New Sacu pact comes into force

THE Southern African Customs Union (Sacu) last week announced the entering into force of a new agreement, beginning last Thursday.

Some of the objects of the new Sacu agreement are to create effective, transparent and democratic institutions which will ensure equitable trade benefits to member states; to substantially increase investment opportunities in the Common Customs Area, to enhance the economic development diversification, industrialisation and competitiveness of member states; to promote the integration of member states into the global economy through enhanced trade and investment; to facilitate the development of common policies and strategies and to promote conditions of fair competition in the common customs area. According to a press release on the latest agreement, the main difference between this agreement and the previous ones is that it provides for joint exercise of responsibility on decisions affecting tariff settings, common revenue pool and direction of the organisation by member states, which are Namibia, South Africa, Lesotho, Swaziland and Botswana.Addressing a press conference at his offices in Windhoek last week, Prime Minister Theo-Ben Gurirab said the agreement had taken cognizance of required measures to safeguard the interests of smaller member states.”A major objective of the new agreement is to enhance economic development, diversification, industrialisation and competitiveness of member states.Although Sacu member states are at different levels of economic development, they face common challenges such as eradicating poverty, promoting sustainable economic growth and development as well as reducing high unemployment rates,” said Gurirab.At the same occasion, the Sacu executive secretary Tswelopele Cornelia Moremi who is based at the Sacu secretariat office in Windhoek said one of challenges of her office would be to develop common policies between the member states, adding that Sacu had already started free trade area negotiations with other regional trading blocs.The new agreement provides for Sacu to have a common trade negotiation mechanism with third parties, in order to promote trade and investment.Already Sacu has started Free Trade Area negotiations with several regional blocs including the United States and the European Free Trade Area.The coming into force of the new Sacu Agreement follows compliance by all member states with Articles 45 and 46 of the new agreement which provides for ratification, depository and entry into force of the agreement.The agreement was signed by the heads of state of the five member states on October 21 2002 after followed ratification by individual states.According to a press release on the latest agreement, the main difference between this agreement and the previous ones is that it provides for joint exercise of responsibility on decisions affecting tariff settings, common revenue pool and direction of the organisation by member states, which are Namibia, South Africa, Lesotho, Swaziland and Botswana.Addressing a press conference at his offices in Windhoek last week, Prime Minister Theo-Ben Gurirab said the agreement had taken cognizance of required measures to safeguard the interests of smaller member states.”A major objective of the new agreement is to enhance economic development, diversification, industrialisation and competitiveness of member states.Although Sacu member states are at different levels of economic development, they face common challenges such as eradicating poverty, promoting sustainable economic growth and development as well as reducing high unemployment rates,” said Gurirab.At the same occasion, the Sacu executive secretary Tswelopele Cornelia Moremi who is based at the Sacu secretariat office in Windhoek said one of challenges of her office would be to develop common policies between the member states, adding that Sacu had already started free trade area negotiations with other regional trading blocs.The new agreement provides for Sacu to have a common trade negotiation mechanism with third parties, in order to promote trade and investment.Already Sacu has started Free Trade Area negotiations with several regional blocs including the United States and the European Free Trade Area.The coming into force of the new Sacu Agreement follows compliance by all member states with Articles 45 and 46 of the new agreement which provides for ratification, depository and entry into force of the agreement.The agreement was signed by the heads of state of the five member states on October 21 2002 after followed ratification by individual states.