Sacu takes united stand on EPAs

THE Southern African Customs Union (Sacu) has decided to stay optimistic and tackle the unresolved issues in the economic partnership agreement (EPA) with the European Union (EU) as a team to try and overcome the obstacles preventing Namibia and South Africa from signing even an interim pact with the bloc.

The EPA has been singled out as a priority and the Sacu Council has requested the Sacu Commission, under chairmanship of Finance Permanent Secretary Calle Schlettwein, to come up with a strategy and timelines regarding the controversial trade pact.Finance Minister Saara Kuugongelwa-Amadhila, currently the chairman of the Sacu Council, yesterday said the customs union decided to deal with the EPA issue ‘following the principle of unified engagement amongst Sacu members states in trade negotiations with third parties, including in the SADC-EC interim EPA and EPA negotiations, while recognising different levels of development and capacity of member states.’In layman’s terms, this means that Sacu as a group sees the outstanding issues as issues of concern, realising that signing the final EPA without resolving it will be detrimental to development, the Minister said a press conference.Sacu members Botswana, Lesotho and Swaziland have already signed the interim EPA, but South Africa and Namibia are still refusing. Namibia has repeatedly stressed its commitment to conclude the trade agreement, but is demanding that the EU first puts negotiated concessions on food security, infant industry protecting and free flow of goods in writing. Important issues like the Most Favoured Nation clause (MFN) and the Definition of Parties (DoP), which will directly impact on South-South trade and regional integration, also remain huge stumbling blocks.An EPA with the EU will ensure that Namibia enjoys quota- and tariff-free access to EU markets.Kuugongelwa-Amadhila said Sacu is pursuing the matter with an ‘open mind’, as the EU has not indicated that they aren’t willing to negotiate on the outstanding issues.However, she didn’t want to speculate on a date that Namibia would be willing to sign the interim EPA.'(The Sacu) Council agreed to redouble their collective efforts to resolve the outstanding issues in the interim EPA and EPA negotiations,’ she said, referring to the Special Sacu Council of Ministers Meeting in Swaziland two weeks ago.Kuugongelwa-Amadhila said the Sacu Council emphasised a need for a common trade strategy and trade negotiation agenda and agreement on the content of negotiations the customs union is prepared to enter into, taking into account the capacity of member states. They also stressed the need to finalise a common negotiating mechanism.’Council recognised the changing trading landscape and the importance of developing a common strategy on new generation issues, such as services, investment and intellectual property rights in trade agreements,’ she said.As whether the status quo will result in tighter border controls and higher tariffs by Namibia and South Africa to stop cheaper EU imports from flooding their markets via Botswana, Swaziland and Lesotho, the Minister said Sacu is taking the ‘optimistic approach’ and will therefore stick to the common external tariff.Any other steps will be ‘defeatist’ and a ‘fall-back’, she said.jo-mare@namibian.com.na