Adjust to Free Trade Areas

Sunday 29th of February 2004
Brigitte Weidlich

A first ever public dialogue on future free trade agreements between the Southern African Customs Union (SACU) and how beneficial they will be showed that greater awareness was necessary in the economic sector.

The flow of genetically modified organisms (GMO’s), influx of US products to Namibia and other member states of SACU will become a reality within the next 2 years. The meeting was organized by the Agricultural Trade Forum (ATF) in co-operation with the Namibian Manufacturers Association (NMA), sponsored by the Friedrich Ebert Stiftung and presented by the Namibian Economic Policy Research Unit (Nepru) and took place in Windhoek on Tuesday. Discussants raised the issue of GMO’s in agricultural trade. It was made clear that national laws that regulate the trade (Cartagena Protocol) and introduction of GMO’s (Namibian Bio-Safety Act) are under consideration by the Namibian Parliament and will guarantee the safeguard of Namibian consumption on the one side and export of Namibian agricultural products to GMO-conscious trading partners on the other side.

The issue of exaggerated agricultural subsidies in the USA was raised and ways and means to neutralize the effect thereof were discussed. One solution discussed was the possibility of excluding agricultural products that are heavily subsidized, from the FTA and to declare them as sensitive products.

The meeting felt strongly that a study should investigate the impact of trade creation and trade diversion as well as market displacement by the presently negotiated SACU – USA free trade area especially for Namibia. The quantification of the benefits and losses to the Namibian economy can only be expressed by static modeling, but even this would give an indication of the possible dynamics of trade. This is also applicable to other FTA’s under negotiation presently such as the SACU – Mercosur and SACU-EFTA free trade agreement’s. Of special importance is also the investigation of the effects of the presently negotiated post Cotonou trade relations of Namibia with the EU and the configuration of the Economic Partnership Agreements, although this was only mentioned by the meeting in passing. The SACU talks with the US are to be completed by December 2004, but they might take longer. A 4th round of such talks on government level was completed in Walvis Bay on Thursday.

back
 

Plus online by Plus Weekly
Publisher: Feddersen Publications cc.
email : info@namibiaplus.com
Tel: +264 (0)61 233635
Fax: +264 (0)61 230478
P.O.Box 21506
Windhoek
Namibia