SA to seek world trade agreement

THE approval of an international trade facilitation agreement at the coming World Trade Organisation council of ministers is at the top of the government’s to-do list.

If given the green light‚ the agreement would ease cross-border trade on the continent‚ the Department of Trade and Industry said last week.

Africa has launched initiatives to remove bottlenecks to trade at border posts‚ but a World Trade Organisation accord would give these renewed impetus and provide an agreed framework within which they could operate.

Trade and industry’s chief director of trade negotiations Niki Kruger said the arrangement agreed to by the World Trade Organisation in 2013 aimed to expedite the movement‚ release and clearance of goods at border posts‚ improve co-operation between customs and other authorities‚ and enhance technical assistance and build capacity.

Implementing the agreement would be positive for South Africa because it would address bottlenecks with its continental trading partners.

The agreement will enter into force when twothirds of all 107 World Trade Organisation members have ratified it. But so far only eight‚ which include Australia‚ Singapore and Malaysia and the US‚ have notified the organisation of their acceptance and the nature of their commitments.

“South Africa has emphasised that consideration must be given to the impact of the trade facilitation agreement on the regional integration processes [on the continent]‚” Kruger said.

The African Union was dealing with this and the government had worked closely with other Southern African Customs Union (Sacu) members on their respective commitments under the deal.

The state has set up an inter-departmental working group to consider the implementation of the agreement.

It finalised a list of commitments for South Africa and the terms of reference for the establishment of a national trade facilitation committee. Cabinet approval would be sought for the committee to be set up and for South Africa’s commitments.

Trade and Industry acting deputy director-general Xolelwa Mlumbi-Peter said the absence of agreement on policy meant that establishing a Sacu tariff board to co-determine fees would be risky as consensus decision-making could become a recipe for gridlock.

South Africa viewed tariffs as instruments of industrial policy‚ while other countries in the union saw them as a major source of revenue.

The establishment of a board is one of the as yet unrealised provisions of the Sacu agreement. — BDLive