Concluding remarks by the Chairperson

This fourth joint Trade Policy Review of the Southern African Customs Union (SACU) countries has allowed us to better understand their trade and related policies and practices in their socio‑economic context. We are grateful for the active participation of the delegations headed respectively by Ms. Ontlametse B. Ward of Botswana, Deputy Permanent Secretary; Mrs. Mapulumo Mosisili, Principal Secretary, Kingdom of Lesotho; Mr. Gabriel P. Sinimbo, Permanent Secretary, Namibia; Ms. Niki Kruger, Chief Director of Trade Negotiations, South Africa; Mr Jinno L. Nkhambule, Principal Secretary, Kingdom of Swaziland; and the rest of the delegations from Botswana, the Kingdom of Lesotho, Namibia, South Africa, and the Kingdom of Swaziland. Let me also extend my gratitude to H.E. Mr. Mothusi Bruce Rabasha Palai, Ambassador of Botswana, H.E. Mr. Nkopane Raseeng Monyane, Ambassador of Lesotho; H.E. Mrs. Sabine Böhlke‑Möller, Ambassador of Namibia; and H.E. Mr. Xavier Karim, Ambassador of South Africa, and colleagues from the missions at Geneva.

On behalf of all delegations, I would also like to thank the discussant, H.E. Mr. Alberto Pedro D'Alotto, Ambassador and Permanent Representative of Argentina to the WTO, and Members of the TPRB for contributing to our fruitful exchange of views, as well as the SACU Secretariat for its assistance to its members during this Review process.

The five countries, i.e. Botswana, Lesotho, Namibia, South Africa, and Swaziland, were praised for their commitment to the multilateral trading system, and their active participation in the WTO. Botswana was particularly applauded by Members for having ratified the Amendment of the TRIPS Agreement on Public Health, as well as the Trade Facilitation Agreement (TFA), and for its timely notification of its category A commitments to the WTO. Members encouraged Lesotho, Namibia, South Africa, and Swaziland to follow suit.

Members took note of SACU states' regional trade agreements (RTAs), especially in the framework of SADC and the EPA with the EU, and some Members enquired about their actual implementation, as well as their concrete benefits for the SACU economies. The five countries were also encouraged to ensure that their RTAs are consistent with WTO provisions, and to comply with their notification obligations, particularly in the areas of SPS, TBT, and import licensing for the benefit of transparency and predictability.

Members noted that SACU's common trade regime has remained broadly unchanged since 2009; and that the areas so far harmonized are in general customs related, including tariffs, other border taxes, and trade remedies. They then invited SACU States to elaborate on current regional initiatives in the non-harmonized areas, and sought further information about the full implementation of the 2002 SACU Agreement and about the operationalization of all SACU institutions.

Some Members raised concerns regarding the declining Government revenue in some SACU countries, particularly those for which the Common Revenue Pool is very important. They requested further clarifications on SACU's plan to review its revenue sharing mechanism with the view to adjusting for important variations and volatility in the shares accruing to each State.

Noting that the SACU Common External Tariff (CET) is composed of ad valorem and non‑ad valorem rates, while SACU States have individually bound their tariffs at ad valorem rates only, Members enquired about their plans to ensure full compliance with their WTO commitments. Concerns were also expressed about the complexity of the SACU CET with high rates on selected products and about administration by South Africa of tariff quotas on a list of agricultural products. Some Members also raised questions on the relatively large number of anti-dumping measures taken by SACU during the review period.

A number of Members questioned the consistency of some import requirements imposed by South Africa on animal products with the WTO SPS Agreement. South Africa was also encouraged to expedite its technical evaluation process on imported electro-technical products, with the view to limiting administrative delays.  

The recent global economic crisis has negatively affected the economic performance of SACU countries in various degrees. Apart from South Africa, which has a large industrial base and serves as trade hub in the region, the SACU economies are narrow-based and highly vulnerable to external shocks. In this regard, Members encouraged them to further improve their business environment, by addressing issues such as unreliable energy supply in South Africa and Lesotho. Such reforms are expected to create an environment conducive to increased investments in sectors other than mining and to economic diversification. SACU States are also urged to address the high level of inequalities within and between their economies.

Members encouraged SACU States to sustainably exploit their large mineral resource endowment, and sought clarification about the mining policies implemented by each of the countries, in particular the administration of mining permits, assessment of their environmental dimensions, and about foreign participation.

Members appreciated the responses provided by the SACU States to most questions submitted during this meeting, and look forward to replies to outstanding questions within one month.

In conclusion, this Review has contributed to deepening our understanding of the regional, as well as national elements of the trade regimes of Botswana, Lesotho, Namibia, South Africa, and Swaziland. The substantial number of advance written questions and of interventions indicates the importance Members attach to SACU states' trade policies and practices. Members urged the five countries to pursue their trade liberalization reforms, to improve the implementation of their multilateral commitments on goods and services and their business environment with a view to enhancing transparency and predictability, and attracting investment. I invite all Members to support SACU States in their efforts to reform their trade regime and to address their supply-side constraints.