Improved merchandise trade opportunities: The EPA guarantees access to the EU market without tariffs or quotas for Botswana, Lesotho, Mozambique, Namibia and Eswatini. South Africa enjoys new market access under the EU-South Africa Trade, Development and Cooperation Agreement (TDCA), which currently governs trade relations with the EU until October 2016 (when the EPA came into force on an interim basis, which lifted the trade component of the TDCA). The new access includes better trading conditions, particularly in agriculture and fishing, including wine, sugar, fish products, flowers and fruit preserves. The EU will benefit from new valid access to the southern African customs union (whose products include wheat, barley, cheese, meat products and butter) and will have the security of a bilateral agreement with Mozambique, one of the region`s LDCs. Although THE SA has not been able to completely eliminate EU export subsidies, there have been some important advances. Firstly, the EU has committed not to pay export refunds for cheese exported to South Africa under the 5,000-tonne tariff quota. Secondly, the EU is ready to abolish export refunds for products that South Africa wishes to offer in advance during the transposition period. Restitutions will be abolished altogether after the start of tariff liberalization. This is an important aspect of the agreement, as most EU derivatives will not be competitive in the internal market in the absence of refunds. South Africa will rise to this challenge.
If the EU does not want or fails to eliminate export refunds, South Africa can simply withdraw its pre-charge offer. 5. As soon as the agreement comes into force, the EU will provide a duty-free tariff quota for wines for the current level of trade of 32 million litres of South African exports to the EU, given the future growth of this quota. Although the EU`s Common Agricultural Policy (CAP) remains a concern, the agreement provides for consultations (with regard to agricultural policy) and compensatory adjustments for changes that could affect the balance of concessions. The agricultural policy is supplemented by a safeguard clause for agriculture, which gives its SA the right to challenge the EU if it is shown that the increase in imports of agricultural products harms or risks harming domestic industry.