RESTRICTED
WORLD TRADE WT/TPR/D/19
21April 1998
ORGANIZATION(98-1579)
Trade Policy Review Body
TRADE POLICY REVIEW MECHANISM
REVIEW OFSOUTH AFRICA, BOTSWANA, LESOTHO
NAMIBIA AND SWAZILAND
Communication from theDiscussants
Inpursuance ofAnnex 3,paragraph C(iv)oftheWTO Agreement, thefollowing areoutlines
ofthemainpoints toberaised bythediscussants, H.E.Ambassador R.M.J. Lyne (United Kingdom),
Mr.Wilhelm Meier (Switzerland) andMr.Tadeous Chifamba (Zimbabwe) attheTrade Policy Review
ofSouth Africa, Botswana, Lesotho, Namibia andSwaziland on21-22-23 April 1998.
Itisrecalled thatthediscussants actintheirpersonal capacity.
(a) Ambassador R.M.J. Lyne
- Paceandemphasis oftheReconstruction andDevelopment Programme (RDP), and
oftheGrowth, Employment andRedistribution (GEAR) strategy;
- Incentive schemes mostly geared toward capital utilization, theGEAR 'sobjective of
jobcreation andthecurrent levelofunemployment;
- Reformsonbasicconditionsofemploymentandreductionoflabourcosts/improvement
ofcompetitiveness;
- Slowdown inprivatization andimplementation oftheNational Framework Agreement;
- Decline inexports ofgoldanddiversification;
- Short-term structure ofcapital inflows andvulnerability ofSouth African economy
tochanges inmarket sentiment;
- Future liberalization ofexchange controls;
- Impact ofdrought; and
- Current account deficits, decline ininternational reserves andpursuit ofreforms.
(b) Mr.Wilhelm Meier
- Renegotiations oftheSACU Agreement:
. themanagement oftheSACU system, including thesetting ofimport duties
andcontingency trade remedies, theuseofduties forprotection ofinfant
industries andindustries ofmajor importance totheBLNS economies, and
adispute settlement mechanism;
./.
Note: Thiscommunication issubject torestricted circulation andpress embargo untiltheendoftheMeeting
oftheTrade Policy Review Body onSouth Africa, Botswana, Lesotho, Namibia andSwaziland.WT/TPR/D/19
Page2
. country-specific legislation onquantitative restrictions onimports fromoutside
theSACU areaandfreetrade within theunion; and
. fiscal issues e.g.therevenue-sharing formula (thelevelofcompensation for
price-raising andindustrial-polarization effects, andforthelossoffiscal
discretion, andthe"stabilization factor") andthetimelagsindistribution of
revenue;
- TheSADC Trade Protocol:
. entry intoforce;
. timeframe andprocess ofestablishment oftheFreeTrade Area
(e.g.country-sensitive sectors andasymmetrical trade liberalization); and
. prospects foracustoms union (acommon external tariff inparticular);
- Coverage ofbilateral trade negotiations withtheEU,including prospects forSouth
Africa 'sagricultural exports totheEU; and
- Management ofmultilateral, regional andbilateral tradeagreements bySouth Africa.
(c) Mr.Tadeous Chifamba
- Import prohibitions andcontrols;
- Export prohibitions andcontrols;
- Tariffication ofquantitative restrictions onagricultural products (except black tea)and
maintenance ofimport controls;
- Selective tariff protection andfrequent tariff alteration;
- Formula duties based onminimum import prices andimplementation ofArticle VII
oftheGATT onCustoms Valuation;
- Tariffbindingsatadvaloremratesandnon-advaloremappliedtariffs,includingformula
andspecific duties;
- Unbound tariffs onalbuminoidal substances based oneggs(agricultural products);
- TheTariff Rationalization Process (TRP) andtheeffective rateofprotection;
- AMPEC proposal oftariff protection inagriculture;
- Double uplift ofthevalue forVAT purposes ofimports subject toadvalorem excise
duties;
- Discriminatory specific excise duties oncertain beverages;
- Phasing-out ofimport controls implemented under Article 11.1oftheWTO Agreement
onSafeguards;
- Liberalization ofmarketing ofagricultural products, including wineandsugar;
- Protection ofgeographical indications;
- Trademark protection andtheWTO Members notparties totheParis Convention;
- Status ofbillsonintellectual property, including theCounterfeit Goods Billandthe
Intellectual Property Laws Amendment Bill;
- CompliancewiththerequirementsoftheWTOlegislationonanti-dumping,countervailing
andsafeguard measures;
- Thewidevariety ofincentives schemes;
- Local content requirements;
- Competition policy, including price controls;
- Liberalization oftrade inservices; and
- Thegoldtaxformula.
__________