SACU EFTA FREE TRADE AREA

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SACU EFTA FREE TRADE
AREA
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The European Union

• A customs union, like SACU
• Principle of the acquis de communataire
• EU enlargements
• 1973
• 1981
• 1986
• 1995
• 2004
• 2007 (foreseen for Bulgaria and Romania)

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EU 15
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EU Enlargement 2004

• Cyprus
• Czech Republic
• Estonia
• Hungary
• Latvia

• Lithuania
• Malta
• Poland
• Slovenia
• Slovakia

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European Free Trade Association

• Iceland, Norway, Switzerland, Liechtenstein
• Not a customs union
• Closely integrated with the EU
• Trails the EU in relation to 3rd countries
• But does not have the common policies and pooling
  of resources as the EU has

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POLITICAL ECONOMY

• SA trade policy vis-à-vis Europe
• Harmonisation on the back of the TDCA
• Single trading regime SADC-EU
• SACU EFTA
• Built SACUs common policies
• Would inform the review of the TDCA

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ECONOMIC RATIONALE

• Contractual versus unilateral access
• GSP versus FTA
• Small but wealthy markets
• Clothing and textiles stand to benefit

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SCOPE OF MAIN AGREEMENT

• Trade in goods
• Tariff liberalisation
• Subject to rules of origin
• New generation issues
• Only cooporative provisions
• Rendez-vous clause

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CONTENT OF MAIN AGREEMENT
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Liberalisation schedules
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ADMINISTRATION

• Single SACU origin

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State of play

• All 9 parties committed to ratify before end of
  November
• If that is achieved, agreement to enter into
  force on 01/01/07