The free trade agreement (FTA) between the Southern African Customs Union (Sacu) and the US was a signal about Africa's importance to America, US trade representative Robert Zoellick said in Cape Town yesterday.

Briefing the media after discussions with Trade and Industry Minister Alec Erwin, Zoellick said the US had wanted to finalise the agreement with Sacu as it was an important signal to Africa about its status in the eyes of the US.

Sacu consists of Botswana, Swaziland, Lesotho, Namibia and South Africa.

"It is important to emphasise that Africa is important to the future of the US".

He said that the agreement provided an opportunity for Africa to interact economically with the US.

"We wanted to do a free trade agreement with Sacu. It is important to signal to Africa that will be a chance for the continent to interact with the most dynamic economy in the world... that is the US," Zoellick said.

Erwin would not comment on the talks to be held in Windhoek next week except to say that the process was "going well".

"It is a very wide ranging agreement that will strengthen links with the US - which is our single biggest trading partner".

Zoellick said the US was committed to finalising the agreement.

"We are committed to this agreement we think it is important for Africa".

There were concerns expressed in Parliament last year that the US could use the trade pact to "bully" Sacu countries.

South Africa exported goods worth about R30-billion to the US in 2002, and that country accounts for some 10% of South Africa's total trade.

Negotiators from Sacu and the US held a first round of talks in Pretoria last June.

These dealt, mainly, with setting the landscape for further talks.

Members had agreed to divide the negotiations into two phases, with the first concentrating on market access issues, such as industrial and agricultural tariffs, rules of origin, customs procedures and trade remedies.

The second phase would deal with trade issues, including services, investment, intellectual property, government procurement, labour and environment.

The US first mooted a possible FTA with Sacu in February 2002, and the process started in January last year.

It is believed that the agreement would go beyond the trade opportunities generated by the US Africa Growth and Opportunity Act (Agoa).

The Agoa agreement allowed 38 sub-Saharan Africa countries to export about 6 100 products, including fibres, yarns, threads, fabrics, footwear, wine and motor vehicle components duty-free to the US until this year. – Sapa.