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WTO reviews six free trade agreements

25th April 2014

By: Callie Lombard

  

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On April 8, the World Trade Organisation (WTO) committee on regional trade agreements reviewed six regional trade agreements (RTAs) and the enlargement of the European Union (EU) to 28 member States following the accession of Croatia on July 1, 2013. The committee concluded the oral discussion on the RTAs, based on presentations by the WTO secretariat.

The six RTAs are the Chile-Malaysia free trade agreement, the Canada-Jordan free trade agreement, the Canada-Panama free trade agreement, the Korea-Turkey free trade agreement, the Central America- (Honduras, Nicaragua and Guatemala) Panama free trade agreement and the EU-Bosnia and Herzegovina free trade agreement.

With respect to the EU-Bosnia and Herzegovina free trade agreement, the RTA is part of the stabilisation and association agreement with Bosnia and Herzegovina, and relates to efforts towards EU accession. Speaking as a WTO observer, a Bosnia and Herzegovina representative said that the RTA promoted economic reforms that would help it in acceding to the EU and the WTO. It said that 60% of its trade was with the EU, and that the RTA provided for a five-year transition period for it to cut tariffs. A US representative said that the RTA showed a relatively low level of agricultural tariff cuts by Bosnia and Herzegovina.

The committee also reviewed the enlargement of the EU to 28 member States with the accession of Croatia. The EU, also on behalf of Croatia, said that the EU accession represented enormous efforts on the part of Croatia. It said that, as part of its EU accession, Croatia’s schedule of concessions in the WTO was withdrawn on July 4, 2013. Since then, the EU had been consulting with a number of members, including Argentina, Australia, Brazil and Uruguay, which had submitted claims for compensation. Uruguay confirmed that it had been meeting with the EU regarding its claim for compensation.
At the end of the meeting, the committee elected Uruguay’s Francisco Pirez Gordillo by acclamation as the new chairperson.

Cranberry Juice Rebate
On April 11, the South African Revenue Service (Sars) informed of the creation of a rebate item (provision) – 304.08/2009.81.10/01.08 – for Cran- berry juice, concentrated, not containing added sugar or other sweetening matter, of a Brix value exceeding 45, for use in the manufacture of mixtures of fruit juices of tariff subheading 2009.- 90.10. The extent of the rebate is for the full rate of customs duty and is effective from that day.

Coated Fine Paper Duty
Also on April 11, Sars informed of the increase in the ‘general’ rate of customs duty on coated fine paper from free of customs duty to 5% ad valorem, effective on that day. The increase relates to tariff subheadings 4810.13.20, 4810.13.90, 4810.14.10, 4810.14.90, 4810.19.90, and 4810.29.90.

Countervailing Duties Terminated
The termination of the countervailing (anti- subsidy) duties on stranded wire, ropes and cables, classifiable under tariff subheadings 7312.10.20, 7312.10.25, 7312.10.40 and 7312.10.90, originating in or imported from India were announced by Sars on April 11, which is effective retrospectively from February 12 up to and including February 13.

On the day the termination of the countervail- ing duty on stranded wire, ropes and cables, classifiable under tariff subheading 7312.10, originating in or imported from India were also announced with retrospective effect from February 12 up to and including February 13.
At present, no countervailing duties are in operation in South Africa and the Southern African Customs Union.

Dumping Duties Terminated
In accordance to the countervailing duties, the termination of antidumping duties on stranded wire with a diameter of less than 12.7 mm originating from the People’s Republic of China, stranded wire originating in or imported from the UK, Germany and South Korea, ropes and cables with a diameter of not more than 32 mm originating in or imported from the UK and Germany and ropes and cables originating in or imported from China and South Africa Korea was announced, with retrospective effect to February 14.

The termination of antidumping duties on stranded wire with a diameter of less than 12.7 mm originating from the China, stranded wire originating in or imported from the UK, Germany and South Korea, ropes and cables with a diameter of not more than 32 mm originating in or imported from the UK and Germany, and ropes and cables originating in or imported from China and South Korea was also announced, with retrospective effect from February 12 up to and including February 13

Herbs Vat
On March 27, Sars published a value-added tax (Vat) draft binding general ruling (DBGR) on the treatment of the supply and importation of herbs. Comment is due by May 31.

Fruit and Vegetables Vat
On March 19, Sars published a Vat DBGR on the treatment of the supply and importation of fruit and vegetables. Comment is due by May 15.

Vat on Imported Potatoes
A Vat DBGR on the treatment of the supply and importation of various types of frozen potato products was published by Sars on March 12. Comment is due by May 15.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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