27 Jun 2018

The Southern African Customs Union (SACU) is optimistic of economic recovery driven by improved commodity prices and the continuing growth in advanced and emerging economies.

Minister of Finance and Economic Development, Mr Kenneth Matambo said at the opening of the 35th SACU Council of Ministers meeting in Gaborone on June 27 that in line with global growth prospects brought by optimism in global economic growth, SACU was also projected to improve in the medium term.

Nevertheless, he said while SACU member states remained positive on global growth prospects, they were equally concerned about the rising protectionism and looming trade war between the US on one hand and its trading partners on the other.

“Already, most affected countries have already taken or plan to impose retaliatory trade measures against US imports into their markets in response to the increased US tariffs,” he said.

He said such actions had created tensions among the trading partners and were clearly threatening the multilateral trading system on which global trade was based.

Mr Matambo said there was therefore an urgency for engagement at multi-lateral levels to reach common ground and to contain the developments.

The focus of the SACU Council of Ministers meeting is to consider the progress report on the implementation of the work programme for the ministerial task teams that will be presented to the 6th Summit scheduled for June 29.

The meeting would receive progress reports from the Trade and Industry as well as Finance ministerial task teams.

Regarding the implementation of the work programme for the task teams, the secretariat had consolidated member states national position papers which, he said, had resulted in the identification of areas of convergence and divergence and those that needed further discussions by member states.

Mr Matambo further said more work was still to be undertaken in all the areas of the work programme including on the mechanism for tariff setting and application of tariffs, rebates, refunds and duty drawbacks and trade remedies, where he noted there was limited progress.

Mr Matambo reminded ministers that as they proceeded with the implementation of the work programme, they should be mindful that they were only left with a few months to December 2018 to conclude the work.

He further said SACU should ensure that it remained relevant and responsive to the needs and development challenges of all member states.

Mr Matambo took the opportunity to express appreciation to member states for the support rendered to Botswana during its tenure as SACU chair which ends next month.

“As we pass on the leadership baton to the Kingdom of Lesotho, we remain committed to SACU. Our efforts should therefore be directed at advancing the SACU Agenda for the regional economic integration in order to make an impact on the lives of our citizens,” he said. ENDS