Sacu, US close to finalising FTA negotiations

CONSIDERABLE progress was made at the fourth round of meetings between the five countries of the Southern African Customs Union (Sacu) and the US on an historic free trade agreement (FTA) held at Walvis Bay over four days last week, the Chief Negotiator said.

Xavier Carim, who is also the Head of the South African delegation, said the first meeting to be held in Namibia had been very productive and had ensured that progress was on course to ensure an agreement was concluded and signed at the end of the year. The overall objective for Sacu, according to Carim, was to ensure the development of stable, predictable and long-term trade relationships with the US.”This is critical to improving quality of life and to promoting economic growth”.He said an important element for Sacu was to deepen regional integration.Florizella Liser, Assistant US Trade Representative for Africa, said at the opening of the meeting on Monday that the FTA would offer Sacu countries an excellent opportunity to lock in the access they have to the US market under AGOA, and to better position themselves to attract foreign investment.She said while AGOA was a unilateral, one-way agreement that allowed specified African countries to export their goods duty-free to the US, the FTA would be a two-way full trade agreement.”We would like to ensure permanent duty-free access for the five Sacu countries to the US, which is the largest single market in the world”.In her opening speech, Liser emphasised that, in order to maximise the value of the free trade agreement and ensure that it lives up to its full potential, “we are not simply negotiating market access, but working to create an infrastructure for opportunity that will bring prosperity and provide for our common economic future”.According to her, the infrastructure included services, investment and labour.Carim reported that the four-day meeting specifically looked at the development of a common approach to industrial tariffs, the negotiation of trade and services and negotiations and the development of a common text in a number of areas.The meeting further prepared for the fifth round set for early May in Maseru, Lesotho.New issues will be tabled during this round pertaining to government procurement, investments, labour, environment and intellectual property rights.Liser said at the media briefing yesterday that the FTA would be historic for her country since it would be the first with countries in Sub-Saharan Africa.The FTA was also an historic deal for Sacu as it was the first the union will have negotiated as a whole.According to Liser, Sacu will join a short list of countries with which the US has an FTA.These include Canada, Mexico, Israel, Jordan, five countries in Central America, Chile and Singapore.The five countries in Sacu are; Namibia, South Africa, Botswana, Lesotho and Swaziland.In terms of a new Sacu agreement concluded in 2002, Namibia will be the host of the Sacu Secretariat.Tswelopele Moremi, newly appointed Executive Secretary of Sacu, said the Secretariat was in the process of finalising legalities.The last round of talks and the conclusion of the FTA is scheduled for December in Washington, D.C.The overall objective for Sacu, according to Carim, was to ensure the development of stable, predictable and long-term trade relationships with the US. “This is critical to improving quality of life and to promoting economic growth”. He said an important element for Sacu was to deepen regional integration. Florizella Liser, Assistant US Trade Representative for Africa, said at the opening of the meeting on Monday that the FTA would offer Sacu countries an excellent opportunity to lock in the access they have to the US market under AGOA, and to better position themselves to attract foreign investment. She said while AGOA was a unilateral, one-way agreement that allowed specified African countries to export their goods duty-free to the US, the FTA would be a two-way full trade agreement. “We would like to ensure permanent duty-free access for the five Sacu countries to the US, which is the largest single market in the world”. In her opening speech, Liser emphasised that, in order to maximise the value of the free trade agreement and ensure that it lives up to its full potential, “we are not simply negotiating market access, but working to create an infrastructure for opportunity that will bring prosperity and provide for our common economic future”. According to her, the infrastructure included services, investment and labour. Carim reported that the four-day meeting specifically looked at the development of a common approach to industrial tariffs, the negotiation of trade and services and negotiations and the development of a common text in a number of areas. The meeting further prepared for the fifth round set for early May in Maseru, Lesotho. New issues will be tabled during this round pertaining to government procurement, investments, labour, environment and intellectual property rights. Liser said at the media briefing yesterday that the FTA would be historic for her country since it would be the first with countries in Sub-Saharan Africa. The FTA was also an historic deal for Sacu as it was the first the union will have negotiated as a whole. According to Liser, Sacu will join a short list of countries with which the US has an FTA. These include Canada, Mexico, Israel, Jordan, five countries in Central America, Chile and Singapore. The five countries in Sacu are; Namibia, South Africa, Botswana, Lesotho and Swaziland. In terms of a new Sacu agreement concluded in 2002, Namibia will be the host of the Sacu Secretariat. Tswelopele Moremi, newly appointed Executive Secretary of Sacu, said the Secretariat was in the process of finalising legalities. The last round of talks and the conclusion of the FTA is scheduled for December in Washington, D.C.