The new 2002 sacu agreement the new agreement constituted a fundamental change. This report provides an indepth analysis of the legal provisions of the sacu agreement of 2002. But following a number of official meetings, the negotiations were deadlocked over a series of issues of concern to the sacu. This agreement on trade in agricultural goods hereinafter referred to as. Preferential trade agreement between the common market of the south mercosur and the southern african customs union sacu. This potential agreement would be subject to congressional approval. A brief history of the sacu agreement and the revenuesharing formula 37. It was subsequently renegotiated amongst the five member countries in the mid1990s which culminated in the signing of the new sacu agreement in october 2002.
The south african customs union sacu revenue sharing formula rsf has been revised substantively twice. Sacu fta bilateral negotiations were initiated in june 2003. The sacu agreement was then renegotiated and signed in 2002 and entered into force on 15 july 2004. The treaty section provides advice and assistance on treaty law, the depositary practice of the secretarygeneral, the registration of treaties, and the drafting of final clauses of multilateral treaties, either upon request or through its training seminars. Sacu southern african customs union sadc southern africa development community. Sacu agreement has undergone various renegotiations, with the most recent agreement of 2002 being even more comprehensive than earlier versions. Integrating africa through an fta between sacusadcminus and comesa speeding up the regional integration process think piece by helena mcleod dfid sa regional integration advisor12 executive summary africas share of world trade has fallen from 6% in. Establishing a legal basis for implementation of and cooperation in intelligence based risk management in sacu.
The new agreement democratizes relations between sa and botswana, lesotho, namibia and swaziland blns. Total downloads of all papers by gosego rockfall lekgowe. The training seminars organized by the treaty section at united nations. Trade agreement between southern african customs union sacu. Established in 1910, the sacu agreement was first renegotiated in 1969, following the independence of the high commission. Agreement between mercosur and southern african customs. This report will be updated as negotiations progress. Pdf the authors sought to find out whether the southern african customs union sacu possesses comparative advantage. Comparative advantage in the southern africa customs union. The sacu agreement of 2002 has a section which deals. United statessouthern african customs union sacu free trade. The customs component a each member states share of the customs component shall be calculated from the costinsurancefreight cif value at border posts of goods imported from all other member states into the area of each state as a percentage of the total cif value of intrasacu imports.
It provides for further harmonization of policies in a number of areas, including customs procedures, standards, technical regulations, sps measures, competition, and unfair trade practices, but alignment in these areas has not yet taken. International trade administration act, 2002 english text signed by the president. This paper evaluates a possible ussacu southern african customs union free trade agreement as part of a us approach to new preferential trade agreements characterized by the term competitive liberalization. See kirk and stern 2005 for an overview of the new agreement and. Trade agreement between southern african customs union. Botswana, lesotho, namibia, south africa and eswatini formerly swaziland. The revised sacu agreement provides for accession by new members. The southern african custom union sacu regional cooperation framework on. Implementation of the agreement commenced on the 1st may 2008. Free trade agreement between the efta states and the sacu states.
Namibia is a member of the southern african customs union sacu, which is the oldest customs union in. The southern african customs union2 sacu is considered to be the most stable, coherent and prominent economic grouping in africa and has undertaken significant liberalisation commitments vis avis the eu. South africa was a signatory member of sacu, which was the worlds. The author concludes that article 181, 182, 251, 261 of the sacu agreement are inconsistent with article xxiv requirements. The 2010 southern african customs union sacu vision and mission sets out a clear mandate that supports regional integration, values the role of development in the region, and ultimately strives to. The negotiations with efta commenced prior to the 2002 sacu agreement and the free trade agreement fta was signed on 1st of july 2006 on trade in goods. The core principles underpinning risk management in the region include. Apr 22, 2012 in 2007, sacu, the oldest customs union in the world, was notified to the wto in terms of article xxiv. The southern african customs union sacu is a customs union among five countries of southern africa. Other significant exports are products of hs chapters 28, 30, 31, 35 and 38. With the expiry of the last lome agreement ivbis imminent the ec proposed a new trade and development regime.
The namibian newspaper still telling it like it is. Efta comprises of norway, iceland, switzerland and liechtenstein, which are part of europe but outside the eu. Articles 40 and 41 of the sacu agreement among the five member states botswana, lesotho, namibia, south africa and swaziland. This paper gives an account of the scenarios developed, which range from sacu collapsing to a scenario where it deepens into a common market. You can download this page as a pdf using your browsers print functionality. This paper analyzes the potential economic effects of bilateral negotiations for an fta between the united states and the southern african customs union sacu. Apr 25, 2018 south africa was the dominant member with soledecision making power over customs and excise policies until the 2002 sacu agreement which created a permanent secretariat, a council of ministers headed by a minister from one of the member states on a rotational basis, a customs union commission, technical liaison committees, a sacu tribunal and.
Although not new, the idea of expanding sacu has gained currency in recent years. The unveiling of the new southern african customs union sacu agreement in 2002 inaugurated new democratic institutional structures for sacu. This paper evaluates a possible us sacu southern african customs union free trade agreement as part of a us approach to new preferential trade agreements characterized by the term competitive liberalization. This report provides an indepth analysis of the legal provisions of the sacu agreement of 2002 dealing with regional cooperation on competition policy and crossborder unfair trade practices. A group of southern african customs union sacu experts and interested parties recently participated in a scenarioplanning exercise on the future of sacu. There is established the southern african customs union hereinafter referred to as sacu. The authors sought to find out whether the southern african customs union sacu possesses comparative advantage. The new southern african customs union agreement request pdf.
Following the completion of the ratification process in all state parties, the preferential trade agreement between the mercosur and the southern african customs union sacu entered into force on april 1, 2016. Jul 27, 2018 pdf download english 717 kb gegafrica theme 3. Namibia is a member of the southern african customs union sacu, which is the oldest customs union in the world. The sacu agreement was renegotiated during the mid1990s and culminated in its signing on 21 october 2002. Southern african customs union sacu agreement of 2002 to. South africa was the dominant member with soledecision making power over customs and excise policies until the 2002 sacu agreement which created a permanent secretariat, a council of ministers headed by a minister from one of the member states on a rotational basis, a customs union commission, technical liaison committees, a sacu tribunal and. Southern african customs union issues agricultural trade forum. The most recent 2002 southern african customs union sacu agreement revised the customs and excise revenue sharing formula for sacu member states. Agricultural agreement between the sacu states and iceland efta. Comparative advantage in the southern africa customs union sacu. European free trade association sacuefta countries. Sacu shall be an international organization, and shall have legal personality with capacity and power to enter into contracts, acquire, own or.
Its headquarters are in the namibian capital, windhoek. Geg africa why does a sacu development fund matter. Copies of the acu handbook for 2019 can be downloaded here. The sacu agreement was renegotiated in 1969 when namibia gained independence from south africa and became a contracting party to the agreement. This is the idea that competition among large countries useu to negotiate preferential arrangements with smaller countries or regions will lower. A new southern african customs union agreement the 2002 sacu agreement entered into force on 15 july 2004. The sections of the handbook can also be downloaded individually on the acu site. In 2002, in a new sacu agreement, commitments were made for increasing the participation of the blns botswana, lesotho, namiba and swaziland in sacu decisionmaking, d at the same time, the 2002 agreement implemented a new revenue sharing. Articles 40 and 41 of the sacu agreement among the five member states botswana, lesotho. Agreement shall apply, mutatis mutandis, to sacu and iceland. The history and character of the southern african customs union sacu make it a remarkable institution. The tariff structure that south africa and sacu inherited from the apartheid era was defective on at least five counts. Africa multilateral, department of trade and industry, briefed the committee on the annex on institutionalisation of the southern african customs union sacu summit.
In 2002, a reform of the sacu was concluded to even out some of the. Act to establish the international trade administration commission. The trade agreement between southern african customs union sacu and european free trade association efta, is a free trade agreement signed by both parties in 2006 in hofn, iceland and entered into force on 1 may 2008. South africa and the southern african customs union. South africa was a signatory member of the southern african customs union sacu, which was the worlds oldest customs union since 1910.
On 4 november 2002, the ustr, robert zoellick, sent a letter to the. Sacu secretariat, southern african customs union agreement 2002. Agreement between mercosur and southern african customs union. Amendments to institutionalise the sacu summit pdf, 1. The announcement was made official by uruguays ministry of foreign affairs. They found that south africa has comparative advantage in the production of 727. Integrating africa through an fta between sacu,sadcminus. The sacu agreement was then renegotiated and signed in 2002 and. He gave some background on the sacu, noting that it in fact predated 1910. Geg africa the suitability of a stabilisation fund for sacu. Objectives of the new agreement amazon web services. An analysis of a ussouthern african customs union sacu.
The southern african custom union sacu regional cooperation framework on competition policy and unfair trade practices a report prepared for unctad at the request of the sacu member states the report was prepared by. This agreement applies neither to the trade relations amongst the efta states, nor to the trade. Pdf comparative advantage in the southern africa customs. The sacu agreement dates back to 1910 when the then union of south africa and the socalled high commission territories of bechuanaland, basutoland and swaziland signed a customs union agreement. This had the effect not only of discouraging imports. It establishes a council of ministers as highest decisionmaking body where decisions taken by consensus. Southern african customs union issues agricultural trade. The headquarters of sacu shall be in windhoek in the republic of namibia. Smallscale farmers crumble under lockdown news national 20200416. Southern african customs union issues agricultural. In 2007, sacu, the oldest customs union in the world, was notified to the wto in terms of article xxiv. It is the oldest customs union in the world and the most stable, coherent and significant economic grouping on the african continent. This was to form an addendum to the sacu agreement of 2002. Epa negotiations started in 2002 on an allacp level.
James mathis department of international law university of amsterdam j. In the context of the epa negotiations with the eu, four of the. It provides for further harmonization of policies in a number of areas, including customs procedures, standards, technical regulations, sps measures, competition, and unfair trade practices, but alignment in these areas has not. The cotonou agreement, coming into force in 2000, envisaged the creation of reciprocal trade agreements between the eu and regional blocks of acp countries by establishing so.
First, reflecting the import substitution orientation of the government, it was extremely protectionist. The sacu agreement that is currently in place, was published in notice r. Sacu agreement between the governments of the republic of botswana, the kingdom of lesotho, the republic of namibia, the republic. Since this revision, some sacu member states have seen significant volatility in their receipt of revenues from the sacu revenue pool. After eight years of negotiations a new agreement was signed in october 2002.
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