30 May 2016

The European Union (EU) and the Southern African Development Community (SADC) will sign for the operationalisation of Phase One of the two Parties Economic Partnership Agreement (EPA) in Kasane on the June 10.

According to a press release from the Ministry of Investment, Trade and Industry, signing on behalf of behalf of the EU at this historical event will be the EU trade commissioner, Ms Cecilia Malstroom while the six SADC EPA states, being Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland will be represented by their ministers responsible for trade.

The release says the EU-SADC EPA will, among many other things be expected to usher in a stable and reciprocal, but nevertheless asymmetrical trading relationship between the two trading blocks.

“But exports, just as of other SADC EPA States will also be able to access the EU market Duty Free Quota Free (DFQF), exporting as much of her industrial and agricultural products to the EU market as possible” states the release.

It further says Botswana together with other SADC EPA States, restored safeguard safety-net for BLNS (Botswana, Lesotho, Namibia, and Swaziland) sensitive products.

It explains that these products, had previously been liberalised and reduced to Zero tariffs under the Trade and Development Cooperation Agreement between South Africa and the EU and with the Safeguard Safety-net for BLNS sensitive products Botswana, will be able to respond to damaging surges of the EU exports into her market.

“Botswana can also apply Export Taxes to selected strategic products to encourage value addition and discourage export of raw materials. On the other hand the EU will eliminate export subsidies on Agricultural goods destined for Southern African Union (SACU) market,” says the release.

The release further explains that the EPA negotiations were launched in 2004, focusing on trade in goods and services and negotiations between the EU and the SADC EPA countries for the comprehensive EPA which includes the good chapter and other trade related issues termed as Phase One were concluded in July 2014.

It says Botswana negotiated under the SADC EPA configuration, comprising Angola, Lesotho, Namibia, South Africa and Swaziland, Angola however, did not initial the text nor will she be signing and Phase two of the negotiations will focus on the Trade in the Services Protocol.

“Expected to grace this occasion are the cabinet ministers, EU presidency represented by the Dutch Minister of Trade, EU Trade Commissioner, Ambassadors of both the SADC EPA States and the EU member States that are accredited to Botswana and other dignitaries,” says the release. Ends