WORLD TRADE  
ORGANIZATION  WT/REG256/3 
15 April 2010 
 (10-1924) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN THE EFTA STATES  
AND THE SACU STATES (GOODS) 
 
Questions and Replies
 
 
 
 The following communication, dated 12 April 2010,  is being circulated at the request of the 
delegations of the EFTA States and the SACU States.   This document reproduces the follow-up
 questions addressed to the Parties following the 
56th Session of the CRTA and the responses submitted. 
 
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Questions from the Delegation of the European Union  
1. EU would be interested to know the criteri a used by EFTA to integrate development 
aspects of BLNS into this agreement. In partic ular, the factual presentation refers to specific 
BLNS sensitivities;  could the Parties expl ain how these were taken into account in the 
agreement? 
 The EFTA-SACU FTA ta kes specific BNLS sensitivities into  account through Article 25 on 
“Special Treatment for Botswana, Namibia, Lesotho and Swaziland”, Chapter V on Economic 
Cooperation and Technical Assistance”, and there is also asymmetric dismantlement of tariffs.  
 
2. Article 7 of Annex VII provides for a review of preferences granted to products 
categorized as List 5 and 6 no later than five ye ars after the date of EIF of the Agreement.  The 
overall objective of this review is to improve market access conditions for these products, while 
also addressing cases of unsustainable liberaliz ation.  In reply to Question 2 of the 
Questions & Replies document (WT/REG256/2), the Parties have confirmed that this review already started in 2009.  
(a) In this regard, could the Parties give some  details of the objectives of this current 
review, and the scope of the envisaged greater liberalization?  
(b) Also, since this review allows also to the ro lling back of commitments, could the Parties 
clarify whether the review of unsustainable liberalization commitments applies only to the products categorized as List 5 and 6, or to a broader range of products? 
 As already indicated in our written respon se to the questions from the United States -
submitted ahead of the meeting (WT/REG256/2)- a nd more precisely to Question 1, Article 7 of 
Annex VII provides that only products categorized as  list 5 and 6 shall be reviewed, no later than five 
years after the entry into force of the Agreement.  WT/REG256/3 
Page 2  
 
   However, for agricultural products, the Parties have engaged in a review process, started in 
2009, and aimed at considering the possib ility of further trade liberalization. 
 
3. SACU States' liberalization schedule:  As indicated in paragraph 35 and Chart III.4, 
most of the lines liberalized between 2008 and 2013 are subject to rates of 10% or less, while the 
liberalization of lines subject to duties of up to 30 % will only take place in 2015.  The latter in 
fact represent the bulk of liberalization commitmen ts by SACU.  In this regard, could SACU 
give some details on the staging they intend to adopt to implement liberalization of those tariff 
lines with higher duties? 
 The details with respect to the different stag ing categories to implement tariff liberalization 
can be found in the FTA itself.  Annex VII of th e FTA outlines the different staging categories SACU 
applies to liberalize tariffs on industrial and pro cessed agricultural products, while Annex IV deals 
with fish and other marine products.  Basic ag ricultural products are covered by the bilateral 
agricultural agreements.  (a) In this regard, we would like to note that Chart III.4 does not provide the clarity needed 
to better understand the staging process of S ACU's liberalization commitments, and we 
suggest the Secretariat to use different typ es of charts which could provide clearer 
pictures.  
Response by the Secretariat
 
 
SACU's Liberalization Schedule (cumulative) 
 2008 2009 2010 2011 2012 2013 2015 Mfn 
Duty Free 3,615 3,615 3,615 3,615 3,615 3,615 3,615 3,615 
<=10 393 411 412 412 416 416 637 848 
<=20 79 81 81 90 90 91 702 1,240 
<=30 23 23 23 23 23 28 122 550 
<=40 0 0 0 0 0 0 0 207 
<=50 0 0 0 0 0 0 2 9 
> 50 0 0 0 0 0 0 0 1 
Specific 47 48 48 48 48 48 70 207 
Total 4,157 4,178 4,179 4,188 4,192 4,198 5,148 6,677 
 
(b) Table III.6 shows SACU's trade liberaliza tion commitments under the Agreement 
according to HS section. In order to more clearly understand the product exclusion list; 
could SACU enumerate the main products th at are not covered by this Agreement? If 
possible, by sector?  
 Table 1 and 2 of Annex VII provides SACU’s  trade liberalization commitments in this 
agreement.  The exclusion list includes a number of tariff lines, which are indicated according to 
HS description.  These details can also be found in the FTA itself.  It should be noted that there is no a priori exclusion of a particular sector in this Ag reement.  Some of the products that are excluded 
include egg albumin, worn clothing, worn headg ear, sweet corn, corn flour, chocolate and sugar 
confectionery containing cocoa, as well as other products. 
 
 As already indicated in the Q&R document (WT/REG256/2), Lists 5 and 6 shall be reviewed no later than five years after entry into force of the agreement.  This will be done with a view of 
improving access conditions of products originating in the EFTA States.  
 
    WT/REG256/3 
 Page 3 
 
 
  4. We note that the Agreement does not include any commitments by the Parties with 
respect to liberalization of trade in services;  the Parties intend to extend the scope of the 
Agreement with a view to further liberalizing tr ade in services.  Services liberalization, as well 
as an investment and government procur ement provisions will be discussed in the 
Joint Committee within five years after the en try into force of the Agreement, therefore, by 
2013.  
 Could SACU confirm whether by 2013 their Protocol on Services will be in place?  
 
 With respect to this question, the parties belie ve that this question actually falls beyond the 
scope of this review.  Nevertheless, we want to  point out that the 2002 SACU Agreement only covers 
trade in goods and does not make any reference or provi sion for liberalization of trade in service.  At 
this stage, there is no decision to extend the 2002 SACU Agreement to go beyond trade in goods.   
Relationship with other agreements concluded by the Parties
 
5. We would like to address the fact that so me agreements by SACU members have not yet 
been notified to WTO.  This is an issue that  was already raised during the consideration of 
SACU in this Committee in April 2009, and during SACU's TPR last December.  We have taken good note of the reply to Question 10 of the Q&R document (WT/REG/256/ 2) in this regard, 
and we thus look forward to the related notifications as soon as the national administrations give their green light.  In the case of th ose agreements, such as Botswana-Malawi and 
ZA-Mozambique-Zimbabwe-Malawi - which SACU notes that are old agreements which are in 
practice governed by the SADC Trade Protocol -  could the SACU members involved indicate 
whether those agreements are no  longer applicable and formally superseded by the SADC 
Trade Protocol?  
Botswana- Malawi Agreement
 
 
 As already indicated in the Q&R docum ent (WT/REG256/2), the Agreement between 
Botswana and Malawi is a relic of an old agreem ent that was signed in 1956.  In practice, trade 
between the two countries is governed by the SADC Trade Protocol and an assessment by the 
two parties on the need for the continuation of the Agreement will be undertaken in the context of the 
existence of the SADC Trade Protocol.  Botswana is  currently in the process of engaging Malawi with 
a view to consider this matter. 
 
South Africa-Mozambique-Zimbabwe-Malawi  
  Regarding the Agreements between South A frica and Mozambique, Zimbabwe and Malawi, 
respectively, these are old agreements and trade be tween South Africa and these countries is mainly 
governed by the SADC Trade Protocol, which has already been notified to the WTO. 
 
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