WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOWT/TPR/M/114/Add.1
11 June 2003
(03-3030)
Trade Policy Review Body
23 and 25 April 2003Original:  English/
                 anglais/
                 inglés
TRADE POLICY REVIEW
Southern African Customs Union (SACU)
Minutes of Meeting
Addendum
Chairperson:  H.E. Ms Mary Whelan (Ireland)
This document contains the advance written questions, and replies provided by the Southern
African Customs Union (SACU).1
__________________________________________________________________________________
Organe d'examen des politiques commerciales
23 et 25 avril 2003
EXAMEN DES POLITIQUES COMMERCIALES
Union Douanière d'Afrique australe (SACU)
Compte rendu de la réunion
Addendum
Présidente:  S.E.  Mme Mary Whelan (Irlande)
Le présent document contient les questions écrites communiquées à l'avance et les réponses
fournies par l'Union Douanière d'Afrique australe (SACU) .1
__________________________________________________________________________________
Órgano de Examen de las Políticas Comerciales
23 y 25 de abril de 2003
EXAMEN DE LAS POLÍTICAS COMERCIALES
Unión Aduanera del Áfri ca Meridional (SACU)
Acta de la reunión
Addendum
Presidente:  Excma. Sra. Mary Whelan (Irlanda)
En el presente documento figuran las preguntas presentadas anticipadamente por escrito,
junto con las respuestas facilitadas por la Un ión Aduanera del África Meridional (SACU).1
                                                     
1 In English only./En anglais seulement./En inglés solamente.WT/TPR/M/114/Add.1
Page 3
ADVANCE WRITTEN QUESTIONS BY MEMBERS AND REPLIES PROVIDED BY
THE SOUTHERN AFRICAN CUSTOMS UNION
Questions from Brazil
SACU
Question 1
The SACU Agreement is currently under negotiation, bu t it is not clear when those discussions will be
completed. What are the key topics under discussion?   What is the direction of work on the "revenue
sharing formula"?  What powers are envisaged for the new SACU Secretariat?
Answer
In the wake of the signing of the new SACU Agreement by all member countries, work is
currentlyproceeding on a multi-pronged basis to be concluded during 2003, viz the ratification of the
Agreement, the establishment of the new SACU Secretariat, and the development of SACUprocedures for tariffs-setting and trade remedies.
Question 2
Import tariffs imposed on goods from outside of  SACU generally discourage the switching of
importsinto Botswana, Lesotho, Namibia, and Swaziland  to alternative sources of supply, even where
the cost of South African products is higher than for comparable items sourced elsewhere. If so, what
are the implications to the four countries for the majority of their imports?
Answer
Since the mid-1990s, SACU has been involved in a pr ocess of liberalisation. This has included fairly
substantial tariff cuts especially in respect of applied rates, the phasing out of quotas and specific
duties, as well as the conclusion of free trade agreements with the EU and in SADC. This has resulted
in a fairly open trade regime in SACU, the effect of which has been the general lowering of the cost
structure in SACU economies. These activities were  carried out in pursuit of an outward-oriented
trade policy in SACU.
Question 3
Since trade in services seems to be excluded from SACU's scope and objectives, and taking into
consideration the importance of such trade, how do  SACU member states address issues involving the
services sector?  Is there any framework to deal with issues concerning trade in services (e.g.
transport services) arising from discussions on matters addressed by the Agreement? Will trade
liberalisation be dealt with under the SADC free trade area?  If so, how?
Answer
The Agreement does not expressly include services although there have never been restrictions on
services in the customs area. In terms of the crafting of common policies, this will be taken up as part
of the work programme.WT/TPR/M/114/Add.1
Page 4
Question 4
In Chapter III, item 11, of doc ument WT/TPR/S/114, it is stated that Southern African Customs Union
(SACU) countries also apply rules of origin for preferential purposes (on a reciprocal basis) under
regional trade agreements such as the Southe rn African Development Community (SADC) Trade
Protocol, and under bilateral trade agreements to which they are individually signatories. Could
clarification be provided as to who are the authorities responsible for issuing certificates of origin?
Answer
In the case of South Africa, the South African Revenue Service is responsible for the administration
of preferential rules of origin emanating from regional and bilateral trade agreements. In South Africa,the South African Revenue Service issues certificates. In the case of BLNS states, customs and trade
authorities handle the administration and issuing of certificates.
Question 5
In Chapter III, item 8, Table II.1, Annex 4, of document WT/TPR/S/114, it is stated that a list
of products related to the Agreement on Textiles and Clothing to be integrated in Stages I and II was
provided to the WTO. Could South Africa inform wh en the products list related to Stage III will be
provided?
Answer
South Africa fully complies with its obligations to the GATT Agreement in terms of textiles and
clothing and all requirements are satisfied. No special safeguards and/or quotas exist with regard to
the importation of textiles and clothing into South Africa. South Africa will officially notify the WTO
shortly.
Question 6
In Chapter III, item 12, Table III.2, Annex 4, of  document WT/TPR/S/114, it is mentioned that new
pneumatic tyre imports are under monitoring for quality specification. Could South Africa specify
how and on what basis this monitoring is carried out?
Answer
The South African Bureau of Standards has administered compulsory specifications for new
pneumatic tyres since 1995. This entails, in essence, that all locally manufactured as well as importedpneumatic tyres must comply with the compulsory sp ecification. This is a process that engages local
manufacturers, importers, and the South African Bureau of Standards. Import control measures on
imported pneumatic tyres are in support of the activities of the South African Bureau of Standards. No
quantitative import restrictions apply and permits are issued freely where there is compliance with
specifications.
Question 7
Is there any kind of register required by SACU for prior import licensing? What would the required
procedures be?WT/TPR/M/114/Add.1
Page 5
Answer
There is no register required by SACU for prio r import licensing. However, each SACU member has
rules and regulations that require, inter alia, that importers apply for permits and comply with certain
rules.
Question 8
With reference to paragraph 27 of document WT/TPR/G/114, could the South African Customs Union
(SACU) elaborate more on the new In ternational Trade Administration Act?
Answer
The International Trade Administration Act was passed in 2002, pursuant to the new trade regime in
SACU as provided for in the new SACU Agreement, with particular reference to the establishment of
new institutions (National Bodies, etc). The Act pr ovides an improved institutional basis for SACU’s
trade policy, especially the application of customs tariffs, in line with the objectives ofcompetitiveness, as well as SACU ’s commitments under international trade agreements such as with
the WTO, EU and SADC.
Furthermore, the Act is a concrete move towards separating administrative and investigative functions
from adjudicative functions, thus enabling transparent and objective decision-making.
Question 9
With reference to paragraph 36 of document WT/TPR/G/114, does SACU intend to elaborate a
common anti-dumping, countervailing and safeguard legislation?
Answer
SACU envisages common action against unfair trade in respect of third party states.Question 10
In paragraph 19 of document WT/TPR/S/114, it is mentioned that due to their SACU membership,
BLNS are required to implement the anti-dumping, countervailing and safeguard measures
determined by South Africa.  Could the represen tatives of SACU elaborate more on this matter?
Could SACU explain if in such cases the investigati on has taken into consideration the imports of all
the BLNS countries, as well as the domestic market related to the customs union as a whole?
Answer
In order to determine industry standing, the common SACU market is taken into account.
BOTSWANA
Question 11
In paragraph 27 of document WT/TPR/S/114/BWA, it is mentioned that Botswana recognises the need
to implement legislation on anti-dumping, safegua rds and countervailing measures. Does Botswana
intend to implement its own legislation, or does it intend to implement common SACU legislation?WT/TPR/M/114/Add.1
Page 6
Answer
The Government of Botswana recognises the need for the legislation. However, it does not as yet have
any legislation on anti-dumping, safeguards and countervailing measures. When such legislation is
developed, it will be aligned wi th the common SACU legislation.
SWAZILAND
Question 12
With reference to paragraph 5 of document WT/TPR/S/114/SWZ, why is Swaziland not required to
implement South African anti-dumping and countervailing duties while other BLNS countries are?
Answer
Provisions exist for Swaziland, as for Botswana Lesotho and Namibia, to apply the South African
anti-dumping and countervailing duties. However, an occasion has not yet arisen for Swaziland to
implement these duties. Therefore, should the need arise, Swaziland would apply duties in the samemanner as do Botswana, Lesotho and Namibia.
Questions from Canada
SACU
Questions 1 and 2
How do the five SACU countries envisage meeting the commitments they have set for themselves in
the 2002 SACU Agreement, when all five countrie s suffer from a lack of capacity and resources to
address these issues?
How do the five SACU countries plan to address the issue of building the necessary capacity that will
enable them to participate, not only in the multil ateral forum of the WTO, but also in the various
regional and bilateral trade forums to which they are also members and have made commitments?
Technical assistance is mentioned as being necessa ry or required. From whom are you seeking this
assistance? Have you submitted specific requests in this regard?
Answer
As a developing region, SACU attaches great importance to technical assistance and capacity
building, which supports the efforts of SA CU members to promote economic growth and
development, to establish the necessary policies and institutions, and to enhance participation in
regional and multilateral forums such as the WTO. We acknowledge and appreciate the offers made
by Norway, Canada, the European Union and other WTO member states.
BOTSWANA
Question 3
If economic performance, in the short term, is dependent on diamonds, what does the Government of
Botswana see being the mainstay of the economy in the long term?WT/TPR/M/114/Add.1
Page 7
Answer
The Government of Botswana has long recognised the need to diversify its economy.  At the time of
Independence in 1966, agriculture was the mainstay of the economy in terms of output. Agriculture
contributed at least 40% of GDP. Since the mid-1980s, the Government of Botswana has continued to
promote sustainable diversification of economy through various policies and programmes. While
diamonds continue to be the main source of revenue (at least 50% of government revenue) and amajor contributor to GDP (at leas t 30%), government has continued to promote diversification into
other sectors of the economy. For example, the successive National Development Plans have focused
on other sectors such as tourism and manufacturing.
The theme of the current National Development Plan (NDP 9 2003-2009) is “Towards Realisation of
Vision 2016: Sustainable and Diversified Development through Competitiveness in Global Markets”,
which demonstrates government’s continued commitment towards sustainable economic
development.
The need to redouble efforts to further diversify th e economy has become critical in view of the fact
that diamonds are a non-renewable resource, dependent  on world market prices and therefore highly
unpredictable. Recently, there have been serious threats to the diamond industry owing to
international campaigns against trade in “conflict diamonds”. In addition, the current global economic
slowdown has had adverse consequences for the diamond industry by dampening international
demand.
The prospects for Botswana’s economic growth depends upon the diversification in the agricultural,
manufacturing, tourism, and financial services sectors, in addition to the diversification of the mining
sector itself. These sectors are important in addressing unemployment, inequality and poverty. For the
sectors mentioned above, sustainable competitiveness in global markets depends upon government-
directed investment in research and development in science and technology, including information
and communications technology.
Government will facilitate the diversification process by providing an environment conducive to
private initiative and innovation. This entails appropr iate tax regimes, competitive exchange rates and
interest rates, an environment free of foreign exch ange controls, access to credit, and price stability.
Continued macro-economic stability will boost investor confidence and attract necessary foreigndirect investment.
Question 4
How successful was the Eighth National Devel opment Plan whose initial theme was sustainable
economic diversification, which was later changed to accelerating economic diversification?  What
were its key objectives and were they achieved?
Answer
Successive budget speeches have adopted themes giving further impetus to NDP 8 (for example, the
theme for the 2001 budget speech was “Accelerating Economic Diversification”). The major policy
objectives of NDP 8 were economic diversification, poverty reduction, policy reform in the public
sector, provision of infrastructure and cost recovery, human resource development, rural development
and environmental conservation. Overall, these policy objectives have been achieved to varying
degrees. In addition, some of the objectives were advanced beyond the time frame of NDP8.WT/TPR/M/114/Add.1
Page 8
Overall economic performance during NDP 8 was significantly better than initially anticipated.
Average annual real GDP growth of 6.7% was achieved, as compared to the projected 5.2% at thebeginning of the Plan. Formal sector employment  is projected to increase from 226,900 in September
1997 to 285,305 in September 2003. The 2001 National Housing and Population Census showed that
unemployment had fallen from 21.6% in 1994 to around 19%.
Botswana had favourable terms of trade and balance of payments. The performance of the current
account in NDP 8 was better than expected, with the exception of 1998/99. Foreign exchange reserves
in current prices have exceeded the original NDP 8 projections.
Government continued its drive towards econo mic empowerment during NDP 8 through various
initiatives such as universal free education, development and implementation of Small Medium andMicro Enterprises (SMME), the establishment of the Citizen Entrepreneurial Development Agency
(CEDA) and the Citizen Entrepreneur Mortgage Assistance Equity Fund (CEMAEF). In addition,
Government developed a system of reservation and price preference for consultants and IT services.
In addition, Botswana has developed a new Rural Development Policy and the National Poverty
Reduction Strategy. Other policy initiatives implemented during NDP 8 included the Science and
Technology Policy and the National Master Plan for Arable Agriculture and Dairy Development.
During this period Botswana has continued to improve infrastructure throughout the country.
Question 5
Botswana has had considerable success in codifying and making public its foreign investment
regimes.  Canada encourages the Government of Botswana, if it has not already done so, to share its
experiences in reforming its investment regime. Is there any mechanism, which allows SACU
members to share such experiences with their SACU partners?
Answer
Recently, Botswana has intensified its efforts to attract foreign direct investment in order to promote
economic diversification. The Botswana Investment  and Export Authority (BEDIA) was established
in 1998 specifically for this purpose. Currently, Botswana is developing a foreign investment strategy.
Botswana has regularly co-operated with neighbours in promoting inward investment and is preparedto share its experiences in this regard. However, Botswana like other African countries continues to
experience a decline in FDI flows.
Question 6
When will the privatisation Master Plan currently being prepared by the Public Enterprise and
Privatisation Agency be ready? Does the Government of Botswana have target dates for privatisation
to either have begun or be completed?
Answer
The implementation of the privatisation policy for Botswana was preceded by wide public
consultation with all relevant stakeholders. In addition, Botswana has developed policy
implementation capacity by putting in place necessary institutional structures and modalities. It is
anticipated that the policy will be implemented once government has approved the privatisation
master plan during the course of 2003.WT/TPR/M/114/Add.1
Page 9
Question 7
Does Botswana envisage taking on any telecommunica tions services commitments during the current
round of GATS negotiations?
Answer
Botswana is committed to the further liberalisation on trade in services.  However, the decision on
whether or not to make further commitments on telecommunications services during the current round
of GATS negotiations has not yet been taken. The decision will depend upon several factors including
the size of the domestic market and the general implications of further liberalisation in this area for
the economy.
Question 8
We also understand that you plan to privatise the Botswana Telecommunications Corporation. What
kind of time frame do you envisage for this?
Answer
The Botswana telecommunications market has been liberalised further by the introduction of two
mobile telephone companies. Further liberalisation includes the restructuring of the fixed line operator
and its subsequent privatisation. It is difficult to provide a precise time frame for the privatisation of
the Botswana Telecommunications Corporation.
Question 9
Paragraph 79 indicates that Botswana plans to develop a Tourism Board and Tourism Development
Fund. Could the Government of Botswana please indicate what sort of work has been done so far toestablish these entities?
Answer
A Bill to establish the Botswana Tourism Board has been tabled before the Botswana National
Assembly. It is expected that the bill will be debated by parliament and passed into law during the
course of 2003. Thereafter we expect the Tourism Board to be established. No decision was taken to
establish a Tourism Development Fund. Instead a venture capital fund has been established, which
will assist investors in joint venture arrangements to access funds and loans.
LESOTHO
Question 10
Lesotho’s land ownership rules could be viewed as a barrier to foreign investment. Has Lesotho taken
any steps to implement the Land Policy Review Commission's recommendation to make it easier for
foreign investors to own land?
Answer
The land reform policy has been completed and recommendations are currently under consideration
for implementation.WT/TPR/M/114/Add.1
Page 10
Question 11
Does Lesotho envisage taking on any basic tele communications services commitments during the
current round of GATS negotiations?
Answer
Lesotho is developing a strategic telecommunications policy. However, decisions on whether Lesotho
will make further commitments during the current round of GATS negotiations in any services sector,
including the telecommunications sector, will be determined in the context of our preparatory process,
after consultations with all relevant stakeholders.
Question 12
Canada would like to comment on the statement whic h reads, “In 2002, the former executive director
of the Lesotho Highlands Development Authority was convicted of misuse of funds, while a Canadian
construction firm, which had been involved in the scheme, faces substantial fines for bribery and, as aresult, blacklisting by the World Bank.”
The only Canadian company involved in the Lesotho Highlands Water Development Project was a
consulting engineering firm, which along with a number of other international consulting companies
involved in the Project, was charged with bribery.  The Canadian company was convicted, but has
been granted leave to appeal the conviction and the sentence, and the case is currently under appeal.
The Canadian company was one of three internationa l firms involved in the Project reviewed by the
World Bank. The World Bank has not blacklisted the company.
NAMIBIA
Question 13
Namibia has had considerable success in codifyi ng and making public its foreign investment regime.
Canada encourages the Government of Namibia, if it  has not already done so, to share its experiences
in reforming its investment regime.  Is there any mechanism, which allows SACU members to share
such experiences with their SACU partners?
Answer
On the investment regime, Namibia, through the Technical Liaison Committees established under the
SACU Agreement, is prepared to share its expe rience with other SACU member countries on its
investment framework.
Question 14
Does Namibia envisage taking on any telecommuni cations services commitments during the current
round of GATS negotiations?
Answer
Namibia has already undertaken autonomous liberalisation in part of the telecommunication sector
(i.e. voice services) by admitting a second network operator. We intend to strengthen this by making
commitments in this sector.WT/TPR/M/114/Add.1
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Question 15
Namibia has indicated that the te lecommunications services market will be completely open by 2004.
Is this timetable still valid?
Answer
Namibia is undertaking to put in place enabling in struments, which will include the participation of
Namibians in this sector.
SOUTH AFRICA
Question 16
Please update us on the second phase of privatisation of Telkom.
Answer
The second stage of the privatisation of Telkom commenced with the Initial Public Offering of
Telkom shares on the JSE Securities Exchange in South Africa and the New York Stock Exchange on
4 March 2003.  This has reduced the government's ownership of Telkom to 39.3% of the total
ownership. Thintana LLC (consisting of SBC and Telekom Malaysia) owns 30%, 27.7% is publicly
owned and Ucingo owns 3%.
Question 17
Paragraph 27 states that "...some SADC countries have criticised South Africa for breaking ranks
with the regional opposition to GM crops, while Sou th Africa's parliament has called for an urgent
discussion on whether the country needs to amend its laws in this regard. Also, some consumergroups have urged the Ministry of Health of S outh Africa to introduce compulsory biotechnology
labelling." Canada would like to kn ow what the government response  has been to this call for
parliamentary discussions and whether new labelling requirements for GMOs are being considered at
this time.
Answer
South Africa is not aware of any specific criticism of its GMO policy by its SADC partners. South
Africa’s position on GMO’s is derived from its  National Strategy on Biotechnology, which was
approved by Cabinet in 2001. The joint session of the parliamentary committee was unanimous in itsrecommendation that the current GMO Act was to be retained. The labeling of GMO foods has in
principle been decided with the publication of the relevant Act. Currently, a process to develop an
identity preservation system is underway. A final date for the implementation of the labeling system
has not yet been decided.
Question 18
We note that you have established a new Independent Communications Authority of South Africa
(ICASA). What is the range of its powers to en sure effective implementation of its decisions?WT/TPR/M/114/Add.1
Page 12
Answer
ICASA has the power to enforce its decisions through sections 100, 101 and 96 of the
Telecommunications Act. Section 100 of the Te lecommunications Act deals with offences by
licensees and section 101 deals with offences by persons (who are not licensees).  ICASA can
investigate and adjudicate any alleged failure by one of its licensees to comply with a provision of the
Telecommunications Act, its licence or any other agreement entered into in terms of the Act (e.g.interconnection, facilities leasing). ICASA also has the power in terms of this provision to enforce any
decision it makes on a complaint from a customer or end-user against a licensee. The Authority may,
after investigation, if it finds a licensee guilty: direct the licensee to desist from the action; direct them
to pay a prescribed fine; direct them to take remedial steps; if the licensee has repeatedly been found
guilty of the failure, revoke the licence.
In terms of section 96 of the Telecommunications Act, ICASA has the power to make regulations on
various issues that have either been prescribed in the Act, are technical matters, or are matters of
procedure or form.  These regulations in turn enable the Authority to act to enforce certain provisions
of the Act (e.g. in terms of s43 on Interconnection, the Authority’s enforcement powers with respectto interconnection matters are described).
Question 19
In paragraph 66, the third sentence reads “Total assets held by the financial sub sector represented
the equivalent of about 370% of GDP in 1999, wi th banks accounting for roughly 27% of total
assets.” Could South Africa please confirm that the percentage of total assets held by the financial
sector is actually 370%?
Answer
The correct figure is 37%.Question 20
Paragraph 67 states that: For all financial services (excluding insurance services), South Africa
made commitments only with respect to commercial presence on: national treatment, under whichbranches of banks not incorporated in South Africa must maintain a minimum balance of R 1 million
on the deposit accounts of natural persons; and market access, under which companies need to be
incorporated as public companies in South Africa, and registered with the Registrar of Banks in order
to carry on business in the country.
Could the Government of South Africa please ex plain the requirement for foreign bank branches to
maintain a minimum balance of R1million (around $US 130,000)? Does it mean that foreign bank
branches cannot accept deposits from individual persons of less than R 1 million? Also would South
Africa please clarify the meaning of the incorporation as a public company to carry business in the
country? Does it mean that the shares of the company must be traded on a South African stockexchange? Can a public company be 100% foreign-owned?
Answer
The R1 million requirement related to a minimum deposit by individual depositors in a foreign branch
office and was intended to provide a measure of protection for depositors. This requirement has beenWT/TPR/M/114/Add.1
Page 13
lifted and the protection of depositors is now regulated through bilateral agreements with the head
office of the foreign bank branch.
The requirement to incorporate as a public company in SA is to ensure that the relevant authorities
have jurisdiction over the institutions. The company can incorporate by registering with the Registrar
of Companies and its shares do not have to be traded on the Johannesburg Securities Exchange. A
public company can be 100% foreign owned.
Question 21
The Secretariat Report states that  “Any person, whether South African or foreigner, may control an
insurance company in South Africa. However, forei gn insurers cannot open branches in South Africa,
but may register subsidiaries.” Would South Africa please explain the rationale for this policy? Could
the Government of South Africa please indicate whether there is any possibility that this policy could
be revisited in the future?
Answer
The restriction is in place to ensure that the home supervisor (the Financial Services Board) has
jurisdiction over the insurer. In the case of a branch office there is no such jurisdiction. It is unlikely
that this restriction will be removed in the near future.
Question 22
In paragraph 85, the World Tourism Organisation states that there is a lack of promotion of tourism
investment in South Africa. In paragraph 88, it appe ars that the Tourism Growth Strategy aims at,
inter alia, increasing investment, both foreign an d domestic, in the tourism industry. Could South
Africa please elaborate on what measures in th e Tourism Growth strategy aim at increasing
investment in tourism?
Answer
South Africa has recently published the South African Tourism Growth Strategy.  The objectives of
the strategy are:
1. Economic growth of the industry
2. Growth of Foreign and Domestic investment into the industry.
3. Skills, training ad mentorship development of tourism enterprises
4. Employment and job growth.
5. Development of a world-class SMME’s  industry within the tourism economy
6. Transformation and empowering previously disadvantaged individuals to partake in
the industry fully.
The implementing agencies to deliver on the strategy mentioned above are the following:
1. National Government as represented by the Departments of Trade and Industry and
Environmental Affairs and Tourism.
2. Provincial Investment promotion agencies.
3. Local governments and major city agencies.
4. Special bodies e.g. National Parks Board and other bodies that are promoting specific
areas like the Lebombo and Wild Coast development zones.
5. Private bodies e.g. South African Property Owners Association.WT/TPR/M/114/Add.1
Page 14
The areas of focus are:
1. Urban and rural conference facilities
2. Game lodges
3. Golf courses and conference facilities
4. Leisure hotels
5. Heritage site development
6. Eco tourism
7. Cultural Tourism
In order to support these developments, complementary services are also being promoted e.g. tour
operators and related activities.
SWAZILAND
Question 23
We understand that the Government has formulated a new Telecommunications Policy aimed at
liberalizing the sector through the passage of a new Telecommunications Act and that this will
eliminate the Swaziland Posts and Telecommunications Corporation (SPTC), which currently enjoys
a national monopoly on fixed telecommunications services. Can you update us on this process?
Does Swaziland envisage taking on any telecommunications services commitments during the current
round of GATS negotiations?
Answer
Government policy is aimed at separating the regulatory aspect from the operational aspect. The
regulator will issue licenses to the operators in order improve efficiency and liberalise the market. It is
expected that the service delivery will also improve. Once the Swaziland communicationscommission is fully operational, Swaziland will be in a position to consider the extent of
commitments it can make in the GATS negotiations.
Questions from Colombia
SACU
Question 1
What is the basic process for the development of economic integration in SACU? What are the
characteristics and the structures of the common external tariff? What treatment is given to
agricultural products?
Answer
Economic integration within SACU has largely been achieved through the common external tariff that
has been in place since 1910.  All countries, except Botswana, belong to a common monetary area.
The present agreement provides a basic framework for the development of common policies.  SACU
has a common tariff book and levy the same duties. All products appear in the tariff book as laid
down in the harmonised system convention.WT/TPR/M/114/Add.1
Page 15
SOUTH AFRICA
Question 2
What are the main changes achieved by the Republic of South Africa, since the last review, in
modernising its institutions of trade and industrial development and, in particular, in relation to its
competitiveness policy?
Answer
The Department of Trade and Industry has strengthened its institutional capacity and delivery
mechanisms. Special policy and delivery capacity has been created to deal with trade and industrialdevelopment respectively.
Question 3
What are the characteristics of South Africa’s “draw back scheme”?Answer
Characteristics of the draw back scheme are; reduction of input cost for manufacturing, processing
and packaging of imported material used in the manufacture of product for exports; the facilitation of
exports at international competitive prices.
Question 4
Why are products contained in tariff items between 27.07 and 27.15 (mineral fuels, mineral oils and
products of their distillation) subject to an import control regime?  What is the reason for the surtax
that affects petroleum and bituminous oil imports?
Answer
The Department of Minerals and Energy utilises the import control regime as a mechanism to monitor
demand and supply in the country to enable it to make adjustments where necessary.
Question 5
How do you expect the difference between the tariff levels for cane sugar and its derivatives (of 35%,
see Annex 4, page A-267 of the Secretariat report WT/TPR/W/114) and the level applicable to theaggregate of agricultural products (5% average MFN rate, page A-262)?
Answer
The sugar market is arguably one of the most distor ted in international agricultural trade today. These
distortions are a result of protection and support policies in a few developed countries. The South
African sugar industry, as well as in other SACU countries, do not receive subsidies from
Government. Tariffs are the only form of protecti on enjoyed by the SACU sugar sector. Sugar tariffs
are expected to be maintained above the average level of agricultural tariffs until such time as the
major distortions are removed in the international sugar market.WT/TPR/M/114/Add.1
Page 16
Questions from the European Union
Question 1
How far is sustainable development being taken into consideration in the SACU Trade Policy?
Answer
SACU countries take sustainable development into account in all efforts aimed at the socio-economic
development of the SACU region and its economies.
Question 2
Please explain whether and to what extent Fair Trade (which takes into account economic,
environmental and social sustainability) is in tegrated into the SACU Agricultural Policy.
Answer
The SACU Agreement does not provide for a common agricultural policy. However, the new SACU
agreement provides for co-ordinated agricultural policy development.  SACU countries follow a
common approach in the WTO agricultural negotiations and, in this regard, Fair Trade is of crucial
importance to all SACU members. It is well known that SACU regards a very ambitious reform
programme as fundamental to the DDA. In relation to market access and trade preferences, South
Africa has proposed guidelines in the current agricultural negotiations which include:
(i) Vulnerable, preference dependent countries should not bear the costs of further 
liberalisation;
(ii) Developing countries that do not currently enjoy preferences and are discriminated 
against by the EU and other preferential regimes, should not have their current positions exacerbated by the above approach; and
(iii) Capacity-building to support countries efforts at diversification should be focused on 
the specific needs and situation of particular developing countries requiring this 
assistance.
However, in developing the above guidelines, we need to ensure that the mechanism created to
address the issue of preferences does not delay the dismantling of the protective regime in the North.
Nor should developing countries who seek relief from  protection in the North be held hostage by the
above complexity.
BOTSWANA
Question 3
How far do assessments of the impacts on sustainable  development flow into the setting up of the
National Export Strategy?
Answer
Botswana, in close cooperation with the International Trade Centre (ITC) in Geneva, has recently
embarked on the development of a comprehensive National Export Strategy. The Strategy is being
developed through a strong public-private sector partnership, using the comprehensive modelWT/TPR/M/114/Add.1
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(template) developed by the ITC for the elaboration of such strategies. More specifically, the Strategy
will not only focus on identifying and promoting export markets (border-out) activities but, moreimportantly, it will have an inward-looking (border-in) focus to develop new approaches and to
strengthen the production capacity and competitivene ss of firms to compete in international markets.
An important element will be the development of  export competency through management training.
In order to achieve sustainable development through the development of export capacity and
competitiveness, the Export Strategy also include s a significant “pro-poor” dimension (development
component). More specifically, the National Export Strategy will be mainstreamed into the overall
planning process by focusing strategic initiatives on the core development issues of poverty
alleviation, employment generation and decentralisation of industry. It is expected that pro-poor
export initiatives will have a significant and sustainable development impact in terms of new exportearnings generated, employment opportunities created and the share of export receipts retained by
disadvantaged groups.
Question 4
Please set forth to whether and to what extent Fair Trade (which takes into account economic,
environmental and social sustainability) is bei ng promoted by the authorities as an element of
sustainable development.
Answer
The existing pieces of legislation such as the Consumer Protection Act, the Industrial Property Act,
and the Botswana Telecommunications Act are aimed at among others, promoting Fair Trade. In
addition, Botswana is currently finalising a draft Competition Policy, which will, inter alia, promote
competition among various private sector actors as well as protecting consumer rights, thereby
enhancing fair trade. This policy will pave the way for the formulation of a Competition Law and the
establishment of a Competition Authority to further enhance Botswana’s full commitment topromoting and safeguarding open competition and fair trade.
Question 5
Please explain how far sustainable development and Fair Trade are being promoted to reduce
poverty and foster local agriculture?
Answer
Sustainable development is a cornerstone of our Na tional Development Planning process. It is also
enshrined within the National Vision 2016 document which guides national development plans,
policies, programmes and projects.
Agricultural development is based on “sustainable economic diversification”. The introduction of the
National Master Plan for Arable Agriculture and Dairy advocates the diversification of production.The Master Plan is intended to create opportunities for investments and employment in the
agricultural sector, which will lead to poverty alleviation. The Increase in employment is attributed to
the forward and backward linkages in addition to primary production in the agricultural sector.
Trade in agriculture has been substantially liberalised to ensure that consumers can have access to
different varieties of food at competitive prices. Liberalisation is managed with due regard to infant
industries so that their development is not disrupted.WT/TPR/M/114/Add.1
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Question 6
Please set out the extent to which environmentally sound forestry practices are being promoted to
counter deforestation.
Answer
Government is finalising a forestry development policy. It is also reviewing associated legislation in
order to use and conserve natural forest resources in a sustainable manner. Government is also
establishing a programme of community-based woodland management in order to use indigenous
woodland species to provide wind-breaks and ar rest wind erosion of cropland catchments.
Question 7
Please explain the scope of Sustainable Deve lopment in the National Ecotourism Strategy.
Answer
The Botswana Tourism Policy encompasses, among other things, an eco-tourism component. There is
a clear recognition that for Botswana to continue to benefit from tourism, it has to be based on
sustainable development. An eco-tourism strategy has been developed which emphasises the need for
long-term sustainability.
NAMIBIA
Question 8
Namibia is both a member of the SACU and of COMESA. Please explain Namibia’s current position
vis-à-vis the COMESA Customs Union. Does  Namibia intend to remain in COMESA?
Answer
It is true that Namibia is a member of both organisations. Namibia has not joined the Free Trade
Area because of its membership of SACU. Namibia is evaluating and reviewing its position within the
context of all the regional trade initiatives as well as developments in the context of the Cotonou
process with the view to rationalising its membership.
Question 9
To which extent does Namibia intend to include trade liberalisation as an element of its poverty
reduction strategy?
Answer
Government through the National Development Plan, has indicated its desire to mainstream trade into
poverty reduction programmes and strategies. This would ensure that trade liberalisation is poverty-
reducing and not poverty enhancing. Thus, the Government recognises and appreciates the link
between trade and development.WT/TPR/M/114/Add.1
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Question 10
Please explain to which extent Fair Trade (which takes into account economic, environmental and
social sustainability) is integrated into the National Agricultural Policy.
Answer
The Government of the Republic of Namibia has an integrated framework that seeks to balance
agricultural policies and sustainability issues (environment) and sustainable livelihoods (social). To
this end, agricultural policies are targeted at rural communities to ensure a balance between
environmental imperatives and agriculture. A primary objective is to address the issue of land
disparity. This is done through land acquisition on a commercial basis and land re-distribution to thelandless and rural communities. A parallel objective is to mitigate against land degradation. In
addition, extension programmes have been introduced in order to ensure sustainable utilisation of
resources.
Question 11
To what extent do the Ministry of Environm ent and Tourism and the Namibian Tourist Board take
ecological, economic and social sustainability on board when formulating tourism strategies?
Answer
Government has put in place a tourism management authority that ensures that ecological systems are
safeguarded and maintained. A good example in this regard is the Skeleton Coast management
system. About 5% of available land is designated as national parks. Communities along these national
parks are involved in the sustainable management of these parks. Thus, ecological interests are
balanced with the economic and social needs of the rural communities. Thus, government is
committed to formulating strategies and policies based on ecological, economic and socialsustainability. Namibia’s membership to the CBD and Bio-Safety Protocol offers a vivid example of
government determination to deal with issues of sustainability.
LESOTHO
Question 12
To which extent do programmes such as the Interim Poverty Reduction Strategy Paper and the Pro-
Poor Integrated Framework recognise the role of trade in supporting sustainable development?
Answer
Lesotho wishes to highlight recent developments regarding the formulation of the Poverty Reduction
Strategy Paper (PRSP), which supersedes the Interim Poverty Reduction Strategy Paper (IPRSP). The
former contains long-term objectives and strategies derived from a consultative process with allstakeholders, including recommendations of a Diagnostic Trade Integration Study (DTIS). To ensure
recognition of the role of trade in supporting sust ainable development, the processes of formulating
PRSP and developing a Pro-Poor Integrated Framewor k were carried out on the basis of consultations
with communities and the principle of Smart Partnership.
Strategies include, among others, the development of the private sector, in particular the SMME
development and the promotion of exports in agricultural and industrial sectors.WT/TPR/M/114/Add.1
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Question 13
Please explain how far sustainable development and Fair Trade are being promoted to reduce
poverty and foster local agricultural capacity building?
Answer
The Government of Lesotho pursues policies and programmes geared towards the enhancement of
commercialisation and diversification. These pr ogrammes and policies are based on comparative
advantages and an outward looking approach. At the same time, they are expected to enhance food
security. To achieve the above, support is provid ed to the farming communities engaged in production
of exportables. Extension programmes have been intensified to expedite the introduction of cash cropsand improvement of farmer’s husbandry and marketing skills. Other support can only be provided on
exigencies such as critical food shortfalls resulting from severe droughts.
Question14
Please set out the extent to which sustainable forestry practices are being promoted to counter
deforestation.
Answer
The Government of Lesotho, in order to counter deforestation with sustainable forestry practices, has
introduced a scheme, which transfers production of seedlings from government to local communities.The initiative provides the communities with the opportunities to produce seedlings for sale to
government, distribution and planting. As an indication of government commitment to redress
deforestation, a new fully-fledged government ministry has been created to address the above-
mentioned problems.
Question 15
Please explain the role of the Lesotho Touris m Development Corporation towards Sustainable
Development.
Answer
The Government of Lesotho, in an effort to maintain the eco-system, provides continued, tailored
educational programmes aimed at cultivating the culture of environmental protection. LTDC’s role is
to promote and develop sustainable tourism.
SOUTH AFRICA
Question 16
To which extent does South Africa intend to include trade liberalisation as an element of its poverty
reduction efforts?
Answer
Our own studies found that for the economy as a whol e, net trade has had a distinctly positive effect
on employment, particularly for the unskilled.  Enhanced employment is the major mechanism inWT/TPR/M/114/Add.1
Page 21
poverty reduction and hence we see trade liberalisation as being directly in accord with our central
objectives of poverty reduction.
Question 17
Please point out to what degree South Africa is making use of assessments of the impacts on
sustainable development when defining its national trade and export strategies.
Answer
South Africa considers sustainable development when defining its national trade and export strategy.
The idea is to find a proper balance between environmental sustainability and job creation, povertyreduction and economic development. Amongst other initiatives is the National Environmental
Management Second Amendment Bill, which is currently being drafted. Some of the key provisions
of this Bill is the elimination or reduction of production or use of certain products. This Bill will
supplement other legislative requirements that must be observed before development is undertaken.
Environmental consideration and sustainability are legislative requirements in South Africa.
Question 18
Please explain to which extent Fair Trade (which takes into account economic, environmental and
social sustainability) is integrated into the Strategic Plan for South African Agriculture.
Answer
The strategic plan for South African Agriculture is to generate equitable access and participation in a
globally competitive, profitable and sustainable agricultural sector contributing to a better life for all.
In order to meet this objective for the sector, real structural change in the distorting policies of the
major developed countries need to take place, which will enable South Africa and its custom unionpartners to realise their competitive and comparative advantage on international markets.  South
Africa envisages addressing sustainable rural agricultural development and poverty alleviation with
mainly Green Box measures.
Question 19
Please set out the extent to which sustainable forestry practices are being promoted to counter
deforestation.
Answer
At the beginning of 2000, the Department of Water Affairs and Forestry initiated a process to develop
a set of Criteria, Indicators and Standards for sustainable forest management according to the
Principles contained in the National Forest Act.  Th is process resulted in the development of a broad
set of criteria and indicators that are representative of South Africa’s concerns and priorities in thisarea. The criteria and indicators are currently subject to a validation exercise to test their relevance,
adequacy and efficacy. The end result of this exercise is the development of criteria and indicators, for
use by all stakeholders, to monitor forest conditions and promote/guide sustainable forest
management.WT/TPR/M/114/Add.1
Page 22
Questions 20 and 21
As stated repeatedly in the different reports, SACU countries’ trade regime is highly complex due to,
in particular, these countries’ membership in di fferent regional integration initiatives. COMESA and
SADC, for example, both aim at eventually becoming customs unions. How do the SACU countries
intend to reconcile this situation with the need for greater consistency in terms of regional
integration?
How does the emergence of a revitalised SACU affect the regional integration processes?
Answer
As a regional integration initiative itself, SACU is fully committed to the advancement of integration
in both Southern Africa (under the aegis of S ADC and COMESA) and in the rest of the African
continent. Further, SACU believes that regional integration efforts are compatible with multilateral
trade liberalisation under the WTO.
SACU considers that SADC a nd COMESA share the common objective of promoting regional
integration in Southern Africa, albeit through different modalities and schedules. While it is not
practically possible for SACU to be part of bo th SADC and COMESA, SA CU supports co-operation
and co-ordination between SADC and COMESA while each organisation consolidates its integration
programme.
Question 22
Will SACU negotiate as one in the context of both the DDA and future preferential agreements?Answer
The new SACU provides for SACU members to negotiate with third parties as a bloc. Pursuant to
this, SACU members coordinated their positions on the DDA and will continue to do so as the DDA
unfolds. Similarly, SACU is preparing to undertake the negotiations of preferential agreements with
the US and Mercosur as a bloc. For this purpose, a SACU common negotiating mechanism will be
established, as provided for in the new SACU Agreement.
Question 23
By when can it be expected that the new Treaty will enter into force (estimation of the length of the
ratification process)?
Answer
The Agreement will enter into force after domestic  constitutional proceedings by respective members
states are completed.
Question 24
By when will the future SACU Secretariat become operational?WT/TPR/M/114/Add.1
Page 23
Answer
Please refer to answer to question 23.
Question 25
Are there plans to enlarge SACU to new members in the future?Answer
The new agreement makes provision for the accession of new members.
Question 26
How will SACU co-operation in the area of competition be addressed?
Answer
The new SACU Agreement provides that SACU Members shall cooperate with each other with
respect to the enforcement of competition laws and regulations. The mechanisms of cooperation will
be developed and agreed upon as Members States implement the Agreement, which includes
development of new competition laws and regulations.
Question 27
We understand that SACU intends to extend trade liberalisation to services, but that negotiations are
yet to commence. Has SACU already undertaken any steps towards regional integration of their
services markets of developed common sectoral po licies in services? Do SACU members coordinate
their trade policy with regard to services?
Answer
The Agreement does not expressly include Services, However, there have never been restrictions on
services in the customs area.
In terms of the crafting of common policies, this will be taken up as part of the work programme.
Question 28
According to para 22 the Tariff Board is responsib le for recommendations to the Council in regard to
trade defence measures. Item 19 states that the Council of Ministers has to decide on these matters.
Can the SACU please elaborate on how decisions ar e taken in the Council of Ministers (weighted
votes, simple majority etc.)?
Answer
Decisions will be taken by consensus In the Council of Ministers.WT/TPR/M/114/Add.1
Page 24
Question 29
Paragraph 24 mentions the establishment of a Tribunal to decide on issues concerning the
application or interpretation of the agreement. Can interested parties of a trade defence dispute
appeal with this Tribunal?
Answer
In terms of the new SACU Agreement, only Members States can appear before the Tribunal as parties
to any dispute that may arise.
Question 30
The report states that, because of their membe rship in SACU, BLNS countries apply anti-dumping,
countervailing and safeguard measures imposed by  South Africa. Can the SACU please elaborate
how and to which extent the producers outside of South Africa are taken into account for the
determination of „domestic industry“?
Answer
SACU is fully taken into account when the dete rmination of domestic industry is made in SA.
Question 31
The report gives the definitions of dumping and subsidies according to SACU legislation. However, it
does not elaborate on the occurrence of injury and causality in order to take measures. Can the
SACU confirm that these requirements are part of the legislation?
Answer
Regulations will be developed in this regard.Question 32
The report states that safeguard actions are taken in case of „disruptive competition“. Can the SACU
please confirm that the new legislation is in conformity with the WTO agreement on safeguards and
that the character of exceptional application and the requirement of „serious injury or the threat
thereof“ is respected.
Answer
SACU does not have legislation on safeguards yet. This will form part of the future work programme.
Question 33
Could information be given on efforts at the SACU  level to introduce trade facilitation measures – in
particular simplification and standardisation of import and export procedures, transit arrangements,
and modern customs methods?WT/TPR/M/114/Add.1
Page 25
Answer
The work on harmonisation and simplification is part of the work programme of the union.
BOTSWANA
Question 34
Botswana indicated a need for seminars to help stakeholders understand and prepare for negotiations
on several DDA issues. How has the WTO responded to that?
Answer
The WTO Secretariat has always demonstrated a willingness to assist Botswana whenever requests
for technical assistance have been made. The main problem has been the under-utilisation of WTO
assistance because of capacity constraints on the ground. Botswana is currently developing a
comprehensive capacity building programme, which will determine the short, medium and longtechnical assistance and capacity building needs.
Question 35
How can foreign firms register as contractors in order to be eligible for procurement? Are there any
particular requirements for foreigners only?
Answer
The Public Procurement & Asset Disposal Act [No.10 of 2001] provides for the Registration of
Contractors. The eligibility requirements in place comprise:
That the proponent must be licensed or incorporated under the relevant laws of Botswana (section 117
of the Public Procurement & Asset Disposal Act, refers) this requirement exists both in respect of
foreign and citizen contractors.
Section 121 of the Act further provides that Registration in the Contractors Register shall be inter alia
by classification of Contractors by grades and codes, based on scale and complexity of procurement
and the capacity of contractors, according to international practice.  In this regard, Grades Opportunity
Category (OC), A, and B which are lower grades reserved for 100% Citizen owned companies only.
Foreign contractors are eligible to participate in higher categories of Grade C (which predominantly
comprises joint–ventures between citizen and non-citizen contractors), Grade D and Grade E(Unlimited).
With particular reference to providers of consultancy services, such as professional consultancy
services, there exists a requirement that in order to  be eligible to tender, the firm must have a local
office and must have been operating within Botswana  for a period of one year immediately preceding
the application for registration.
Companies which intend to do business in Botswana should be in possession of appropriate licenses
authorising them to carry on such business. Th is applies to both citizen foreign companies.
The Public Procurement & Asset Disposal Act provides for mandatory registration with the PPADB
for contractors as a condition of eligibility.WT/TPR/M/114/Add.1
Page 26
Question 36
Besides the Local Procurement Programme, what reservation and preference schemes are currently
in force in Botswana?
Answer
There is a 30 % Reservation of the Government of Botswana’s annual procurement budget for
building construction which is reserved for 100% Citizen owned firms only.
There is also a 2 ½ % Price Preference for Citizen Contractors up to a ceiling of P300 000, which is
reviewed every three years.
Government has also introduced a combination of reservations and price preferences for Citizen
Consultants and IT providers.  Reservation ceilings vary according to professional disciplines whereas
the price preferences are in accordance with the degree of citizen ownership of the bidder.  100 %
Citizen owned contractors get a 5% price preference, majority owned 3% and minority owned 2%respectively.
Question 37
Will the new computerized system of registering suppliers be open to foreign suppliers? Do any of the
tendering procedures revisions pertain to transparency?
Answer
The new computerised system is intended to enhance efficiency and not promote discrimination
between foreign and citizen owned companies. Therefore the current system of registering both
foreign and citizen will continue. The Public Procurement and Asset Disposal Act of 2001 aims at,among other things, promoting transparency in public procurement. In particular, the Act requires all
reservation and preference schemes to:
(a) be targeted and time bound;
(b) be phased in and out;(c) be non-discriminatory in respect of the targeted group or grade of contractors;
(d) be based on competition among eligible groups;
(e) entail their calculation of cost versus  the cost of unrestricted procurement or 
disposal;
(f) have clear quantifiable objectives to be achieved; and(g) contain benchmarks to assess progress.
In addition all construction projects with an estimated cost of P 50 Million or more must be subject to
open to international competitive bidding.
The Act also provides for an Independent body known as the Independent Complaints Review
Committee. This Committee was established to deal with queries by contractors arising at any point in
the procurement and disposal process, including complaints by contractors at registration,
reclassification, etc.WT/TPR/M/114/Add.1
Page 27
Question 38
What further revisions are being made to tendering procedures?
Answer
The Government has 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 a nd 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 to 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.
LESOTHO
Questions 39-42
How are notices of invitations to tender advertised?How can prospective foreign bidders access info rmation on tender notices, bidding procedures and
awarding criteria?
Are contract awards published?How does Lesotho intend to review its government procurement system?
Answer
The Government of Lesotho has a procurement system, which allows for advertisement through
notice boards, radios and newspapers that comma nd wide readership. Prospective foreign bidders
access information pertaining to tenders through the above means, while bidding procedures areavailable 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 memb ers from both the private and public sector. Among
other objectives, the review aims to minimise government involvement.
Question 43
The report informs about interest rate subsidies and reduced tax rates for manufacturing companies.
Are these subsidies export contingent?WT/TPR/M/114/Add.1
Page 28
Answer
Reduced corporate tax is applied uniformly to all manufacturing entities regardless of the intended
markets, whether local or international. In that way the corporate tax is not necessarily used as an
export incentive.
Questions 44-46
How many service providers are there for mobile services, internet access services, fixed data and
voice services?
Do the responsibilities of the Telecommunications Authority cover licensing, remedy against anti-
competitive practices, interconnection rules, arbitration of disputes, attribution of numbers and
frequencies?
Is there a scheme to expand access to the network for the poor and isolated?
Answer
There are 2 mobile operators viz Vodacom Lesotho and Telecom Mobile Lesotho, which is trading as
Econet Ezi-cel Lesotho. In addition there are also  4 internet service providers, Viz: National
University of Lesotho, Square One Commet Lesotho, Lesotho Office Equipment trading as LEO, and
Adelfang Computing. There is one (1) fixed line operator by the name of Telecom Lesotho, providing
fixed data and voice services. Also one (1) Internet bandwidth refiler trading as OSCAR
communications. This service provider has already been licensed and will resume operations later in
the year.
The government policy is that access to network sh ould be expanded to all people, including the poor
and isolated. Lesotho Telecommunications Authority is working on a policy document and strategy toaddress issues of Universal Access. The development of the paper has involved various stakeholders,
including ministries, utilities companies and network operators. Work is nearing completion. The
strategy anticipated will take the next 3 years from 2003/4. The idea is not to charge the Universal
Service Fund contributions but to direct network operators in particular areas where the majority of
people obtain services in accordance with a new license obligations. The strategy paper is notcompleted yet.
NAMIBIA
Question 47
The report states that “Namibia’s capacity to negotiate preferential trade agreements is further
limited by the 2002 SACU Agreement”  - Is this the case? If so, why?
Answer
The 2002 SACU agreement Article 31 provides that  member countries of SACU should enter into
negotiations with third parties on a collective basis. This means that the extent to which Namibia can
pursue preferential trade negotiations is constricted by this legal position. The rational that underpins
this legal position is that the credibility of the co mmon external tariffs should be maintained by all
SACU members.WT/TPR/M/114/Add.1
Page 29
Question 48
For the sake of completeness, we would like to indicate the following: The Report does not mention
under II (4)(i) - Point 34 that the EC agreed to allo cate under its Country Strategy Paper at least
EUR 2 million for a Namibia trade and regional integration programme which should address
Namibia’s capacity constraints, including stre ngthened negotiation capacities, analytical and
research capacities, inter-institutional consu ltation mechanisms and support  to undertake impact
studies. In addition, the EC and the EIB are actively involved in supporting the private sector and
addressing the supply side constraints.
Answer
Yes, this programme is being put into place and this may help to explain why it has not been
mentioned at the time when the report was finalised. Notwithstanding, the unintended omission, the
Namibian government would like to extend its gratitude to the European Union for its consistent
support in the area of technical assistance and capacity building. It is our hope that this support will be
maintained in the future as we assume additional obligations as a result of the Cotonou process andthe possible outcomes of the Doha Development Agenda.
Questions 49-53
Has Namibia planned to organise workshops and seminars in government procurement for the
training of officials?
Are awards of contracts also advertised?
How is the necessary technical expertise of suppliers determined by the Tender Board of Namibia?How can foreign suppliers register in Namibia in order to receive price preferences?
How can foreign investors obtain the Certificate of Status Investment 
(CSI )?
Answer
Indeed, we organise workshops in this area to train and sensitise officials. The awards are advertised
and the technical specifications are evaluated by the agency or institution that would require the
service. The institution may recommend the supplier to the Tender Board which in turn would
evaluate and accept or reject the recommendation. The Tender Board is constituted by presence of
both the government and private sector representatives. The private sector always presides as deputychair. The tender opening is a transparent process and each supplier would usually be aware of the
offer that would have been made by the other competitors. This is both in terms of price and technical
specifications. The tenders are open to both foreign and domestic suppliers. If the foreign supplier is
able to secure the applications from the Ministry of  Finance, Room 15, then it is up to them to submit
the applications timeously. In as far as the Certificate of Status of Investment is concerned, this doesnot apply to the tender process.
Questions 54-56
Export subsidies, assistance and processing zonesWT/TPR/M/114/Add.1
Page 30
The report states that 80% tax deduction exists on  income derived from manufactured exports, other
than meat and fish. Can Namibia please explain how this measure complies with its obligationsaccording to Art 3 ASCM?
The report elaborates on tax and tariff concessions for companies in EPZs and states that for EPZ
status eligibility an export share of the producti on of 70% is required. Can Namibia please explain
how this measure complies with its obligations according to Art 3 ASCM?
Answer
The general policy thrust of the measures that Namibia has put in place is to encourage
industrialisation, poverty alleviation, employment creation and growth. It is a considered view of thisdelegation, that these policy measures will invite support by partners in view of the high
unemployment situation as indicated in the Secretariat report, and the concentration of the economic
activities. Indeed, Article 2(c) of the Agreement on Subsidies and Countervailing measures provides
for a test in that it allows for “account to be taken of the extent of diversification of the economic
activities within the jurisdiction of the granting authority”. Namibia, being a country which seeks toachieve both industrial diversification and export base diversification would therefore require
government to put in place measures that would respond to these economic realities. We appreciate
the support that has been extended to us by the EU in this regard.
In as far as the EPZ is concerned, the regime is of a general nature and is non-discriminatory. Given
the objectives that we have alluded to, we hope that our partners will support our efforts to increase
Namibia’s share of world trade.
SOUTH AFRICA
Question 57
Please explain how the promotion of “black economic empowerment” prog ramme will impact on the
government procurement system.
Answer
South Africa has recently released its Black Econom ic Empowerment strategy. One of the instruments
to promote this strategy is to use procurement by government and state-owned enterprises. A detailed
policy statement on procurement is being finalised. This will include a review of current legislation
relating to preferential procurement as well as the drafting of a code of good practice to introduce
consistency between different tiers of government and state-owned enterprises. Further details will beavailable once the policy on procurement is finalised.
Questions 58-62
How does South Africa intend to align the buying procedures of its national, provincial, and local
entities, as well as state-owned companies?
Do any legal instruments ensure the transparency of the procurement practices?What criteria are used for the award of contracts? What development objective criteria could justify
the choice of a tenderer? Could you provide any examples of development objective criteria?
Is the presence of a local agent the only requirement for foreign firms to participate in a bid?WT/TPR/M/114/Add.1
Page 31
As regards parastatal contracts, please explain further the “industrial participation” plan and the
requirement to invest in a new or incremental business in South Africa.
Answer
Government procurement is regulated by the Preferential Procurement Act, 2000. This Act ensures
transparency by clearly specifying the levels of preferences that could be applied in differentinstances. Price competitiveness and value for mone y remain the primary criteria for all government
procurement.
The development objective criteria that would be considered for preference purposes will be spelt out
in codes of good practice, which are presently under consideration. These voluntary codes will be
issued in terms of Black Economic Empowerment le gislation which is presently before the South
African Parliament.  The requirement to participate in industrial participation programmes and to
invest in new or incremental business in South Africa only applies to government purchases in excess
of USD 10 million.
Question 63
Section III enumerates various export incentives. C an South Africa please explain in further details
the requirements for credit facilities offered to exporters by the Industrial Development Corporation
and the promotion of exports of secondary steel products by means of financial assistance?
Answer
To assist local importers, credit facilities have been established with banks and other financial
institutions in virtually all South Africa’s major trading partner countries. Repayment normally ranges
from two to five years but dedicated credit lines can be concluded for larger projects requiring tailor-
made solutions and longer credit periods of up to ten years. The International Finance division assists
exporters of capital goods by structuring finance – extended in rand or US dollars at guaranteed ratesof exchange – to ensure that exporters receive payment of full contract price of delivery. The division
also offers short-term working capital finance to exporters for the execution of export orders.
Question 64
Why is Telkom still setting standards for telecom equipment now that competition is allowed in the
telecommunications sector (and has been alive for mobile services for a number of years)? Is this
practice not undermining liberalisation in the sector?
Answer
Telkom does not set the standards for telecommunications equipment in South Africa. They determine
the requirements for their networks from suppliers. The setting of standards and type-approval of
equipment is provided by the Independent Comm unications Authority of South Africa (ICASA).
Question 65
Would South Africa agree that the much lower teledensity in fixed networks is the result of the lack of
incentive for Telkom to invest so long as it is not faced with real competition?WT/TPR/M/114/Add.1
Page 32
Answer
The low teledensity in terms of fixed lines is a result of a number of factors; including the large rural
population and terrain in these areas. Costs are a si gnificant impediment to the roll-out of lines.
Telkom has had specific roll-out obligations which were tied to their exclusivity and monopoly status,
including penlties for non-delivery.
Question 66
Why has South Africa decided to limit competition to two operators? Given the low teledensity in
fixed networks, how can one single operator (SNO) remedy the lack of investments of Telekom?
Answer
The determination of a single competitor was based on a feasibility study undertaken to assess the
ability of the market to sustain a second operator and the ability of investors to establish such
operators.
Question 67
What is the real coverage of the country by Telkom?Answer
In terms of its license, Telkom is mandated to provide coverage for the whole of South Africa.
Telkom currently has 4.9 million subscribers, located primarily in the urban centres.
Question 68
What are the obligations of expansion of coverage imposed on Telkom?Answer
Telkom has had an obligation to roll-out 1.4 million lines over the five year period of exclusivity,
which ended on 7 May 2002.
Question 69
What is the rationale for an 80% coverage target within two years for the SNO?Answer
The Second National Operator (SNO) is able to “piggy-back” on the Telkom network for two years
thus allowing it to establish its own network. The requirements for network coverage are aimed at
addressing the need for fixed-line infrastructure in the country.
Question 70
Which interconnection obligations have been imposed  on Telkom in order to promote competition and
the offering of services by the SNO?WT/TPR/M/114/Add.1
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Answer
The interconnection guidelines are being drafted by the independent regulator to ensure greater
competition in the sector. These guidelines are to be in line with the Government’s commitments to
managed liberalisation of the telecommunications sector.
Question 71
Can you confirm that the Ministry of Telecommunications is represented on the board of Telkom?Answer
The Minister of Communications is the government representative on the Telkom Board.Question 72
The Minister of Telecommunications acts as a regulator on a number of issues (as indicated he gives
policy directions to ICASA, but also decides upon licenses, upon interconnection conditions with
TELKOM, and upon the prices of TELKOM): how can the Minister be impartial given that the State
still owns 70% of Telkom?
Answer
The Minister does not determine the regulatory issues, other than to provide policy directives in line
with Government policy for the sector. It is the responsibility of the Independent Communications
Authority of South Africa, (ICASA) to determine interconnection guidelines, licensing of operators,
and tariffs for Telkom. In addition, following the IPO for Telkom the Government now owns less than
40% of Telkom.
Question 73
Which anti-competitive practices have been dealt in the past by ICASA in the sector?
Answer
ICASA has ruled on the dispute between Value-Adde d Network Service Providers and Telkom on the
provision of services. Competition issues are pr imarily dealt with by our Competition Commission.
Question 74
What provisions are foreseen to prevent anti-competitive practices by TELKOM vis-à-vis the SNO?Answer
The prevention of anti-competitive behaviour by Telkom towards the SNO is to regulated by the
Independent Communications Authority of South Africa (ICASA), the telecommunications regulator,
as well as by the Competition Commission. The Competition Act of 1998 was changed to
accommodate concurrent jurisdiction between South Africa’s regulatory bodies and the Competition
Commission.WT/TPR/M/114/Add.1
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Question 75
Is there an independent entity, which can arbitrate disputes between operators, and in the future
potential disputes between ICASA and TELKOM?
Answer
ICASA, as the regulator, is responsible for arbitrating disputes between the operators. Disputes
between Telkom and ICASA are to be resolved by the courts, if no agreement can be reached between
the parties.
Question 76
Could South Africa please detail the capital requirements for subsidiaries and branches?Answer
Article 70 of the Bank Act requires (a prudential requirement) that the minimum share capital and
unimpaired reserve fund be at least R250 million or 10% of the risk weighted earnings. Normally the
R250 million requirement applies. Representative offices are not subject to the above since they may
not conduct banking business.
Question 77
Could South Africa please indicate whether there is any limit on foreign shareholding in a brokerage
company that is a member of the Johannesburg Stock Exchange?
Answer
There is no limit on foreign shareholding in brokerage companies but they must be separately
capitalised in South Africa. They may, however, take any form (Ltd., Pty Ltd., partnership, etc.).
Question 78
Could South Africa explain the reasons why establishment through branches is allowed in the banking
sector, and not in the insurance sector?
Answer
The establishment through a branch is not allowed in the insurance sector so that the home supervisor
(the Financial Services Board) has jurisdiction over the insurer. In the case of a branch office there is
no such jurisdiction.
Question 79
Are there barriers to the cross-border provision to South Africa of insurance services, in particular of
reinsurance and of air, maritime and transport insurance?WT/TPR/M/114/Add.1
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Answer
All insurers or reinsurers, as well as insurers on whose behalf policies are sold, must be incorporated
as a public company in South Africa and must be registered with the supervisory authority to conduct
insurance business in South Africa.
Question 80
Could South Africa please clarify whether the approval to acquire a major stake in a South African
insurance company is based on non-discriminatory and solely prudential criteria?
Answer
Approval to acquire a major stake in a South African insurance company is based on non-
discriminatory prudential criteria. In addition, South Africa’s commitments state that "the acquisition
of shares or any other interest (by a resident or non-resident) in a registered insurer resulting in a
holding of 25% or more of the value of all shares or other interest in that business, requires the writtenapproval of the Registrar of Insurance".
Question 81
Has South Africa taken measures within the Tourism Growth Strategy to ensure non-discrimination of
foreign services suppliers, mainly tour operators, hotels and travel agencies?
Answer
The recently published Tourism Growth Strategy aims, inter alia, at the development and growth of
the tourism industry in South Africa with the objective of supporting strategic economic objectives
such as black economic empowerment, development of SMMEs, employment creation, attractingboth foreign and domestic investment, as well as ensuring even development of all our geographical
areas. The development of rules and regulations that may apply or impact on foreign services
suppliers in this sector will form part of South Africa's preparatory process and strategy in the context
of current WTO services negotiations.
Question 82
What are the government’s plans in terms of consultation with the industry operating in the country?
Answer
The Tourism Business Council of South Africa is the umbrella organisation that represents business in
consultations with government. The government adopts broad consultation processes in various areas
of policy formulation. In the process of developing  the Tourism Growth Strategy, for example, the
government consulted all relevant stakeholders to ensure maximum participation and buy-in fromindustry. Further interaction and consultations will take place in the process of the implementation of
the Strategy.
Question 83
How is the government approaching the regulation of tourism-related activities in key regions
(environment, wildlife, urban planning, etc)?WT/TPR/M/114/Add.1
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Answer
The Department of Environmental Affairs and Tourism has developed guidelines to provide national
guidance and indicators to enable the tourism sector to demonstrate progress towards the principles of
responsible tourism embodies in the 1996 White Paper on the “Development and Promotion of
Tourism in SA”. The 1996 White Paper sets forth the concept of responsible tourism and a
comprehensive statement of policy guidelines. A copy of the White Paper can be obtained onwww.environment.gov.za .
Question 84
What is South Africa’s experience in terms of tourism and public security, promotion of local cultures,
development of supply of water and sanitation services, other relevant areas of interest/concern?
Answer
The Tourism Growth Strategy recognises that touris m development and growth flourish in safe and
secure conditions. To this end, the Government embarked on a range of approaches and strategies
(e.g. visible policing, strengthening safety and security agencies and services), in cooperation with
other government departments to ensure the safety and security of all citizens and visitors. In 2002-
2003, significant strides have been made to achieve the objectives of the Tourism Growth Strategy
and these developments have shown positive impact on, inter alia, promotion of local cultures,
development of SMMEs, and provision of services.
Question 85
Has South Africa undertaken an assessment of impact in growth and employment in other sectors (like
construction, computer services, education and professional training, others)?
Answer
South Africa has undertaken impact studies across a range of sectors which, inter alia, look at growth,
employment and other variables and issues. This information can be found on www.tips.org.za
Question 86
Has South Africa taken measures to liberalise these related sectors?
Answer
South Africa has taken measures to open certain services sectors as per its current commitments under
the WTO. Some of the sectors that have been opened include construction and computer and related
services. However, the opening up of other sectors will be considered in the context of South Africa's
preparatory process for WTO negotiations, which has involved consultations with all relevantstakeholders domestically with the objective of developing South Africa's negotiating positions and
strategies.
Question 87
Some figures are difficult to grasp: reception capacity of 1.500.000 rooms in 2001 vs 50.000 in 1996?
(note that arrivals only doubled in that period) Could we please get clarification?WT/TPR/M/114/Add.1
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Answer
The figures quoted are correct.
SWAZILAND
Question 88
How are notices of invitations to tender advertised?
Answer
Notices of invitations to tenders are advertised in the local media. However for donor funded projects
advertisements are made in the international media including ACP, CBL Chamber of Commerce
monthly newsletter.
Question 89
Are foreign companies allowed to register in Swaziland in order to receive the 15% preferential price
difference?
Answer
A company registered in the country with commercial  presence in the country is regarded as a local
company. Therefore a company registered and comme rcially present in the country will qualify for
the 15% preferential price.
Questions from Hong Kong, China
SACU
Question1
We are pleased to note that SACU members are committed under the 2002 SACU Agreement to
harmonizing product standards and technical regulations within the customs union, and that they will
apply product standards and technical regulations in accordance with the WTO Agreement on
Technical Barriers to Trade.  We are interested to know if there is any plan or target for the
harmonisation.
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.WT/TPR/M/114/Add.1
Page 38
In the wake of the signing of the new SACU agreement by all member countries, work is currently
proceeding on a multi-pronged basis to conclude the ratification of the Agreement during 2003; theestablishment of the new SACU Secretariat, and the development of SACU procedures for tariff-
setting and trade remedies.
SOUTH AFRICA
Question 2
We note that South Africa, as the fifth largest user of anti-dumping (AD) actions, initiated 157 AD
investigations and applied 106 AD measures during the period 1 January 1995 to 30 June 2002. As at
June 2002, a total of 98 definitive AD duties were in force compared with 35 at the end of 1996.  Weconsider that proliferation of AD actions and any abuse of such actions would significantly hamper
trade activities and nullify benefits resulted from market access liberalisation.  In this regard, we
would be interested to know South Africa's comment s on the growing trend in its use of AD measures
in recent years, and whether it has put in place any measures to prevent abusive and protectionist use
of AD measures.
Answer
Anti-dumping measures are fair trade remedies applied internationally in cases of unfair trade
practices. Each case is dealt with on its merits and duties are only applied after rigorous investigations
of facts.  Although there was a substantial increase in anti-dumping activity in the period 1995 to
1998, it should be viewed in the light of the extraordinary circumstances which prevailed then:
(I) South African increased its binding s from about 17% of tariff lines to 
99% in the Uruguay round;
(II) The applied tariff cut was substantially more that the agreed 33%; and(III) As a result of this liberalisati on, and the democratisation of South 
Africa in 1994 a large number of foreign companies started to explore the Southern African market. In su ch circumstances, it is not unusual 
to have an increase in anti-dumping investigations.
Since 2000, the number of initiations has decreased significantly:
2000 21
2001 6
2002 4
All investigation initiated by South Africa have been conducted in full compliance with its WTO
obligations. The absence of challenges through the DSB attests to our compliance with WTO
commitments.
Under the new SACU Agreement, new regulations  on anti-dumping have been published for pubic
comment in the Government Gazette (28 march 20030. A copy of these draft regulations is also
available on the dti website ( www.thedti.gov.za ). Once the process in South Africa is complete the
WTO will be notified.WT/TPR/M/114/Add.1
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Question 3
We note that the second stage of the privatization of Telkom of South Africa was postponed to fiscal
year 2002/03. We would like to know when the privatization would or did take place, and whether
South Africa would consider reflecting it in its GATS commitments in the current round of services
negotiations. Besides, it is noted that Telkom stil l enjoys monopoly powers over basic public switched
telecommunication services, which is supposed to terminate by end December this year as indicatedin the GATS commitments, and thereafter duopoly.  We  would be interested to have more information
on the future arrangement for this duopoly.
Answer
The second stage of the privatisation of Telkom commenced with the Initial Public Offering of
Telkom shares on the JSE Securities Exchange in South Africa and the New York Stock Exchange on
4 March 2003.  This has reduced the Government's ownership of Telkom to 39.3%. Thintana LLC
(consisting of SBC and Telekom Malaysia) owns 30 %, 27.7% is publicly owned, and 3% is owned by
Ucingo.
The process to appoint a second fixed line operator is underway. At the end of the tender process
Telkom’s monopoly will end, and a duopoly will be in place.
Question from India
Question 1
India’s export of recorded video cassettes, recorded CDs etc. get affected because of piracy and
violation of intellectual property rights/copy rights that take place in the field of recorded video
cassettes and recorded CDs in South Africa. Would the Government of South Africa indicate steps
being taken to address this problem?
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 South African Police.
South Africa is continuously exploring means to en hance its enforcement capacity with regards to
intellectual property rights.
Questions from Japan
SACU
Question 1
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?WT/TPR/M/114/Add.1
Page 40
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 towardssources 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.
Question 2
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 impor tance 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
Question 3
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 stillfinalising the regulations for implementation of the Copyright Act of 2000. It is regrettable that while
the country would like to comply w ith some of this international treaties, there is inadequate capacity
to handle some of these complex technical issues.
SOUTH AFRICA
Question4
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 byWT/TPR/M/114/Add.1
Page 41
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.
Question 5
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 ma rkets. 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 bedecided within the next few months.  As far as  light vehicles are concerned the MIDP has been
extended from 2007 up to 2012.
Question 6
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 servic es. Japan considers it indispensable for the
development of telecommunication services to es tablish 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.
Question 7
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.WT/TPR/M/114/Add.1
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Answer
Noted.
Question 8
According to the Report, one of the Amendmen t 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 notdiscriminate 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.
Question 9
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
Question 10
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 regi onally, 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.WT/TPR/M/114/Add.1
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Questions from Kenya
SACU
Question 1
We note that increased HIV/AIDS related budget expenditure and continued depreciation of the South
African rand presents a major challenge to SACU countries particularly with respect to their efforts
to bring down inflationary situation.  We would li ke to know what steps SACU countries are taking to
address this scenario in order to contain inflationary pressures.
Answer
The South African rand has appreciated considerably recently. In response to this challenge each of
SACU’s members has strategies and programmes to counter the HIV/AIDS pandemic, focusing on
awareness and prevention and treatment.
Clearly, SACU members need the support of development partners in addressing the challenge of
HIV/AIDS. In this regard, SACU attaches great importance to the Doha Declaration on TRIPS and
Public Health, which will strengthen SACU’s effo rts against HIV/AIDS. For this reason, SACU calls
for the speedy resolution of the impasse on TRIPS and Public Health, as part of overall efforts to
advance the Doha Development Agenda.
Question 2
Why is it that none of the SACU members is a signatory to the Agreement on the Global System of
Trade Preferences among developing countries (GSTP)?
Answer
An answer to this question will be provided in due course.Question 3
We would like to know the st eps SACU countries are taking to address the following:
To further simplify its tariff regimes and ensure its compliance with their obligations under the WTO
Agreement on implementation of Article VII of the GATT 1994 (Customs Valuation)
To harmonize internal taxes between SACU Members that distort trade flows, and somewhat
undermine the utility of the common external tariff.
Answer
(i) The simplification of the tariff structure is currently underway. The process includes 
the conversion of non ad valorem duties into ad valorem duties, and the reduction of the number of tariff bands.
(ii) Both the 1969 and 2002 SACU Agreements make provision for harmonised excise 
duties rates to be applied by all customs administrations within the common customs 
areaWT/TPR/M/114/Add.1
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Question 4
We note that customs procedures are not completely harmonised throughout SACU, and some
differences exist at the borders.  We would like to know the measures being undertaken by SACU
members to facilitate the simplification and harmonisation of trade documentation and procedures as
this will contribute to the reduction of transaction costs.
Answer
In terms of the customs co-operation provisi ons of the 1969 and 2002 SACU Agreements, the
institutions responsible for the administration of customs are actively working towards the
harmonisation of their respective customs procedures.  This has resulted in a large degree ofharmonisation of their customs documentation and operational procedures.  The SACU Member
States are, however, continuously engaged in in itiatives to simplify their customs documentation,
through the introduction of a single administrative document, and to further simplify transit
procedures.
SOUTH AFRICA
Question 5
We note that a wide variety of incentives are available to local producers in general, and exporters in
particular, some incentives are subject to local – content requirement.  We would like to know
whether these incentives are consistent with South Africa’s obligations under the SCM and TRIMSAgreements.
Answer
The South African incentives fall within the ambit of the provisions of the SCM and TRIMS
Agreements
SACU
Question 6
It is stated that “the new SACU Agreement is fo cused on the creation of a new institutional framework
that would establish the SACU as an internati onal organisation with legal personality”  Does this
imply that once SACU is ratified, it will take over the role of trade and economic relations of its
member states with the rest of the world?  How will SACU relate to other bilateral and regionaltrading arrangements in which some of the SACU member states are currently members?
Answer
The new SACU Agreement sets rules and procedures governing trade relations with Third parties. It
provides, inter alia, that Members may maintain preferential trade and other related arrangements
existing at the time of entry into force of the Ag reement. It provides further that in the case of
negotiating trade agreements with Third partie s, Members shall establish a common negotiating
mechanism that will facilitate negotiations with third countries. The Agreement further provides that
no member shall negotiate and enter into new preferential trade agreements with third parties, or
amend existing agreements without the consent of other members.WT/TPR/M/114/Add.1
Page 45
NAMIBIA
Question 7
Namibia states that it endorsed South Africa’s offer to the WTO which reflects the latter’s adopted
schedules of commitments as a developed country.  Why did Namibia have to undertake such
commitments, yet South Africa is classified as a developing country under para 7 of the Report by theGovernment of the Republic of South Africa?
Answer
The endorsement of the Schedule of commitments of South Africa had to do with the fact South
Africa was solely responsible for the setting of the external tariffs for the Customs Union in
accordance with the provisions of the 1969 SACU Agreement. This situation has now been attend to
through the 2000 SACU agreement.
SACU
Question 8
In the spirit of promoting intra-Africa trade, when does SACU envisage converting its non- ad
valorem tariffs into ad valorem including the simplification of its tariff regime and elimination of
quantitative restrictions?
Could SACU countries explain why they charge high er specific duties on imported beverages than
those collected on locally produced beverages?
Answer
(i) The simplification of the tariff structure is currently under way. The process includes the
conversion of non ad valorem duties into ad valorem duties, and the reduction of the number of tariff
bands.
ii) It should be noted, as a point of correction, that the SACU countries do not impose specific
excise duties on imported goods but a customs duty that is identical to the equivalent excise duty.These duty rates are contained in Part 2 to Schedule 1 of the Customs and Excise Act of 1964.  The
customs and excise duties that are imposed on imported and locally produced excisable goods are
identical.  The only exception is in the case of certain spirits where the imported goods actually attract
a lower rate of duty.  No excise or customs duties are imposed, in terms of Part 2 to Schedule 1, on
"certain imported beverages such as mineral water, lemonade, and flavoured mineral water".
Questions from the Republic of Korea
SACU
Question 1
As explained in the Secretariat Report, there remain some differences in the key trade policies such as
customs procedures, and standards and technical regulations among the members of the SACU.
Does the SACU have any plan to create a single cohesive regional market in order to build a more
solid basis towards greater integration into the world economy?WT/TPR/M/114/Add.1
Page 46
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.
For example, a Liaison Committees on Customs and Trade and Industry has been established,.
The 2002 SACU agreement seeks to deepen and expand this co-ordination and co-operation by
strengthening the institutional arrangements, 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.
In the wake of the signature of the new SACU agreement by all member countries, work is currently
proceeding on a multi-pronged basis to conclude as soon as possible 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.
Question 2
It is stated by the Secretariat that South Afri ca reported initiating 157 anti-dumping investigations
and applying 106 anti-dumping measures during the period 1 January 1995 through 30 June 2002. As
a result, South Africa is reportedly the fifth largest user of anti-dumping measures during the period.
The EU, China, India and the Republic of Korea have been the main countries or entities affected by
the measures.
The initiation of an anti-dumping investigation itself can damage the affected foreign exporters. What
is the view of the SACU on the notion that its members need to be more cautious about the initiation
of anti-dumping measures?
Answer
Anti-dumping measures are fair trade remedies applied internationally in cases of unfair trade
practices. Each case is dealt with on its merits and duties are only applied after rigorous investigations
of facts.  Although there was a substantial increase in anti-dumping activity in the period 1995 to
1998, it should be viewed in the light of the extraordinary circumstances which prevailed then:
South African increased its bindings from about 17% of tariff lines to 99% in the Uruguay Round
The applied tariff cut was substantially more that the agreed 33%
Following this liberalisation, and the democratisation of South Africa in 1994, a large number of
foreign companies started to explore the Southern African market. In such circumstances, it is notunusual to have an increase in anti-dumping investigations
Since 2000, the number of initiations has decreased significantly:
2000 21
2001 62002 4
All investigation initiated by South Africa have been conducted in full compliance with its WTO
obligations. The absence of challenges through the DSB attests to our compliance with WTO
commitments.WT/TPR/M/114/Add.1
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The regulations on anti-dumping are currently published for pubic comments in the government
gazette of 28 March 2003. A copy of the draft regulations is available on the dti website(www.thedti.gov.za ). Once the regulations have been finalised the WTO will be notified.
Questions from Mexico
BOTSWANA
Question 1
In the Secretariat report it is stated that the Botswana Standards Commission has recently introduced
a Standards Mark for the certification of products.  In this respect, Mexico would like to knowwhether certification for the use of this mark is open to foreign firms not established in the territory of
Botswana and, if so, what procedures exist for applying it.
Answer
Answer will be provided in due course.Question 2
The Secretariat Report stated that Botswana recognises tests carried out abroad as well as foreign
standards, using laboratories accredited abroad.  In this connexion, could Botswana indicate the
procedure to be followed for such recognition of tests and standards, and for the accreditation of
foreign laboratories?
Answer
Answer will be provided in due course.Question 3
In the Secretariat report, the manner is described in which provisions relating to sanitary and phyto-
sanitary measures are applied to imports of agric ultural products.  Mexico would like to know the
way in which such provisions apply to domestic products.
Answer
Answer will be provided in due course.Question 4
Finally, Mexico would like to know if Botswana is taking part in the present negotiations on services
and, in this case, when it will present its initial  offer of specific commitments in this area.
Answer
Answer will be provided in due course.WT/TPR/M/114/Add.1
Page 48
LESOTHO
Question 5
In the Secretariat report it is stated that Lesotho has recourse to the South African Standards Bureau
for its needs in this area.  Could the Kingdom of  Lesotho clarify how it verifies that the process of
adoption of standards conforms to the provisions of the Agreement on Technical Barriers to Trade?
Answer
Answer will be provided in due course.
Question 6
In the Secretariat Report it is described, in a very general way, the actions that the Government of
Lesotho has taken in relation to technical barriers to trade and sanitary and phyto-sanitary measures.
In this respect, Mexico would like to obtain gr eater information on the concrete measures that
Lesotho has taken to give effect to its obligations under the TBT and SPS Agreements, both in regard
to the elaboration of technical regulations, standards and sanitary or phyto-sanitary measures, and
with respect to the evaluation of the conformity of products with these standards and measures.
Answer
Answer will be provided in due course.Question 7
Finally, Mexico would like to know if Lesotho is taking part in the present negotiations on services
and, if so, when it will present its initial offer of specific concessions in this area.
Answer
Answer will be provided in due course.
NAMIBIA
Question 8
Mexico would like to know if Namibia considers South Africa’s standards as international standards,
and if so, the rationale behind it.  In addition, Mexico would like to know if Namibia recognises other
international standards, and if so, the procedures to be followed.
Answer
Namibia adheres to the standards as set by the South African Bureau of Standards and its relevant
statutory framework. This recognition does not obviate the fact that there is an recognition of other
internationally recognised standard setting authorities and bodies. In appreciating this reality, Namibia
is a signatory to a number of international setting bodies amongst many, the International Standards
Organisation (ISO). Thus ISO procedures are followed.WT/TPR/M/114/Add.1
Page 49
Question 9
Mexico would like to know if Namibia will take part in the ongoing WTO negotiations on services,
and if so, when will it table its initial offer on specific commitments.
Answer
Namibia is a member of the WTO and it fully participates in the current negotiations under the Doha
Development Agenda. In as far as trade in services is concerned, Namibia is studying the general
implications of services trade liberalisation to her economy. This assessment would inform the extent
to which Namibia will make commitments in the current negotiations.
SOUTH AFRICA
Question 10
Mexico would like to know when is South Africa going to update its Tariff to incorporate the latest
developments made in the context of the World Customs Organisation.
Answer
South Africa’s Customs Tariff incorporates all the current amendments (developments) proposed by
the World Customs Organisation (WCO).  The only outstanding amendments are those which were
released by the WCO in April 2003 and which will be incorporated upon receipt thereof.
Question 11
On import licensing, on top of the information on Table II.2 of Annex import controls that South
Africa applies to its imports, and what are they.
Answer
The list containing goods subject to import control measures is available on request at the following e-
mail address mpsnyman@dti.pwv.gov.za . The list will be posted on the Department of Trade and
Industries web page by the end of May 2003 ( www.thedti.gov.za ).
Question 12
On SPS measures, Mexico would like to ask the following:
Are there annual or periodical programmes where the issues to be subject to regulations are listed
and, if so, where are they published?
If not, can South Africa indicate when is South Africa going to adopt such programmes, or the
rationale for not doing it?
Can South Africa indicate if developing a technical regulations or SPS measures implies elaborating
an analysis of its impact as prior requisite, and if so, can it be consulted by nationals of WTO
Members?
Can South Africa indicate if there is a legal provisi on which obliges to periodically review the content
of its norms, technical regulations and SPS measures. If so, how long does it take to update them? Is
this subject to public scrutiny?
(i) Can South Africa describe the procedure to elaborate, technical regulations and SPS
measures?WT/TPR/M/114/Add.1
Page 50
(ii) Can South Africa indicate the procedur e followed with the observations made by
nationals from WTO Members?
(iii) How are the responses to such observations made known?  (iv) What is the normal time
frame for the entry into force of a regulation or technical standard, and what are the exceptions to
this rule?
Answer
All regulatory issues are published in the Government Gazette and the website of the Department of
Agriculture.
South Africa has adopted this transparency procedure.  Other methods for improving the system are
currently under investigation.
In developing technical regulations analyses of implications are conducted internally and all
scientifically justified comments are incorporated in the Acts or regulations.
Acts are reviewed within the period of three to five years and the regulations are reviewed annually.
In certain circumstances, Acts are amended regularly.  This is communicated to the public through
workshops, publication in the Government Gazette a nd web site of the Department of Agriculture.
For South Africa it is important to differentiate acts from technical regulations.  All Acts passed in the
country have to pass through the Cabinet for approval.  Prior to Cabinet approval Acts are published
in the government gazette and the website of the Department of Agriculture ( www.nda.agric.za ) for
public comments.  In the Cabinet submission one has to indicate all the implications the Act will have
to the public in general; human health; and animal and plant health. The implementation process also
needs to be spelled out.  The Minister of Agri culture approves technical regulations. Regulations
which have human health implications, are discussed first between the Departments of Agriculture
and Health and then published in the government gazette and web site for comments.  Following that,all inputs are evaluated and the Act or regulation finalised for the Cabinet and Minister’s approval.
All observations made by nationals from WTO members are discussed first internally and in the case
where South Africa needs to respond or follow up on some of the inputs from WTO members this is
done on a bilateral basis.  In the case where South Africa needs to discuss and debate that with aparticular WTO member, the member is contacted directly and South Africa considers those that are
scientifically justifiable.
After collation of all comments and finalisation of the regulation South Africa notifies to the WTO.
The normal timeframe for entry into force of a regulation or technical standard varies from six months
up to two years.  This mainly depends on the kind of inputs made or issues raised.  The exceptions to
the rule are only during emergency measures like outbreaks of diseases e.g. Food and Mouth Disease
where an area has to be declared as a control area to avoid movement of animals.   In this situation a
government notice is issued.
Finally the Promotion of Administrative Justice Act of 2000 sets out the procedures to be followed in
making decisions affecting the public.WT/TPR/M/114/Add.1
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Question 13
Could South Africa confirm that nationals from WTO Members can participate in the elaboration,
modification, or cancellation of norms, technical regulations and SPS measures and the procedure to
do so, and if not, the rationale for not doing it?
Answer
Yes, the nationals from WTO members can make contact through the SPS national contact point in
terms of the transparency principle.
Question 14
Is there a catalogue of norms, technical regulations and SPS measures currently in force in South
Africa? If not, can South Africa indicate what actions it is taking to solve the transparency problems
exports face in trying to identify what are the relevant norms that apply to their products?
Answer
All norms, technical regulations and SPS measures are published regularly on the website of the
Department of Agriculture and the Government Gazette .  In addition, there is interaction with industry
in this regard.
Based on the import requirements of the country South Africa will negotiate an export certificate,
which is modelled on international standards and guidelines.  Relevant norms are based on the
international standards of the OIE, IPPC and Codex Alimentarius.
Question 15
Can South Africa indicate the percentage of total HS tariff lines that are regulated through norms,
technical regulations and SPS measures:  (i) Are the conformity assessment procedures general or
are they established in relation to each regulation? (ii) Can South Africa indicate how many
conformity assessment procedures are currently in force, how may products they cover and their legal
basis?  (iii) Are they subject to public scrutiny? (iv) Can South Africa indicate if companies outside itscountry can have access to the certifications that are needed for the importation of products? (v) Can
South Africa indicate the procedure to recognise a foreign norm or a conformity assessment as
equivalent, and how many conformity assessment procedures have been recognised? And finally, can
South Africa describe the procedure for having mutual recognition agreements and the list of those
already in place?
Answer
Answer will be provided in due course.
Question 16
Is it possible for accreditation bodies that are outside South Africa to be authorised to carry out
inspections or conformity assessments in South Africa?WT/TPR/M/114/Add.1
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Answer
There is currently no accreditation body authorised to carry out inspections in South Africa.
Question 17
On international norms (i) Can South Africa indicate the percentage of norms technical regulations
and SPS measures that are equivalent to international norms? (ii) Can South Africa indicate the
procedure followed to justify deviation of national norms from international norms, and where this
information can be consulted? (iii) Of the tota l number of norms, technical regulations and SPS
measures can South Africa indicate how many have been adopted in areas where there are no
international norms?  (iv) Can South Africa explains its definition of international norm andinternational body?
Answer
Answer will be provided in due course.Question 18
Mexico would like to know the measures taken by South Africa to protect intellectual property rights
regarding originating products or with geographical indication of other countries, particularly with
respect to Tequila and Mezcal, both from Mexico.
Answer
South Africa has a well developed intellectual property regime that covers geographical indications in
accordance with the TRIPS Agreement under the WTO. Regarding Tequila and Mezcal, no products
bearing these names are produced in South Africa, as the government interv ened in resolving this
matter.
However, it needs to be borne in mind that the WTO register of specific wines and spirits’ names that
need to be protected is not yet agreed.
SWAZILAND
Question 19
Mexico would like Swaziland to explain in more detail the procedures followed to elaborate norms,
technical regulations and SPS measures, as well as the respective inspection or conformity
assessment procedures.
Answer
Plant SPS – Phytosanitary conditions are governed by the Plant Control Act of 1981 which lays down
a series of schedules for the importation of plants, plant portions and certain seeds. The schedules
generally define the list of plants; living materials that require an import permit etc.
Animal SPS – Veterinary and animal health are governed by the Animal Diseases Act of 1965 as
amended by the regulations issued up to 2001. The most recent regulations deal with the prohibitionWT/TPR/M/114/Add.1
Page 53
of movement of animals and animal products sanitary measures, presentation of susceptible animals
for examination, testing and destruction of infected animals.
Question 20
Mexico would like to know if Swaziland will take part in the ongoing WTO negotiations on services,
and if so, when will it table its initial offer on specific commitments.
Answer
Swaziland will take part in the ongoing negotiations and a national consultative meeting with
stakeholders will be held in preparation of the offer on specific commitments. Technical assistance isbeing sought to assist in the preparations of the initial offer on specific commitments.
Question 21
Mexico would like to get more information on th e nine components of EMIA, particularly on the
incentives and concrete measures used.
Answer
Information on the Export Marketing and Investment assistance programme can be obtained from the
Department of Trade and Industry web site: ( www.thedti.gov.za ).
Questions from New Zealand
SACU
Question 1
When do SACU members expect to be able to ratify the 2002 Agreement?
Answer
After domestic constitutional proceedings by respective Member states are completed, the Agreement
will come into force.
Question 2
Is the least developing country status of Lesotho taken into consideration in its SACU obligations?Answer
The new SACU Agreement makes provision for a new revenue sharing formula.  In this regard,
agreement on the new formula was reached on the basis that it will ensure a fair distribution of the
common revenue pool. In addition, the new ‘developme nt component’ of the revenue sharing formula
ensures that countries with smaller per capita GDP, such as Lesotho, receive a greater share of this
part of the revenue.WT/TPR/M/114/Add.1
Page 54
Question 3
Are there plans for SACU to negotiate as a bloc within the WTO?
Answer
The new SACU Agreement provides for SACU members to negotiate with third parties on a
collective basis. Pursuant to this, SACU members are co-ordinating their positions on the DDA and
will continue to do so  as the DDA unfolds.
Similarly, SACU is preparing to undertake the negotiations of preferential agreements with the US
and Mercosur as a bloc. For this purpose, a SACU common negotiating mechanism will beestablished, as provided for in the new SACU Agreement.
Question 4
What will be the next stage of development for SACU (e.g. harmonisation of fiscal or monetary
policies)?
Answer
It is important to note that SACU members have al ready been co-ordinating and co-operating in many
policy areas within the framework of the 1969 SA CU Agreement, and in the framework of the
Common Monetary Area between Lesotho, Namibia, South Africa, and Swaziland. For example, a
Liaison Committees on Customs and Trade and Industry has been established..
The 2002 SACU Agreement seeks to deepen and expand this co-ordination and co-operation by
strengthening the institutional arrangements, it al so forms the basis for the harmonisation of policies,
as and when conditions allow, and ultimately for the creation of a more cohesive regional market.
Question 5
Have SACU members examined the impact of HIV/AIDS  on their economic and trade policies?  If so,
what plans are in place to deal with the problems identified?
Answer
SACU members recognise that HIV/AIDS poses a serious challenge to the individual and collective
efforts of SACU of promoting economic growth.
In response to this challenge each of SACU’s members has strategies and programmes to counter the
HIV/AIDS pandemic, focusing on awareness and prevention as well as treatment.
Clearly, SACU members need the support of development partners in addressing the challenge of
HIV/AIDS. In this regard, SACU attaches great importance to the Doha Declaration on TRIPS and
Public Health which will strengthen SACU’s efforts against HIV/AIDS. For these reasons, SACU
calls for the speedy resolution of the impasse on TRIPS and Public Health, as part of overall efforts to
advance the Doha Development Agenda.WT/TPR/M/114/Add.1
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Question 6
The SACU tariff remains complex.  Are there plans  to simplify the tariff and move away from a
combination of ad valorem, specific, mixed, compound and formula duties that is not transparent and
difficult to administer?
Answer
The simplification of the tariff structure is currently under way. The process includes the conversion
of non ad valorem duties into ad valorem duties, and the reduction of the number of tariff bands.
Question 7
Are there any plans to revise the tariff quota scheme for agricultural products as suggested in
paragraph 16 of the Secretariat’s report?
Answer
Tariff quotas are part of South Africa’s WTO commitments relating to market access and there is no
intention to change the current quota system.  These quota commitments do not apply to the other
SACU countries. However, these quotas are subject of the current WTO agricultural negotiations and
South Africa has made certain proposals in this regard.
Question 8
Are steps being taken towards greater customs cooperation among SACU members as envisaged in
Article 23 of the 2002 Agreement?
Answer
The current Agreement that was concluded in 1969 also contains customs co-operation provisions that
are similar to those in the 2002 Agreement.  These provisions were used by the SACU customs
administrations to strengthen and intensify co-operation.  This has resulted in a large degree of
harmonisation of customs legislation and operational procedures applied by SACU Member States.  Arecent initiative that the SACU customs administ rations have embarked on, following the signing of
the 2002 Agreement, is the development of an an nex to the Agreement that will clearly identify
additional measures to promote an even greater degree of harmonisation and co-operation.
Question 9
What measures are in place to protect SACU me mbers from outbreaks of foot and mouth disease in
the region?
Answer
There is a SADC foot and mouth disease policy, which is currently being debated to ensure that there
is harmonisation on the foot and mouth preventi on control and risk management in the region.WT/TPR/M/114/Add.1
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Questions 10 and 11
How does SACU relate to other regional trade in itiatives, such as the SADC Protocol on Trade
Cooperation and COMESA?
How are the bilateral agreements of individual members (e.g. the South Africa- European Union
Trade, Development and Cooperation Agreement) incorporated within SACU?
Answer
As a regional integration initiative itself, SACU is fully committed to the advancement of integration
in both southern Africa (under the aegis of S ADC and COMESA) and in the rest of the African
continent. Further, SACU believes that regional integration efforts are compatible with multilateral
trade liberalisation under the WTO.
SACU considers that SADC a nd COMESA share the common objective of promoting regional
integration in Southern Africa, albeit through different modalities and schedules. While it is notpractically possible for SACU to be part of bo th SADC and COMESA, SA CU supports co-operation
and co-ordination between SADC and COMESA while each organisation consolidates on its
integration programme.
Question 12
Could SACU members provide an update on negotiati ons with the US for a free trade agreement?
Answer
The negotiations with the US are scheduled to commence in May 2003, and to conclude by the end
2004 at the earliest.
SWAZILAND
Question 13
What efforts are being taken by the Government of Swaziland in order to diversify its exports and to
lessen the reliance on market access preferences for sugar?
Answer
The Government of Swaziland through the establ ishment of the Swaziland Investment Promotion
Authority established in 1999 has formulated an in vestment promotion strategy which seeks to attract
investment in other industries including sugar-based industries, textile and garment, pulp and paper
industries. The implementation of  the AGOA has resulted in  increased FDI inflows in the clothing
industry. The Government is also implementing pr ogrammes aimed at accelerating growth of the
small and medium enterprise sector. Furthermore, the Government has established the Swaziland
Tourism Authority whose mandated responsibility is to develop the tourism sector.WT/TPR/M/114/Add.1
Page 57
SOUTH AFRICA
Question 14
Can South Africa explain what role the new Immigration Act will pl ay in addressing skills
deficiencies?
Answer
South Africa has a skills shortage. One way of addressing the skills shortage is to encourage
immigration of skilled persons.  The intention of the Immigration Act is therefore to facilitate the
entry of skilled immigrants.
Question 15
What progress has South Africa made in its review of tariff categorisation with the aim of
rationalizing the number of tariff lines?
Answer
The simplification of the tariff structure is currently under way. The process includes the conversion
of non ad valorem duties into ad valorem duties, and the reduction of the number of tariff bands.
Question 16
Has South Africa issued long-term rights for all its fisheries?  If not, how far progressed is the
process of allocation?
Answer
Fishing rights are issued in terms of the Marine  and Living Resources Act of 1998 (MLRA). Medium-
term fishing rights are issued for all fisheries.  These rights are allocated for a period of four years.
Two long-term rights of 15 years each have been issued in mariculture and fish processing.  Currently
the MRLA does not allow for long-term fishing ri ghts for fisheries, and Marine and Coastal
Management has not yet taken a decisions on increasing the allocation term.
NAMIBIA
Question 17
What steps is Namibia taking to ensure the long-term  sustainability of its fisheries, particularly the
severely depleted stocks of pilchards and mackerel?
Answer
The government of Namibia has a policy on sustaina ble management of marine resources and as such
has put sufficient investment in monitoring and surveillance and development of our marine
resources. The fluctuations in the contribution of fisheries to the GDP is not due to the absence of
management and utilisation policy, but due to oceanographic and environmental changes. There has
been a change in oceanic climatic conditions and as  such pilchards and mackerel have migrated to theWT/TPR/M/114/Add.1
Page 58
South African territorial waters. There is a co-operation agreement between South Africa, Angola and
Namibia to share the marine resources in event of such adverse climatic conditions.
Mindful of that, the Government of Namibia has just recently enacted a legislation on aquaculture and
arrangements are underway to promote and develop inland fish farming to complement marine
fisheries and to prevent any undue pressure on the marine resources.
Questions from Norway
SACU
Question 1
Since the last Trade Policy Review in 1998, SACU ha s been among the most frequent users of anti-
dumping measures in the WTO. As it is stated in the Secretariat's report SACU intends to develop
"contingency trade legislation" at SACU level to  "lock in the increasing liberalisation of their
markets". We would like to know whether this  means that SACU views anti-dumping and other
contingency measures as increasingly important me asures to protect domestic markets from imports?
Answer
Anti-dumping measures are fair trade remedies applied internationally in cases of unfair trade
practices. Each case is dealt with on its merits and duties are only applied after rigorous investigations
of facts.  Although there was a substantial increase in anti-dumping activity in the period 1995 to1998, it should be viewed in the light of the extraordinary circumstances which prevailed then:
(I) South African increased its binding s from about 17% of tariff lines to 
99% in the Uruguay Round
(II) The applied tariff cut was substantially more that the agreed 33%(III) As a result of this liberalisation and the democratisation of South 
Africa in 1994, a large number of foreign companies started to explore the Southern African market. In su ch circumstances, it is not unusual 
to have an increase in anti-dumping investigations
Since 2000, the number of initiations has decreased significantly.
All investigation initiated by South Africa have been conducted in full compliance with its WTO
obligations. The absence of challenges through the DSB attests to our compliance with WTO
commitments.
The regulations on anti-dumping are currently published for pubic comments in the Government
Gazette of 28 March 2003. A copy of the draft regulations is available on the dti website
(www.thedti.gov.za ). Once the regulations have been finalised, the WTO will be notified.
Question 2
What steps have Botswana, Lesotho, Namibia and Swaziland taken in order to compensate for the
reduced custom revenues following South Africa's free trade agreement with the EU. Moreover, whatWT/TPR/M/114/Add.1
Page 59
kind of transitional agreements have been established and how do they protect each country's
interests?
Answer
The BLNS countries have undertaken fiscal reforms to address revenue loss as a result of trade
liberalisation in general. In as far as the EU-SA FTA is concerned, the BLNS countries expect toaddress the possible negative impact in the context of the Cotonou negotiations.
Questions from Switzerland
South Africa
Question 1
Please explain the meat, milk and wool import mechanisms and statutory levies affecting the
importation of these products.  How are prices (of these products) determined?
Answer
The levies reflected in Table III.1 in the secretariat report are listed in South Africa’s Uruguay Round
schedule. These levies, however, have been discontinued. Statutory levies are currently only
applicable on the following products: wine, deciduous fruit, winter cereals, cotton and sorghum.
These levies are for information gathering by industry, research and development and in some casesfor generic export promotion.
Market forces determine prices of these products.
Question 2
What is the impact of statutory levies applicable to the marketing of wine on the production of white
and red wine since December 2001, and how are these prices determined?
Answer
The levies applicable to wine and grape products are the following:
Information levy: Collection of relevant market information for the use of the wine industry
Research and Development levy: to finance resear ch and development relevant to wine industry
Export Promotion levy: to finance the generic promotion of wine exports
The relevant Act stipulates that the levies should not exceed 5% of the price of a product. A levy isonly paid once for a specific product. It is generally accepted that the levies do have a positive
influence on the wine and grape sector. The levies are set by the National Agricultural Marketing
Council at the request of the relevant industry. Government does not set prices in this sector.
Question 3
Please explain the functioning of the Reference Price Mechanism on Maize and its influence on both
produced and imported quantities.WT/TPR/M/114/Add.1
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Answer
In South Africa, the maize market was regulated from 1944 until 1995 via a single channel marketing
system in which the Maize Board was the only buyer and seller of South African maize.  This system
was finally terminated on 1 May 1997 when all non-tariff measures applied in this sector was
abolished in favour of tariff protection based on a tariff band formula which delivers a tariff only
when world prices fell below US $110/ton basis free-on- board US Gulf ports.
The formula incorporates various costs items as well as the impact of the exchange rate. Currently, the
tariff for maize, calculated according to the tari ff band formula, is zero. The formula ensures maize
prices and quantities produced are closely aligned to the world supply and demand situation. This is a
very transparent system and functions with a minimum of Government intervention.
Question 4
Please explain the manner in which your legisl ation ensures that undisclosed test or other data
submitted by an applicant to the responsible State agency in the procedure for market authorisation ofa pharmaceutical or of an agricultural chemical product is protected against disclosure and against
unfair commercial use by a competitor, for example by prohibiting a second applicant from relying
on, or from referring to the original data of the first applicant, when applying subsequently for market
authorisation for a similar product.  Does your legislation set a specific term of protection for
undisclosed test or other data of the first applicant?
Answer
The intellectual property legislation does not deal directly with undisclosed test or other data
protection measures concerning pharmaceutical prod ucts or other protected agricultural chemicals.
The Medicines Control Council in SA deals with pharmaceutical products in detail.
Questions 5 and 6
In your report you mention the high rate of pirated audiovisual and software products in South Africa.
What specific measures does the newly adopted legislation provide in order to improve this situation?
Have similar measures been introduced into the legal framework to ensure effective enforcement ofother intellectual property rights such as patents, trademarks or designs?
Please describe any new initiatives that are planned to improve the enforcement of intellectual
property rights in your country, particularly initiatives to combat counterfeiting and piracy.  Is there
a particular action plan in place?
Answer
South Africa introduced the Counterfeit Goods Act in 1997 and the law is rigorously enforced through
co-operation with the private sector, the South African Revenue Service and the South African PoliceService. South Africa is continuously exploring means to enhance its enforcement capacity with
regards to intellectual property rights.
BOTSWANAWT/TPR/M/114/Add.1
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Question 7
In your report you mention that the Government intends to amend the legislation in order to subject
the granting of compulsory licences to all the c onditions enumerated in Article 31 of the TRIPS
Agreement.  Please explain what the draft Act provides in this regard and when the new regulation
will enter into force?
Answer
While Botswana is committed to ensuring that it fully executes its obligations under the WTO
Agreements including TRIPS, it has to be appreciated that its ability to enact new legislation or amend
existing legislation is question of capacity. Therefore Botswana does not have the draft legislation yet.Neither can we categorically state when such legislation will be in place. In addition, given the current
on-going negotiations concerning the TRIPS Agreement more specifically Article 31, it would seem
prudent to await the conclusion of this negotiatio ns before any further review of the legislation.
Question 8
In your report you mention that the current legislation does not cover geographical indications,
layout designs (topographies) of integrated circ uits or protection of undisclosed information,
including trade secrets, and that amendments to the Industrial Property Act introducing these rights
are expected this or next year.  Please explain how the Government plans to protect the mentioned
intellectual property domains.  When are the regulations expected to enter in to force and achieve
compliance with the TRIPS Agreement?
Answer
Botswana is committed to fully meeting its comm itments under the TRIPS Agreement. However, the
speed with which legislation, including legislation on geographical indications can be developed isconstrained by lack of in-house capacity.  Like ot her developing countries, Botswana has previously
reported on the onerous implementation commitments from the Uruguay Round Agreements.
Therefore at this point given the capacity constraint, Botswana cannot make a commitment regarding
when the outstanding legislation under the TRIPS Agreement will be developed.
Question 9
In your report you mention that no case of infringement of intellectual property rights have been
reported in Botswana.  Are there any initiatives planned to implement awareness-building programs
explaining the concept and importance of IPR and the consequences of counterfeiting and piracy?
Answer
As a matter of policy and principle, Botswana is committed to continuous education and information
dissemination to the stakeholders, including the public on matters affecting them. With regard tointellectual property rights issues, the major constraint has been lack of in-house capacity and
technical expertise. Botswana is planning to engage in awareness building programmes during the
course of 2003 to 2004. More specifically, a sensitisation Seminar is planned for Saturday, April 26,
2003, which happens to be World Intellectual Property Day. This Seminar, organised in cooperation
with the Botswana Technology Centre and the University of Botswana, will bring together all
stakeholders, including inventors, writers, producers and musicians.WT/TPR/M/114/Add.1
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In September 2003, another awareness Seminar will be organised, this time to demonstrate to
stakeholders that intellectual property such as patents, trademarks and designs can benefit creators, ifprotected. Awards will be given to the best inventors to encourage innovation.
NAMIBIA
Question 10
In your report you mention that the proposed legislation on industrial property does not allow for
reversal of burden of proof in civil proceedings on infringements of process patents.  Please explain
how your legislation complies with the prov ision of Article 34.4 of the TRIPS Agreement?
Answer
Namibia is in the process of promulgating a new law that would address industrial property related
issues in order to ensure conformity with Article 34.4 of the TRIPS Agreement.
Question 11
You mention in your report that the draft legislation on industrial property does not address the issue
of undisclosed information.  Please explain how this complies with the obligations of Article 39.3 of
the TRIPS Agreement, which requires undisclosed test or other data to be protected against unfair
commercial use?
Answer
Same as above.
Question 12
In your report you mention that the police can act ex officio under the Copyright Act and the
proposed industrial property legislation.  Does the draft legislation on industrial property introduce
any other measures to combat counterfeiting and piracy in Namibia?
Answer
Same as above.
Question 13
Switzerland would be interested to know whethe r there are initiatives planned to implement
awareness-building programs explaining the concep t and importance of intellectual property rights
and the consequences of counterfeiting and piracy in Namibia?
Answer
We have recently held regional seminars on intellectual property rights and we had national electronic
media information debates. We have also produced simplified booklets on intellectual property rights
process and its importance and soon these information booklets will be translated in local languages.WT/TPR/M/114/Add.1
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SWAZILAND
Question 14
Switzerland highly welcomes the efforts made by th e Kingdom of Swaziland to comply with the TRIPS
Agreement and would like to encourage notification of the relevant intellectual property laws in order
to allow for the Review to take place.  Furtherm ore, Switzerland would be interested to know what
measures the Kingdom plans to introduce in order to combat counterfeiting and piracy.
Answer
Swaziland has introduced draft legislation to address counterfeiting and piracy.Questions from the Territory of Taiwa, Penghu, Kinmen and Matsu
SACU
Question 1
As indicated in paragraph 16 on page 8 of the Secretariat report, under the 2002 SACU Agreement,
trading arrangements would only be possible with  SACU as a whole and not with individual SACU
members. SACU is currently negotiating trading arrangements with MERCOSUR and the United
States, and is considering the possibility of negotiating other agreements. Would SACU please
provide us with an update on the status of these negotiations and the timetable expected for futureprogress to be made.
Answer
The negotiations with Mercosur are underway and at a stage where requests for tariff concessions
have been exchanged. It is expected that the negotiations will be concluded by mid-2004. The
negotiations with the US are scheduled to commence in May 2003, and to conclude by the end 2004
at the earliest.
Question 2
According to the Secretariat report, a decline of customs and excise revenues is expected as a result
of further tariff liberalization initiatives, both at the multilateral and preferential levels, particularly
from the free-trade agreement between South Africa  and the EU. Indeed, if SACU proceeds down the
path of liberalization as it makes new trade arrangements with other trade partners, its revenues fromtariffs could be cut drastically. We have noted also  that SACU countries attach great importance to
the SACU revenue pool in reforming their economic structures and the restructuring and expansion of
the SACU mechanisms themselves will increase fiscal expenditures. We would appreciate knowing
whether SACU has already developed concrete fiscal  policies to deal with the possible imbalance
between revenues and expenditures and, if so, what they are.
Answer
The new SACU Agreement makes provision for a new revenue sharing formula.  In this regard,
agreement on the new formula was reached on the basis that it will ensure a fair distribution of the
common revenue pool. In addition, the new ‘developme nt component’ of the revenue sharing formulaWT/TPR/M/114/Add.1
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ensures that countries with smaller per capita GDP, such as Lesotho, receive a greater share of this
part of the revenue.
The BLNS countries have undertaken fiscal reforms to address revenue loss as a result of trade
liberalisation in general. In as far as the EU-SA FTA is concerned the BLNS countries expect to
address the possible negative impact in the context of the Cotonou negotiations.
Question 3
The tariff structure of SACU has been simplified somewhat and, since its last trade policy review in
1998, the simple average MFN duty rate has come down from 15% in 1997 to 11.4% in 2002.
However, as indicated in the Secretariat report, the tariff remains complex, still comprising advalorem, specific, mixed, compound, and formula du ties. For example, the application of formula
duties based on reference prices does not ensure compliance by SACU members with their obligations
under the WTO Agreement on Implementation of Article VII of the GATT 1994 (Customs Valuation).
This is also the case with the application of non-ad valorem tariff rates when SACU members have
made their binding commitments at ad valorem rate s. We would like to know whether SACU intends
to further simplify and streamline its tariff structure in order to ensure conformity with the relevant
WTO rules.
Answer
A process to simplify the tariff structure is currently underway. This process includes the conversion
of non ad valorem duties into ad valorem duties, and the reduction of the number of tariff bands.
Question 4
As indicated in the Secretariat report, South Africa  is the fifth largest user in the world of anti-
dumping actions, after the United States, the EU, India and Argentina. In 1996, South Africaundertook to amend related regulations on anti-dumping practices and countervailing measures to
ensure its compliance with the requirements of the WTO Agreements. After that, South Africa’s
competent authority, the Board on Tariffs and Trade (BTT), investigated the restructuring of the anti-
dumping and countervailing system. The recommendations and the proposed regulations of the BTT
will be published in the second half of 2003. Bearing in mind the WTO’s transparency principle, wewould appreciate being provided in advance with an  outline of the recommendations so that members
of SACU and the WTO may have the opportunity to express their views on the newly proposed
regulations.
Answer
The regulations on anti-dumping are currently published for public comments in the government
gazette of 28 March 2003. A copy of the draft regulations is available on the dti website
(www.thedti.gov.za ). Once the process in South Africa is complete the WTO will be notified.
Question 5
As indicated in the Secretariat report, Article 28 of the 2002 SACU Agreement provides that members
shall harmonise product standards and technical regulations within the common customs area, and
apply product standards and technical regulations in accordance with the WTO Agreement on
Technical Barriers to Trade. We would appreciate kn owing the provisions of the agreement related to
the harmonization of product standards and technical  regulations.  Also, would SACU please explainWT/TPR/M/114/Add.1
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whether there is a supervisory mechanism to ensu re the harmonization of customs regulations among
the member countries, which could prevent trade distortion caused by differences in standards andtechnical regulations.
Answer
The harmonisation of technical regulations within SACU is done under the auspices of the SADC
(Southern African Development Community) trade protocol. There are certain technical regulations
which have been harmonised but the process is not complete as the harmonisation is done on a
commodity basis.
Question 6
According to the Secretariat report, SACU c ountries do not yet have a common policy on standards
and technical regulations. Article 30 of the 2002 SACU  Agreement indicates that members reserve the
right to apply sanitary and phytosanitary (SPS) measures in accordance with their national SPS laws
and international standards. We have noted that the unique natural environment and wildlife of theSouthern African region requires special attention with respect to the SPS measures of the member
countries. We would like to know, therefore, wh ether SACU intends to establish a supervisory
mechanism to reduce the trade distortion that could potentially be caused by differences between the
SPS measures applied by its member countries.
Answer
As mentioned above, standards and technical re gulations are harmonised within SADC of which
SACU is an integral part. The existing SADC Livestock Sector Technical Committee is responsible
for establishing supervisory mechanisms to reduce the trade distortion that could potentially be caused
by differences between SPS measures applied by member countries. The SADC Plant Health
Committee is responsible for dealing with phytosani tary issues. All SACU and SADC member states
use international guidelines provided by the OIE, IPPC, and Codex.
BOTSWANA
Question 7
According to Paragraph 11, during the years 2000 and 2001, Botswana’s international
competitiveness, as measured by the real effective exchange rate, deteriorated by about 4% and 7%
respectively, thereby making domestic producers, on balance, less competitive against imports and in
export markets. On the one hand, the sharp real appreciation of the Pula against the Rand makes itsnon-mineral products, such as textiles, less compet itive against South African products. On the other
hand, its real depreciation against the US dollar creates a diamond-led exchange rate appreciation
(the so-called “Dutch disease”), thereby hamperi ng the economic restructuring needed to diversify
production and exports. Will the Botswana government be making concrete changes to its exchange
rate policy in its early-2003 National Development Plan 9 to ensure that the real exchange rate of the
Pula remains relatively stable?WT/TPR/M/114/Add.1
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Answer
Year BWPvs ZAR BWP vs USD BWP vs SDR REER
2000 6.0% -9.4% -3.5% 2.6%
2001 21.8% -20.0% -17.3% 6.4%
2002 -9.0% 38.5% 29.1% 2.9%
It should be noted that changes in bilateral real  exchange rates (vs the ZAR, USD and SDR) have
been much greater than changes in the overall R EER, thus reinforcing the point that real exchange
rate changes have largely been due to volatility in the exchange rates of the SA rand (ZAR) against
major international currencies, not changes in the value of the Pula itself. Botswana’s policy has been,
and remains, the maintenance of stability in the nominal and real effective exchange rates in the face
of fluctuations in other countries’ exchange rates.
The main reason for the appreciation of the re al effective exchange rate (REER) in 2000-2002 is
Botswana’s higher level of inflation relative to (the weighted average of) inflation rates of trading
partners. The policy focus is therefore to bring inflation down so that inflation is no higher than that of
trading partners; hence the Bank of Botswana’s objective, as stated in the 2002 and 2003 MonetaryPolicy Statements, of bringing inflation down to within a range of 4 to 6 percent.
Exchange rate policy is based on a stable nominal effective exchange rate (NEER), i.e. the Pula has
fixed peg to a weighted currency basket. There are no plans to change this. Maintaining the real
effective exchange rate at a level that will support the competitiveness of the country’s producers willfocus on bringing inflation down to internationally  comparable levels rather than devaluing the
nominal exchange rate.
Question 8
Paragraph 11 states that Botswana has used sli ghtly different bases between SACU and non-SACU
countries for levying value-added tax (VAT) on im ports. For SACU countries, for example, VAT is
levied on either the landed duty-free price or the fair market price of the imports, whichever is the
greater. We would appreciate knowing how the fair  market price is determined.  Could SACU please
also clarify how this practice complies with the WTO Agreement on Implementation of Article VII ofthe GATT 1994 (Customs Valuation).
Answer
For valuing imports, Botswana uses the GATT Valuation rules as prescribed in the GATT Customs
Valuation Agreement 1994.
In valuing imports for VAT purposes, there is no di scrimination as between imports from SACU and
the non-SACU area. VAT is levied on the FOB cost pl us the duty payable plus the cost of insurance
and freight.  Where no cost is indicated for insurance and freight, a 5% uplift is applied to the FOB
cost plus duties payable.
Duty would be applicable only in respect of impor ts from outside the SACU area.  For imports from
other SACU countries, no duty is applicable and so the VAT is charged only on the FOB value plus
the cost of insurance and freight.WT/TPR/M/114/Add.1
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The fair market value of imports is used only for personal imports or goods of no commercial value
such as gifts.  In determining fair market value,  Botswana follows the procedures set out in the GATT
valuation rules referred to above.
Question 9
According to the Secretariat report, banks in Botswana are not allowed to provide non-bank financial
activities, either directly or indirectly. We w ould like to know whether Botswana is considering
removing this restriction. Moreover, paragraph 60 states that foreign banks must operate as locally
incorporated subsidiaries and that foreign bank branches are not allowed.  We would  also appreciate
knowing whether the Botswana authorities have any plans to remove these restrictions.
Answer
Banks in Botswana are prohibited by law from engaging in wholesale or retail trade, including import
and export trade or in any business for which they are not licensed under the Banking Act, 1995.
However, the Bank is empowered under Section 17(9) of the Act to approve or disapprove any suchproposals.  The Bank has never had to consider a pr oposal of that nature.  Se ction 17(10) of the Act
further allows banks to hold shares in companies approved by the Central Bank, set up for the purpose
of insuring deposits, or promoting the development of a money market or securities market in
Botswana, or of improving the financial mechanism for the financing of economic development.  In
the spirit of this provision, the Bank has allowed banks in Botswana to provide services that are
traditionally not related to banking business, like insurance agency services. In consideration of such
proposals the Bank is first and foremost guided by the prudential requirements it has set for banks,and the impact of any such proposal, if approved, on the capital adequacy requirements.Foreign Banks
are allowed to operate provided they establish locally incorporated branches.
SOUTH AFRICA
Question 10
It is noted that the larger district customs offices in South Africa accept electronic documentation in
order to expedite clearance procedures. It would be  appreciated if South Africa would please provide
up-to-date information regarding its progress on electronic customs procedures.
Answer
The electronic submission of import declarations is currently undertaken at the larger customs branch
offices but this programme will be rolled-out to all customs branch offices in May 2003.
Question 11
As indicated in the Secretariat report, South Afri ca imposes a VAT that is levied on the added-tax
value (i.e. the sum of the customs value, plus 10% of the customs value, plus any non-rebated customs
duty). According to the South African authorities, the additional 10% of the customs value is added to
correct for the use of f.o.b. rather than c.i.f. prices for customs duty purposes. Please clarify whether
this 10% of the customs value is a sort of arbitrary or fictitious value as referred to in the WTO
Agreement on Implementation of Arti cle VII of the GATT 1994 (Customs  Valuation). At the same time,
please also explain whether these measures comply with this WTO Agreement.WT/TPR/M/114/Add.1
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Answer
For customs value purposes, South Africa applies and complies with the Agreement on
Implementation of Article VII of the General Agreement on Tariffs and Trade.  This means that the
primary basis for customs value is the transaction value.  For the purpose of imposing Value-added
Tax (VAT), which is a local fiscal tax, and not for calculating the customs duty payable, the 10%
factor was introduced as South Africa uses FOB in stead of CIF prices for customs value purposes.
The purpose of the 10% factor is to ensure that local products and imported products compete on an
equal footing insofar as VAT is concerned.  The 10% factor is therefore aimed at compensating for
the use of FOB instead of CIF as the FOB price excludes costs related to the transportation and
insurance of the goods.  The factor is based on research undertaken that indicated that the insurance
and transportation costs for goods imported from major trading partners account for approximately11%.  This figure was then rounded off to 10%.
Question 12
Paragraph 49 states that several types of incentive scheme are available to South African exporters
for the promotion and development of exports and export markets. In this regard, we have observed
that the Industrial Development Corporation (IDC) continues to provide credit facilities to South
African exporters. Aimed at enabling them to offer competitive terms to foreign purchasers, the credit
facilities are subject to a South African local-content requirement of at least 70%. Could South Africa
please provide details of these credit facilities , including how many companies are benefiting from
these credit facilities, the amount offered to these cr edit facilities, and the earnings’ status of the IDC.
Please also clarify whether these credit facilities are consistent with the WTO SCM Agreement.
Answer
To assist local importers, credit facilities have been established with banks and other financial
institutions in virtually all South Africa’s major trading partner countries. Repayment normally rangesfrom two to five years but dedicated credit lines can be concluded for larger projects requiring tailor-
made solutions and longer credit periods of up to ten years. The International Finance division of the
IDC assists exporters of capital goods by structur ing finance – extended in rand or US dollars at
guaranteed rates of exchange – to ensure that exporters receive payment of full contract price of
delivery. The division also offers short-term working capital finance to exporters for the execution ofexport orders
Question 13
According to paragraph 66, the Competition Co mmission (CC) must balance issues related to
compliance with the broader social and economic goals outlined in the Act, such as employment,
international competitiveness, efficiency and techno logical gains, as well as the ability of small,
medium and micro enterprises owned or controlled by historically disadvantaged persons to compete.
We would appreciate having South Africa’s answers to the following questions:
(1) Is any sector or industry exempted from application of the Competition Act approved by the CC?If so, please provide details.
(2) Is any export/import cartel exempted from the Act approved by the CC? If so, please provide
justification and describe the criteria for such exemptions.WT/TPR/M/114/Add.1
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Answer
The Competition Act, 1998, provides for exemptions from the Act under certain conditions. A
prohibited practice or agreement may be allowed is when it meets one or more of the following
objectives:
(a) provide an industry or sector with the opportunity to adjust its productive capacity;
(b) promote exports;
(c) promote the ability of small businesses and businesses owned by historically 
disadvantaged individuals to become competitive;
(d) be necessary for the economic stability of an industry designated by the Minister of 
Trade and Industry in consultation with the relevant Minister. More detailed information can be obtained from the Competition Commission’s website at 
www.compcom.co.za .
Apart from these limited conditions for exemption, the Competition Act applies indiscriminately to all
activities that have an economic effect within SA. However, activities sanctioned by law are excludedfrom the purview of the Act.
The Competition Commission granted South African Airways (SAA) a short term exemption on a
code share agreement with Quantas Air on the South Africa-Australia route. The basis for the
exemption was that the practice promoted exports and the exemption was granted on strict conditions
requiring price information to be submitted to the Competition Commission on a regular basis. With
this exception, no exemptions for any import or export cartel have been granted.
Question 14
We welcome South Africa’s further commitments during the 1997 WTO financial services
negotiations. With respect to insurance services, commitments on market access and nationaltreatment were made for consumption abroad and commercial presence. However, we note that a
foreign insurer may only operate in South Africa in the form of a subsidiary; a branch is not yet
allowed. While we question the consistency with the national treatment commitments of this particular
restriction, we would also appreciate having an expl anation of the reasons for the restrictions in this
area and would be interested in knowing whether there is any plan to remove them.
Answer
The restriction is in place to ensure that the home supervisor (the Financial Services Board) has
jurisdiction over the insurer. In the case of a branch office there is no such jurisdiction. It is unlikelythat this restriction will be removed in the near future.
Question 15
As indicated in the report by the governments of  SACU members, SACU countries attach great
importance to the outcomes of the Doha Minister ial Conference of 2001, which put development at
the centre of the WTO agenda. At the same time, SACU countries think that broadening the scope of
negotiations to include “new issues” will severely test the human and institutional capacity of SACU
countries. Pursuant to the mandate of the Doha Development Agenda, future negotiations on the
“Singapore issues” would take place after the Fifth Ministerial Conference on the basis of a decision
to be taken at that Session, by explicit consensus, on modalities of the negotiations. We would like to
know SACU’s position on or expectations for the Singapore issues.WT/TPR/M/114/Add.1
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Answer
SACU countries are fully committed to implemen ting the Doha developm ent Agenda (DDA). The
DDA is a comprehensive negotiating mandate which includes the Singapore Issues, and a range of
other market access and development issues. It is our view that there has to be a balance both in the
substance of the negotiating agenda and the process of the negotiations. It is for this reason that we
have been concerned about the failure to meet the important deadlines that have been established inthe negotiating process. These include special and di fferential treatment, implementation issues and
TRIPS and public health. Critical to the process has been the need to agree on the modalities for
agriculture, which as is well known is another missed deadline. Positive and constructive progress in
the next few months in resolving the above issues will provide the necessary impetus and political
will of all SACU countries to ensure that the comprehensiveness of the negotiating mandate iscomplied with. It is with this perspective that SA CU countries have been participating in the study
and research phase of the Singapore Issues. Notwithstanding the capacity constraints of SACU
members, we remain willing to engage fully on all the issues of the DDA in line with the
commitments made in Doha.
Questions from the USA
SACU
Questions 1 and 2
Non-tariff trade policy measures such as standards, technical regulations, SPS and others are not
harmonised. The new SACU agreement envisages ha rmonisation 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 Agreem ent provides that members shall harmonise such
requirements and apply them in accordance with th e 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 regionalmarket.
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.WT/TPR/M/114/Add.1
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BOTSWANA
Question 3
There is mention that an impedime nt 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 re ward or profit, other than those who have been
exempted from this requirement, are required to apply for work permits.  In processing theapplications 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 applic ations received there has been some delay in the
processing of these applications.  However, the government is addressing this situation.  Measuresthat 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 investorswho are approved by the Agency.
Government will continue to look at ways of improving ways of facilitating the granting of work
permits.
Question 4
Botswana’s Bureau of Standards is non-government al.  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.WT/TPR/M/114/Add.1
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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 co mmittees 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 declaresin 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.
Question 5
Are the new “Standards Mark” and “Batch Certificat ion Scheme” voluntary, i.e., to be used at a
manufacturer’s request?  Will government agenci es 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 thatSADC 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.
Question 6
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 th e Agreement domestically.  Neither Botswana nor
Lesotho have submitted such statements.  Are there plans to do so?  Are there obstacles to doing so?
Please explain.WT/TPR/M/114/Add.1
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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.
Question 7
The report says that government tendering procedur es 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 a nd 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 guidan ce 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.
Question 8
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 implementationduring 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.WT/TPR/M/114/Add.1
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Question 9
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 Serv ice Fund has been discontinued. However, existing
loans to parastatals will be allowed to run their course until fully repaid.
Question 10
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 prevente d from establishing wholly-owned subsidiaries.
Already most of the major financial institutions in the country are wholly owned subsidiaries offoreign companies.
Question 11
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
Question 12
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 comma nd 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 alsoWT/TPR/M/114/Add.1
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under review by a task force comprising of memb ers from both the private and public sector. Among
other objectives, the review aims to minimise government involvement.
Question 13
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 bea 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.
Question 14
The report discusses liberalisation and deregulation in agricultural marketing, but on a case-by-case
basis.  Is there an overall government plan, wi th 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
Question 15
The report state that legislation creating the Na mibian 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 consol idation and frame work, it is expected that the
Board will assume its operational and functional life.
Question 16
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 internationa l standards (other than ISO and South African)?WT/TPR/M/114/Add.1
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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.
Question 17
Is the Government of Namibia doing anything to address possible economic inefficiencies (mentioned
in the report) in the “Nambianisation” prog ram 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.
Question 18
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.
Question 19
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
Question 20
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 voluntar y?  Is SABS governmental, or non-governmental?
Do government representatives participate in the development of SABS standards?WT/TPR/M/114/Add.1
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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 tomake 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 bySABS?
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 t echnical 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 upabout 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 gove rnment 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 agen cy, the South African National Accreditation System
(SANAS) is responsible for the accreditation of local and international conformity assessment bodies.
SWAZILAND
Question 21
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 andWT/TPR/M/114/Add.1
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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.
Question 22
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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