Namibia set to sign EU trade pact

By: BRIGITTE WEIDLICH

NAMIBIA might sign the new interim trade deal with the European Union following intensive consultations on both sides over the past few days, The Namibian has reliably learnt.

The last-minute signing would allow a new economic agreement to

kick in by January 1, granting Namibia duty-free and quota-free

exports to the 27 EU member states.

Namibia refused to sign the interim Economic Partnership

Agreement (EPA) twice this month, arguing that several issues still

had to be discussed.

 

"We expect our Ambassador in Brussels to sign within 24 hours,"

a Government source indicated yesterday.

 

A press conference scheduled for yesterday by the Ministry of

Trade and Industry was cancelled at the last minute and President

Hifikepunye Pohamba is expected to make an announcement on the

trade deal by tomorrow.

 

Should a new trade agreement not be hammered out, Namibia will

lose its preferential tariffs for beef, fish and grape exports to

the EU, causing an estimated loss of income of N$500 million a

year.

 

President Pohamba on Tuesday said Namibia was not prepared to

sign the Interim EPA in its current form.

 

Speaking at the last Cabinet meeting of the year, he said: "The

new EPA would curtail our options as a sovereign nation to conduct

our economic and industrial policies.

 

These events demonstrate the volatility of international trade

and the risks to which our economies are exposed.

 

"We will continue to explore ways to find the best possible

arrangements that complement our national interests.

 

Signing an agreement that restricts our policy options is not in

our best interests as a nation," he told Cabinet Ministers.

 

"However, efforts will continue to engage the EU in order to

find an amicable solution.

 

In the meantime, relevant stakeholders from the public and

private sectors should work together to address the possible

negative economic impact flowing from this situation.

 

"Our farmers, especially beef producers, need to explore new

markets for their products because entry of Namibian meat into the

EU may no longer be economical, starting January 2008.

 

This situation presents a serious challenge to policymakers both

in the public and private sectors - as such, it requires collective

action."

 

The decision not to sign the agreement caused an outcry among

farmers.

 

"I have sleepless nights, because cattle prices will drop at

abattoirs by about N$1 000 per animal," a farmer told The Namibian

yesterday.

 

Namibia's largest beef exporter, Meatco, said it was difficult

to explore new markets because of drawn-out negotiations and strict

import measures in the USA, for instance.

 

"We have been in constant contact with US authorities for a long

time, but it might take another 18 or 24 months until the first

meat is shipped there," Meatco Board Chairman Arne Gressmann told

reporters last Friday.

 

Namibia refused to sign the interim Economic Partnership Agreement

(EPA) twice this month, arguing that several issues still had to be

discussed."We expect our Ambassador in Brussels to sign within 24

hours," a Government source indicated yesterday.A press conference

scheduled for yesterday by the Ministry of Trade and Industry was

cancelled at the last minute and President Hifikepunye Pohamba is

expected to make an announcement on the trade deal by

tomorrow.Should a new trade agreement not be hammered out, Namibia

will lose its preferential tariffs for beef, fish and grape exports

to the EU, causing an estimated loss of income of N$500 million a

year. President Pohamba on Tuesday said Namibia was not prepared to

sign the Interim EPA in its current form.Speaking at the last

Cabinet meeting of the year, he said: "The new EPA would curtail

our options as a sovereign nation to conduct our economic and

industrial policies.These events demonstrate the volatility of

international trade and the risks to which our economies are

exposed."We will continue to explore ways to find the best possible

arrangements that complement our national interests.Signing an

agreement that restricts our policy options is not in our best

interests as a nation," he told Cabinet Ministers."However, efforts

will continue to engage the EU in order to find an amicable

solution.In the meantime, relevant stakeholders from the public and

private sectors should work together to address the possible

negative economic impact flowing from this situation."Our farmers,

especially beef producers, need to explore new markets for their

products because entry of Namibian meat into the EU may no longer

be economical, starting January 2008.This situation presents a

serious challenge to policymakers both in the public and private

sectors - as such, it requires collective action."The decision not

to sign the agreement caused an outcry among farmers."I have

sleepless nights, because cattle prices will drop at abattoirs by

about N$1 000 per animal," a farmer told The Namibian

yesterday.Namibia's largest beef exporter, Meatco, said it was

difficult to explore new markets because of drawn-out negotiations

and strict import measures in the USA, for instance."We have been

in constant contact with US authorities for a long time, but it

might take another 18 or 24 months until the first meat is shipped

there," Meatco Board Chairman Arne Gressmann told reporters last

Friday.

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