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Leaders reiterate commitment to common vision for Sacu

16th July 2010

By: Christy van der Merwe

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The leaders of Southern African Customs Union (Sacu) member states on Friday reiterated their commitment to a common negotiating position that would move forward on the vision of Sacu as an economic community with equitable and sustainable development.


Addressing delegates gathered at the closing of the Sacu summit in Pretoria, South African President Jacob Zuma stated that the discussions had helped member states to "forge a common understanding and renewed commitment" on the development of a strategic work programme for Sacu.

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"We want to make a collective approach on Sacu issues the core principle of our future deliberations," he added.


Sacu comprises South Africa, Namibia, Botswana, Lesotho and Swaziland and is celebrating its 100th year of existence in 2010.

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The challenges facing Sacu that were discussed at the summit included: the consolidation of Sacu through common policies and strategies; pursuit of deeper regional integration through common policy development and common institutions; and strengthening of Sacu's institutional capacity.


The common position within Sacu was something that leaders had agreed to earlier in 2010, and would ensure that there was no difference in tariffs or rules of origin between Sacu member states, particularly when negotiating with the European Union.


Department of Trade and Industry International Trade and Economic Development deputy director general Xavier Carim told Engineering News Online that Sacu delegations would be meeting with the European Commission in Brussels in the third week of July, in particular to discuss rules of origin and tariffs.


This meeting would be followed by another gathering after the European summer holidays, most likely in September, when unresolved legal provisions would be discussed.


The strategic work programme saw heads of State and governments issue Ministers with a directive to develop strategies to promote win-win solutions, to address the following highlighted challenges:


• Developing a Sacu trade and tariff policy, and trade strategy that supports industrialisation in Sacu;
• Developing deliberate initiatives to promote intra-Sacu trade;
• Following the principle of unified engagement amongst Sacu member states in trade negotiations with third parties, while recognising different levels of development and capacity of member states;
• Developing Sacu positions on new generation issues, taking into account ongoing negotiations;
• Consideration of the sharing of Sacu revenue;
• Investigating financing options for cross-border projects;
• Exploring the possibility of a review of the 2002 Sacu agreement;
• Defining a roadmap for moving towards an Economic Community and Monetary Union;
• Ensure that all work on industrial policy, agricultural policy, and competition policy, unfair trade practices, and other priority commitments in the Sacu agreement are being implemented;
• Positioning Sacu at the centre of the regional economic integration agenda;
• Developing the necessary policies and procedures to conclude the establishment of institutions; and
• Strengthening the capacity of the Sacu secretariat


In attendance at the summit along with Zuma were Finance Minister Pravin Gordhan, and Trade and Industry Minister Rob Davies, as well as Swaziland King Mswati III, Namibian President Hifikepunye Pohamba, Botswana President Ian Khama, and Lesotho Prime Minister Pakalitha Mosisili.

 

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