SACU Trade Policies
Japan
SACU
1. Question:
The tariffs of SACU countries have been reduced due to the concluding of the Trade Development
and Co-operation Agreement between South Africa and the European Community. In view of such a
situation where tariffs have been reduced, how does each member country perceive the future role
of the SACU?
Answer:
The reduction of tariffs has necessitated a review of the functioning of SACU by its members.
In particular, the revenue sharing formula was reviewed to ensure a fair distribution of the
common revenue pool and introduced a new ‘development component’ to ensure that countries with
smaller per capita GDP, such as Lesotho, receive a greater share of the revenue. SACU members further acknowledge that in order to promote longer-term economic growth, they need to move towards sources of income other than the SACU revenue pool, and to advance their fiscal reform process. In this regard, technical co-operation on tax collection has already started among SACU members.
2. Question:
The Report states that the broadening of the scope of negotiations to include "new issues" will
severely test the human and institutional capacity of SACU countries. In this connection, Japan
would like to remind the SACU countries that it has been extending TRTA, including convening
seminars in African countries, through the WTO Technical Assistance Plan and through bilateral
cooperation. Japan hopes that SACU countries will take advantage of such opportunities.
Answer:
As a developing region, SACU attaches great importance to technical assistance, which supports the
efforts of SACU members to promote economic growth and development, to establish the necessary policies,
and institutions, and to enhance participation in regional and multilateral fora such as the WTO.
BOTSWANA
3. Question
According to the Report, Botswana intended to ratify the WIPO Copyright Treaty and the WIPO
Performance and Phonograms Treaty during 2002. Although Japan commends Botswana for initiating
such intentions, it is concerned that, according to information from the WIPO dated 13th
March 2003, Botswana has not yet ratified either Treaty. Please indicate Botswana's intentions on
ratifying these two treaties.
Answer:
It remains Botswana’s intention to ratify the WIPO Copy Right Treaty and the WIPO Performance and
Phonograms Treaty. However the ratification has been delayed because Botswana is still finalising the
regulations for implementation of the Copyright Act of 2000. It is regrettable that while the country
would like to comply with some of this international treaties, there is inadequate capacity to handle
some of these complex technical issues.
SOUTH AFRICA
4. Question:
Under the National Industrial Participation Programme (NIPP), the seller must invest in a South
African Business to the value of at least 30% of the value of the imported content of the tender.
This system imposes excessive burden in terms of cost on the companies, which make contracts
covered by the NIPP. Japan requests South Africa to abolish this Programme, or to at least
limit the scope of contracts covered by this Programme.
Answer:
South Africa’s National Industrial Participation Programme has limited scope as it only
applies to State and parastatal purchases in excess of US$10 million. Ninety-five percent
of the programme arises from defence contracts and this is consistent with international practice.
5. Question:
Japan welcomes that the Minister of Trade and Industry formally announced the intention to
extend the MIDP for light commercial vehicles from 2008 to 2012. On the other hand, a review
of the MIDP for medium and heavy vehicles is expected to be completed by June 2003. Taking
advantage of the MIDP, Japanese companies actively invest in their subsidiaries based in South
Africa, which serve as export bases for the Australian and European markets. In order to improve
the investment environment, Japan hopes that South Africa will decide to extend the MIDP for medium
and heavy vehicles, and that it will consider further extensions of the MIDP for light vehicles.
Answer:
It is expected that the preliminary report on medium and heavy vehicles will be submitted in
June 2003. The final report will be available by September 2003. The issue of the extension of
the Medium and Heavy MIDP being extended beyond 2007, is receiving careful consideration and will
be decided within the next few months. As far as light vehicles are concerned the MIDP has been
extended from 2007 up to 2012.
6. Question:
According to Japan's understanding, South Africa is actively tackling the liberalisation of
telecommunication services, which seems to be successful judging from the rapid increase of
subscribers. On the other hand, according to the Report, Telkom still enjoys monopoly powers
over basic public switched telecommunication services. Japan considers it indispensable for
the development of telecommunication services to establish a sound competitive environment by,
for example, allowing a second network operator (SNO) to do business. Japan hopes for further
efforts by South Africa in this regard.
Answer:
South Africa is at an advanced stage in the process to appoint a second fixed line operator.
Once the tender process has been concluded, Telkom’s monopoly will end and a duopoly will be in place.
7. Question:
In paragraph 63, equity interests from foreign investors in the SNO will be limited to 51%. On
the other hand, in the Schedule of Commitments of South Africa, the limitation on foreign
ownership is 30%. Japan hopes that South Africa will improve its commitments during the
on-going services negotiation.
Answer:
Noted.
8. Question:
According to the Report, one of the Amendment Acts to the 1993 tourism act, i.e. Act No.70,
emphasises the training and registration of tourist guides. Doesn't this amendment affect to
the Commitments of South Africa on tour guide services?
Answer:
The Tourism Amendment Act of 2000, details procedures for the training, registration, and
conduct of tourist guides. In terms of South Africa’s existing commitments in tourist guide
services, there are no limitations to the provision of tourist guide services under market
access and national treatment in Modes 2 and 3. (Mode 1 is unbound due to lack of technical
feasibility.) Since the Amendment Act prescribes domestic measures necessary for the regulation
of tourist guides, and, moreover, does not discriminate between South African tourist guides and
foreign tourist guides, the Amendment does not affect our existing commitments on tourist guide
services nor is there any need to review our existing commitments in light of the amendments to
the Act.
9. Question:
Although the smuggling in of Japanese electric household appliances has been on the
decrease due to strengthening the controls by the Government of South Africa, it has
not yet been exterminated. Japan hopes for further efforts by South Africa in this respect.
Answer:
South Africa introduced the Counterfeit Goods Act in 1997 and the law is rigorously enforced
through co-operation with the private sector, South African Revenue Service and the South
African Police Service. South Africa is continuously exploring means to enhance its enforcement
capacity with regard to intellectual property rights.
SWAZILAND
10. Question:
Please provide the reasons why the number of registrations of intellectual property
rights decreased after the peaks in 1994 and 1995?
Answer:
Prior to 1994, trade services were registered regionally, that is anywhere in the SACU region
in accordance with the Trade Marks Act of 1981. However, in 1994 that Act was amended to establish
the registrar of trade marks within the Ministry of Justice. Consequently, all the services that
were registered in other SACU countries had to be registered in Swaziland hence the increase in
number of patents.
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