09 Jun 2016

Botswana will be among several Southern African Development Community (SADC) countries that would sign the Economic Partnership Agreement (EPA) with the European Union (EU).

The historic signing ceremony would be in Kasane today (June 10) in what is expected to be a colourful event attended by dignitaries from SADC headquarters, Botswana, Lesotho, Mozambique, Namibia and Swaziland while Angola will sign at a later stage.

South Africa, which also participated in the negotiations, would benefit from enhanced market access beyond the preferential conditions under the existing Trade, Development and Cooperation Agreement (TDCA).

The parties would be signing the Trade in Goods Agreement and the negotiations of the Trade in Services would start immediately after the signing ceremony.

The EU officials said in different forums that the EPAs would become effective from October 1 this year and hope the negotiations with regard to Trade in Services would not take a long time.

Described as the most lucrative trade agreement between two continental bodies, the EPA would offer local entrepreneurs access to over 500 million possible customers duty free and quota free for all products except for Chapter 93 on Arms and Ammunition.

Other than improved market access, the EPA would also add value through economic growth, diversification and employment creation.

The EPAs are unique because they are liberalised, offering local producers 100 per cent access to the EU.

Under the EPA, the EU would eliminate export subsidies on agricultural goods destined for the SACU market.

Products, which Botswana can export to the EU include beef, fruits and vegetables, minerals such as copper and diamonds and processed agricultural products.

Trade between Botswana and EU is set to increase and according to EU officials, in 2014, Botswana exported goods worth 1.8 billion Euros to the European market which constitutes 28 countries, although fragile and erratic as it consist mainly minerals (diamonds).

Further, the Rules of Origin which often make it difficult for local manufacturers to export their products, have been relaxed and as Mr John Tayl