The first step towards the agreement was taken by EFTA in 1999, when the EFTA Secretary-General began talks with South African Minister Alex Erwin on the possibility of a free trade agreement with the Republic of South Africa. [3] In 2000, EFTA sent a delegation to open formal negotiations. [3] South Africa insisted that all other SACU members be included in the agreement, which slowed down the process for several years. For EFTA, the conclusion of free trade agreements with another trading bloc has become a precedent. It was also the first time that its free trade partner had become one of the least developed countries (Lesotho). Negotiations were conducted from 2003 to 2006 until the signing of the agreement by all Members in Hofn, Iceland, on 26 June 2006. [3] Trade in basic agricultural products is covered by bilateral agreements between each EFTA State and SACU. These agreements, which are part of the instruments for establishing the free trade area, are also asymmetrical and grant SACU improved preferential treatment in EFTA markets that goes beyond existing preferential regimes. (Agricultural Agreement between Iceland and SACU, Agricultural Agreement between Norway and SACU and Agricultural Agreement between Switzerland and SACU). SaCU has also signed 3 bilateral agricultural agreements. [8] one with Norway, one with Iceland and one with Switzerland (all except Liechtenstein). The reason for this is that EFTA has no common agricultural policy and no common customs duties.
This means that each of the countries mentioned pursues different trade strategies and therefore cannot propose a common agreement on agriculture. [8] However, it excludes fish and processed agricultural products covered separately in another section of the Agreement[2] Under the Agreement, the Parties grant and ensure adequate, effective and non-discriminatory protection of intellectual property rights (patents, copyrights, industrial designs, models, undisclosed information, geographical indications) and ensure the enforcement of these rights against injuries (imitation, hacking). These commitments are based on existing international agreements. The Parties undertake to review this Chapter with a view to progressively harmonizing the legal framework for intellectual property rights (Article 26). The TIDCA provides a forum for consultation, cooperation and possible agreements on a wide range of trade issues, with a particular focus on tariffs and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, and trade and investment promotion. For EFTA-SACU trade statistics, see EFTA Trade Statistics Instrument Continuation of negotiations, with the next meeting to be held in May 2005. At the tenth meeting held in South Africa in August 2006, the parties agreed on the importance of concluding the current phase of negotiations. In December 2004, MERCOSUR and the South African Customs Union (SAAC) — composed of Botswana, Lesotho, Namibia, South Africa and Swaziland — signed a preferential trade agreement. Within the framework of the Agreement, they reached agreement on the conclusion of their Preferential Trade Agreement, expressing their satisfaction with the completion of this Agreement and reaffirming their determination to continue negotiations and strengthen bilateral cooperation in order to facilitate the implementation of the Agreement. Ministers asked them to start these negotiations as soon as possible and provided for additional protocols to the agreement in the customs and automotive sectors. Most industrial products, including fish and other marine products, will benefit from duty-free access to the respective markets of the EFTA States from the entry into force of the Agreement.
For products imported into SACU, customs duties will be abolished after transitional periods of varying duration or a joint review by the Parties depending on the products concerned (Annex IV and Annex VII). This asymmetric treatment reflects the diversity of the Parties` economic development. The agreement also contains provisions on special treatment for Botswana, Lesotho, Namibia and Eswatini in certain circumstances. El Salvador, Brazil (15 December 2008) and Maseru, Lesotho (3 April 2009). Signing of the Preferential Trade Agreement between the Southern Common Market (MERCOSUR) and the Southern African Customs Union (SACU) The parties share the objective of an attractive and stable environment for mutual investment. They recognise the importance of cross-border investment and technology flows as a means of economic growth and development and provide for cooperation in various ways. The Parties undertake to reassess investment issues in the Joint Committee (Article 28). The Parties may hold consultations and, in the absence of agreement, apply interim measures. Either Party may submit a dispute over the interpretation of the rights and obligations under the Agreement to binding arbitration if consultations do not result in a solution (Articles 35 to 37). While SACU concluded a free trade agreement with the four-member European Free Trade Association on 1 July 2006, its negotiations with the United States on a free trade agreement have stalled (as of 8 January 2008). [8] According to the agreement, the EFTA states had to abandon all tariffs on the SACU states immediately after the entry into force of the agreement, while the SACU states had until 2014 to slowly reduce their tariffs.
[5] In addition, EFTA guarantees to act in accordance with the principles of economic cooperation and assistance. Due to the asymmetry in the economic development of the Parties, EFTA grants Botswana, Lesotho, Namibia and Swaziland several concessions to promote the development of these countries. The Preferential Trade Agreement between the Southern Common Market (MERCOSUR) and the Southern African Customs Union (SACU) was signed in Salvador, Brazil, on 15 December 2008. and on 3 April 2009 in Maseru, Auotho. The aim is to maintain free trade in goods between Member States. It provides for a common external tariff and a common excise tariff for this common customs area. All customs and excise duties levied in the Common Customs Territory are paid into the South African National Income Fund. Revenues are shared among members on a revenue-sharing basis as described in the agreement. South Africa is the guardian of this basin. Only the shares of the BLNS member states are calculated, with South Africa retaining the balance. SaCU revenues represent a significant share of BLNS countries` government revenues. On July 16, 2008, the United States and SACU signed a Trade, Investment and Development Cooperation Agreement (TIDCA).
In line with the stated objective (as set out in the preamble to the Agreement) of promoting economic and social development in the SAAC States with the support of the EFTA States, the Agreement contains detailed provisions on economic cooperation and technical assistance. In a spirit of promoting economic cooperation, the EFTA States undertake to provide technical assistance to the SACU States to assist them in the implementation of the Agreement. The Parties shall also coordinate their efforts with the relevant international organisations. Assistance will focus on information exchange, transfer of expertise and training in trade policy, trade facilitation and trade promotion; customs and origin issues; technical regulations, standards and conformity assessment, as well as sanitary and phytosanitary measures; local business development; and regulatory support and implementation of legislation in areas such as services, investment, intellectual property and public procurement (Articles 30 to 32). Trade between the blocs has increased by about 9.3% since the signing of the agreement from 2008 to 2018. [7] EFTA`s net trade balance was negative until 2012, but in 2013 total imports decreased significantly and exports exceeded them[7] Published in Communication R.800 in GG 26537 of 2. July 2004 As agreed, these elements would be distributed as follows: The Southern African Customs Union (SAAC), an African regional economic organization, is the oldest customs union in the world, established in 1910. Its members are Botswana, Lesotho, Namibia, South Africa and Swaziland. The five Member States maintain a common external tariff, share customs revenues and coordinate policy and decision-making on a wide range of trade issues. At a meeting of SACU trade and finance ministers in Centurion, Pretoria, on 5 September 2000, ministers reached consensus on the principles underlying SACU institutional reform. The institutional management structure of the revenue pool was agreed as follows: the SACU agreement of 1969 replaced the very first SACU agreement of 1910, which was even older. This agreement was signed in June 1910 and the members were the union of South Africa at the time, which included South West Africa (now Namibia) and the territories of the then British High Commission, which are now Lesotho, Botswana and Swaziland.
Annexes to the report of the ninth meeting: Annex I | Annex II | Annex III | Annex IV| Annex V| Annex VI | Annex VII | Annex VIII Montevideo, Uruguay. Report on the ninth meeting of the Negotiating Committee established by the Framework Agreement establishing a MERCOSUR-SACU Free Trade Agreement In 2018, EFTA`s net exports and imports amounted to EUR 798 million (net exports) and EUR 616 million (net imports) respectively. [7] EFTA`s total imports and exports with SACU represent only 0.3% of EFTA`s total world imports and exports. For SACU, it accounted for 1% of the South African export market. .