SACU-EFTA FTA

Definition

The SACU-EFTA FTA refers to the free trade agreement (FTA) between the Southern African Customs Union (SACU) and the European Free Trade Association (EFTA).

What is SACU-EFTA FTA?

The SACU-EFTA FTA aims to promote trade liberalisation between the member countries by reducing or eliminating tariffs and other trade barriers on goods traded between the two regions. This creates opportunities for increased trade and investment flows, leading to economic growth and development.

The FTA establishes rules of origin criteria to determine the eligibility of goods for tariff treatment. These rules specify the criteria that must be met for goods to qualify as originating from either SACU or EFTA countries, ensuring that only goods produced within the respective regions benefit from tariff preferences.

In addition to trade in goods, the SACU-EFTA FTA may also include regulations related to trade in services and investment. This may involve commitments to liberalise trade in services sectors, such as financial services, telecommunications, and professional services, as well as provisions to protect and promote investment flows between the two regions.

The SACU-EFTA FTA may also include regulations for cooperation and capacity building initiatives to support the implementation of the agreement and improve the trade and economic relationship between the member countries. This may involve technical assistance, training programs, and other forms of support to strengthen institutions and build regulatory capacity.

Example of SACU-EFTA FTA

For instance, let’s say South African farmers want to export their organic produce to Norway. Thanks to the SACU-EFTA FTA, they can do so with reduced or eliminated tariffs, making their products more competitive in the Norwegian market. Likewise, Norwegian manufacturers can export machinery and equipment to South Africa under favourable trade conditions, fostering economic cooperation and growth between the two regions.