SACU-USA Free Trade Agreement Negotiations in Maseru

The fifth round of negotiations between Southern African Customs Union (SACU) member countries and the United States of America is epoch-making in the strengthening of trade and development relations between these countries and the US, the Minister of Trade and Industry, Mr. Mpho Malie has said.

Speaking at the opening of the SACU-USA Free Trade Agreement negotiations in Maseru on April 4, the Minister said the United States has pledged to assist Africa develop aggressive reform-oriented economic policies that will build strong, capable economic partners through access to US markets, debt relief and technical assistance.

This assistance will strengthen and expand trade and investment opportunities for American and African companies through greater access to financing through organisations like the Overseas Private Investment Corporation and the Export Import Bank.

While the progress attained in the negotiations thus far  has been commendable, it had to be acknowledged that the Fifth Round of negotiations is taking place against a plethora of challenges.

"The meeting takes place against a background of uncertainty regarding the AGOA programme in general, and the expiry of the third country fabric provision at the end of September this year in particular. These circumstances are a source of great concern for us, but we note with appreciation however, the current bipartisan initiative of the US House of Representatives to expedite the passage of the Africa Growth and Opportunities Act (AGOA), which will ameliorate the difficult circumstances we have to face," Mr. Malie said.

He said the recent elections in South Africa, the forthcoming elections in Botswana and Namibia as well as the US elections towards the end of the year also had to be taken into consideration and their impact on the negotiations and conclusion of the free trade Agreement factored in.

SACU chief negotiator, Mr. Xavier Carim stressed that the Southern African trade organisation is committed to a balanced round of discussion that will assist it in its efforts to integrate regionally as well as into the global market.

Although this will be a much serious round of negotiations, there is need to put in mind the main objectives of the FTA, which will enable easier access to US markets by SACU member states, he said.

His US counterpart, Ms. Florie Liser, urged the negotiators to consider the challenges and opportunities of the Agreement, adding that it was necessary that the SACU members trust that the United States can help them reach the highest point of trading opportunities.

The SACU-USA negotiations originate from a US-Africa ministerial meeting in Washington in March 1999, held to strengthen American- African partnership for economic growth. the sixth round is expected to take place in Atlanta, in the United States in June this year.

05 May 2004