Fresh gridlock grips SACU
Mbongeni Mguni | Friday April 4, 2014 15:21
BusinessWeek: Please shed light on the new trade commission we understand the government is establishing.
Makgato-Malesu: It was agreed in terms of the 2002 SACU Agreement that member countries would set up their own commissions whose job would be to set up tariffs and all the other duties of such bodies. SACU itself is to have a tariff board being a regional body linking up all the member countries’ commissions.
Botswana, like other members, is doing its part and has proposed a law establishing the commission and other countries are doing the same at various levels within that process.
BusinessWeek: What is the importance of the tariff board and the supportive commissions within the Union?
Makgato-Malesu: The board democratises the institution and the decision-making process. It democratises tariff setting and reduces unilateralism in the process of setting tariffs.
At present, the International Trade Administration Commission of South Africa handles the proposed board’s duties on behalf of member countries, and it reports to the Council of Ministers, as members asked it to.
BusinessWeek: What is the state of play in this regard?
Makgato-Malesu: The bottleneck is now at implementation at SACU Tariff Board level and the matter has been stalled since the last Heads of State summit held in Botswana (April 2013). After that summit, heads of state in their communiqué had said we must fast track the establishment of the board and the supporting bodies.The bottleneck is that we are at variance in the interpretation of that. (On our side), we felt that at SACU level, we must have a retreat to thrash out these discrepancies in a less restricted platform, but we have not been able to meet. Such a meeting would have prepared us for the next summit.
BusinessWeek: What is Botswana’s position in this matter?
Makgato-Malesu: Botswana’s position is resolute that for SACU to be able to function, the Board is a necessary step whose establishment must be adhered to. If any member is unhappy with what has been agreed to, the right thing to do is to query the article you are unhappy about. Follow the usual process of saying, ‘much as this has been agreed to, my query must be resolved’.
For now, we are resolute that we have an Agreement that must be implemented and calling for fast tracking of the Board, is in line with pushing for the Agreement’s implementation.