Prospects and opportunities for agriculture under the Economic Partnership Agreement. Stellenbosch,

Transcription

1 Prospects and opportunities for agriculture under the Economic Partnership Agreement Stellenbosch, Dóra MECSEKY Southern Africa desk officer DG Agriculture and Rural Development European Commission Agriculture and Rural Development

2 Presentation outline 1. EU - South Africa trade under the TDCA 2. EU - SADC agricultural trade 3. Prospects and opportunities for the SADC-EPA 2

3 1. EU - South Africa trade under the TDCA EU SA Trade, Development and Cooperation Agreement (TDCA) Signed in 1999, in force since 2000 and fully implemented this year Early FTA - underpins strategic partnership between the EU and SA Overall trade liberalisation and expansion of investments (2010) EU is SA's main trading partner Trade has increased by more than 120% since 2000 Total Foreign Direct Investment is five times higher than in 2000 Agricultural trade opening Small part of overall picture, but key for rural sector, consumers and jobs Agricultural trade: 10% of total SA exports to the EU and 5% of total imports SA agricultural exports to the EU increased by 145% since

4 EU-South Africa agricultural trade Source: EUROSTAT - COMEXT EU27 Agricultural trade with South Africa Export million Euros Import Commodities Intemediate Final products Other products Confidential Balance 4

5 Balance of the TDCA EUROPEAN UNION (CN 1996) SOUTH AFRICA (HS 1996) TDCA Tariff lines % Tariff lines % Tariff lines % Tariff lines % Tariff lines % Tariff lines % Agricultural goods Industrial goods Total Agricultural goods Industrial goods Total Total number of lines % % % % % % Fully or partially liberalised under the TDCA by % % % % % % Average applied MFN duty 8.7% 9.3% Overall average applied tariff 1.4% 0.4% 0.6% 3.1% 3.5% 3.4% Average applied tariff on 12% 9.5% 10.5% 38.3% 11.7% 12.6% dutiable TLs Source: WTO and EU-SA schedule submitted to WTO 5

6 Present and future EU SA trade relations Current state of play Balanced trade liberalisation under TDCA Asymmetrical implementation: EU liberalised its markets at a faster pace and with an overall broader coverage Applied EU tariff rates are generally lower than SA rates SA protection provided by dutiable tariff lines is generally higher than protection from EU duties Agricultural trade is in favour of South Africa Further market access to the EU is a real prospect A deeper and more comprehensive trade agreement could drive job creation Promote agricultural value through the export of labour intensive, value added goods 6

7 2. EU - SADC agricultural trade EU is the most open market in the world for developing country exports: World imports from developing countries (mio EUR) 71% 75% % 50% % 45% % 34% 28% 30% 22% % 0 EU-27 Next 5 US Japan Canada Australia New Zealand 0% Average % share from DCs (right axis) 7

8 EU agricultural imports from ACP (EUR million; average ) EAC; 165; 3% Pacific; 16; 0% ESA; 448; 9% Cariforum; 458; 9% West Africa; 2.140; 44% Central Africa; 773; 15% SADC-EPA; 988; 20% 8

9 Source: UN - COMTRADE SADC-EPA: Agricultural Exports

10 3. Prospects and opportunities for the SADC-EPA Opportunities EU market is key for SADC jobs and agricultural exports An EPA with the region could increase trade flows within the region and with the EU improve market access for Southern African businesses lower the costs of inputs create a more predictable environment for trade and investment to sustain growth and jobs strengthen market integration and regional coherence encourage value adding activities, knowledge transfer and the production of good quality, globally competitive products be a cornerstone of the region-to-region partnership 10

11 Prospects and opportunities for the SADC-EPA Full access to EU markets for ACP states (except SA) not offered to any other non-ldc in the world (some SADC states have higher GDP per capita than some EU Member States). Interest for the region both in Exports: to the lucrative EU market, even in current difficulties, and Imports: to secure competitive imports in sectors in deficit to meet consumer demand, lower input costs for value adding activities. Asymmetric access to ACP markets: sensitivities to be taken into account to avoid unfair competition Harmonised Rules of Origin for the region: more benefit from EU preferences through cumulation of origin within EPAs The objective is an ambitious agreement with mutual benefits for all parties 11

12 Conclusion Crucial to strengthen the partnership with the region that is the EU s most important economic partner in Africa and pivotal for the continent's future prosperity Key moment in negotiations with real optimism in current work With more flexibility and understanding from all sides, an ambitious agreement is within reach 12

13 Thank you for your attention Dora MECSEKY Southern Africa Desk Officer DG Agriculture and Rural Development European Commission Further information International Aspects of Agriculture meeting and document 13

14 14

15 15

16 African ACP states: agricultural exports (COMTRADE data) EU27 EUR million Intra- African Rest of World Other upper income BRIC