled Total Exports to world (€ 000) 2,789 792 111 EU 15.3% 99.9% 100.0% Libya 73.8% UAE 7.4%ECDPM Page 27
  • 2. Morocco Exports of selected textile products of Morocco to main markets Tariffs: Duty free on all selected products below T Shirts T Shirts Shirts Pull Denim Pull Cotton Trousers Yarn Cotton Man Made Cotton cotton Fabric Wool fabric Total Exports to world (€ 273,888 189,384 82,744 71,126 43,162 29,050 922 538 19 000) EU 95.7% 98.8% 98.9% 98.7% 99.9% 98.3% 99.3% 86.6% 100.0% Fish prepared and Tuna, skipjack preserved Total Exports to world (€ 000) 83,213 2,484 EU 92.1% 77.4% Syria 3.1% 10.3% Eq. Guinea 1.3% 9.4%ECDPM Page 28
  • 3. Egypt Exports of selected textile products of Egypt to main markets Tariffs: Duty free on selected products below T Shirts T Shirts Man Shirts Pull Trousers Yarn Pull Wool Cotton Made Cotton cotton Total Exports to 246,712 42,450 135,314 31,137 2,476 65 84 world (€ 000) EU 47.9% 50.8% 24.4% 68.9% 8.0% 9.2% 0.0% Turkey 4.5% 7.6% 82.0% US 42.6% 43.6% 65.0% 28.3% 90.8% 95.2% Egypt does not export fish and fish products (tuna, skipjack) to the EU. However, duty on tuna is 20.5%ECDPM Page 29
  • A closer look at rules of origin in the Euromed Zone Textile products: Yarn Manufacture from raw silk, natural fibres, chemicals or paper make materials Value tolerance: 10% weight of yarn Fabric Single stage transformation - Manufacture from yarn Value tolerance: 10% weight of fabric Apparel: Double stage transformation – manufacture from yarn Value tolerance: 8% ex works price Fish and fish products: Same as above for TurkeyECDPM Page 30
  • Cumulation • Jordan, Morocco, Egypt and Tunisia have an FTA since 2006. • This FTA is based on their EUROMED agreement. • The RoO that apply are the EU RoO • This allows them to use the full cumulation principle, when they export to the EU. It means that any of those four countries can source their inputs among themselves and export to the EU and still benefit from duty free access to the EU market.ECDPM Page 31
  • EU South Africa Trade relationship TDCAECDPM Page 32
  • • South Africa is the EUs largest trading partner in Africa • EU concluded a trade, development and cooperation agreement in 1999 Rules of origin Cumulation – Bilateral between SA and EU Cumulation with ACP: - SACU – Any working or processing carried out within SACU shall be considered as having been carried out in South Africa, when further worked or processed there - Other ACP –Products acquire originating status in the Community or South Africa only when the value added there exceeds the value of the materials used originating in any one of the ACP States and when it has undergone sufficient working or processing. However, EPA RoO should apply between SA and ACP country. This is currently not the case. Vessels (all): a. Registration and flag requirements b. Ownership requirement : 50% (also for companies headquartered) c. Nationality requirement for masters and officials d. Crew requirement: 75% should be nationals (c and d to be replaced by 50% crew requirement once tariffs are reduced on fisheries)ECDPM Page 33
  • General value tolerance: 15% ex works price, except for products falling within chapter 3 and 24 (incl fish and fish products), where 10% ex works price Specific rules: Fish and fish products: wholly obtained Yarn: Manufacture from raw silk or natural fibres Fabric: Single stage transformation – manufacture from yarn or natural fibres T-shirts and pullovers: Double stage transformation – manufacture from yarn or natural fibres Shirts and trousers: Double stage transformation – manufacture from yarn or natural fibres Value tolerance: 10% weight of yarnECDPM Page 34
  • Tariff applied to South Africa under TDCA Cotton Denim T Shirts T Shirts Pull Pull Yarn Trousers Fabric Fabric Cotton Man made Wool Cotton Tariff applied by EU under TDCA 0% 0% 0% 0% 0% 0% 0% 0% to South Africa Fish fillets, fresh, frozen, fish prepared and Tuna, skip jack chilled preserved No preferences under 14.5% 20.5% 20.5% TCDA - GSP appliedECDPM Page 35
  • Exports of selected textile products of South Africa to main markets T Shirts T Shirts Shirts Pull Denim Trousers Pull Wool Cotton Man Made Cotton Cotton Fabric Total Exports to 4,615 4,334 2,818 2,109 254 220 165 world (€ 000) EU 10.7% 13.2% 6.1% 4.9% 16.1% 4.5% 0.0% Zambia 11.7% 11.3% 17.1% 15.0% 27.6% 30.9% Zimbabwe 10.9% 14.2% 12.5% 32.5% 9.4% 18.2% Mozambique 15.0% 18.6% 10.5% Mauritius 8.7% 5.5% 5.5% 5.5% 14.6% 9.1% 81.2% DRC 10.8% Angola 8.3% Kenya 26.8%ECDPM Page 36
  • South Africa as a potential market • South Africa is the largest trading partner of Mauritius in Africa Imports from South Africa from main competitors in selected products T Shirts Cotton Denim T Shirts Man Pull Pull Shirts South Africa Yarn Fabric Fabric Cotton made Wool Cotton Trousers Cotton Total imports 820 2,215 6,884 118,304 51,255 2,790 28,288 121,537 64,779 Italy 6.0% 10.1% 1.0% China 15.2% 20.2% 45.4% 48.3% 68.4% 65.6% 62.7% 41.3% Turkey 76.8% 1.1% 0.9% 1.7% Austria 6.5% Bangladesh 3.9% 2.1% 3.6% 6.5% 11.0% Hong Kong 2.3% India 6.7% 8.6% 1.3% 1.8% 1.2% 8.6% Bulgaria 4.9% Mauritius 2.1% 58.1% 35.1% 28.1% 12.3% 52.2% 9.1% 18.9% 10.3% Mexico 3.2% Thailand 3.8% 3.2% Madagascar 2.2% 28.2% 9.8% 4.1% 17.0% Tanzania 1.0% Indonesia 2.9% 3.7% Vietnam 1.3%ECDPM Page 37
  • South Africa imports from fish and fish products from main market Fish fillets, fresh, frozen, fish prepared and South Africa Tuna, skip jack chilled preserved Total imports 5,412 30,526 3,047 China 18.4% 23.5% Vietnam 15.0% Norway 23.7% Mauritius 7.8% 0.2% Philippines 2.0% UK Thailand 95.5% 10.7% Argentina 6.4% Taipei 1.1% Indonesia 0.4% Italy 0.2% Uruguay 41.8%ECDPM Page 38
  • Duties applied by South Africa to SADC countries Cotton Denim T Shirts T Shirts Pull Pull Yarn Trousers Fabric Fabric Cotton Man made Wool Cotton MFN Rate 0% 22% 22% 45% 45% 45% 45% 45% Duty applied to 0% 0% 0% 0% 0% 0% 0% 0% SADC countries Fish fillets, fresh, fish prepared and Tuna, skip jack frozen, chilled preserved 25% or $240 whicher is MFN Rate 25% $ 7.2 per tonne the highest Duty applied to SADC 0% 0% 0% countriesECDPM Page 39
  • SADC Rules of Origin • Fish and Fish products: Wholly obtained • Yarn: (51.06.10) – change in tariff heading • Fabric: Single stage transformation – manufacture from yarn • T Shirts and pullovers: Double stage transformation - manufacture from yarn • Shirts and trousers: Double stage transformation - manufacture from yarnECDPM Page 40
  • Thank you www.ecdpm.orgwww.slideshare.net/ecdpm Page 41