Trade Investment And Development Cooperative Agreement
The decision adopts the agreement on behalf of the EU. South Africa and the EU can take safeguards when an imported product is likely to cause serious harm to domestic industry. The agreement also allows South Africa to adopt temporary safeguards (for example. B an increase or reintroduction of tariffs). In addition, similar measures protect the economies of members of the Central African Customs Union and the outermost regions of the EU (such as Reunion). The Southern African Customs Union (SACU) in Botswana, Lesotho, Namibia, Swaziland and South Africa is the oldest customs union in the world. In 2010, SACU celebrates its 100th anniversary. Over the years, SACU has laid a solid foundation for free trade by promoting regional integration and launching a wide range of national economic reforms. SACU countries have seen the positive role that trade can play in promoting economic growth and development. The 2002 agreement provides for greater institutional equality between Member States and effectively distributes customs revenue within member states. Its three main political provisions are: the free movement of goods within the SACU; A common external tariff and a common pool of recipes. In addition, Botswana, Lesotho, Namibia and Swaziland (BLNS) will strengthen the institutional influence of decision-making through the creation of a Political Council. The agreement strengthens the existing customs union committee and creates a permanent secretariat based in Windhoek, Namibia.
The agreement renegotiated the formula for the payment of the pool of revenue, which represents a significant share of government revenues in the BLNS countries. BLNS payments were set under the old formula, but are variable under the new formula and are based on intra-SACU trading thought actions. Both formulas lead to a redistribution of sacu rights from South Africa to BLNS, but the new formula has its basis in a certain degree of economic activity. According to the latest estimates, SACU payments accounted for 49% of government revenues in Lesotho, 69% in Swaziland, 25% in Namibia, 12% in Botswana and 3% in South Africa in 2005.8 The agreements we sign today will open new chapters in our relations with SACU and EAC. These two organizations have a lot in common, but they are also separate and different. We will therefore honour each individual, starting with the South African customs union. The two sides are strengthening their economic cooperation in many sectors such as industry (to facilitate the restructuring of South African industry), the information society, the creation and development of small and medium-sized enterprises, transport and energy. Cooperation in this area should also support sustainable development in its economies and protect the environment.
SACU is the Second largest trading partner of the United States in Africa, after Nigeria, whose exports are almost exclusively petroleum products.