African Convergence
CTFA actively collaborates with the African Continent regulatory institutions to support the reduction of trade barriers. Through our contributions to international standards and stakeholder engagement with various regulators, we help position South African companies in line with both global and continental practices, enhancing their export readiness and strengthening their competitive edge.
Trade
CTFA engages with the Department of Trade, Industry and Competition regarding bi- and multilateral trade agreement negotiations when required, in parallel with National Economic Development and Labour Council deliberations. Trade agreement negotiations usually take place at the level of six-digit tariff code. Once respective country offers are received, CTFA analyses the proposals and engages with members to determine their positions. The two ends of the spectrum are protectionism and liberalism depending on the importance of a given or proposed tariff to industry’s further development. However, one must keep in mind that it remains a negotiation and there will be “winners” and “losers” when considering the entire tariff book and the country’s overall objectives and sectors deemed more important than others to the economy.
Increasing the contribution of exports by the sector remains an industry objective but competitiveness continues to be a constraint to accessing these markets.
Africa is increasingly becoming an important export market for the South African cosmetics industry, and this will be enhanced with the African Continental Free Trade Agreement that aims to liberalise 97% of tariff lines to be traded between countries on a 0% tariff basis.
Africa
CTFA engages directly with regulators of cosmetics in multiple African countries to ensure its participation in regulatory developments; build strong relationships; and be able to advise members on their queries, where possible. CTFA looks forward to the full operationalisation of the African Continental Free Trade Agreement and the lowering of non-tariff barriers to trade through harmonisation of regulatory requirements across Africa. CTFA is committed to constructive engagements in platforms such as the African Organisation for Standardisation to achieve these ends.