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The EU-SA free trade agreement : implications for selected agricultural products

Thesis (MBA)--University of Stellenbosch, 2000. / ENGLISH ABSTRACT: As the Trade Development and Co-operation Agreement (TDCA) creates competitive
challenges and opportunities, labour and capital will seek the highest returns, dri ving out
less efficient performances while bolstering more efficient enterprises and industries.
This dynamic process of adjustments will continue throughout the implementation of this
agreement.
The South African government sees the agreement with the European Union as a step
towards restructuring the country's economy and making it part of the rapidly changing
world economy. This policy view of the South African government will result in those
sectors of the economy that are not internationally competitive, receiving no support from
government. Consequently these sectors will decrease in time.
Of the three agricultural profiles studied, fresh fruit (deciduous fruit) will benefit the most
from the TDCA. The most obvious effect the agreement will have on the sector is the
saving on customs duties payable on exports to the EU. An estimate on 1997 trade figures
revealed that in the short term the deciduous fruit industry will save approximately RI00
million. Over the implementation period of 10 years, the industry will save about
Rl billion. After that, savings amounting to approximately R125 million per annum
should be possible.
The canned fruit sector is an export-driven industry that exports about 90 per cent of its
products, 50 per cent of which is exported to the EU. The export tariffs to the EU are very
high. As non-EU member, South Africa is the biggest provider of canned fruit to the EU.
Some analyses revealed that the total savings in tariffs for the first year of
implementation will be R25 million. The industry stands to save approximately R100
million over the implementation period. At the EU's request, South Africa agreed to negotiate a separate Wine and Spirits
Agreement. The EU believes that South Africa's continued use of certain "geographical
indications" or terms is in breach of Article 23 of the Trade-related Aspects of
Intellectual Property Rights (TRIPs) agreement.
The quotas granted by the EU on wine and sparkling wine cover 79 per cent of South
African exports to the EU. South Africa granted the EU a 0.26 million litre quota for
sparkling wine and a 1 million-litre quota for bottled wine. SA will phase out the use of
the terms "port", "sherry", "grappa", ouzo", "korn" , "jagertee" and "pacharan" over
agreed time periods. The issue will be taken to the WTO for a ruling in this regard. The
EU has agreed to grant SA a duty-free tariff quota for wine but has suspended the tariff
quota until the Wine and Spirits agreement has been signed. The EU will also provide
financial assistance of 15 million ECU to help restructure the SA wine and spirits sector.
The South African agricultural industry should take note of the constantly changing
international marketing environment. The Free Trade Agreement (FTA) signed with the
European Union opens up new markets and enhances existing ones that must be
exploited. It is imperative that every role player should evaluate the level of
competitiveness of his or her enterprise.
Thus the message is very clear:
Agricultural production with an international trading view is the only sustainable road to
follow. / AFRIKAANSE OPSOMMING: Soos die Handel, Ontwikkelings en Samewerkingsooreenkoms kompeterende
geleenthede en uitdagings skep, sal arbeid en kapitaal verskuif na die hoogste opbrengste
beskikbaar. In hierdie proses sal daar wegbeweeg word van onvoldoende prestasies en sal
effektiewe ondememings en industriee floreer. Hierdie dinarniese proses van
herstruktuering sal voortduur regdeur die implementeringsperiode van hierdie
handelsooreenkoms.
Die Suid Afrikaanse regering beskou die ooreenkoms met die Europese Unie as 'n
belangrike stap in die proses om die land se ekonomie te herstrukltureer en so deel te
maak van die vinnig veranderende wereld ekonomie. Hierdie regerings beleid sal daartoe
lei dat sektore wat nie intemasionaal mededingend is nie, geen ondersteuning vanaf die
regering sal ontvang nie. Met tyd sal hierdie sektore verdwyn.
Van die drie landbousektore wat bestudeer is, sal vars vrugte (sagte vrugte) die meeste
voordeel trek uit die ooreenkoms. Die besparing van aksynsbelasting op die uitvoere na
die Europese Unie is die mees kenmerkendste voordeel vir die sektor. 'n Beraming
gebaseer op 1997 handels syfers toon 'n jaarlikse besparing van plus minus R100 miljoen.
Deur die hele implementeringsperiode, sal die besparing plus minus Rl biljoen beloop.
Na afloop van die implementeringsperiode, sal jaarlikse besparing van plus minus R125
miljoen moontlik wees.
Die inmaak vrugte sektor is 'n uitvoer gedrewe industrie wat gemiddeld 90 persent van
hul prod uk uitvoer. Van hierdie uitvoere is 50 persent bestem vir die Europese Unie. Die
uitvoertariewe na die Europese Unie is baie hoog. As nie-lidland, is Suid Afrika die
grootste verskaffer van geblikte vrugte aan die Europese Unie. Beramings voorsien dat
die sektor 'n totale besparing vir die eerste jaar van implemetering van plus minus R25
miljoen kan beloop. Die industrie kan soveel as R100 rniljoen oor die implementeringsperiode
bespaar. Op die Europese Unie se versoek, het Suid Afrika ingestem om 'n afsonderlike Wyn en
Spiritualie ooreenkoms te onderhandel. Die Europese Unie beweer dat Suid Afrika se
gebruik van sekere "geografiese aanduidings" of terme, In verbreking is van Artikel 23
van die Handelsverwante Aspekte van die Intellektuele Eiendomsregte Ooreenkoms.
Wyn en vonkelwyn kwotas wat deur die Europese Unie aan Suid Afrika toegestaan is,
beloop 79 persent van die uitvoere na die Europese Unie. Suid Afrika het die Europese
Unie In kwota van 0.26 miljoen liter vir vonkelwyn en 1 miljoen kwota vir gebottelde
wyn toegestaan. Voorts sal Suid Afrika die terme "port", "sherry", "grappa", "ouzo",
"kom" , "jagertee" and "pacharan" met die ooreengekome peri odes uitfaseer. Die aspek
sal egter na die WHO geneem word vir In finale beslissing. Die Europese Unie het
ooreengekom om aan Suid Afrika In tarief vrye kwota vir wyn toe te staan, maar het dit
opgehef tot tyd en wyl die Wyn en Spiritualie ooreenkoms onderteken is. Die Europese
Unie sal ook finansiele ondersteuning van 15 miljoen ECU skenk om die Suid Afrikaanse
Wyn en Spiritualiee industrie te help hestruktureer.
Suid Afrikaanse Landbou sal notisie moet neem van die konstante verandering in die
intemasionale bemarkingsomgewing. Die Vrye Handelsooreenkoms wat geteken is met
die Europese Unie, open nuwe markte en sal bestaande markte bevorder. Hierdie
geleenthede moet benut word. Dit is baie belangrik dat elke rolspeler sy vlak van
kompeterende vermoe moet evalueer, om so sy eie siening oor die ooreenkoms te kan
uitspreek.
Hieruit is die boodskap dus baie duidelik:
Landbou produksie met In intemasionale handels uitkyk, is die enigste volhoubare pad
om te volg.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/51976
Date03 1900
CreatorsCorbett, Johannes Kruger
ContributorsBreytenbach, Willie, Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Business Management.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format82 p. : ill.
RightsStellenbosch University

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