Preferential Markets

sugar

Swazi sugar is sold in four markets – the domestic (SACU) market, the EU, the US and the regional markets. Sugar sold in SACU is protected by the common external tariff within the customs union. Market access to the EU is accorded through the SADC-EU Economic Partnership Agreement, which offers duty free quota free access for Swazi sugar into the EU market. The volumes of sugar sold to the US are through a tariff rate quota (TRQ) under the Generalised System of Preferences, a system which promotes economic development by eliminating duties on a wide range of products from selected 120 beneficiary countries.

With the abolishing of beet quotas in the EU which will be accompanied by reduced demand for imported sugar there, the marketing orientation for SSA has moved to exploring more markets within the region, rather than treat it as residual market. Preferences are being sought within the SADC and COMESA regions, and within the Tripartite Free Trade Agreement (TFTA) and Continental Free Trade Area (CFTA) in the future.