SACU Trade Policies
USA
SACU
1,2. Question:
Non-tariff trade policy measures such as standards, technical regulations, SPS and others are not
harmonised. The new SACU agreement envisages harmonisation in these areas. What are the plans for
harmonizing these non-tariff trade policy measures to alleviate the distortion of trade flows?
The report notes that the SACU countries do not have a common policy on standards and technical
regulations, yet Article 28 of the 2002 SACU Agreement provides that members shall harmonise such
requirements and apply them in accordance with the WTO Agreement on Technical Barriers to Trade (TBT).
How do SACU members interpret their commitment to harmonisation – will this be on the basis of relevant
international standards, where effective and appropriate? What plans, if any, does SACU have to develop
a common policy on standards and technical regulations?
Answer:
It is important to note that SACU members have already been co-ordinating and co-operating on many of
the above policies, within the framework of the 1969 SACU agreement, and in the framework of the Common
Monetary Area between Lesotho, Namibia, South Africa, and Swaziland, and the Liaison Committees on Customs
and Trade and Industry, for example.
The 2002 SACU agreement seeks to deepen and expand this co-ordination and co-operation by strengthening
the institutional arrangements for it, so as to lay the basis for the harmonisation of policies, as and
when conditions allow, and ultimately for the creation of a more cohesive regional market.
Work is currently proceeding on a multi-pronged basis to conclude during 2003 the ratification
of the agreement; the establishment of the new SACU Secretariat, and the development of SACU
procedures for tariffs-setting and trade remedies.
BOTSWANA
3. Question:
There is mention that an impediment to investment in Botswana is "increasing difficulties in
employing expatriates through hindrances in obtaining work permits." Does the Botswana government
have any plans to address this issue?
Answer:
All expatriates who are engaged in Botswana for reward or profit, other than those who have been
exempted from this requirement, are required to apply for work permits. In processing the applications
for work permits consideration is given to:
- the effect of issuing a work permit or renewing the existing work permit on the opportunities for
employment or for reward or profit in the occupation in question, as the case may be, open to
citizens of Botswana; and
- where the application relates to employment, the arrangements made or to be made by the employer to
train a citizen of Botswana to replace the person in respect of whom the application is made in the
event of a work permit being issued to him or his existing work permit being renewed.
Due to increase in the number of work permit applications received there has been some delay in the
processing of these applications. However, the government is addressing this situation. Measures
that have been put in place or are being put in place to streamline the processing of work permits
include:
- the adoption of a list of scarce skills for the purpose of fast tracking the applications of
expatriates who possess the listed skills.
- the exemption from the requirement of applying for work permits by the Minister of Labour and Home
Affairs of expatriates employed by companies operating under the International Financial Service Center
who possess skills that are deemed crucial to the operation of these companies. Discussion is underway
with BEDIA to explore the possibility of extending this facility to investors who are approved by the
Agency.
- Government will continue to look at ways of improving ways of facilitating the granting of work
permits.
4. Question:
Botswana’s Bureau of Standards is non-governmental. The report indicates it is headed by a 12-member
Standards Council. Are government agencies represented on the Council? If so, which ones? Do
representatives of interested government agencies participate in the technical committees? What
is the government’s relationship to the Bureau? The report also indicates that "in principle,
all product standards that affect health, safety, and the environment are mandatory."
How is this accomplished? Do government agencies publish regulations or other documents that reference
the standards or otherwise make them legally binding? Please explain.
Answer:
The Botswana Bureau of Standards is a parastatal organisation wholly owned by the Botswana Government.
The Standards Council has government representation through the Ministries of Trade and Industry,
Agriculture, Health and Works and Transport.
Government agencies participate in the technical committees of the Bureau of Standards. So far
33 Technical Committees have been established.
The Botswana Government provides full funding for the Botswana Bureau of Standards and in turn
sets annual targets for the performance of the Organisation. The main objective of setting up this
organisation was to ensure quality and standardisation for Botswana produced goods.
Before a Standard is made compulsory, the Botswana Bureau of Standards publishes a notice in the
Government Gazette notifying the public of the Bureau’s intention to advise the Minister of Trade
and Industry to make standards compulsory. The public is given two months during which time any
person is allowed to object the Bureau’s intention. If no complaint is received, the Minister
declares in the Gazette such standards to be compulsory.
In addition, some Government Ministries set technical regulations and standards which are
mandatory. For example, the Ministry of Health (through National Food Control Board) sets
regulations and standards for food and drugs in order to ensure health and safety of consumers.
5. Question:
Are the new "Standards Mark" and "Batch Certification Scheme" voluntary, i.e., to
be used at a manufacturer’s request? Will government agencies rely on these programs to ensure product
conformity to their regulations? Information in the report indicates that Botswana currently recognises
foreign conformity assessment results, including foreign accredited labs. It also notes that SADC
countries are developing a regional body for accreditation. Will this new body also accredit bodies
from non-SADC countries? What implications does this have for Botswana’s current practice of recognising
foreign conformity assessment results?
Answer:
Certification Schemes are voluntary and the Government will rely on these to ensure product conformity.
The new SADC Accreditation Body to be known as SADCAS will also accredit bodies from non-SADC countries
and there will be no negative implication on Botswana’s current practice of recognising foreign assessment
results.
6. Question:
A basic obligation of the TBT Agreement (Article 15.2) is to submit a Statement to the TBT Committee
on actions that have been taken to implement the Agreement domestically. Neither Botswana nor Lesotho
have submitted such statements. Are there plans to do so? Are there obstacles to doing so? Please
explain.
Answer:
Botswana has already submitted a Statement both to International Standards Organisation (ISO) and
WTO that it accepts to follow all WTO/TBT obligations particularly those related to Annex 3: Code of
Good Practice for the Preparation, adoption and application of Standards.
7. Question:
The report says that government tendering procedures are being revised. What is the time-line for
passing and implementing the revisions?
Answer:
The Government of Botswana has already passed the Public Procurement and Asset Disposal Act of 2001
which establishes an independent Board to deal public procurement. The Board is already operational
and has started introducing revised tendering procedures which are meant to improve transparency.
The Government has also introduced the Standard Bidding Documents for mandatory use by procuring
and disposing entities. The Board is required to adopt, circulate and amend, where necessary,
standardised bidding packages and public assets disposal contracts which shall be used on a
mandatory basis by all procuring and disposing entities in their respective bidding packages.
These standard bidding packages have been proposed and are awaiting formal adoption by the Board
before their introduction.
Detailed regulations covering all aspects of the tendering system are currently being drafted to
complement the Act and provide particular guidance on the procedural aspects of bid submission,
evaluation and adjudication.
In addition, there has also been decentralisation and devolution of the procurement function to
Ministerial and District Administration Tender Committees within specified financial thresholds to
speed up the procurement process and reduce bureaucracy.
8. Question:
What is the current status of Botswana’s privatisation policy? Are there parastatals, which
the government is preparing for privatisation?
Answer:
As stated elsewhere in this response document, the implementation of the Privatisation Policy has had
to be preceded by the creation of the necessary capacity through setting up an institutional structure
for implementation. The Public Enterprise Evaluation and Privatisation Agency (PEEPA) has now been
established. A Privatisation Masterplan is being developed and will be ready for implementation during
the course of 2003. The privatisation programme is already in progress with the imminent privatisation
of Air Botswana in the pipeline, as well as the accelerated contracting out of public services.
9. Question:
When does the government of Botswana plan to finish the termination of its direct lending facility to
parastatals, the Public Debt Service Fund?
Answer:
Lending to parastatals by the Public Debt Service Fund has been discontinued. However, existing
loans to parastatals will be allowed to run their course until fully repaid.
10. Question:
Does the government of Botswana’s encouragement of local ownership in each financial institution
prevent foreign companies from establishing wholly owned subsidiaries?
Answer:
The Botswana Government believes in the operation of a free market economy. Since independence
in 1966, the Government policy has been to promote private sector development as a key engine of
growth. Both foreign owned companies and citizen companies are welcome to invest in Botswana.
While efforts are made to encourage local participation in the ownership of financial institutions,
this does not mean that foreign companies are prevented from establishing wholly-owned subsidiaries.
Already most of the major financial institutions in the country are wholly owned subsidiaries of
foreign companies.
11. Question:
Do the government of Botswana’s limitations on foreign share purchases prevent foreign companies from
establishing a subsidiary via merger and acquisition?
Answer:
Currently foreign companies are allowed to participate in the Botswana economy through either wholly
owned foreign companies, mergers and acquisitions.
LESOTHO
12. Question:
The report mentions that the "whole government procurement system is undergoing review."
What changes, if any, is the government planning for the procurement system and what is the time-line?
Answer:
The Government of Lesotho has a procurement system, which allows for advertisement through notice
boards, radios and newspapers that command wide readership. Prospective foreign bidders access
information pertaining to tenders through the above means, while bidding procedures are available
for familiarisation. It is important to note that the outcome of the evaluation process, as stipulated
in the bidding procedures is communicated to all bidders individually, whether successful or otherwise.
It is also important to note that the current government procurement process is also under review by a
task force comprising of members from both the private and public sector. Among other objectives, the
review aims to minimise government involvement.
13. Question:
The report indicates a draft law exists to establish a "standards" bureau. Under the
law, is compliance with the standards to be voluntary or mandatory, or both? Will the standards
bureau be a government agency? Please clarify the relationship between voluntary standards and
technical regulations as envisioned with implementation of the new law.
Answer:
SACU envisages having a common standards authority. However, Lesotho would like to have some
capacity to monitor and evaluate standards related issues.
14. Question:
The report discusses liberalisation and deregulation in agricultural marketing, but on a case-by-case
basis. Is there an overall government plan, with a time frame in mind, for liberalisation in agricultural
marketing?
Answer:
There is a proposed liberalisation schedule, which is derived from consultation with stakeholders and
recommendations from a series of studies. According to the proposed schedule, the process of
liberalisation is expected to be completed before 2010. It is envisaged that all measures that
curb unfair trade practices will be in place.
NAMIBIA
15. Question:
The report state that legislation creating the Namibian Standards Board is expected to pass in
2003. Is it still on track? If so, when would the Board actually start its work?
Answer:
The process is still on track and Namibia is at the moment putting the institutional mechanism
in place. Upon the finalisation of institutional consolidation and frame work, it is expected that
the Board will assume its operational and functional life.
16. Question:
In Namibia, is compliance with South African and ISO standards voluntary or mandatory? Do these
standards serve as a basis for technical regulations? Will the Namibian Standards Board be
governmental, or non-governmental? What will the relationship of these standards be to technical
regulations? To other relevant international standards (other than ISO and South African)?
Answer:
The relationship with respect to both the South African Bureau of Standards and the ISO is mandated by
law. These standards serve as the basis for technical regulations and the Standards Board is an autonomous
commercial entity. To the extent that Namibia is a signatory to other international standard setting
bodies, this relationship will be appreciated by the Namibian standard setting authority.
17. Question:
Is the Government of Namibia doing anything to address possible economic inefficiencies (mentioned
in the report) in the "Nambianisation" program with regards to the fisheries industry?
Answer:
The Namibianisation program and policy is targeted at the previously disadvantaged sector of the
Namibian population. This is to ensure that this sector is meaningfully mainstreamed into the economic
life of the country in order to ensure that poverty alleviation is addressed and marginalisation is
thereby mitigated against. To the extent that this policy and programme encourages genuine partnership
between foreign investors and Namibians, the issue of inefficiencies is addressed.
18. Question:
Is Namibia Telecom still slated for deregulation by 2004?
Answer:
It is a consistent policy of the Namibian government to liberalise trade in services in view of the
potential significant contribution of services trade to the national economic growth and development.
In this context, Namibia has started to systematically open up the Post and Telecommunication sector.
The extent to which this process will continue, will be dependent on the meaningful contribution and
capacity of Namibia to deal with the resultant outcomes of these liberalisation efforts.
19. Question:
When approving mergers between financial institutions in Namibia, are foreign financial institutions
provided national treatment?
Answer:
Namibia accords the foreign suppliers national treatment.
SOUTH AFRICA
20. Question:
The South African Bureau of Standards (SABS) notification of its acceptance of the code of good
practice indicates it is a non-governmental body, yet its standards are published in the
Government Gazette. Are these standards mandatory or voluntary? Is SABS governmental,
or non-governmental? Do government representatives participate in the development of SABS
standards?
The report notes that in some cases, where public health and safety are concerned, the Ministry of
Trade and Industry declares their use obligatory. Does the Ministry publish a notice proposing to
make mandatory the SABS standard and invite comment? Are all regulatory needs met by referencing
SABS standards as obligatory?
Does the SABS mark indicate compliance with voluntary standards? Is it relied upon for regulatory
compliance (i.e., in cases where the technical regulation is the same as or references a SABS standard)?
Have any non-South African conformity assessment bodies requested accreditation by SABS?
Answer:
The South African Bureau of Standards (SABS) is a Statutory Body formally recognised and enabled
through the Standards Act, Act 29 of 1993. In terms of the Standards Act, SABS is currently responsible
for roughly 6000 voluntary South African National Standards
The SABS Regulatory Division is an appointed regulator for the Department of Trade and Industry and is
responsible for the administration of 70 technical regulations (known in SA as compulsory specifications),
which are mandatory. These compulsory specifications cover the following areas: Automotive, Human Health
and Environment, Fishery and Food, Electro- Technical and Gambling
It should be noted that various other Government Departments, such as the Department of Health;
Agriculture; Labour; Transport; Water Affairs and Forestry; Environmental Affairs and Tourism; and
Minerals and Energy, are also primary originators of technical regulations. These departments use
designated regulatory bodies to administer technical regulations. These Departments have drawn up
about 200 standards in their regulations and can also use the SABS directly.
In terms of the Standards Act, SABS publishes voluntary standards in the Government Gazette. In
terms of the Act, the Minister of Trade and Industry however has to approve the publication of
draft and final compulsory specifications in the government gazette. A comment period of two
months is also prescribed in the Standards Act for compulsory specifications.
The Department of Trade and Industry has delegated the responsibility for the South African
WTO enquiry point in terms of the TBT agreement to the SABS.
The mark scheme of the SABS is voluntary. SABS is not responsible for the accreditation of
conformity assessment bodies. A separate agency, the South African National Accreditation
System (SANAS) is responsible for the accreditation of local and international conformity
assessment bodies.
SWAZILAND
21. Question:
What is the time-line for passing and implementing the new investment legislation? What sorts of
revisions are being made?
Answer:
Swaziland does not have a specific legislation on investment. The investment conditions are
incorporated in different legislation such as the Income Tax Act which provides tax-based
incentives, free repatriation of profits and dividends and other investment incentives. In
addition the Investment Development Order was introduced in order to promote investment in
strategic industries and locations by offering special tax concessions. The Government is
also in the process of preparing an investment code that will outline the conditions for
investing in the country.
22. Question:
When considering license applications for a financial institutions, does the government of Swaziland
still examine the needs of the community before granting a license as stated in the 1998 WTO TPR?
Does this apply equally to both foreign and domestic applicants?
Answer:
The existing banking legislation contained in the Financial Institutions Order 1975 requires banks
to apply for and obtain a license from the Central Bank of Swaziland before they start operations.
This applies to both foreign and domestic applicants.
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