Addressing a media briefing after the third round of negotiations in Pretoria, Department of Trade and Industry chief negotiator Xavier Carim said the round gave both sides an opportunity to discuss the scope of issues that would constitute a final agreement.
At yesterday’s meeting, Sacu submitted negotiating texts on issues such as market access, cooperation on trade and services, paving the way for concrete discussions at future rounds.
Negotiations also started around phase two of a bilateral agreement, encompassing issues relating to intellectual property, investment and government procurement, which constitute the key elements of concluding a trade agreement.
“In general, the meeting was positive, but there are a number of points that still have to finalised,” Carim commented, conceding that there were no areas where there was “smooth sailing”.
He added that positive progress has also been made on agriculture, which has traditionally been a sticking point in trade talks between developing and developed countries.
Efta, comprised of four non-European Union countries, which do not have a common agricultural policy due to geographical diversity.
Efta chief negotiator Lars Erik Nordgaard suggested that the European trading bloc would aim to increase market access for Sacu agricultural products, but said details have yet to be worked out.
Two additional rounds of Sacu-Efta trade talks will be held this year, firstly in Norway, in June, with the next round scheduled for September, in the Sacu region. A final round will be held in November in Geneva. Both sides are confident of concluding a trade deal by the December deadline.
“There are still some outstanding issues, which are difficult, but we now have a clear understanding of what these are,” Carim explained.
He said that a convergent approach has been adopted, facilitated by similarities between Sacu and Efta economies. Both trading blocs comprise countries with small economies with common concerns.
Nordgaard indicated that trade between Efta and Sacu has been progressing well during the past few years, with a 61% increase of Sacu exports to Efta and a 27% increase conversely.
“We want to improve bilateral trade relations for both sides and we are confident that an agreement would do this. We have made better-than-expected progress in some areas,” he stated.
He said that innovative solutions are being sought for areas of difficulty. The Oslo round, Nordgaard said, would prove decisive in concluding the trade agreement.
Carim added that the next round would be crucial to finding trade text that both sides would agree on. Efta submitted its trade texts last year, following the start of the Sacu-Efta discussions in May 2003.
Future talks would also focus on specific offers from both sides and identifying which products would receive tariff concessions.
It is understood that Sacu has no harmonised trade policies, which will provide further areas of discussion and negotiation within the African bloc ahead of an agreement. Any bilateral trade agreement between Sacu and Efta would have to be Sacu-wide, Carim explained.
Commenting on South Africa’s policy of black economic empowerment and empowerment policies in other Sacu countries, Carim said it will be ensured that a trade agreement accommodates these policies.
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