Maravi

SACU plans to revamp economies

SACU plans to revamp economies
By Joan Chirwa
Wednesday May 21, 2008 [04:00]

SOUTHERN African Customs Union (SACU) governments are currently planning on how to prevent a total collapse of their economies once Economic Partnership Agreements (EPAs) are concluded this December. According to the New Partnership for Africa's Development (NEPAD) weekly news, the fate of the world's oldest customs union, the SACU, is hanging in the balance as a result of the EPAs that most member countries have signed with the European Union (EU).

SACU has been a customs union since 1910, and the governments are now trying to figure out how to prevent paralysis or even total collapse of their economies as a result of the EPAs.

"But they are finding themselves divided. Some in the SACU want a retreat from the liberalisation agreements they have agreed to while others want to move ahead and deepen the integration with the EU, for fear of losing out on EU aid and market access," NEPAD stated. "From various reports, within the SACU, governments are now deeply divided about how to proceed in the EPA talks with Europe."

SACU countries note that as a result of differences between the liberalisation timetable of the Trade, Development and Cooperation Agreement (TDCA) and the EPA, the differentiated tariff structures would pose a major challenge for them to maintain the common customs union - SACU.

The EU has responded that they will not renegotiate the TDCA and the only way the terms could be changed was in the context of a full EPA. This would mean the inclusion of new issues such as services, investment, competition and procurement, as well as the most favoured nation (MFN) clause.

Labels: BORDERS, EPAs, SACU, TDCA

posted by MrK @ 3:45 AM