TOOLS FOR MARKET ANALYSIS Presented by: Jacobus Verster Trade Research Desk.

TOOLS FOR MARKET TOOLS FOR MARKET ANALYSISANALYSIS

TOOLS FOR MARKET TOOLS FOR MARKET ANALYSISANALYSIS

Presented by: Jacobus Verster

Trade Research Desk

22

MARKET ANALYSIS PROCESSMARKET ANALYSIS PROCESSMARKET ANALYSIS PROCESSMARKET ANALYSIS PROCESS

Define your product

Screen markets

Research market characteristics

Business contacts

Market analysis

Quantitative analysis

TradeMap & Market Access Map

Qualitative analysis

Product Map & Country Map

33

QUANTITATIVE ANALYSISQUANTITATIVE ANALYSISQUANTITATIVE ANALYSISQUANTITATIVE ANALYSIS

What are the fastest growing markets?

Which countries are supplying to those markets?

What is the position of our products in those markets?

What are the access conditions for those markets?

…Where should future research be focused?

44

QUALITATIVE ANALYSIS QUALITATIVE ANALYSIS QUALITATIVE ANALYSIS QUALITATIVE ANALYSIS

What are the market characteristics?

What are the packaging and labeling requirements?

How should the product be priced?

How is the product distributed in the target market?

What are the options for promoting the product?

…How do my target markets operate and can I compete?

55

FRESH VEGETABLE OPPORTUNITIESFRESH VEGETABLE OPPORTUNITIESFRESH VEGETABLE OPPORTUNITIESFRESH VEGETABLE OPPORTUNITIES

A bakkie-trader in Mpumalanga wants to export fresh vegetables to Mozambique.

Which fresh vegetable products are experiencing the highest import growth in Mozambique?

Which of these product/s have trade potential for the bakkie-trader?

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WWW.TRADEMAP.ORG WWW.TRADEMAP.ORG WWW.TRADEMAP.ORG WWW.TRADEMAP.ORG

77

MOZAMBIQUE – FRESH VEGETABLE IMPORTSMOZAMBIQUE – FRESH VEGETABLE IMPORTSMOZAMBIQUE – FRESH VEGETABLE IMPORTSMOZAMBIQUE – FRESH VEGETABLE IMPORTS

88

MOZAMBIQUE – VEGETABLE UNIT VALUEMOZAMBIQUE – VEGETABLE UNIT VALUEMOZAMBIQUE – VEGETABLE UNIT VALUEMOZAMBIQUE – VEGETABLE UNIT VALUE

99

MOZAMBIQUE – VEGGIE OPPORTUNITIESMOZAMBIQUE – VEGGIE OPPORTUNITIESMOZAMBIQUE – VEGGIE OPPORTUNITIESMOZAMBIQUE – VEGGIE OPPORTUNITIES

1010

FRESH VEGETABLE OPPORTUNITIESFRESH VEGETABLE OPPORTUNITIESFRESH VEGETABLE OPPORTUNITIESFRESH VEGETABLE OPPORTUNITIES

A bakkie-trader in Mpumalanga wants to know what tariffs he will face at the Mozambique border for peas?

What tariffs does a competitor from another country face?

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WWW.MACMAP.ORGWWW.MACMAP.ORGWWW.MACMAP.ORGWWW.MACMAP.ORG

1212

CITRUS OPPORTUNITIESCITRUS OPPORTUNITIESCITRUS OPPORTUNITIESCITRUS OPPORTUNITIES

A citrus producer in Mpumalanga investigates the opportunities for citrus exports to Europe?

What citrus products showed the highest growth?

What countries hold the greatest potential?

What tariffs do South Africa face in these countries?

1313

EUROPEAN CITRUS FRUIT IMPORTSEUROPEAN CITRUS FRUIT IMPORTSEUROPEAN CITRUS FRUIT IMPORTSEUROPEAN CITRUS FRUIT IMPORTS

1414

EUROPEAN GRAPEFRUIT IMPORTSEUROPEAN GRAPEFRUIT IMPORTSEUROPEAN GRAPEFRUIT IMPORTSEUROPEAN GRAPEFRUIT IMPORTS

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WWW.MACMAP.ORGWWW.MACMAP.ORGWWW.MACMAP.ORGWWW.MACMAP.ORG

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MARKET ANALYSIS TOOLSMARKET ANALYSIS TOOLSMARKET ANALYSIS TOOLSMARKET ANALYSIS TOOLS

Quantitative Tools

• www.trademap.org - FREE

• www.macmap.org - FREE

Qualitative Tools

• www.p-maps.org - FREE

• www.intracen.org/countries - FREE

Register• mas-admintools.intracen.org/accounts/Registration.aspx

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THANK YOU

SADC FREE TRADE SADC FREE TRADE ARRANGEMENTARRANGEMENT

BENEFITS & OPPORTUNIESBENEFITS & OPPORTUNIES

SADC FREE TRADE SADC FREE TRADE ARRANGEMENTARRANGEMENT

BENEFITS & OPPORTUNIESBENEFITS & OPPORTUNIES

Presented by: Sam Legare

Africa Trade Relations Desk

CONTENTCONTENTCONTENTCONTENT

• Background

• Overview of SADC FTA (SPoT)

• Tariffs and Non-Tariffs Barriers to Trade (NTBs)

• Current status of tariff phase down

• Specific benefits and opportunities

• Market Access Requirements

• Contact Details

BackgroundBackgroundBackgroundBackground

• Africa Desk – Responsible for RSA agriculture trade relations with African countries

• The Desk is responsible for agriculture trade negotiations under SACU Agreements and

SADC Protocol on Trade

• Together with the DTI - Facilitate and monitor the implementation of both SACU and SADC

Agreements

• The Desk also facilitate the implementation of RSA BNC with various African countries

Overview SADC Protocol on Overview SADC Protocol on TradeTrade

Overview SADC Protocol on Overview SADC Protocol on TradeTrade

• Regional Free Trade Arrangement between 14 Member States ( Exc – Angola and DRC.)

• Free Trade Agreement = Protocol on Trade signed in 1996 and effected in 2000:

• Objective: Liberalize and promote intra-SADC trade. 85% total trade free of tariffs by

2008

• How? Pillars of trade liberalization as provided in the Protocol:

- Tariff phase down - Identification and removal of NTBs to

Trade- Simple and trade facilitative Rules of

Origin

Tariff Phase Down ProcessTariff Phase Down ProcessTariff Phase Down ProcessTariff Phase Down Process

• Member States submit a Tariff Phase Down Offer

• Offer – Instrument of implementing the Protocol and gazetted on annual basis (Moz & Tanz)

• Offers are reciprocal and asymmetric

• Products are categorized (A, B, C and E) in terms of duration of tariff reductions

• Includes all but not Sugar – Agreement on Trade in Sugar ( 2001)

• The offer currently implemented by Mozambique..

Tariff Phase Down StatusTariff Phase Down StatusTariff Phase Down StatusTariff Phase Down Status

Member States

% of tariff lines free of customs duties

Date at which the % was achieved

SACU 99 January 2008

Zambia 95 January 2008

Mozambique

94 January 2008

Tanzania 91 January 2008

Mauritius 86 January 2008

Zimbabwe 86 January 2008

Madagascar

84 January 2008

Malawi 32 July 2007

Removal of NTBsRemoval of NTBsRemoval of NTBsRemoval of NTBs

• Any trade barriers other than tariff - Unharmonised quality and standard for

products- Export and import licensing or quotas- Unnecessary export and import bans

Most commonly affected agricultural products- Meat products (including chicken)- Dairy products and seasonal vegetables

• Article 6 of the SPoT – Elimination of all existing NTBs and refrain from imposing new ones

• NTB Identification and Elimination Mechanism recently adopted in July 2008

Benefits & OpportunitiesBenefits & Opportunities(SADC FTA)(SADC FTA)

Benefits & OpportunitiesBenefits & Opportunities(SADC FTA)(SADC FTA)

• The FTA afford RSA products preferential market access into the respective SADC members:

• FTA provides for elimination of all forms of trade barriers:

- Tariffs ( >85% of total trade is currently free)

- NTBs ( Elimination Mechanism already in place)

- TBTs ( Common technical regulation framework)

• Thus allows RSA products to access closed markets and thus achieving higher rates of economic growth

• Powerful tool in fostering regional integration and integration into world economy e.g. EU

Market Access RequirementsMarket Access RequirementsMarket Access RequirementsMarket Access Requirements

• Compliance with SADC Rules of Origin:- RoO specify conditions for products to

confer originating status- Ensure that only originating goods

enjoys tariff preferences- Goal - Encourage regional value addition

• Compliance with SPS Measures of the trading partner

- SPS Agreement adopted- Obligate Member States to accept

other’s SPS measures as equivalent to theirs.

- Basis for harmonizing Member State’s conflicting SPS measures

2727

THANK YOU

South Africa and European South Africa and European Union FTAUnion FTA

South Africa and European South Africa and European Union FTAUnion FTA

Presented by: Lillian Rantho

Europe Desk

2929

ContentContentContentContent

• Background

• Overview of the Agreements

• Specific benefits and opportunities

• MFN Rates vs Preferential Rates

• Market Access Requirements

• Contact Details

3030


European Union (EU) is the main trading partner of South Africa – 50% of SA agricultural was exported to EU in 2007

EU consists of 27 Member States - Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Romania and Bulgaria

South Africa access EU markets through the scheme called Generalized System of Preferences and Trade, Development and Cooperation Agreement

Generalized System of Preferences is scheme whereby EU extend unilateral special treatment to developing countries (SA included)

TDCA – free trade agreement between South Africa and EU

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Overview of the TDCAOverview of the TDCAOverview of the TDCAOverview of the TDCA

TDCA was signed in 1999 and entered into force in 2000

Liberalization period - Immediate liberalization and transitional liberalization over 10 years by the European Union and 12 years by South Africa

70% of SA agricultural trade duty free after 12 years.

EU will liberalise 61% of agricultural imports from SA (72 if partial liberalization quotas are included).

Agricultural Safeguard Clause

Co-operation in Agriculture

TDCA – subject to review no later five years after entry into force

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Specific benefits and opportunities - liberalization Specific benefits and opportunities - liberalization schedule of EU (Annex IV)schedule of EU (Annex IV)Specific benefits and opportunities - liberalization Specific benefits and opportunities - liberalization schedule of EU (Annex IV)schedule of EU (Annex IV)

List 0 Immediate elimination of duties upon implementation (1 January 2000)

List 1 Elimination over 3 years in 4 equal steps, reaching zero duty on 1 January 2003

List 2 Elimination over 10 years, in 11 equal steps, reaching zero on 1 January 2010

List 3 Elimination between years 3 and 10, in 8 equal steps, reaching zero on 1 January 2010

List 4 Elimination between years 5 and 10, in 6 equal steps reaching zero on 1 January 2010

List 5 Processed agricultural products - fixed preferences. Consists of industrial and agricultural

component

List 6 Tariff quotas offering fixed preferences for certain volumes

List 7 Reserve list (products considered sensitive) - Excluded from liberalization subject to

periodic reviews.

List 8 Omission list- Protected EU denominations (products related to Geographical Indications

and designation of origin of agricultural products)

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Specific benefits and opportunities cont’dSpecific benefits and opportunities cont’dSpecific benefits and opportunities cont’dSpecific benefits and opportunities cont’d

Lists Some of the agricultural products covered in specific lists:

List 1 Onions (HS 0703), Margarine (HS 1517) etc.

List 2 Sunflower seed (Hs 1512), Fresh or chilled potatoes (Hs 0701) etc.

List 3 Cabbages (Hs 0704), Onions (Hs 0703), Lettuce (Hs 0705) etc.

List 4 Grapes, apricots, cherries, wheat, meat of sheep or goats, meat of swine etc.

List 5 Processed Agricultural products – buttermilk (HS 0403), chocolate (HS 1806), bread

(HS 1905), etc.

List 6 Products are subject to tariff quota’s : cheese and curd, cut flowers, canned pears,

apricots and peaches, fruit juices and wine

List 7 Live bovine (HS 010290), meat of bovine (HS 0201), rice (HS 1006), maize etc.

List 8 Cheese and curd, wine of fresh grapes and undenatured ethyl alcohol

3434

Trade flows of top 5 SA agricultural exports to EUTrade flows of top 5 SA agricultural exports to EUTrade flows of top 5 SA agricultural exports to EUTrade flows of top 5 SA agricultural exports to EU

ProductCode (HS8) Description

Export values 2006 (R’ million)

22042140 Unfortified wine - in containers of 2 litres or less 2,040.25

08061000 Fresh grapes 1,412.30

08051000 Fresh oranges 781.07

22042940Unfortified wine - other than in containers of 2 litres or less 617.14

08081000 Fresh apples 603.64

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MFN Rates vs Preferential RatesMFN Rates vs Preferential RatesMFN Rates vs Preferential RatesMFN Rates vs Preferential Rates

Product code Description MFN duties GSP duties TDCA rates

0805 Citrus fruits

08051020 Fresh sweet oranges 3.20% 0%

080520

Clementines, Monreales and satsumas, Mandarins and wilkings, Tangerines, Other 16.00% 12.50% 3.50%

070110 Potatoes - seed 4.50% 0% 0%

07049010 White and red cabbages12.00 % MIN 0.40 EUR / 100 kg 8.50% 2.60%

07051100 Cabbage lettuce (head lettuce)12.00 % MIN 2.00 EUR / 100 kg/br 8.50% 2.60%

070320 Onions and shallots9.60 % + 120.00 EUR / 100 kg 0%

140420 Cotton linters 0% 0%

120720 Cotton seed 0% 0%

120600Sunflower seeds, whether or not broken 0% 0%

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Market Access RequirementsMarket Access RequirementsMarket Access RequirementsMarket Access Requirements

Prerequisites to access preferential treatment -

Comply with Rules of Origin as stipulated in a Protocol to TDCA to qualify for preferential rates:

• The EUR 1 form must accompany each consignment in order to qualify for TDCA preferences. EUR 1 is obtainable from the applicant’s local South African Revenue Services: Customs and Excise offices.

Comply with Sanitary and Phytosanitary measures and technical standards at the European Union – DoA Directorates: Veterinary Services and Plant Health

Procedures for the application, administration and allocation of export permits for quotas: details to be covered by Directorate Marketing

Full agreement is available online: www.sars.gov.za and follow the links: - Customs and Excise; Trade; Trade agreements

3737

THANK YOU

SACU-EFTA AGREEMENTSACU-EFTA AGREEMENTSACU-EFTA AGREEMENTSACU-EFTA AGREEMENT

Presented by: Xolani Nqaba

3939


Association (EFTA): intergovernmental organisations set up for the promotion of free trade and economic integration.

The old EFTA grouping of 1960 has undergone several changes and the new EFTA of 1995 as we know it today has a membership of Iceland, Norway, Liechtenstein and Switzerland.

EFTA is an important trading partner of SACU.

Although EFTA countries are small, they are world leaders in several sectors vital to the global economy. They rank among the countries with the highest GDP per capita in the world. They are developed countries and are major net-importers of agricultural products.

In addition to intra-EFTA free trade, EFTA has negotiated free trade agreements with third countries including with SACU.

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Overview of the AgreementOverview of the AgreementOverview of the AgreementOverview of the Agreement

Free trade negotiations between EFTA and SACU were launched in 2003.

The Free Trade Agreement (FTA) was signed in June 2006 and entered into force on 1 May 2008.

The agreement will be phased-in over a period of nine years.

The Main Agreement consists of seven Chapters with a total of 44 Articles and 8 Annexes. Chapters are as follows:

♦ General Provisions

♦ Trade in Goods

♦ Intellectual Property

♦ Services, Investment, Public Procurement

♦ Economic co-operation and technical assistance

♦ Institutional and Procedural Provisions

♦ Final Provisions

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Overview of the Agreement Cont…Overview of the Agreement Cont…Overview of the Agreement Cont…Overview of the Agreement Cont…

Trade in Goods

Coverage on trade in goods: - Industrial products, Fish and other marine products, Processed agricultural products, and Basic agricultural products .

Processed agricultural products are included in the main agreement (as Annex III) which also covers trade in industrial products including fish and other marine products.

Trade in basic/primary agricultural products is covered in separate bilateral agreements between individual EFTA countries and SACU.

Lists of products for which the partner countries grant concessions to one another are found in the annexes of the agreements.

4242

Specific benefits and opportunitiesSpecific benefits and opportunitiesSpecific benefits and opportunitiesSpecific benefits and opportunities

In terms of the main agreement SACU will enjoy immediate duty-free access into EFTA markets for all products covered by this agreement, with the exception of processed agricultural products. SACU shall progressively reduce its customs duties on imports from EFTA (Annexes IV and VII).

In terms of the bilateral agricultural agreement with Switzerland, SACU exporters will have a better market access for canned oranges, mandarins and apricots. They will also face duty free access for canned peaches, grapefruit and lemons. Cider apples and apples for distilling will be duty free within the limits of Switzerland’s World Trade Organisation (WTO) market access quota. There are other products that will benefit as well.

SACU exporters will face duty free access to Norway for canned fruit: - Pineapples (HS code 2009.20), Pears (HS 2008.40), Apricots (HS 2008.50), Peaches (HS 2008.50) and Mixtures entirely containing fruits of heading 0803 – 0810. There are other products included in this agreement that will also benefit.

4343

Specific benefits and opportunities Cont…Specific benefits and opportunities Cont…Specific benefits and opportunities Cont…Specific benefits and opportunities Cont…

In terms of the SACU-Iceland bilateral agreement, SACU secured duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples.

Parties undertook to achieve further liberalisation through a review clause in all the three bilateral agreements with SACU with the first review taking place no later than three years after the implementation of the agreements.

Further reviews are to be determined at the first review.

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Bilateral trade flows between SA and EFTA StatesBilateral trade flows between SA and EFTA States

SwitzerlandSwitzerland



Product code Description South Africa’s Exports to Switzerland

2006 (R’000) 2007 (R’000)

20 Vegetable, fruit, nut,

etc food preps

66 807.95 84 917.49

22 Beverages, spirits

and vinegar

57 549.37 47 654.90

08 Edible fruit, nuts,

peel of citrus fruit,

melons

76 656.51 59 671.94

02 Meat and edible

meat offal

68 665.03 57 866.68

07 Edible vegetables

and certain roots

and tubers

10 901.13 9 616.35

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NorwayNorway


NorwayNorway

Product code Description South Africa’s exports to Norway

2006 (R’000) 2007 (R’000)



melons

25 140.97 45 855.02


and vinegar

22 512.90 29 179.19


etc food preps

1 756.52 3 722.91

06 Live trees, plants,

bulbs, roots, cut

flowers etc

1 857.08 2 992.38

12 Oil seed, oleagic

fruits, grain, seed,

fruit, etc, nes

1 045.86 2 563.89

4646


IcelandIceland


IcelandIceland

Product code Description South Africa’s exports to Iceland

2006 (R’000) 2007 (R’000)


and vinegar

6 100.88 4 713.35


etc food preps

4 196.87 4 291.88



melons

181.02 2 275.89

09 Coffee, tea, mate

and spices

140.79 154.54

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MFN rates vs Preferential ratesMFN rates vs Preferential rates


MFN rates vs Preferential ratesMFN rates vs Preferential rates


Product code Description MFN

rates

SACU

rates

07020010 Tomatoes, fresh or chilled 1.24% Free

07041010 Cabbages, cauliflowers, kohlrabi, kale and

similar edible brassicas, fresh or chilled

6.68% Free

08051000 Citrus fruit, fresh or dried ; Oranges 6.68% Free

12060031 Sunflower seeds, whether or not broken:

For human consumption

0.13% Free

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MFN rates vs Preferential rates Cont…MFN rates vs Preferential rates Cont…

NorwayNorway


NorwayNorway

Product code Description MFN

rates

SACU

rates

07011000 Potatoes, fresh or chilled; Seed 53.92% 45.70%

07031012 Onions, shallots, garlic, leeks and other

alliaceous veges, fresh or chilled: Onions

16.14% 13.77%

08051010 Citrus fruit, fresh or dried: Oranges; For

feed purpose

42.94% 38.50%

12060010 Sunflower seeds, whether or not broken:

For feed purpose

87.54% 78.56%

4949


IcelandIceland


IcelandIceland

Product code Description MFN rates SACU

rates

070320 Onions, shallots, garlic, leeks and other

alliaceous veges, fresh or chilled: Garlic

30.00% Free

08 Edible fruit and nuts; peel of citrus fruit or

melons

0.00% Free

110812 Products of the milling industry; malt;

starches; inulin; wheat gluten: Maize

0.00% Free

1701 Sugars and sugar confectionery: Cane

or beet sugar and chemically pure

sucrose, in solid form

0.00% Free

5050

Market Access Requirements/ProceduresMarket Access Requirements/ProceduresMarket Access Requirements/ProceduresMarket Access Requirements/Procedures

Compliance with:

Rules of Origin (RoO)

Sanitary and Phytosanitary (SPS) measures, etc

The administration of export permits for quotas is handled by Directorate Marketing.

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SACU and EFTA: these are intergovernmental organisations set up for the promotion of free trade and economic integration to the benefit of its member states.

The old EFTA grouping of 1960 has undergone several changes and the new EFTA of 1995 as we know it today has a membership of Iceland, Norway, Liechtenstein and Switzerland.

Although EFTA countries are small, they are world leaders in several sectors vital to the global economy. They rank among the countries with the highest GDP per capita in the world. They are developed countries and are major net-importers of agricultural products.

SACU is an important trading partner of the EFTA States. (how much trade takes place?)

In addition to intra-EFTA free trade, EFTA has negotiated free trade agreements with third countries including with SACU.

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ALL ENQUIRIES RELATED TO D:ITRALL ENQUIRIES RELATED TO D:ITRALL ENQUIRIES RELATED TO D:ITRALL ENQUIRIES RELATED TO D:ITR

Directorate: International Trade

Tel: 012 319 8452

Fax: 012 319 8001

E-mail: [email protected]

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CONTACT DETAILS EUROPE DESKCONTACT DETAILS EUROPE DESKCONTACT DETAILS EUROPE DESKCONTACT DETAILS EUROPE DESK

Ms J Letswalo: 012 319 8007, [email protected]

Ms L Rantho: 012 319 8024, [email protected]

Mr Xolani Nqaba: 012 394 8020,[email protected]

CONTACT DETAILS AFRICA DESKCONTACT DETAILS AFRICA DESK CONTACT DETAILS AFRICA DESKCONTACT DETAILS AFRICA DESK

• Tel No : 012 319 8026/7

• Fax No : 012 319 8001

• Email : [email protected]

For SACU-EFTA FTA visit:

www.sars.gov.za and follow the links: -Customs and Excise; Trade; Trade

Agreements

5555

THANK YOU

TOOLS FOR MARKET ANALYSIS Presented by: Jacobus Verster Trade Research Desk.

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Transcript of TOOLS FOR MARKET ANALYSIS Presented by: Jacobus Verster Trade Research Desk.