CHALLENGES FACING SACU IN

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CHALLENGES FACING SACU IN PREPARATION FOR THE
NEXT ROUND OF NEGOTIATIONS
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BACKGROUND

• 1.1 The new SACU Agreement
• Article 31 of the new SACU Agreement provides for
  the establishment of a Common Negotiating
  Mechanism.
• It further requires a Member State to obtain the
  consent of other Member States before negotiating
  and entering into new trade agreements.
• 1.2 SACU Trade Workshop in Namibia held in August
  2002 recognised the need for
• Developing common negotiating positions
• Identifying common areas of interest
• A SACU identity

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IMMEDIATE CHALLENGES

• Establishing a Common Negotiating Mechanism
• Agreeing on rules of engagement
• Building capacity around key negotiating areas
  such as Tariffs, Services and Safeguards
• Identifying common areas of interest
• Generating and sharing reliable trade data
• Ensuring that Trade Ministers (as opposed to
  Finance Ministers) take the lead in the
  negotiations
• Co-ordinating with foreign trade representatives
  of the SACU States
• Recognition of the various levels of development
  especially in relation to the protection of
  infant industries
• Trust and confidence amongst the Member States
• Scheduling of negotiations to suit SACU
• Prioritizing our negotiations with third parties.

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LONG-TERM CHALLENGES

• Although we have new entity, we also have
  challenges to face in order to develop the new
  SACU into a fully integrated regional bloc.
• The key challenges relate to
• Policy co-ordination across the Customs Area
• Economic growth
• Creating strong institutions
• Linking the region to the rest of the World
• Co-ordinating amongst ourselves as e interact
  with the rest of the SADC, Africa and the rest of
  the World.
• Elaborating on how the new SACU institution will
  function
• Creating an enabling environment at all levels
  for the effective implementation of the new
  Agreement.

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PROGRESS TO DATE WITH VARIOUS NEGOTIATIONS

• 4.1 SACU/US FTA
• Common Negotiating Mechanism established to
  immediately start work on the proposed FTA
• Work Programme for the FTA agreed upon
• TOR endorsed by the Ministers
• Respective Cabinets to be approached for approval
• 4.2 SACU/MERCOSUR FTA
• Framework Agreement is in place
• Exchange of information taking place
• Preparations to meet with MERCOSUR delegation
  on-going.

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OTHER NEGOTIATIONS

• 5.1 SACU and Europe (Cotonou Agreement, TDCA
  and EFT/EFTA
• 5.2 SACU and WTO
• 5.3 SACU and Southern Africa (SADC/COMESA) and
  the rest of Africa (AU/NEPAD)
• 5.4 The rest of the World

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PROGRESS TOWARDS IMPLEMENTING THE NEW AGREEMENT

• Selection of Windhoek as the host capital for the
  SACU Secretariat
• Preparatory work for the appointment of
  Executive Secretary
• Development of annexes on Dispute Settlement and
  Unfair Trade Practices
• ITAC Bill to establish a national body on the RSA
  side to work with SACU institutions.