22 Jul 2013

The European Union leadership is hoping to bring negotiations of the Economic Partnership Agreement (EPA) with the SADC EPA group to a conclusion this year.

EU trade commissioner, Mr Karel De Gucht was in the SADC EPA region last week to push the negotiations.

After visiting Botswana where he held meetings with Vice President, Dr Ponatshego Kedikilwe as well as Minister of Trade and Industry, Ms Dorcus Makgato-Malesu on Friday (July 19),  Mr De Gucht expressed optimism that an agreement would be reached between EU and SADC EPA group before end of this year.

He was positive that Botswana would conclude and ratify the EPA soon. Botswana holds the chairmanship of EPA SADC group.

Mr De Gucht, who explained that trade between Botswana and the EU had been healthy and grew by more than 400 per cent since the year 2000, said Botswana needed to ratify EPA to continue benefitting from trade with the EU.

“Botswana currently enjoys free access to the EU market. Its products do not pay duties at EU’s borders and are not subject to any quotas. But this regime is based on a temporary instruments which will end onOctober 1, 2014, on the basis of WTO rules,” he said.

He said after October 1, Botswana would not be eligible for preferential treatment for its exports to the EU, unless it would have concluded and ratified the EPA.

“The EU is therefore strongly committed to bring the negotiations of an EPA to conclusion this year. This would ensure that Botswana continues to enjoy free access to the EU market. And it would be an important driver for regional integration in Southern Africa,” Mr De Gucht said.

He said since the EU was the largest integrated market in the world, an EPA for Botswana with the EU would provide legal certainty for businesses and could offer other advantages like better rules of origin. “Botswana is rightly pursuing greater diversification. The EPA can save that goal,” he said.

He, however, said EU still had some outstanding issues with Botswana, one of them being market access for agricultural products. ENDS