Mathabo Le Roux
1 December 2008
Johannesburg — BITTERNESS is rising in the Southern African Customs Union (Sacu) over SA's perceived hardline approach to its poorer neighbours in the region.
While Namibia is seen as politically aligned with SA, Botswana, Lesotho and Swaziland have been angered by SA's stance on an economic partnership agreement (EPA) being negotiated with the European Union (EU).
A consultant working in the region said SA's stance on the EPA had caused "untold damage" in the region.
"People in the region come back from negotiations with a lot of antagonism towards SA. There is much bitterness. There has to be a different approach in SA," Mark Bennett, a trade and industrial consultant, told a South African Institute of International Affairs conference on regional integration last week.
Citing the examples of SA's implementation of the quotas on Chinese clothing and fabric imports, the Motor Industry Development Programme (MIDP) review and SA's comprehensive review of the tariff book, Bennett said: "Sending other countries a fax saying that these are going to happen is not meaningful consultation."
Botswana, which is less dependent on funds from the customs revenue pool, has now started flexing its muscle against SA. Botswana Trade and Industry Minister Neo Moroka told reporters in Gaborone last week that SA could no longer be allowed to "behave like Big Brother in Sacu" and do as it wished.
A Botswana trade and industry official said Botswana has no intention of leaving the customs union of its own accord. However, that country would sign an interim EPA if the European Commission set a date, even if SA remained outside the talks, the official, who declined to be named, told Business Day last week: "The EU is honouring its commitments in terms of the interim EPA. It is only fair that we (the region) do the same."
Botswana is particularly irked by some of SA's objections, which are seen as serving SA's interests, not the region's.
Moroka cited SA's desire to maintain higher tariffs, saying Botswana, as a net importer of goods, would be punished by these: "We are just a small economy and what is beneficial to a huge manufacturing country like SA cannot be the same for us."
Botswana's chief trade negotiator, Motlhware Masisi, was scathing about SA's obstructive stance and has accused the region's powerhouse "of being selfish and not interested in the development of the region".
"SA had unfinished business with the EU when they were negotiating (the trade development and co-operation agreement -- TDCA). Now they want to use the region to advance their cause without regard to our demands," he said.
The best deal for Botswana would be one based on free market access, he said. The EPA would give all African countries, except SA, duty-free and quota-free access into the European market.
There is much anxiety in the region that SA may use divisions over the EPA to break up Sacu. Lesotho and Swaziland are especially vulnerable, as transfers from the customs revenue pool contribute 60%-70% of their economies. Namibia's economy is 32% reliant on the customs pool.
But Botswana, Namibia and Swaziland would also be exposed if the EPA is not implemented, as their trade with the EU would revert to the stricter Generalised System of Preferences (GSP).
This would see Namibia and Botswana lose preferential access to the EU market for strategic export products such as grapes and fruit, while Swaziland, a big sugar producer, would be left out of the European sugar arrangement. This means it would lose out on more attractive sugar prices in the EU market. These changes would come at a painful cost to the countries' economies.
Lesotho, as a least developed country, would qualify to trade with the EU under an " everything but arms" agreement . However, Lesotho is a major clothing manufacturer and trade commentators warned that favourable rules of origin, on which Lesotho is dependent for its clothing exports, would be stricter under an " everything but arms" agreement than under the EPA.
At the end of last year, SA refused to initial an interim EPA because of contentious issues in the text it said would encroach on its policy space. SA's trade and industry department is a strong advocate of industrial development through state intervention and wants trade policy to serve this goal.
Read comments. Write your own.
Copyright © 2008 Business Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
South Africa is a developed country with the exception of its hinterlands(but these areas far surpass its counterparts in all other African countries). South Africas Government is populated by : (a) Men and women of integrity(that one thing missing from its neighbors). (b) South Africas government has men and women of vision,honesty and accountability at the helm.Its sad but not surprising to read this article and understand that South Africas Neighbors are critising it.This is pure jealousy because of the stability of the country its good governance and the people are redefining its role on the world stage after defeating… [Read Full Text]
As a Zimbabwean l would like to assure you that we look up to SA in a lot of ways. SA is one of our life lines, our access to grocery, the port etc.
I agree that SA is a democracy and like most democracies they do not always get it right but with the right foundation there is so much room for growth.
SA has so many similarities to Zim. Like Zim on regaining independence you pledged harmony and forgiveness. Like Zim the minorities have most of the wealth. It is important that you learn from our mistakes and… [Read Full Text]
This cat, Fishperry, is an Uncle Tom, in my opinion. Obama finished his ilk in the USA: the Jesse Hustler Jacksons.
You maybe a 'black' American, whatever that means, but keep your silly political analysis to the problems of what I call African Americans, and you 'blacks' in the USA.
How about cleaning up the ghettoes of Southeast Washington, DC, Tommyboy? And, Katrina in the Big Easy; not to mention the South side of Chicago. And now onto the hinterland: Dixie.
You ain't got nada to teach Africans; creep back into a USA that, under… [Read Full Text]
The ANC's (read SACP) desire to move left in economic policy is already showing signs of alienating the country from its neighbours. But his is perhaps typical Mbeki style of governance, i.e. arrogant and not only taking a selfish stance in negotiations but deciding on things unilaterally. How empty is the meaning of NEPAD!