Jo-Maré Duddy
29 June 2009
NAMIBIA has a revenue ace up its sleeve and therefore won't be pressurised into signing an interim economic partnership agreement (EPA) with the European Union (EU) at the expense of regional integration and unity within the Southern African Customs Union (Sacu), Trade and Industry Minister Hage Geingob said.
In his fiercest attack yet on the credibility of the trade deal, Geingob at the annual gala dinner of the Namibian Chamber of Commerce and Industry (NCCI) Saturday night promised the business community: "I won't sell you out."
The Minister diverted from his prepared keynote address to calm businesspeople's concerns that Namibia's struggle to get the European Commission (EC) to put negotiated concessions on food security, infant industry protection, export taxes and free goods flow in writing before signing the interim EPA will cost the private sector dearly.
"I hear business is worried that Hage being stubborn will get them into trouble," Geingob started off.
"Don't worry, relax. We are seasoned negotiators and we are seasoned politicians," the Minister said.
Namibia, together with South Africa and Angola (ANSA), are the only countries in the SADC-EPA configuration that still haven't signed the interim EPA with the EC. This agreement is crucial to ensure that Namibian beef, fish and table grapes continue to have access to EU markets.
"Namibians aren't stupid; we know that," Geingob said.
In ANSA, Namibia "will suffer the most, if there is anything to suffer" if they don't sign.
Angola enjoys trade benefits because of its status as a Least Developed Country (LDC), and South Africa has its own trade agreement with the EU.
Namibia has nothing like that.
It does, however, have the Walvis Bay Corridor - a vast network of transport corridors stretching into South Africa, Botswana, Angola, Zambia and the Democratic Republic of the Congo (DRC), geared to become the trade backbone of the region.
"The revenue we'll get from the Walvis Bay Corridor will surpass that of the EPA."
Regional integration stands central in the success of the corridor as a trade booster.
"Whatever we do, we must not undermine regional integration," Geingob said.
The perceived threat to regional integration and Sacu, as addressed through the Most Favoured Nation and the Definition of Parties clauses in the interim EPA, remains at the core of the deadlock between Namibia and the EC.
Revenue from the Sacu pool, which runs into billions every year, is very important to Namibia, Geingob said. Sacu is also the oldest customs union in the world and will be the building block for the envisaged customs union of the Southern African Development Community (SADC).
Geingob said he doubts if there is going to be a final EPA. Once Namibia has signed the interim EPA, that will probably be it, he believes.
"A soccer game consists of two halves. You can't just stop playing at half time.
I want the second half. I want the whole game and then I'll sign," Geingob said.
Reassuring the business community that his strategy won't sell them short, the Minister reminded them that Government's plan to target EU beef markets after Independence was met reluctantly by the private sector too, who believed the South African on hoof-market was more lucrative.
Now Namibia bends over backwards, from abattoir requirements to red-line restrictions, "because they don't want to lose the lucrative market for fillet," Geingob said, flaunting his French skills to great amusement of the guests.
As he has done numerously over the past weeks, Geingob stressed that Namibia is keen to formalise a trade agreement with the EC. Under applause from audience, he emphasised that Namibia demands to be treated equally as a partner, and that the EC must be transparent, accountable and act in good faith.
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