Namibia set to sign EU trade pact

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.