WT/TPR/M/324/Add.1  
7 January 2016  
(16-0151)  Page: 1/160  
Trade Policy Review Body 
4 and 6 November 2015 Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  TRADE POLICY REVIEW 
SOUTHERN AFRICAN CUSTOMS UNION 
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mr. Atanas Paparizov (Bulgaria) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by the Southern African Customs Union members.1 
 
 
Organe d'examen des politiques commerciales 
4 et 6 novembre 2015 
EXAMEN DES POLITIQUES COMMERCIALES 
UNION DOUANIÈRE DE L 'AFRIQUE AUSTRALE  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Président: S.E. M. Atanas Paparizov (Bulgarie) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par les membres de 
l'Union douanière de l'Afrique australe.1 
 
 
Órgano de Examen de las Políticas Comerciales 4 y 6 de noviembre de 2015 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
U
NIÓN ADUANERA DEL ÁFRICA MERIDIONAL  
ACTA DE LA REUNIÓN 
Addendum 
Presidente: Excmo. Sr. Atanas Paparizov (Bulgaria) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por los 
miembros de la Unión aduanera del África meridional.1 
 
                                               
1 In English and Spanish only./En  anglais et espagnol seulement./En inglés y español solamente. WT/TPR/M/324/Add.1 
 
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  AUSTRALIA 
 2 THE COMMON REGIME 2.2.1 Institutional structure 
Page 13, Paragraphs 2.7-2.11 
 Question 1 
When does SACU forecast the establishment of a Tariff Board as provided for in the 2002 SACU Agreement?   Answer 1 
Currently, work on the establishment of the SACU Tariff Board is ongoing. There is no timeline as to when this process will be co ncluded. In the absence of the SACU Tariff 
Board, the SACU Council has mandated South Africa's International Trade 
Administration Commission (ITAC), to take re sponsibility for the administration of the 
customs tariff and trade remedies , as an Interim Measure.  
 
2.2.1 Institutional structure 
Page 13, Paragraph 2.13  Question 2 
How are preparations proceeding to establish an ad  hoc Tribunal provided by Article 7 of the 2002 
SACU Agreement which will settle disputes consistent with Article 13 of the same Agreement?   
Answer 2 
The SACU Member States are engaged in disc ussions to clarify the jurisdiction of the 
Tribunal, with a view to ensure that the im plementation of the Annex to operationalise 
the provisions of Article 13 of the SACU Ag reement, 2002, will be consistent with the 
international and Constitutional obligations  of the respective Member States.   
  
2.2.2 Common revenue pool and revenue-sharing formula 
Page 14, Paragraph 2.20  
Question 3 
How are deliberations proceeding to review the revenue-sharing arrangement of the SACU 
Common revenue pool?  
 
Answer 3 
Member States have developed their resp ective proposals on a revenue sharing 
arrangement and these are still being co nsidered. The process is on-going. 
 
2.3.4 Relations with the European Union Page 16, Paragraph 2.42 
 
Question 4 
When will the Economic Partnership Agreement with the European Union initialled in July 2014 
enter into force?  
 Answer 4 
Entry into force of the Agreement will to a large extent depend on the ratification 
processes of the Member States of both parties.  In light of the end date of the EU Market 
Access Regulation (1528/2007) , the SACU Member States will work towards finalising 
the signing and ratification processes by October 2016 .  
ANNEX 1 BOTSWANA 
3.1.6 Anti-dumping, countervailin g, and safeguard measures 
Page 76, Paragraph 3.39 
 
Question 5 
Has Botswana's Minister of Trade and Industry taken action against any countries under this legislation in response to the occurrence of (a) or (b)? Does this legislation apply only in situations 
where a country has undertaken an anti-dumping or countervailing investigation of goods WT/TPR/M/324/Add.1 
 
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  originating in Botswana? What is the WTO basis that enables Botswana's Minister for Trade and 
Industry to take such action?  Answer 5 
Botswana has not taken action against any country using Botswana Trade Commission 
Act since the legislation is not yet fully op erationalized. The institution is still being 
established.  
 
No, the Legislation also applies to all unfai r trade practices examined in the country.  
 Agreement on Implementation of Article VI of the GATT, Agreement on Subsidies and 
countervailing Measures and Agreement on Safeguards. 
  
3.3.5 Intellectual Property Rights 
Pages 92-93, Paragraph 3.120  
Question 6 
Australia notes that Botswana has recently installed a new IP Authority, and has increased its IP 
rights applications. What promotion/education has the Botswana IP authority undertaken, and has this contributed to this increase in IP rights applications? 
 
Answer 6 
The new Companies and Intellectual Property Authority (CIPA) beca me only operational 
in November 2014. However,  Government has conducted many awareness activities 
including participation in trade fairs, presen tations to stakeholders (including SMMEs) 
and lastly the commemoration of World IP day which has a lot of media coverage.  
 
 3.3.5.1 Copyright Page 95, Paragraph 3.129 
 
Question 7 
Does Botswana's intellectual property rights system allow for rights holders to report suspected 
infringements? 
 Answer 7 
Y e s ;  i t  i s  p r o v i d e d  f o r  u n d e r  P a r t  V  o n  E n f o r c e m e n t  o f  R i g h t s  i n  t h e  C o p y r i g h t  a n d  Neighboring Rights Act.    
3.3.5.2 Industrial Property Rights 
Pages 98-99, Paragraphs 3.143-3.148   
Question 8 
Australia notes the substantial increase in trademark registrations as a proportion of filings in 
2014. Are there any factors or initiatives that have led to the improved registration rate? 
Answer 8 
Increase in trademark registrations can be attributed to the increase in awareness 
campaigns that were undertaken by the IP Office. This awareness was more in the 
towns and cities targeting small and medium enterprises. 
 
3.3.5.2 Industrial Property Rights  Pages 99-100, Paragraphs 3.150-3.15 
 
Question 9 
Australia acknowledges the Botswana initiative to implement an exclusive traditional knowledge 
rights registration system. Understanding the nasce nt stage of its implementation: How does this 
traditional knowledge rights registration system relate to the existing IP arrangements? How frequently is it used?   WT/TPR/M/324/Add.1 
 
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  Answer 9 
The registration of traditional knowledge is still at infancy stage and is implemented by 
the IP Office. The registration process is simplified and less costly to allow use by 
Traditional Knowledge holders.  Few applications have been received due to lack of 
awareness by rural communities who possess mo st of the knowledge. More efforts will 
be made by the new IP Authority to reach ou t to the rural communities to educate them 
about the registration of traditional knowledge. 
 
What has been the response of traditional knowledge holders to the system?  Answer 
Traditional knowledge holders are still being ca pacitated to create awareness of this law 
and more efforts are being made to educate them more especially the rural communities 
in order to increase utilisation of registration system . 
 
What has been the experience of the other industri al rights holders and the consent of traditional 
knowledge holders? 
 
Answer 
The response of other industrial rights is  minimal at this stage as we have not 
experienced a large response to register traditional knowledge.  
 
 4.2.1 Mining 
Pages 105, 106, Paragraphs 4.27-4.28 
 4.2.2 Energy 
Pages 111,112, Paragraphs 4.49-4.50 
4.3.3 Transport Services Page 120, Paragraph 4.97  
Questions 10, 11,12,13 and 19 
 
To what extent do SACU priorities and initiatives influence or support a SACU mining equipment, 
technology and services sector? What are the type s of equipment, technologies and services that 
the SACU resources sectors need for the future? How can SACU nations and Australia, through 
Australian Government and the mining equipment, technology and services growth centre, work 
together to support the SACU resources sector through the utilisation of Australian businesses? 
 Answer to Questions 10, 11, 12, 13, and 19 
SACU has identified Six Priority Areas for development with industrialisation as an 
overarching objective, focusing  on the development of cross border value chains. This 
process is still at an early stage. Details of the areas of cooperation with Australia will 
be considered as part of this strategy.  
 
 2.2 Trade Agreements and Arrangements 
Page 293, Paragraph 2.8 
 Question 14 
Can South Africa give an indication of the like ly provisions it will make, once ratified?  
 
Answer 14 
Section 231(2) of the South African Constitution states that all international Agreements 
shall bind the Republic only after it has been  approved by resolution of both Houses of 
Parliament. The only exceptions to this ru le are in Section 231(3): Agreements of a 
technical, administrative or  executive nature, or Agreements which do not require 
accession or ratification. Consequently Pa rliament is only required to approve 
international agreements which require ratification or acce ssion, and which are not of a 
technical, administrative  or executive nature.  
 WT/TPR/M/324/Add.1 
 
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  The umbrella Agreement creating the WTO (the Marrakesh Agreement Establishing the 
WTO) is a major multilateral instrument. Furt hermore Article 3 of the Protocol demands 
that the amendment thereof has to be accepted  by members. Consequently this Protocol 
plus its Annex the TFA fall under Section 231( 2) of the Constitution and Parliamentary 
approval is required. The domestic process is  still ongoing and it would be difficult to 
provide an indicative date when it will be concluded. 
 
Is South Africa planning to form a domest ic committee for the TFA once implemented? 
 Answer  
Yes 
 
 3.1.4 Sanitary and phytosanitary requirements 
Page 306, Paragraph 3.34 
 Question 15 
South Africa has mentioned that several pieces of SPS legislation are under review. Can South Africa please advise what parts of its legislation are under review and if these may impact on trading partners?  
Answer 15: 
Any proposed changes to SPS legislation will  be notified to the WTO and time for the 
submission of comments on th ese proposed changes will be  provided to our trading 
partners . 
  
3.3.5 Intellectual Property Rights 
Page 322, Paragraph 3.119  Question 16 
Australia notes South Africa's domestic initiatives including several relating to traditional knowledge, such as providing for protection and commercialisation of various forms of tk/tce/folklore in performers' protection, copyright,  trademarks and designs legislation, as well as 
a requirement to disclose provenance of traditional knowledge and genetic resources in patent 
applications. Acknowledging the early stages of the system, could South Africa provide further 
information on use of the national record system/database by the Companies and Intellectual 
Property Commission (CIPC), role of the relevant departments and commercialization initiatives, 
and the usage of the system?  Answer 16 
South Africa is still in the process of deve loping its IP policy and once finalized the 
implementation thereof will be addressed.  
 
3.3.5 Intellectual Property Rights Page 322, Paragraph 3.120 
 
Question 17 
Can South Africa please provide an update on its draft IP policy?  
Answer 17 
South Africa is still in the process of developing its IP policy. 
 
 WT/TPR/M/324/Add.1 
 
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  ANNEX 5 SWAZILAND 
 3.3.5 Intellectual Property Rights Page 398, Paragraph 3.117 
 
Question 18 
When complete, does Swaziland anticipate its National Intellectual Property Strategy will support 
further implementation of elements of TRIPS? 
 Answer 18 
The strategy will also support the implementa tion of some of the elements of TRIPS. 
 
4.2.2 Mining and Quarrying Page 410, Paragraphs 4.62-4.65 
Report by the Southern African Customs Union – WT/TPR/G/324 
3  TRADE POLICES AND PRACTICES BY MEASURE 3.4.7.1 Anti-dumping and countervailing measures 
Page 29, Paragraph 3.39 
  Question 20 
In order to receive an exemption from paying duty, do new exporters also need to prove that their exports to the SACU are not dumped, or is proof of  non-export during the investigation period and 
non-relation to parties subject to duties, sufficient to receive an exemption? 
 
Answer 20 
Yes, exporters are required to provide a listing  of all invoiced ex-factory sales into its 
domestic market since the initiation of the or iginal investigation or the last review, as 
well as its exports to the South African Cu stoms Union for the corresponding period. A 
transaction-by-transaction listing of all export  sales to South Africa and all other foreign 
markets for the investigation period has to be provided. This is then used to prove that 
the exporter is not dumping . WT/TPR/M/324/Add.1 
 
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  BRAZIL 
 PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
2.3: TRADE AGREEMENTS AND ARRANGEMENTS 
 (Page 14, para 2.25) 
 
"SACU is currently negotiating a PTA with India. In addition, it is participating in the negotiations on the Tripartite Free Trade Agreement between COMESA, the EAC and SADC."  
Questions : 
 
1. In which stage of negotiation is currently the PTA with India?  
 
Answer  
The Parties to the PTA have exchanged their respective preference request lists. These 
have been subjected to national co nsultations which are still ongoing.  
 2. Is there a deadline for the negotiations to be concluded  
Answer  
There is no agreed deadline. 
 
3. Which are the sectors deemed to take the best advantage of the tariffs reduction regime?  
 Answer  
Tariff negotiations are yet to commence and it is after this  process that sectors that 
would be most favoured would be confirmed.  4. How does the PTA with India compare with the PTA signed with MERCOSUR?  
 
Answer 
The SACU-INDIA PTA is still at the negotiat ions stage while the SACU-MERCOSUR PTA is 
currently in the final stages of ratification. It is therefore difficult to compare the two 
Agreements as the outcome of the other is not yet known.  
 
2.3.7 PREFERENTIAL TRADE AGREEMENT BETWEEN SACU AND MERCOSUR  (Page 18, para 2.55) 
 
"In 2008, SACU and MERCOSUR member States concluded negotiations on a preferential trade agreement (PTA). The agreement was signed by the MERCOSUR member States on 15 December 
2008, and by SACU member States on 4 April 2009. The PTA has not yet been notified to the WTO 
and has not yet entered into force".  
Questions: 
1. Taking into account the forthcoming entering into force of the PTA SACU- MERCOSUR, what are 
the expectations of the Governments and priv ate sectors from SACU members regarding the 
agreement? 
 
Answer 
To promote and increase trade between the tw o regions through the provision of mutual 
tariff preferences and to strengthen economic cooperation ties between the two regions.  
  
2. Which sectors are expected to take immediate advantage of the PTA with MERCOSUR?  
 Answer 
All sectors covered by the Agreement where there is export potential. 
 WT/TPR/M/324/Add.1 
 
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  3.4.7 CONTINGENCY TRADE REMEDIES 
3.4.7.1 ANTI-DUMPING AND COUNTERVAILING MEASURES  (Page 30, para 3.45) 
 
"In determining serious injury or threat thereof to the SACU industry, the ITAC must consider: the rate and volume of the increase in imports of the product concerned (in absolute terms or relative 
to the production and demand in SACU); and whet her there have been significant changes in the 
performance of the SACU industry in respect of sales volume, profit and loss, output, market 
share, productivity, capacity utilization, and employment". 
 
Question: 
In order to determine injury or threat of injury, what is the interpretation of the phrase "significant 
changes in the performance of the SACU industry"?  What would the ITAC consider a "significant 
change" able to justify the application of a safeguard measure?  
 Answer  
There is no set standard to determine what IT AC would consider to be serious injury or 
significant changes in the perf ormance of the SACU industry. An analysis is done on a 
case by case basis and on its merits. (Page 28, para 3.37) 
 
"All SACU members apply anti-dumping, countervailing or safeguard measures imposed by South Africa upon recommendation by ITAC and approval by the South African Minister of Trade and 
Industry. The 2002 SACU Agreement provides for the cr eation of national bo dies in each of the 
BLNS countries to enable them to conduct their own investigations. In the interim, the ITAC of South Africa has been given a mandate to handle SACU customs tariff applications, in terms of the 
relevant legislation, and in consultation with SACU member States, until the national bodies and 
the SACU Tariff Board are operational".  Question: 
A South African Agency (ITAC) is responsible for recommending the imposition of trade remedy measures on behalf of BLNS countries:   
a) What is the procedure for ITAC to conduct an investigation on their behalf? In this case, for 
instance, a BLNS country or company must lodge a formal petition at ITAC? Has this ever happened? If yes, in which cases and on behalf of which countries? Finally, is the duty applied for 
the SACU countries as a whole or only to the territory of the BLNS country concerned?  
 Answer   
The SACU Council of Ministers mandated ITAC to  process tariff applications on behalf of 
SACU. 
SACU is a customs union and the duties levied  are applicable on all the Member States. 
ITAC does investigations on behalf of the SACU industry, provided that the industry 
meets the requirements for industry  standing and major proportion. 
For example, there was one investigation wh ere the Government of Botswana submitted 
an application on behalf of Botswana Ash (P ty) Ltd (the only manufacturer of Soda ash 
in SACU) to the Minister of Trade and Indu stry, and requested that the Commission be 
instructed to consider this application. An  instruction was received by ITAC from the 
Minister of Economic Development to cons ider the application by Botswana Ash. 
 
b) Is there any technical cooperation for developing national bodies in each of the BLNS countries? 
Is there any kind of participation from BLNS officials in cases conducted by ITAC?  
 
Answer  
There was technical cooperation provided fo r developing National Bodies in BLNS 
countries. BLNS countries provide inputs to IT AC investigations. During the investigation 
referred to above, officials from Botswana  took part in the investigation with the 
investigators from ITAC.  WT/TPR/M/324/Add.1 
 
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  PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT 
 
Question: 
What are the prospects for trade in agricultural products within the block in the coming years?  
 
Answer 
Trade in agricultural products is expected to grow in the coming years though Members 
still continue to experience agrometeorologic al challenges, supply side constraints and 
other production related challenges. There is , however, a likelihood  of increased trade 
among Members owing to increased collabora tions on issues related to livestock, 
agricultural research and diseases control, among others. 
 
PART III: OTHER QUESTIONS 
 
REVIEWS AND APPEALS 
 "According to art. 46 of the Act 71 of 2002, a person affected by a determination of the 
Commission may apply to a High Cour t for a review of the decision". 
 Question: 
Is there any rule that enable interested parties to make an administrative appeal, or the claimant 
can only appeal to a High Court, according to paragraph 46 of Act 71 of 2002?  
 Answer 
All appeals must be made to the High Court. WT/TPR/M/324/Add.1 
 
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  CANADA 
 Report by the Government (WT/TPR/G/324) 
 
Part V. International Arrangements and Trade Negotiations: 5.4 Trade Facilitation 
Agreement: Paragraph 5.13, page 41  
Question 
The report mentions that African countries will need to schedule their TF commitments in a 
manner that ensures coherence with regional and continental integration objectives. Could South Africa please provide a tentative date for notifying its Category A commitments to the WTO? 
 
Answer   
Section 231(2) of the South African Constitution states that all international Agreements 
shall bind the Republic only after it has been  approved by resolution of both Houses of 
Parliament. The only exceptions to this ru le are in Section 231(3): Agreements of a 
technical, administrative or  executive nature, or Agreements which do not require 
accession or ratification. Consequently Pa rliament is only required to approve 
international agreements which require ratification or acce ssion, and which are not of a 
technical, administrative  or executive nature. 
 
The umbrella Agreement creating the WTO (the Marrakesh Agreement Establishing the 
WTO) is a major multilateral instrument. Furt hermore Article 3 of the Protocol demands 
that the amendment thereof has to be accepted  by members. Consequently this Protocol 
plus its Annex the TFA fall under Section 231( 2) of the Constitution and Parliamentary 
approval is required. The domestic process is  still ongoing and it would be difficult to 
provide an indicative date wh en it will be concluded.  
 
 Report by the Secretariat (WT/TPR/S/324) 
 
Part II. The Common Regime: 2.1 Ov erview: Paragraph 2.6, page 12: 
 Question 
It is noted that the SACU member States have initiated work to develop the regional industrial development policy as well as the Annexes on Competition Policy and Unfair Trade Practices. When do SACU member states anticipate completing the work on developing their common policies and 
strategies? 
 Answer 
Work on this area remains on-g oing and progress is being made. 
 
Part II. The Common Regime:  2.2 Southern African Customs Union (SACU): 2.2.1 Institutional st ructure: Paragraph 
2.11, page 13: 
 Question 
It is noted that efforts are under way to establish the Tariff Board and its national bodies. While South Africa already has a fully functional National Body, Canada has noted that Botswana, Lesotho, Namibia and Swaziland are still developing  legislation that would establish theirs. When 
does the SACU anticipate establishing the Tariff Board? 
 
Answer 
1. Currently, work on the establishment of th e SACU Tariff Board is ongoing. There is 
no timeline as to when this process will be concluded. In the abse nce of the SACU Tariff 
Board, the SACU Council has mandated South Africa's International Trade 
Administration Commission (ITAC), to take re sponsibility for the administration of the 
customs tariff and trade remedi es, as an Interim Measure.  
 Botswana, Lesotho, Namibia, and Swaziland  (BLNS) are at different stages of 
establishing the national bodies and the process is ongoing. WT/TPR/M/324/Add.1 
 
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   Botswana - Legislation establishing the Nation al Body is completed. The setting up of 
the institution is at its initial stage. 
 Lesotho- Draft bill is completed and under going internal appr oval processes.  
 Namibia- Legislation has been developed and awaits submission to Cabinet and 
thereafter Parliament. 
 Swaziland - Legislation has been developed and awaits submission to Cabinet then 
Parliament.  
 
Part II. The Common Regime: 2.3 Trade Agreements and Arrangements:  2.3.3 Southern African Development Comm unity (SADC): Paragraph 2.38, page 16: 
1.1.1.1.1.1  It has been documented that SADC's roadmap in respect to its regional integration 
was originally to establish a customs union in 2010, a common market in 2015, a monetary union 
in 2016, and an economic union in 2018. To date, except for the progress made towards the free trade area, other integration stages have yet to be brought into operation. In 2007, SACU 
countries completed their tariff liberalization process in the framework of the SADC free trade 
area.  
1.1.1.1.1.2  Have members developed new anticipatory dates for when these unions and common 
market may be established? If so, when?  
Answer  
SADC Member States have revised the RISD P and have identified new activities and 
timelines of 2015 to 2020.  
Part II. The Common Regime: 2.3 Trade Agreements and Arrangements:  
 2.3.7 Preferential trade agreement between SACU and MERCOSUR: Paragraph 2.55, 
page 18:  
 Question 
In 2008, SACU and MERCOSUR member States conc luded negotiations on a preferential trade 
agreement (PTA). The agreement was signed by the MERCOSUR member States on 15 December 
2008, and by SACU member States on 4 April 2009. The PTA has not yet been notified to the WTO and has not yet entered into force. When do you plan to notify the WTO of the PTA?  
 
Answer 
The Agreement will be notified to the WTO up on entry into force/implementation and for 
this to happen, all the parties to the Agreemen t first have to finalise their ratification 
procedures.   Question 
2. When do SACU members plan to finalize this rati fication procedure and bring the PTA into force?  
Answer 
All five SACU Member States have ratified the Agreement. 
 
Part III. Trade Policies and Practices by Measure:   
3.2 Customs Procedures and Valuat ion: Paragraph 3.3, page 19:  
 Question 
It is noted that Article 23 of the 2002 SACU Agreement calls for appropriate measures, including 
customs cooperation, to ensure that the provisio ns of the agreement are applied effectively and 
harmoniously. Article 22 calls for similar legislation on customs and excise duties. Each member actually has its own legislation modelled on South Africa's Customs and Excise Act. However, 
customs procedures have not yet been fully harmonized, and some differences remain in the 
regulations and administrative procedures; documentation requirements also differ. Would you please identify which customs procedures have no t been fully harmonized and when you anticipate 
this occurring? 
 Answer 
Import and export regulations and requirem ents are not fully harmonized. The transit 
procedures (domestic and external) and se curities (bond/guarantee) requirements WT/TPR/M/324/Add.1 
 
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  differ within the five Member States. Proc edures related to management of customs 
warehouses (bonded warehouses, manufacturi ng warehouses and storage warehouses) 
are also not fully harmonized . 
 
Question 
Also, would you please explain the differences that remain in the regulations and administrative 
procedures? 
 
Answer 
The regional work towards harmonization of customs procedures is ongoing. Thus far, 
progress recorded include introduction of th e Single Administrative Declaration (SAD) 
form and it is used as a common customs declaration in SACU. With the advent of 
modernization of customs systems, processes and procedures, an electronic version is 
implemented respectively at a national level as part of automation process. Work is 
underway to harmonize procedures for import and export data exchange with the 
objective of strengthening cooperation and improving trade data matching process.  
 
Question 
What are the differences in documentation requirements?  
 Answer 
SACU Member States are using the SAD 500 do cument for import and export procedures. 
There is no requirement to ha ve identical documentation.  
 
 
Botswana: 
 
Part III.  TRADE POLICIES AND PRACTICES BY MEASURE:  
 Government procurement: Paragraph 3.108  
 
Question 
The Secretariat Report noted that "Botswana is not an observer to the Committee on Government 
Procurement". Does Botswana plan to become a member of, or observer to, the WTO Agreement 
on Government Procurement? 
Answer 
Issues of Government Procurement are of gr eat importance to Botswana hence the need 
to critically consider the co sts and benefits of being a me mber of the WTO Agreement on 
Government Procurement.   
Part III. TRADE AND TRADE RE LATED POLICY DEVELOPMENTS 
Government procurement: Paragraph 3.14, page 8  
Question 
The Secretariat Report noted that "Government procurement in Botswana is open to all local and 
foreign owned investors". Do local and foreign companies stand on equal footing when pursuing 
opportunities on the Botswana government procurement market? 
 Answer 
The Citizen Economic Empowerment Polic y makes it mandatory that certain 
opportunities within a defined threshold in wo rks, supplies and services are reserved for 
100% citizen owned companies. Beyond the reserved threshold were local companies competing with foreign owned companies, lo cal companies are given a price preference 
margin, which varies according to the level of citizen shareholding.  
 Question 
Are there exceptions whereby government procurement is reserved to local companies?  Answer 
Yes, there are certain procurement activities  that are reserved for 100% citizen owned 
companies. WT/TPR/M/324/Add.1 
 
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  Lesotho: 
 
Part II: TRADE AND INVESTMENT REGIME 
Trade Agreements and Arrangements: paragraphs 2.6 and 2.7, page 151. 
 
Question 
The Secretariat Report noted that "Lesotho is an original Member of the WTO. However, Lesotho is 
not party to the Plurilateral Agreement on Government Procurement". Does Lesotho plan to 
become a member of, or observer to, the WTO Agreement on Government Procurement (GPA)?  Answer 
Lesotho does not plan to eith er become a member of or an observer to the Agreement 
on Government Procurement at this stage due to her level of development and human 
resources capacity constraints. 
 
 Namibia: 
 Part III: TRADE POLICIES AND PRACTICES BY MEASURE 
Government procurement paragraph 3.98, page 237  
Question 
The Secretariat Report noted that "Namibia is neither a member of, nor observer to, the WTO 
Agreement on Government Procurement". Does Namibia plan to become a member of, or observer 
to, the WTO Agreement on Government Procurement (GPA)? 
 Answer 
No. There is no intention to do so at this stage.   South Africa: 
 Part III: TRADE POLICIES AND PRACTICES BY MEASURE: Government procurement, 
paragraph 3.102, page 315. 
 
The Secretariat Report noted that "Foreign firms may only bid through a local agent". 
 
Question 
Can South Africa explain why foreign companies must bid through a local agent? Doesn't this have 
the effect of reducing compet ition for government tenders? 
 
Answer 
The goal of SA procurement is, firstly, to advance economic transformation and enhance 
the economic participation of black people in  the SA economy. Procurement is therefore 
used as an enabler for socio-economic transf ormation. It is for this reason that the 
Preferential Procurement Policy Framewo rk Act and Preferential Procurement 
Regulations of 2011 makes provision for the pr eference point system. This system rates 
the bidders in terms of their ability to perform the task and the socio economic standing. 
The regulations also makes provision for thos e bidders who do not have a scorecard to 
be rated against. SA also wants to boost their manufacturing  sector hence the need for designated 
sectors. Preference will be given to manufac turers within SA. If products are imported, 
there are certain mandatory requirements th at a foreign bidder must abide by, in the 
interest of SA. 
 
 Part III: TRADE POLICIES AN D PRACTICES BY MEASURE:  
Government procurement, paragraph 3.114, page 318. 
 Question 
The Secretariat Report noted that "South Africa is  neither a signatory nor an observer to the WTO 
Plurilateral Agreement on Government Procurement." Does South Africa plan to become a member WT/TPR/M/324/Add.1 
 
- 14 - 
 
  of the WTO Agreement on Government Procurement on Government Procurement (GPA) in the 
near future?  Answer 
There are no plans by South Africa at th i s  s t a g e  t o  b e c o m e  a  m e m b e r  o f  t h e  W T O  
Agreement on Government Procurement .  
 
 
Swaziland: 
 Part III: TRADE POLICIES AN D PRACTICES BY MEASURE:  
Government procurement: paragraph 3.100, page 395. 
 Question 
The Secretariat Report noted that "Swaziland is neither a signatory nor an observer to the WTO Government Procurement Agreement (GPA)." Does Swaziland plan to become a member of, or observer to, the WTO Agreement on Government Procurement (GPA)?  
 
Answer 
Currently Swaziland is engaged on Government procurement reforms and any consideration of the WTO Agreement on Gove rnment Procurement either as a member 
or observer will be done once the na tional process have been completed. WT/TPR/M/324/Add.1 
 
- 15 - 
 
  EUROPEAN UNION 
 Summary Page 5 para 8 customs issues . SACU has responsibilities on custom issues. " Efforts are ongoing 
within SACU to facilitate trade by further streamlining customs procedures and documentation".  
 EU Questions N°1 to 5 
- 1- Could SACU explain what has been done to coordinate its Member States' positions and activities related to the implementation of the WTO Trade Facilitation Agreement?   Answer 1 
Member States are undertaking parallel proce sses to prepare, respec tively, schedules of 
commitments for Categories A, B, and C and ratification of the Agreement.  
- 2- Does SACU intend to ensure coherence between the respective Member States' lists of 
Category B and C commitments?   
Answer 2 
Yes. SACU Member States will coordinate impl ementation of the Agreement at a regional 
level.   
- 3- Could SACU outline the main developments th at took place regarding Trade Facilitation across 
the customs union?   
Answer 3 
The main developments include work towards conclusion and implementation of the 
SACU Preferred Trader Programme (a step towards Authorised Economic Operator 
(AEO), conclusion of the draft SACU Region al Customs Risk Mana gement Strategy, and 
IT connectivity between SACU Member Stat es (encompassing electronic data and 
information sharing mechanisms) and review  of legislative reforms to incorporate 
international best practices. These developments cover largely article 7 of the WTO TFA. 
 
 4- What is the situation of the ratification of the TFA by the individual member States of SACU?  
 
Answer 4 
Member States are at different stages of ra tification of the Agreement. Botswana has 
ratified the Agreement and notified Catego ry A. Lesotho, Namibia, South Africa and 
Swaziland commenced the process of ratifi cation and scheduling commitments under 
Category A, B, and C.  - 5- What are the perspectives for the notification of the category A commitments of the individual 
Member States of SACU? 
 Answer 5 
The SACU Member States will notify Cate gory A as individual Member States.  
 para 11 states that " The tariff bindings are ad valorem exclusively. Therefore the imposition of 
non-ad valorem duties under the SACU CET does not ensure compliance with the binding 
commitments". Paragraph 3.25 refers to bound commitments.  
 EU Questions N°6 to 8 
-6- Are the SACU member States planning to bring the tariff lines for which the applied MFN rate is 
higher than the bound rate in line with their WTO commitments and by when can this alignment be expected?  
 
Answer 6 
Yes. Where there is agreement that the WTO agreed bound rate is exceeded, the plan is 
to align the applied MFN with the bound rate s, following the normal process of tariff 
amendments.  - 7- What are the intentions of the SACU memb er States regarding the binding of their non- ad 
valorem  tariffs?  WT/TPR/M/324/Add.1 
 
- 16 - 
 
  Answer 7 
In consideration of applications for increase in the duty where the bound rate is an ad 
valorem duty whilst the applied rate is a formula or specific duty, the Commission 
calculates the ad valorem equivalent of the pr oposed applied duty to ensure that it does 
not exceed the ad valorem bound rate 
 - 8- What is the timeframe for the establishment of the SACU Tariff Board? 
 
Answer 8 
Currently, work on the establishment of the SACU Tariff Board is ongoing. There is no timeline as to when this process will be concluded .  
Page 5 para 15 on procurement and competition policy 
 
EU Questions N°9 to 11 
- 9- South Africa's competition regime is well established. Article 2 of the SACU Agreement states 
that SACU aims to promote fair competition in the Common Customs Area and Article 40 requires 
all Members to have a competition policy in order to establish a SACU wide cooperation 
mechanism. This leads the EU to ask the following question: what is the current situation regarding the individual competition regimes of Botswana, Namibia and Swaziland? What are the 
perspectives regarding a SACU wide cooperation mechanism?  
 Answer 9 
 Competition related issues in Botswana ar e governed by the Botswana Competition 
Authority and the Competition Commission wh ich were established in terms of the 
Competition Act of 2009 as two independent but accountable bodies in the enforcement and advocacy functions under the Act. Botswana also has a National 
Competition Policy which was passed by Par liament in 2005. Further information and 
documentation can be accessed on the following official website: 
www.competitionauthority.co.bw/  
 Namibia also has a competition authorit y, namely the Namibian Competition 
Commission. It was established in terms of the Competition Act of 2003(Act No. 2 of 
2003). Further information and documentation can be accessed on the following 
official website: http ://www.nacc.com.na/  
 Swaziland's Competition Commission wa s established in 2007 through the 
Competition Act, 2007 to foster competitio n within Swaziland's economy. Further 
information and documentation can be acce ssed on the following official website: 
http://www.compco.co.sz/. 
A draft Annex on possible Cooperation Mechan ism on Competition Policy (Article 40) has 
been developed and work is still ongoing to finalize this Annex. 
 
- 10- What is the perspective for a regional competition body to enforce competition legislation when there is a cross border impact of anticompetitive behaviours originating in one of the SACU 
members? 
 Answer 10 
The SACU Agreement does not provide for the establishment of a regional competition 
authority, but there has been sharing of information through collaborative research 
projects amongst Member States. In additi on collaboration is extended to assist 
individual authorities to initiate cases on similar conduct by the same companies 
operating in the region. 
 -11- Does the South African Government foresee any mechanism to improve the flexibility within 
the Broad Based Black Economic Empowerment law for the companies willing to invest in 
South Africa and participate in public tenders but have difficulties to achieve the minimum points 
to reach a required level of BEE.  
Answer 11 
The South African government has mechanisms in place to assist potential investors in 
addressing the difficulties in m eeting the requirement in BBBEE. 
 
Page 9 para 1.2  Recent Economic Developments  
 WT/TPR/M/324/Add.1 
 
- 17 - 
 
  EU Question N°12 
How are the SACU individual member States dealing with falling sugar prices? Is a regional 
response foreseen? If not, what other responses are SACU members considering?   
Answer 12 
Sugar is an important sector in SACU and is sensitive to changes in international prices. 
In response to the falling prices, SACU co untries individually and collectively are 
pursuing strategies to address this challenge. 
 Page 13 section 2.2.2 Common revenue pool and revenue-sharing formula  
EU Questions N°13 to 15 
- 13- Could SACU elaborate on its individual Member State's revenue projections in the short, 
medium and long term?  
 
Answer 13 
The revenue shares are based on economic va riables such as GDP, population and GDP 
per capita, thus projections can only be at an aggregate level due to the fact that one 
cannot project long-term economic performanc e of the Member Stat es with certainty. 
However, the CRP is projected to grow modera tely in the medium term. In line with the 
projected economic slowdown in the economie s of the SACU major trading partners and 
also the weak economic activity in the region, in particular, in South Africa.  
The increase in the level of the Common  Revenue Pool (CRP) is underpinned by 
favourable global economic growth, both in improvements in consumer demand and 
increase in imports used as inputs in the pr oductive capacity of the region. Therefore, 
with the current global economic growth proj ected at 3.1 percent in 2015 and increasing 
moderately over time. It is anticipated th at the level of the CRP will also increase 
moderately in the long-term in line with econ omic activity. The current estimates for the 
short and medium term are that the outturn  for the 2014/15 financial year is R75 975 
billion, resulting in a shortfall of R7.4 billion compared with the level of the CRP used to 
determine Member States revenue shares. 
 
Question 14 
14- Can SACU elaborate on what would be the plan to  mitigate declining revenues; in particular for 
countries where the Common Revenue Pool is budgetary important?  
 - 15- The current system which is based on the 2002 agreement does not enable to compensate 
important variations and volatility in revenues despite recent progresses due to more regular 
statistics provided on imports. There have been  discussions on a review of the formula but no 
decision taken yet. The EU would be interested to know what are the ongoing reflections within SACU and in each individual SACU Member state in particular for those members (most except 
South Africa) for which these revenues represen t a large share (more than 50%) of their total 
budget revenues.   
Answer 14 and 15 
The revenue received from CRP has a signif icant contribution to the BLNS Member 
States respective national budgets. The unc ertain external shocks from the global 
economic growth has led to volatile and dec line in revenue shares. Member States have 
individually started to put in place buffers  and contingency funds in order to cushion 
against the effect of the decline. Further at the regional level, SACU is considering the 
feasibility of mitigating factors as part  of the review of the Revenue Sharing 
Arrangement. 
 Page 14 para 2.23  states that " In accordance with Article 31 of the 2002 SACU Agreement, no 
SACU member State can negotiate or amend a trade agreement without consent from the others. 
SACU members currently have a unified approach to wards negotiations with third parties on an ad 
hoc basis".   
 WT/TPR/M/324/Add.1 
 
- 18 - 
 
  EU Question N°16 
Can SACU explain on what grounds have some  SACU individual members signed up to the 
Tripartite Free Trade Agreement between COMESA, EAC and SADC and other SACU members did not? 
 
Answer 16 
SACU negotiated the Agreement as a bloc. Ho wever the signature and ratification will 
depend on the individual national  processes of the Member States. 
 Page 17 para 2.50  states that SACU exports to the US under preferential regime have 
decreased.  
 
EU Question N°17 
What explanations can be given to this situation?  
 
Answer 17 
The global downturn has resulted in the declin e of exports to traditional trading partners 
such as the US, and AGOA is no exception.  
 Page 21 para 3.18  regarding South African tariff quotas. South Africa notified 53 agricultural 
tariff rate quotas to the WTO in 2014. 
 
EU Question N°18 
On what ground can South Africa apply an in-rate quota that is lower than SACU's common 
external tariff, when SACU would normally ha ve to abide by SACU's applied tariff?  
 Answer  
The agricultural market access TRQs are So uth Africa's commitments to the WTO and 
not SACU commitments. These commitments pre-date the current SACU Agreement of 2002. The TRQs thus form an exception to the common SACU external tariff. 
 
Page 25 para 3.26 ." During the Uruguay Round, Namibia bound other duties and charges  (ODCs) 
at zero".   
EU Question N°19 
How does this commitment relate to the Amendment of Government Notice NO. 147 OF 30 
AUGUST 2002, relating to the imposition of general levies on certain controlled products: 
Agronomic Industry Act, 1992 (MINISTRY OF AGRICULTURE, WATER AND FORESTRY, No. 268 
2014) which states that " any person who imports into Namibia any controlled product set out in 
the Annexure to this Schedule, must pay a general levy of five percent (5%) on the landed cost of 
the controlled product so imported ." 
 
Answer 19 
The general levy was introduced to stimulat e domestic production in the agriculture 
sector in Namibia. These products were de clared critical for food security and 
development, to reduce depend ence on imports and reduce the deficit of the balance of 
payments 
 
Page 28 para 3.37  "The SACU Agreement provides for the creation of national bodies in each of 
the BLNS countries to enable them to conduct their anti-dumping and countervailing investigations".  
 
EU Questions N° 20 to 22 
-20- Are there any intentions to strengthen th e capacities of the Secretariat of SACU (FR)?  
 
Answer 20 
Yes the necessary administrati ve structure will be put in place to support the Tariff 
Board once it is operational . 
 -21- Do the SACU members States have any intent ion to change the methodology currently used 
to determine anti-dumping tariffs with the view to take more into account the situation of 
competitiveness of domestic industries?  WT/TPR/M/324/Add.1 
 
- 19 - 
 
  Answer 21 
ITAC conducts anti-dumping investigations in terms of South African domestic law, 
which is consistent with the WTO Anti-Dum ping Agreement. ITAC does not intend 
changing this methodology. 
 
- 22- How far has this process of establishing national bodies to deal with antidumping and countervailing investigations proceeded? Are Botswana, Lesotho, Namibia and Swaziland planning 
to initiate trade remedies themselves?  
 Answer 22 
Currently, work on the establishment of the SACU Tariff Board is ongoing. There is no 
timeline as to when this process will be conc luded. In the absence of the SACU Tariff 
Board, the SACU Council has mandated South Africa's International Trade 
Administration Commission (ITAC), to take re sponsibility for the administration of the 
customs tariff and trade remedi es, as an Interim Measure. 
 Botswana, Lesotho, Namibia, and Swaziland  (BLNS) are at different stages of 
establishing the national bodies and the process is ongoing. 
 Botswana - Legislation establishing the Nation al Body is completed. The setting up of 
the institution is at its initial stage. 
 Lesotho- Draft bill is completed and under going internal appr oval processes.  
 Namibia- Legislation has been developed and awaits submission to Cabinet and 
thereafter Parliament. 
 Swaziland - Legislation has been developed and awaits submission to Cabinet then 
Parliament.  
  
WT/TPR/S 284 Annex I Botswana 
 
Pages 62-67, Botswana investment regime  
EU Question N°23 
Could more details be provided on how Botswana does ensure synergy between the Economic 
Diversification Drive Strategy and the Citizen Economic Empowerment Policy and how these 
strategies are compatible with Botswana's WTO obligations regarding Local Content Requirements?  
 Answer 23 
The Economic Diversification Drive Strategy aims to achieve industrial development, 
economic diversification and employment crea tion, which are in sync with the Citizen 
Economic Empowerment Policy objectives. Th ese measures are not obligatory to doing 
trade nor serve to discriminate against foreign business enterprises in Botswana.  
 
Page 73-76 Section 3.1.5 on import pr ohibitions, restrictions and licensing 
 
EU Question N°24 
Could Botswana clarify and provide details rega rding the circumstances under which the country 
applied the import restrictions to promote local production, as mentioned in paragraph 3.32 of the 
report? 
 Answer 24 
Imports of certain products (grains and their products, horticultural products) are 
regulated when there is sufficient domestic supply.  
  
Pages 90-92 Section 3.3.4 Procurement policy  
 EU Question N° 25 
Does Botswana have any plans to offer e-procurement services to facilitate access to tenders especially to foreign investors?   WT/TPR/M/324/Add.1 
 
- 20 - 
 
  Answer 25 
Botswana recognizes the import ance of e-procurement services in facilitating access to 
tenders. Botswana is in the process of au tomating its procurement services through e-
Gov. This will benefit both do mestic and foreign investors. 
Botswana is currently piloting module 2 of the Integrated Procurement Management 
System (IPMS). The Module comprise of the following activities: Capacity Building, ITT 
vetting, E- Bidding and dispute resolution. Th e IPMS will ensure that foreign investors 
can have access to information biddi ng opportunities in Botswana.  
 Page 74 Table 3.2 Import rest rictions and fishery policy . The import restrictions described in 
Table 3.2 of the Secretariat's report mention import permits for security reasons for boats 
(stipulated by the Fish Protection Act). 
 EU Question N°26 
Would it be possible to get acquaintance of this legal instrument, of the types of boats and of the 
reasons underpinning the need for the permit?   
Answer 26 
The Fish Protection Act is available and the permit is issued to control fishing in the 
country with a view to guard against extinction of the fish.  
 
Page 81 section 3.2.2 on Export taxes .  
 EU Questions N°27 and 28 
-Could Botswana clarify to what extent export taxes, charges and levies are used in practise?   Answers 27 and 28 
Export taxes, charges and levies are used to  encourage beneficiatio n of locally produced 
raw materials. i.e. Cattle ex port levy is applied on all cattle exported from Botswana 
irrespective of destination. Th e levy is collected into Cattle Export Levy Fund as specified 
under Section 25 (1) the Control of Livestoc k Industry Act. The levy is used for 
development of livestock industry.  
 -Could Botswana clarify whether the " levy of P30 per head of cattle " is collected on cattle 
slaughtered for export towards preferential markets such as the EU? 
Cattle slaughter levy is collected on all cattle  slaughtered at BMC for either local market 
or export. It is applicable at al l local abattoirs and butcheries.  
 
Pages 109-112 Section 4.4.2  Energy policy   
 EU Question N°29 
Could Botswana provide information on its plans to finalise its Renewable Energy Strategy?   Answer 29 
The Government of Botswana in collaborati on with the World Bank is developing a 
Renewable Energy Strategy for Botswana wh ich is aimed at unlocking the country's 
renewable energy potential and providing a firm basis for the scaling-up of the 
deployment of renewable energy technologies in the country.  
 Page 124 para 4.113 and 4.117 . "Tourism operators must be licensed by the Tourism Industry 
Licensing Committee, a six-member committee appointed by MEWT from the public and private 
sectors. Under the Tourism Act of 2009, there are ten tourism-related activities subject to licensing 
(six more than under the repealed act)".   
 
EU Questions N°30 to 32 
-30- Can Botswana explain further its licencing system? 
 
Answer 30  
Requirements for the licensing of tourists en terprises include: Business plan, Title deed 
or lease, Environmental management Plan , approved Building Plans, Road worthy 
vehicles, occupation permit and the build ing inspection, identity documents and 
registered business trading name. WT/TPR/M/324/Add.1 
 
- 21 - 
 
  -31- What are the conditions of treatment of foreign services providers compared to national ones?  
 Answer 31 
Foreign and local service providers are tr eated equally without any discrimination. 
 
-32-Are there specific requirements for foreign operators?  
Answer 32 
The specific requirements for all operators (i ncluding foreign and locals) are spelt out on 
Page 123 para 4.112  
 
WT/TPR /S 284 Annex II Lesotho  
 
Section 3.1.6 on import prohibitions, restrictions and licensing  
Page 164 para 3.34  
EU Questions N°33-34 
- Could Lesotho clarify and provide details on the import procedures applicable to the case of 
agricultural products for which the Secretariat report indicates that permits are granted depending on the supply of locally produced goods?  
 
Answers 33 - 34 
 The import permits are issued by the Depa r t m e n t  o f  M a r k e t i n g .  P r o d u c t s  s u c h  a s  
milk, sugar, bread, meat, fresh fruit, fres h vegetables, pulses, be ans, peas, red meat, 
poultry and eggs require valid import pe rmits. Permits for these products are 
granted depending on the local supply. If there is enough supply locally, permits will 
not be granted until the time when there is need to import such goods. Permits may 
be valid for one shipment (milk, dairy pr oducts and livestock) and one month for 
sugar, fresh fruit and vegetables. In mo st cases importers must hold a trading 
license to apply for an import permit. 
Validity of Permits 
 For agricultural commodities (sugar, brea d, meat, fresh fruits, fresh vegetables, 
pulses, beans, peas, red meat, poultry an d eggs), import permits are valid for a 
period of one month with an exception of dairy / milk whereby single entry 
consignment applies. For othe r commodities, it depends on an individual importer to 
spread his / her shipment within the specif ic validity of an import permit issued. 
Details on import procedures and requirements  
In consultation with production departments of the Ministry of Agriculture (Crops and 
livestock) as well as with individual farmer s and farmers associations, the Department 
of Marketing (DoM) obtains information rega rding supply of various commodities. DoM 
assesses the balance between supply and demand  and quality for a specific time period, 
usually a month, prior to issuance of import  permits based on the available information 
provided during consultation process. Th is assessment enables the Department to 
determine and decide as to which specific commodities could be allowed for importation 
based on quantities and quality. The information is then widely publicised to all stakeholders, especially trading and farming communities.  
 All importers are obliged to apply for impo rt permits upon expiry of their valid 
permits.  However, this is not the case with decentralized im port permits whereby 
traders in the districts are always in consultation with Marketing Officers through producer-trader meetings held frequently, usually on a monthly basis. For general 
requirements relating to specific commo dities, reference can be made to the 
attached overview of agricultural ma rketing import control regulations. 
 As far as import licensing procedures ar e concerned, no updates and modifications 
are envisaged therefore the status quo w ill be maintained. (Additional information 
on Appendix A)  
 
- Considering that the most recent annual notification of its import licensing procedures was 
submitted only in 2010, does Lesotho envisa ge to submit an updated notification? 
 WT/TPR/M/324/Add.1 
 
- 22 - 
 
  Answer 
Lesotho will submit her notifications on im port licensing once updates have been 
verified with relevant institutions.  
Page 191 para 4.86 on postal and courrier services.  
 EU Question N°35 
For which services has the Lesotho Post Office been granted exclusive rights? Can foreign operators provide postal and courier services in Lesotho and under which conditions? (B1)  Answer 35 
Lesotho Postal Office has exclusive rights fo r all postal services (e.g. sale of stamps, 
financial services, postal orders etc) except  for courier services. This is pursuant to 
Lesotho Postal Services A Ct of 1979. Fore ign operators are allowed to provide courier 
services, there are no conditions, however,  they have to comply with rules and 
regulations governing trade in Lesotho e. g. Licensing, tax obligations, company 
registration etc.  
 
 
WT/TPR/S 284 Annex III Namibia 
 
Pages 217-219 Section 2.3 on the invest ment regime, Paras 2.18 and 2.26  
 Namibia is currently reviewing its Foreign Investment Act.  
 
EU Question N°36 
It has been reported to the EU that a new investment bill has been approved by the Cabinet. Can 
the authorities explain how will the revisions impact the currently existing Bilateral Investment 
Treaties mentioned in paragraph 2.26? Could the bill be shared or, if it is only a draft, could the 
intentions of the government be shared?  
Answer 36 
The new investment promotion bill has been presented to Cabinet and is still under 
discussion and therefore canno t be shared. Under the new b ill, existing investments are 
obliged to register with the investment  promotion agency, which is the Namibia 
Investment Centre. The draft bill makes provision for the establishment of the 
Integrated Client Service Centre or a On e-Stop-Shop, which will smoothen procedures 
regarding entry requirements for investors. The Government's position that once the 
new law is in place the existing bilateral in vestment treaties including those in force, 
should be phased out. The new investment  promotion bill will include many of the 
attributes needed to attract FDI flows, as we ll as provide more tran sparency in relation 
to decision-making by Government and rights and obligations for investors . 
 Page 222 para 3.22 on the protection of Infant industry  
 
EU Question N°37 If infant industry measures can be applied for a maximum of eight years, on which grounds was 
the infant industry levy on pasta in place for 12 years (from 2002-2014)? 
 Answer 37 
The SACU Agreement provides for the SACU Council to extend IIP measures beyond 8 
years, and as such, the IIP for pasta was in place for 12 years. 
 Page 222 para 3.25  on general duties and charges   
 
EU Question N°38  On what grounds does Namibia impose general levies on products such as agricultural products 
when it has bound other duties and charges  (ODCs) at zero? 
 Answer 38 
General levies are introduced to stimulate do mestic production in the agriculture sector 
in Namibia. These products have been declared  critical for poverty eradication, national WT/TPR/M/324/Add.1 
 
- 23 - 
 
  food security and sustainable development as  well to reduce dependence on imports and 
balance of payment deficit . 
 Page 223 para 3.31  on horticulture infant industry prot ection and related import permits 
policy. According to the report, permits are needed for the importation of controlled 
agronomic crops - white maize, wheat, pearl millet, and horticultural products-. Permits for white maize and pearl millet are only granted during th e open border period once domestic production 
has been marketed to millers. Furthermore, the Namibian Market Share Promotion (MSP) 
Programme run by the Namibia Agronomic Board re quires all importers of horticultural fresh 
produce to buy a certain minimum percentage of fresh produce cultivated in Namibia before a permit is granted for imports.  
 
EU Questions N°39 to 41 
-39- Could Namibia clarify how the system in place can guarantee the non-discrimination between 
local products and importations? 
 Answer 39 
Namibia has limited arable land and thus capacity to produce as such imports will 
always enjoy market access. Importers are guar anteed an import permit once they have 
purchased a certain percentage from locally pr oduced crops at any time during the year, 
thus imports are allowed in unlimited quanti ties to supplement domestic production. 
This measure is intended to encourage the de velopment of the horticulture industry in 
the country, encourage food secu rity and self-sufficiency.  
- 40-In particular, with reference to the white maize and pearl millet, could Namibia explain the 
rationale for allowing imported goods only once domestic production has been marketed to 
millers?  
Answer 40 
The rationale for the measure is to secure and promote the nascent national production 
base. White maize and pearl mille t have been declared as st rategic products for Namibia 
and are vital crops for food security and nut rition. The WTO Agreement recognises that 
countries may need to take protective me asures and policies to promote economic 
development.  
-41-Considering that the most recent annual import licensing notification submitted by Namibia 
dates back to 2010, does Namibia envisage to submit a new updated notification?  
Answer 41 
Namibia is developing the requisite capaci ty for notifications and will update its 
notifications once that has b een achieved. A National Semi nar on WTO Notifications was 
held in October 2015 to assist in this respect. 
 
Page 237 section 3.4.4 Government Procurement  
A new Public Procurement Bill has been tabled in Parliament on 25 September 2015. Para 3.99  
indicates that local content requirements have significantly increased (60% instead of 10%) Para 3.100 refers to a new law under elaboration. Para 3.102  reports the following "  A recent study by 
the Institute for Public Policy Research has identi fied a number of shortcomings of the legislative 
framework and institutional weaknesses of the publ ic procurement process. These include the lack 
of an oversight body to monitor the assets, incomes and spending habits of Tender Board members and Secretariat staff; exemptions from official procurement procedures for major public 
procurement projects; and a growing lack of public trust in Namibia's procurement agencies 
evidenced by numerous legal challenges to Tender Board decisions.25 "  
 
EU Question N°42 
What is the current state of play and intentions  of the government regarding the legislation on 
public procurement given the above shor tcomings identified by the IPPRN? 
 
Answer 42 
The envisaged public procurement bill is much  more appropriately structured than the 
dispensation which was instated by the Te nder Board Act of 1996 and will apply to all 
public entities. The levels of oversight have  been improved and increased substantially WT/TPR/M/324/Add.1 
 
- 24 - 
 
  and the checks in the procurement pipeline are in line with many aspects of 
international procurement best practice and general principles of good governance. The 
proposed Bill specifically articulates anti-co rruption considerations as having informed 
its design. In this regard, the Bill comes with  measures and standards that speak to the 
maintenance of ethical conduct by both pr ocuring entities and officials as well as 
bidders . 
 
Pages 247 - 251 Section 4.3 fishing and aquaculture, Para 4.52  
 Fisheries is an important asset for Namibia's economy. The strategic plan of 2009-14 is now terminated. Para 4.52. states that " Fishery legislation in Namibia is unchanged since the last TPR 
report. The MFMR is in the process of reviewing and updating policies, the Marine Resources Act 
and its regulations, as well as the Inland Fisheries Act and Regulation . " 
 
EU Question N°43 
What are the lessons drawn from the plan's implementation and what are the main objectives of 
the authorities as regards fisheries? 
 
Answer 43 
Namibia will provide responses to this question at a later stage.  
Namibia   
 Page 21 para 1.13 on fisheries states the following " The poor performance of this sector can be 
attributed to demersal fisheries processed on board that recorded a decline of 21.9% in 2014 
compared to a growth of 7.7% in output of the previous year."  
 
EU Question N°44 
What could be the reasons for the "decline in 2014 by 21.9% of demersal fisheries"?  
 Answer 44 
Namibia will provide responses to this question at a later stage Page 28 para 2.12 . "The current policy includes equal treatment of domestic and foreign 
investors but this will be changed in new act, (for example with regard to Government policy 
issues or, sector restrictions, as well as performance requirements for investors); openness of 
almost all the sectors to foreigners with few exceptions such as the extractive mining and fish sectors (to be changed in new act). The aim is that the new act will facilitate Foreign Direct 
Investment (FDI) into Namibia, in that it has more  clear guidelines for foreign investors (e.g. with 
regard to thresholds, obligations of investors, sector openness and what is defined as investment)".  
EU Questions N°45 and 46 
 
-What are the changes to be introduced regarding foreign investors in the fish sector, particularly 
in terms of restrictions, performance requirements, obligations, thresholds, etc ?  
 Will the new act itself contain the above mentioned "clear guidelines for foreign investors" in that 
sector?  
 Answers 45 and 46 
Namibia will provide responses to this question at a later stage. 
Page 254-56 section 4.5.2.1 Petroleum and Gas 
 The Finance Minister has questioned the viability of the Kudu Gas Power Plant. The potential for 
renewable energy is underutilized while only a few foreign companies have been granted licenses 
for PV power plants.   
EU Question N°47 
Clarification of the foreign investment regime in energy, particularly renewable energy, would be 
welcomed.  WT/TPR/M/324/Add.1 
 
- 25 - 
 
  Answer 47 
Namibia is conducting feasibility studies to  determine the most sustainable measures. 
Page 272 on tourism, Para 4.185 states that  "Tour guides must be registered with the NTB. 
Registrations are valid for two years or another period to be determined by the Board. A tourism 
levy equivalent to 2% of accommodation and breakfast (or 1% on a full-board basis) is payable to 
the Namibia Tourism Board. Tourist activity operators must pay an application fee of N$1,000 plus N$250 for each vehicle, vessel or aircraft used, up to a maximum of N$10,000 (foreign tour 
operators pay N$10,000 plus N$500 for each vehicle registered to operate in Namibia). 
Registration fees are N$50 for each vehicle, vessel or aircraft used, to a maximum of N$2,000 for domestic operators (for foreign tour operators N$2,000 plus N$100 for each vehicle registered for conveying clients in Namibia)." 
 
EU Question N°48 
Can Namibia inform whether the tourist activity operators'' allocation fee is paid by all operators or 
only by foreign services provider?  
 Answer 48 
Both foreign and local tour op erators pay allocation fees. 
  
Trade Policy Review Report by Secr etariat Annex IV South Africa  
 
Page 294-95 on notifications to the WTO   
 
It appears that notifications are sometimes late and do not enable proper consultations on SPS or 
TBT. The Secretariat report indicates that reforms are considered on SPS given the current level of 
complexity and overlap.  
 
EU Question N°49 
What are the intentions of the government regarding the reform of SPS legislation and the notification processes of SPS and TBT legislation to the WTO?  
 
Answer 
It is unclear to South Africa what clarificat ion is sought by the EU given the information 
contained in table 2.1; selected notificati ons, 2009 - 15 with regard to SPS and TBT. 
 Page 295 para 2.15  on Bilateral Investment Treaties. Whereas table 2.2 depicts a picture where 
only BITs with some EU Member States have been terminated, the EU would appreciate receiving 
confirmation that the MS will continue being treated as well if not better than when those BITs were in force.   
Answer 
EU members will be treated the same way as  they have been tr eated when the BITs 
were in force. EU investors and their invest ments are currently receiving protection in 
terms of the Constitution as well survival cl auses of the BITs. The Investment Bill also 
will provide an extra layer of protec tion once it comes into force. 
 
EU Questions N°50 and 51 
-What will be the treatment of foreign investors of the EU under the new Bill on Promotion and 
Protection of Investment for those MS that  will no longer be covered by BITs?  
 
Answers 50 and 51 
While South Africa is currently finalising it s Investment Bill the investments of Member 
States whose BITs have been terminated w ill continue to receive the same type of 
treatment as when the BITs were in force. South Africa is currently taking the 
Investment Bill through the parliamentary pr ocess. The Bill incorporates some of the 
substantive provisions found in BITs wh ich will serve to further strengthen the 
protection to foreign investors and thei r investments once the Bill becomes law. 
 -How does South Africa see the compatibility of th e draft Bill on Private security companies and its 
GATS commitments? 
 WT/TPR/M/324/Add.1 
 
- 26 - 
 
  Answer 
The Bill is still under consideration and South Africa's international commitments will be 
taken into account in this process.  
Page 298 para 3.4. on excise duties.  
The EU notes that the Ministry of finance publishe d in 2014 a report on excise duties on alcoholic 
beverages. 
 
EU Question N°52 
What are the intentions of the government regarding the follow up to this report?  
 
Answer 52 
The intention of the paper was to analyse So uth Africa's experience with the current 
excise duty structure since its implementati on in 2002 and the recent developments in 
excise policy formulation both locally and inte rnationally. This was done with a view of 
looking at the scope of using the excise duty  system to internalise the social external 
costs arising from alcohol abuse. Following consultations with different stakeholders, 
incremental changes are being made to the ex cise tax structure and rates in successive 
budgets.  Page 310 section 3.2.3 on export control. 
 
The EU notes that the report does not cover export controls of dual use items thought through Resolution 1540 and through its membership of export control regimes like the Nuclear Supplier's 
Group, South Africa implements export controls of dual use items.  
 EU Questions N°53 to 55 
- 53- Given the role of South Africa in implemen ting certain obligations of the SACU members that 
do not have the institutions or capacity, what is the role (if any) of South Africa regarding export control obligations of the SACU members in light of the UN Resolution 1540?   
Answer 53 
Export control is not covered within the mand ate given to South Africa by SACU Council 
of Ministers. 
 
- 54- Regarding scrap metal, can the government provide a state of play of the situation regarding export licensing measures as introduced in 2012/13 on scrap metal? 
 
Answer 54 
The policy directive on the exportation of ferrous and non-ferrous waste and scrap metal has only recently been implemented and an impact assessment will be conducted during 
the 2017 calendar year. We are at this stage unable to comment on the consequences, 
state of play or effectiven ess of the policy directive. 
 
- 55- What is the Government's assessment of the effectiveness of these measures of export 
control of scrap metal compared to their initial objectives?  
Answer 55 
See response provided above. 
 Export control measures seem to also apply on other metals listed in Schedule 1 of ITAC Notice 92 
of 10 February 2012 including: lead ores and concentrates; tungsten ores and concentrates; 
molybdenum ores and concentrates; tantalum ores and concentrates; refined copper and copper based alloys; lead bars, rods, profiles and wire (f or construction); lead plates, sheets, strip & foil 
used in the area of radiation shielding and construction; lead powders & flakes, lead tubes and 
pipes and related fittings, and Other articles of lead; tungsten and articles thereof; molybdenum 
and articles thereof and tantalum and articles thereof. 
 
- 56-Could the government explain the consequences of  the Policy Directive on the Exportation of 
Ferrous and Non-Ferrous waste and scrap metal in the trade flows of this commodity?   WT/TPR/M/324/Add.1 
 
- 27 - 
 
  Answer 56 
The policy directive on the exportation of ferrous and non-ferrous waste and scrap metal 
has only recently been implemented and an impact assessment will be conducted during 
the 2017 calendar year. We are at this stage unable to comment on the consequences, 
state of play or effectiven ess of the policy directive. 
- 57-Can the government provide a state of play  of the situation regarding these measures?  
 
Answer 57 
See response provided above. 
 - 58-Has an assessment been made of the effectiven ess of the measures compared to their initial 
objectives? 
 Answer 58 
See response provided above.  Page 310 section 3.1.4.4 Marking, labelling, and packaging  
 
The EU notes that the current labelling requirements in place in South Africa, which requires packaging to be designed especially for the South African market, has cost implications and acts as an effective barrier to entry.  
 
EU Questions N° 59 and 60 
- Does the Government have any intention to examine the possibility of recognising labels which 
offer an equivalent level of information?  
 Answer 59 and 60 
Not at this stage.  
 - Based on the current labelling, bottle volume and minimum strength by volume requirements in South Africa mean that whisky bottled for South Af rica is treated in a manner different from other 
like spirits. Instead of three messages, seven me ssages rotating during a year will be required. 
The labels may cover both box and bottle. Does  the Government of South Africa have any 
intention of examining its current requirements to ensure that imported whiskey is treated as a 
like-product as other domestic and imported spirits?  
 Answer 
The labelling requirements are the same for both domestically produced and imported 
whisky. The Liquor Products Act 60 of 1989 is under review.  
 Page 312 section 3.3.2.1 on competition policy, Para 3.81 reports that the "Competition 
Commission has the right to exempt firms from the application of the Competition act. Exemptions 
are granted by the Commission if an agreement or practice contributes to the following objectives: 
export promotion, assisting SMEs… 
 
EU Questions N°61 and 62 
-Regarding the above and exemptions on ground of export promotion, can the Government 
indicate if any exemption has been granted for such objective and if so give some details about the 
case? Are the exemptions made public together with the motivation for the exemption?  Answers 61 and 62  
 Firms may apply to the Commission to be gr anted exemption if such a firm aims to 
participate in prohibited practices as set out by Chapter 2 of the Act (Restrictive practices and Abuse of Dominance). Fi rms may be granted exemption by the 
Commission if the prohibited practices which they intend on engaging in, contributes 
to the following objectives: 
 The maintenance and promotion of exports; 
 The promotion of the ability of small firm s controlled or owned by historically 
disadvantaged persons to  become competitive; 
 The improvement of productive capacity whic h is necessary to stop the decline of an 
industry; and WT/TPR/M/324/Add.1 
 
- 28 - 
 
   The improvement of an economic indust ry designated by the Minister, after 
consulting the Minister responsible for the industry.  
 Furthermore, a firm may apply for and be  granted an exemption from prosecution 
that relates to intellectual property righ ts and the following acts for a specified 
period: o Performers' Protection Act no. 11 of 1967; 
o Plant Breeder's Rights Act no. 15 of 1976; 
o Patents Act no. 57 of 1978; 
o Copyright Act no. 98 of 1978; 
o Trade Marks Act no. 194 of 1993; and  
o Designs Act no. 195 of 1993. 
 The Commission has granted a number of exempt ions for purposes of export promotion 
in terms of section 10(3)(b)(i) of the Act.  S o m e  o f  t h e  e x e m p t i o n s  w e r e  g r a n t e d  f o r  
more than one objective e.g. promotion of  small business to be more competitive 
(section 10(3)(b)(ii); stop decline in a pa rticular industry (section 10(3)(b)(iii). The 
table below provides a summary of the ex emptions granted since 2009 where export 
promotion was considered as part of the exemption.  
Table 1: Exemptions granted by The Comp etition Commission in terms of section 
10(3)(b)(i) of the Act – Mainte nance and Promotion of Exports 
Date of Decision Parties involved Industry Reason for granting exemption 
2010/03/12 South African Airways / Star Alliance Airlines  Maintenance and promotion of 
exports 
2011/05/31 South African Airways / Star Alliance Airlines  Maintenance and promotion of 
exports 
Stop decline in an industry 
2011/07/05 South African Airways / Qantas Airlines  Maintenance and promotion of 
exports 
2014/06/11 South African Squid Exporters 
Association (SASEA) Fishing   Maintenance and promotion of 
exports 
 Promote small business to 
compete 
2014/07/15 African Marine Products (Pty) Ltd / 
Oceana Lobster (Ltd) / Overstone Agencies (Pty) Ltd / Premier Fishing SA (Pty) Ltd / Ruwekus Fishing (Pty) Ltd Fishing  Maintenance and promotion of 
exports 
 
2014/10/28 Etihad Airways PJSC / South African 
Airways Airlines  Maintenance and promotion of 
exports 
Stop decline in an industry 
Source: The Competition Commission of South Africa Annual Reports.  
The Competition Commission must give notice in  the Government Gazette of South Africa of:  
 Any application it has received for exemption;  
 Must allow interested parties to make written representations as to why the exemption 
should not be granted; 
 Must also give notice before exemptio ns are granted, refused or revoked. 
 Notices in the Government Gazette are publically available for interested parties to access, 
with the motivations for the exemptions included in the published notices. In addition, the 
Commission has over the years expanded on the detail of exemptions which it has granted 
in its Annual Reports and also publishes information on exemptions in its Quarterly Newsletter. Before granting an exemption, the Commission contacts market participants 
(industry players) and government agencies during the investigation phase. All interested 
parties are able to provide information that will assist the Commission in making its decision. 
 Page 313 para 3.88. The paragraph alludes to the situation of "complex monopoly conduct" 
but does not give sufficient information to really understand the situations of anticompetitive behaviour that are not covered by the current legislation. 
 WT/TPR/M/324/Add.1 
 
- 29 - 
 
  EU Question N°63 
Could the government explicit further the situatio ns (with examples) where the current legislation 
on competition does not address all competitive behaviours and what are the intentions of the government regarding the situation?  
 
Answer 63 
There are plans underway to make certain amendments to the Competition Act to 
provide better clarity on some provisions an d provide definitions to some of the terms 
which were not previously defined. The en visaged changes will only be communicated 
when the proposed legislative changes are made public for consultations.   
Page 314-315 section on SOEs  
 EU Questions N°64 and 65 
- Can the government explicit how the competition legislation applies to SOEs and the link with the notion of competitive neutrality?  
Answers 64 and 65 
The complex monopoly provisions can be co mpared to the current section 4(1)(a). 
However, whereas the aforementioned sect ion applies to any markets, the complex 
monopoly provision only applies to concen trated markets in terms of section 10A(1) 
where at least 75% of the goods or services in  that market are supplied to or by five or 
fewer firms. An initiating complaint in terms of section 49B is a jurisdictional 
requirement for an investigation of conduc t that may be a contravention of section 
4(1)(a) whereas sec 10A(3)(a) investigation may be conducted without an initiating 
complaint.  
Section 4(1) (a) requires an agreement
2 or concerted practice3 between firms. Section 
10A(1), on the other hand, requires firms to conduct their affairs in a conscious parallel 
manner or co-ordinated manner, without agreement between or among themselves. The concept of a conscious parallel manner seem s to has been introduced to avoid the 
requirement to prove direct or indirect cont act. It is described in section 10A (2) as 
occurring when two or more firms in a concen trated market, being aware of each other's 
action, conduct their business affairs in a co-operative manner without discussion or 
agreement. 
 The Commission may apply to the Tribunal for a declaratory order against the firms 
engaged in a complex monopoly conduct. Decl aratory order serves as a yellow card (no 
admin penalty for first contravention). Co ntravention of this order constitutes a 
prohibited practice. Question 
- Regarding subsidies to SOEs in order to contribute  to their fulfilling of their public mandate, what 
is the situation? For example has the government adopted any guidelines regarding the financing of SOEs and the management of subsidies so as to ensure that subsidies attributed to fulfil the 
public mandate are not excessive and do not create  an artificial competitive advantage to the SOE 
when active in markets where private operators are also active? Has the government considered implementing certain OECD guidelines as regards the transparency of the financial management of 
SOEs? 
 Answer 
 The South African government has initiated a process to quantify the costs of the 
developmental (non-commercial) mandates  being undertaken by SOCs with the 
intention of using this information to clar ify the funding of such mandates in the 
shareholder compacts (performance agre ements) of the SOCs. Funding could be 
through explicit transfers of fiscal fund ing, cross-subsidisation between customer 
groups, or through government as shareh older accepting lower financial returns 
on its equity investments.  
                                               
2 Includes a contract, arrangement or underst anding, whether or not legally enforceable. 
3 Means co-operative or co-ordinated conduct betw een firms, achieved through direct or indirect 
contact, that replaces their independent action, but which does not amount to an agreement. WT/TPR/M/324/Add.1 
 
- 30 - 
 
   Currently, government makes fiscal transf ers to entities. These subsidies do not 
cover the full costs of the developmental ac tivities undertaken by these entities.  
 In 2014, government adopted a policy that  any capitalisation of SOEs should be 
financed in a deficit neutral manner thro ugh the sale of non-strategic assets.  
Guarantees have been provided to a number of SOEs which allow them greater access to financing at a lower cost than would otherwis e have been the case. This has enabled the 
cost of key public infrastructure projects to  boost growth to be reduced, as well as an 
expansion in lending by development finance institutions. It has also allowed entities 
like South African Airways, So uth African Express and the So uth African Post Office, to 
finance their developmental activities. 
  In addition, the Competition Act does not cu rrently contain any provisions relating to 
state aid or state subsidies. Absent stat e aid provisions, the Commission has dealt 
with such cases on an ad hoc basis and app lied the provisions of the Act accordingly. 
In most instances, the competition authorit ies have taken the view that it does not 
have jurisdiction and the case is accordin gly dismissed. In AEC Electronics (Pty) Ltd 
v The Department of Minerals and Energy
4 the Tribunal held that: "it did not have the 
powers to instruct a state functionary exerci sing a public power to act in a particular 
manner, to desist from acting in a particul ar manner, or to remedy such actions". It 
concluded that state functionaries exercising  public power are not susceptible to its 
jurisdiction and that the wrongful exercise  of public power is a matter over which 
the Tribunal has no jurisdiction. 
 
Page 326 para 4.13 on land reform. The EU is aware that new projects seem to have a rate of 
failure that is quite high (about 70%). There seems to be no reform of the management of the lands that are for shared use though most of th e rural black population live in these areas.  
 
EU Question N°66 
Are there any considerations to review the land management and introduce a reform of land 
management? 
 Answer 66 
Land management policies are constantly und er review in an effort to improve the 
effectiveness of land management and to ensu re effective resource utilization within the 
broader policy framework of the land  reform policies of the country. 
 
Page 330 para 4.48 on fishing rights and para 4.52 on small scale fisheries policy 
adopted in 2012.   
EU Question N°67 
The fishing rights are given for a very long period of up to 20 years. What is the current situation 
in light of the paragraph 4.52 that refers to the need to address depletion of critical fishery stocks and the need to address imbalances of the past  and ensure that small scale trade fishers are 
accommodated?  
 Answer 67 
Fishing rights are allocated in terms of  a General Policy on the Allocation and 
Management of Fishing Rights of 2013, un der authorization of the Marine Living 
Resources Act, (Act No. 18 of 1998). The De partment of Agriculture, Forestry and 
Fisheries has published amendments on sector  specific changes to the allocation of 
fishing rights in June 2015 with time for comments till 17 August 2015. The Department 
is in the process of finalizing these amendments.  
Page 337 section 4.4 on services, para  4.171, 4.172 and 4.173 regarding tourism   
 EU Question N° 68 
Given that South Africa has full commitment for Mode 3 GATS for tourist guides, for tour operators, can South Africa explain why the fo llowing practices are to be seen as GATS 
compatible: 
 
                                               
4 AEC Electronics (Pty) Ltd v Department of Minerals  and Energy 48/CR/Jun09. WT/TPR/M/324/Add.1 
 
- 31 - 
 
  - foreign tourist guide registration and training? 
The requirements for registration and to comp ly with the minimum standard of training 
as a tourist guide applies on a non-discrimi natory basis to South Africans and foreign 
nationals who wish to provide tourist gu ide services. Registration and training 
requirements assist the local authorities in  determining the ability and competence of 
the potential tourist guide.  
- granting of work permits, as residence permits are not scheduled in the GATS offer?  
As in any other jurisdiction, a tourist guid e who is a foreign national must be in 
possession of valid authorisation to under take such activities in South Africa. 
 
- registration conditions for foreign-owned travel agents, which do not seem to be similar to 
domestic travel agents according to para 4.173? Foreign travel agents (like most other busi nesses) are obliged to register under the 
South Africa Companies Act and comply with  relevant regulations including those of 
IATA.  
 
Trade Policy Review Report by Secretariat Annex V Swaziland  
 
Page 383 para 3.33   
"NAMBOARD may set quantitative limits or impose levies on certain agricultural products taking 
into account the availability of local production".   
EU Question N°69 
Could Swaziland explain how the availability of lo cal production is considered when deciding on 
setting quantitative limits or imposing a levy?  
 
Answer 69 
Agricultural levies and quantitative limits are product specific and are only imposed 
during harvest seasons and discontinued ther eafter. Determination of the levies and 
limits are set through assessment of local pr ogrammed farmers' production compared to 
local consumption of a certain agricultural product. Should there be surplus produce 
NAMBOARD will impose the limits or levies for that particular product and for the 
harvest season. But in the event there is a shortfall on production as compared to 
consumption, there will be no  limits or levies imposed. 
 
Page 416 para 4.104 regarding courrier services 
 EU Question N°70 
Can foreign operators provide courier services in Lesotho. If so, which services and under which 
conditions?  
 Answer 
Lesotho Postal Office has exclusive rights fo r all postal services (e.g. sale of stamps, 
financial services: money orders , postal orders etc.) except for courier services. This is 
pursuant to Lesotho Postal Services Act of 1979. Foreign operators are allowed to 
provide courier services, there are no conditions, however, they have to comply with 
rules and regulations governing trade in Leso tho e.g Licensing, tax obligations, company 
registration etc.  
 
Report by SACU (WT/TPR/G/324) 
 
Botswana  
 
Page 8 para 3.14  Currently, procurement documents are not digitalised, which makes difficult for 
non-resident investors the access 
 EU Question N°71 
What are the Government of Botswana's plans to offer e-procurement services to facilitate access 
to tenders especially to foreign investors? Comment;  WT/TPR/M/324/Add.1 
 
- 32 - 
 
  Answer 71 
Botswana is currently piloting module 2 of the Integrated Procurement Management 
System (IPMS). The Module comprise of the following activities: Capacity Building, ITT 
vetting, E- Bidding and dispute resolution. Th e IPMS will ensure that foreign investors 
can have access to information biddi ng opportunities in Botswana.  
 Page 11 section 5  With regard to Trade-Related Technical assistance, the areas highlighted in 
section 5.1 do not appear to include Trade Facilitation.  
 EU Question N°72 
Could Botswana provide more detail on how the WTO Trade facilitation Agreement is being taken 
forward, particularly with regard to the identifica tion and future implementation of its Category B 
and C commitments?   
Answer 72 
Botswana has categorised the measures into A, B, and C depending on the status of 
implementation of measures. Currently Botswana  is in the process of developing project 
proposals with the assistance of UNCTAD for Category C which requires technical 
assistance for implementation.   
South Africa  
 
Page 38 para 3.4 : " 3.4.  
Accordingly we have sought to strengthen our procurement system to support increasing local 
industrial production. In this regard, sectors already designated include:(i) Rail rolling stock (locomotives, wagons and carriages);(ii) Power pylons; (iii) Bus bodies;(iv) Textile, Clothing, 
Leather and Footwear;(v) Canned vegetables; (vi) Furniture;(vii) Certain Pharmaceuticals; and 
(viii) Set top boxes  EU Questions N°73 and 74 
Does the Government intend to add more products to the list? What is the basis for its decisions on sector designations?  Have there been evaluations of the impact of these measures compared to their initial objectives? 
Has the 75% target been met? 
 Answer 73 and 74  
Whether products should be placed on the lis t, is considered on a case-by-case basis. 
Government uses national industrial partic ipation, competitive supplier programme as 
distinct procurement levers to reach expend iture aimed at developing new industrial 
and technological capabilities. WT/TPR/M/324/Add.1 
 
- 33 - 
 
  NEW ZEALAND 
 SOUTH AFRICA: INTERNATIONAL ARRANGEMENTS AND TRADE NEGOTIATIONS 5.4 Trade Facilitation Agreement 
WT/TPR/G/324, section 5.4, page 41, para 5.13 
Section 5.4, paragraph 5.13 states that "Potential benefits notwithstanding, consideration must also be given to the impact of the TFA on regional integration processes in Africa. … African 
countries will need to schedule their TF commitments in a manner that ensures coherence with 
regional and continental integration objectives."  Question 
Can South African please explain how the Trade Facilitation Agreement's commitments conflict with "regional and continental integration objectives"?   
Answer  
The Trade Facilitation Agreement will be impl emented in such a way that it enhances 
regional and continental integration objectives. 
 
 
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/324) 
 
3 TRADE POLICIES AND PRACTICES BY MEASURES 
3.4  Tariffs and Other Charge WT/TPR/S/324, section 3.4, page 22, para 3.21 
Section 3.4, paragraph 3.21 states: "The highest ad valorem rate (96%) applies to 14 tariff lines 
including mainly dairy products; and the highest ad valorem  equivalent (624%) applies to worn 
clothing and worn textile articles (Table A3.1)." 
 
Questions 
a) What measures have SACU Governments taken to ensure that where a specific or mixed tariff is used the bound tariff rate is not exceeded?  
 
Answer 
In consideration of applications for increase  in the duty where the bound rate is an 
ad valorem duty whilst the applied rate is a formula or specific duty, the Commission 
calculates the ad valorem equivalent of the pr oposed applied duty to ensure that it does 
not exceed the ad valorem bound rate. 
 
b) What consideration have SACU Governments given to shifting to ad valorem tariffs?  Answer  
SACU Governments are not engaged in any proc ess of changing the tariff structure. 97% 
of the applicable tariffs in SACU are ad valorem duties. WT/TPR/M/324/Add.1 
 
- 34 - 
 
  NORWAY 
 Trade facilitation:  
Question 
Norway is a strong supporter of the Agreement on Trade Facilitation, and would like to see it enter 
into force as soon as possible. How far has the process of ratification and implementation of the 
Agreement on Trade Facilitation come in the SACU-countries?  
 Answer 
Member States are at different stages on  implementation of the WTO TFA. Member 
States are undertaking parallel processes to prepare, respectively, schedules of 
commitments for Categories A, B, and C and ratification of the Agreement. Thus far 
Botswana notified Category A and ratified th e WTO TFA. Other Member States are in the 
process of ratification including notification  of Category A commitments. Member States 
agreed that measures that fall under Categories B & C will be agreed and implemented as a region. To this end, the WTO is support ing the Member States to arrive at a common 
understanding of the measures that can be implemented collectively as a region .  
 Distribution of funds among SACU members Question 
As has been stated in the report, intra-country socio-economic inequalities within SACU are among the highest in the world, and the SACU agr eement does not provide for harmonization of 
macroeconomic policies. As the largest economy, South Africa is the main investor in the other 
SACU countries and also dominates regional trade, with over 95% of commercial flows within the 
customs union involving it as destination or source. We would be interested in knowing more about the formula that determines how the custom s and excise revenues gathered in SACU are 
distributed among its members, and how the review of the revenue-sharing arrangement is 
progressing (ref para 2.20 of the secretariat's report).   Answer 
Given the structure of the revenue sharin g formula, the BLNS Member States get 
significant share of their revenue from the Customs Component whilst South Africa gets 
more than 90% of its share from the Excise Component. The Development Component is 
meant to compensate the le ast developed economies. 
With regard to the review of the revenue sharing arrangement, Member States submitted their respective proposals which we re considered by the Task Team on the 
Review of the Revenue Sharing Arrangemen t with the Technical Committee providing 
technical backstop. The proposals were conden sed into the different proposals based on 
the agreed framework and principles guiding the review. Currently we have three working proposals which are still under further technical review. WT/TPR/M/324/Add.1 
 
- 35 - 
 
  UNITED STATES 
 WT/TPR/S/324 page 30, paragraph 3.43:   
Paragraph 3.43 refers to the "International Trade Administration Commission Safeguard 
Regulations of 8 July 2005." Could the Government s of the Southern African Customs Union please 
clarify how these regulations differ, if at all, fr om the "Safeguard Regulations prescribed by the 
Minister of Trade and Industry on 27 August 2004"  which were notified to the WTO September 22, 
2004?  If the regulations are different, could the Governments of the Southern African Customs Union please If the regulations are different, could the Governments of the SACU please clarify when it will notify these new regulations to the WTO?  
 
Answer 
ITAC Safeguard Regulations were first published in Government Gazette No. 26715 on 
27 August 2004 and notified to the WTO on September 2004. On 8 July 2005 the 
Amended Safeguard Regulations were publishe d in Government Gazette Notice R662 of 
2005 in Government Gazette No.27762. The purpose of the amendment was to include a 
provision on the Special Safeguard on Agricult ural products in terms of the Article 5 of 
the WTO Agreement on Agriculture. ITAC is in  the process of reviewing the regulations. 
Once the new regulations are finalized, it will be notified.  
 
QUESTIONS FOR BOTSWANA 
 
Part I: Questions on the Secretariat report 
 
WT/TPR/S/324 
2.3 Trade Agreements and Arrangements 
 Page 15, paragraph 2.35: The Report notes th at the NEPAD promotes regional economic 
integration priorities, including climate change and natural resource management. Does the 
Governments of Botswana participate in any natu ral resource management projects that include 
wildlife conservation and combatting poaching?   
Answer 
Botswana has and participates in the fo llowing initiatives/programmes on natural 
resource management projects:  
•The Northern Botswana Human Wildlife Co-existence Project 
•The Netherlands Forensic Capacity Project  •The Rhodis project for Rhino conservation •Botswana spearheading the Southern Afri can Wildlife Enforcement Network (WENSA) 
•African Elephant Action Plan (AEAP) impl ementation through the African Elephant. 
  
Do the Governments of SACU, specifically Botswana, engage in any joint wildlife conservation 
programs through NEPAD? If so, please describe.  
Answer 
Our projects are sponsored by other entities other than NEPAD. 
 Do any resource management projects in Botswana include ecosystem protections? 
 
Answer 
There are efforts for ecosystem protection in itiatives, some of which will be realized 
through the National Biodiversity Strategic Action Plan (NBSAP) 
 Page 20 paragraph 3.8: The Secretariats report notes that the SACU trade partnership strategy 
was also developed to, inter alia , strengthen the consultation process between customs and 
business, and develop an Authorized Economic Operator (AEO) program aligned with the WCO 
Framework of Standards to Secure and Facilitate Global Trade (SAFE), and is aimed at rewarding 
compliance; securing and facilitating legitimate trade; and promoting mutual recognition among 
member States and third parties. Does this partnership include cooperation, such as information WT/TPR/M/324/Add.1 
 
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  sharing, to stop illegal trade in flora and fauna? Can the Government of Botswana provide details 
on any such projects?   Answer  
Yes there is partnership which include coop eration between Customs and Business, on 
among others flora and fauna.  
 
WT/TPR/S/324, Annex 2  2 Trade and Investment Regime 2.2 Trade Policy Formulation and Objectives 
 
Page 63 paragraph 2.9: The Secretariat report notes that the Government of Botswana views 
trade policy as a means to achieve its overall economic policy objectives of sustainable growth, 
economic and export diversification, and social inclusion. Does this policy include efforts to 
promote sustainable resource use? If so, please detail.  
Answer 
Botswana's National Trade Policy promotes su stainable use of resources as stipulated 
under its objectives, for instance the policy emphasizes mainstreaming of environmental 
issues into trade policy. 
 
 2.4 Investment Regime 
 
Page 66 paragraph 2.26: The report details how land in Botswana is divided into three categories 
(freehold, state and tribal), and how land, no matter its category, can be put to any use. Are 
Botswana's natural parks categorized as state land, and still subject to commercial, industrial or 
agricultural use?  Answer 
National parks are state land and are no t subjected to commercial use except for 
tourism  
Is ecotourism considered commercial use in Botswana? 
 Answer 
Ecotourism is commercialized and many area s have converted from consumptive natural 
resource (wildlife) management to eco - to urism entities. Botswana's tourism policy 
emphasizes "high value-low volume" which is in line with conservation of pristine and 
fragile ecosystems. 
 
Does the Government of Botswana exclude land from use for conservation purposes or to safeguard sensitive ecosystems? 
 
Answer 
Y e s .  T h e  G o v e r n m e n t  o f  B o t s w a n a  h a s  a  p o licy for reserving land for conservation 
purposes and safeguarding sensitive ecosystems 
  p. 67, paragraph 2.28: The Report highlights that Botswana offers fiscal incentives to attract FDI, 
such as through IFSC certification. Of all the IFSC-certified firms, how many (by share and by 
number) are foreign-owned? Are financial service suppliers? Are foreign-owned financial service suppliers? 
 
Answer  
There are currently 51 IFSC certified compan ies in Botswana. Over 95 percent of these 
companies are foreign owned. Some of the comapanies are publicly listed on the 
Botswana Stock Exchange and JSE. The majori ty of the companies certified within the 
IFSC framework are financ ial services suppliers. WT/TPR/M/324/Add.1 
 
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  3 Trade Policies and Practices by Measure 
3.1 Measures Directly Affecting Imports 3.1.5 Import prohibitions, restrictions, and licensing  
Page 74 paragraph 3.31: The Secretariat report notes that the Government of Botswana applies 
import prohibitions to goods such as narcotic drugs, obscene material, and environmentally 
hazardous products, such as toxic or radioactive waste, mainly to protect health, safety and 
morality. The report notes that imports of semi-precious stones and certain plants are also 
prohibited. Is the export of wildlife trophies, and ar ticles made out of wildli fe trophies permitted?  
 Answer 
All export of wildlife trophies  and articles or wildlife based products are subject to 
export levies, permits and licenses.   
Question 
Does the government of Botswana regulate trade in wildlife? Please detail under what authorities, 
and any penalties that exist for engaging in illegal wildlife trade. 
 
Answer 
Departments of Forestry and Range Reso urces & Wildlife and National Parks is 
responsible for wildlife protection and its management. A CITES Management Authority 
in DWNP is responsible for endangered spec ies trade. The export of wildlife specimen 
are regulated under the Wildlife Conservation and National Parks Act of 1992. Penalties 
depend on species in question; Part X; Export, Import of Animals, Trophies and 
manufacture of articles of trophies 
 Question 
Does the Government of Botswana inspect exports and imports from within SACU to stop any illegal trade in wildlife? Please detail and describe any successful enforcement efforts.  Answer 
During joint border patrols and check poin t illegal wildlife articles are intercepted. 
Operations in Kgalagadi reveal ed that illegal trade in big ca ts was becoming rife. Cross 
border Syndicates of illegal cats traders were identified  and a case where 2 cheetahs 
were confiscation is te stament to the problem. 
 All exports originating in Botswana are insp ected and packed and sealed for export in 
the presence of representatives from Cu stoms, Wildlife and Veterinary. From the 
Customs perspective, all goods coming into or going out of Botswana are eligible for 
inspection, regardless of their origin.  
Question 
Separately, it is also our understanding that the Government of Botswana was considering an 
import ban on packaged salt. Please confirm the status and provide an update.  
 
Answer 
The Government of Botswana has put in place Regulations to restrict importation of pre-
packed salt in quantities of 500g and 1kg. The measure is not an import ban as 
packaged salt can only be imported in the country in 100kg or more. The objective of the measure is to encourage packaging of salt  locally for creation of employment. The 
Regulations effected on the 1
st June 2015. 
3.1.6 Anti-dumping, countervailin g, and safeguard measures 
 Page 76, paragraph 3.38:  
The Secretariat's Report states that, in 2013, Botswana enacted the Botswana Trade Commission Act, 2013, which established the Botswana Trade Commission (BTC). In carrying out its responsibilities for trade remedies, please clarify how the BTC will decide whether it or ITAC will 
conduct the applicable investigation. Also, Botswana's last notification to the WTO Committee on 
Anti-Dumping Practices indicated that Botswana had no legislation relating to anti-dumping. Therefore, in carrying out its responsibilities for trade remedies, please identify what legislation will the BTC be abiding by and when such  legislation will be notified to the appropriate 
WTO committees. WT/TPR/M/324/Add.1 
 
- 38 - 
 
   
Answer 
Once BOTC is operational and the relevant au thority is in place the legislation will be 
notified to the WTO. For BOTC to carry out in vestigations it will apply the BOTC Act.  
 
 3.3 Measures Affecting Production and Trade 
3.3.1 Incentives 
 Page 84 paragraph 3.85: The Secretariat report details how in in 2005, the Business and Economic 
Advisory Council (BEAC) recommended the develo pment of Special Economic Zones (SEZs) with 
the objective of diversifying Botswana's economy and export base. However, the laws and 
regulations governing the development and operat ion of the SEZs have not been enacted. Are 
these laws and regulations expected to include envi ronmental regulations? Will national labor laws 
apply in the SEZs? If not, how would a separate labor regime for the SEZs ensure the same labor 
rights for workers inside the zone as those outside?  
Answer 
It is important to note that the Specia l Economic Zones Policy was approved by 
Parliament in September 2010. Further, a Sp ecial Economic Zones Bill was approved by 
Parliament in August 2015, and the process of setting up the Special Economic Zones 
Authority (SEZA) has resumed. The SEZA w ill be the one responsible for leading the 
development of Regulations governing the management and operation of the SEZs. 
Yes, SEZs enterprises will be  required to abide by all national and international 
environmental protection laws and regu lations meant to address Botswana's 
environmental concerns.  National labour laws and ILO Core Labour Standards will form the basis on which SEZs 
labour laws will be developed. These SEZ la bour laws will strive to strike a balance 
between ensuring investor friendly enviro nment and conducive work environment and 
conditions that promote human rights  and humane treatment of workers. 
 
 
3.3.3 State trading, state-owned enterprises and privatization  
Page 87, paragraph 3.99 and 3.100: The Secretariat's Report states that Botswana's two major 
export products (beef and diamonds) are traded by state-owned or invested companies. Yet, 
Botswana has stated to the WTO Working Party on State Trading Enterprises that it has no state 
trading enterprises. Given the working definition of  "state trading enterprise" in the Understanding 
on the Interpretation of Article XVII of the Gene ral Agreement on Tariffs and Trade 1994, please 
clarify how the applicable state owned or invested companies did not qualify as state trading enterprises to be notified to the WTO's Working Party. 
 
Answer 
Botswana Meat Commission (BMC), Botswana  Agricultural Marketing Board (BAMB) and 
Botswana Oil Limited are state trading enterprises and will be notified accordingly to the 
WTO.   
3.3.5 Intellectual property rights 
 Page 98, paragraph 3.147: Does Customs have the authority to act ex officio  at the borders in 
cases of trademark counterfeiting? Page 95, section 3.129, states that such authority exists for 
copyrights, but does not mention trademarks. 
 Answer 
The same applies for trademarks. That is, Cu stoms can also act in cases of trademark 
counterfeiting . 
 WT/TPR/M/324/Add.1 
 
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  4 Trade Policies by Sector  
4.2 Mining and Energy 4.2.1 Mining  
Page 107 Paragraph 4.31: The report states that Botswana provides for a number of mineral 
concessions, and that the terms of any new appl ication, renewal, transfer or amendment of a 
mining license for diamonds must be negotiated  regarding technical, financial and commercial 
aspects of the proposed project including government participation. 
Are any environmental aspects of the proposed project taken into account during negotiation? If so, please detail.  
Answer 
The Mines and Minerals Act provides that mi nerals development projects should take 
heed of the need to uphold Environm ental Impact Assessment, Environmental 
Management Plan, Rehabilitation and Mine Cl osure as a part to be executed in any 
mining project.   
Questions 
Does the government require mining operators to conduct environmental impact assessments 
prior to initiating mining activities?  
Answer 
Yes. The Mines and Minerals Act provides th at minerals development projects should 
take heed of the need to uphold Environmental Impact Assessment, Environmental 
Management Plan, Rehabilitation and Mine Cl osure as a part to be executed in any 
mining project.  
Question 
Are there any environmental laws that mining operators must comply with? Please briefly explain. 
 Answer 
Yes, there are as stipulated in the following  text: The Mines and Minerals Act provides 
that minerals development projects shou ld take heed of the need to uphold 
Environmental Impact Assessment, Environm ental Management Plan, Rehabilitation and 
Mine Closure as a part to be executed in any mining project  
 Question 
Does the government monitor environmental impacts of both large-, and small-scale operations?  Answer 
Yes, the government monitors environmen tal impacts of all mining operations 
regardless of magnitude. 
  
4.3 Services 
4.3.4 Tourism  
Page 123 paragraph 4.108: The Secretariat report  notes that the Department of Tourism (DoT) 
and the Botswana Tourism Organization (Botswana Tourism), in the Ministry of Environment, 
Wildlife, and Tourism (MEWT), are responsible for tourism development, and that Botswana Tourism, is responsible for marketing and promoting tourism products, promoting investment 
opportunities in the sector, and grading and certifying accommodation facilities. The Ministry's 
responsibilities as outlined above are mostly cooperative and promotional. Does MEWT have regulatory authority, and is the MEWT responsible for implementing wildlife conservation 
legislation? 
 Answer 
Botswana has the Wildlife Conservation Polic y of 2013 and Wildlife Conservation Act of 
1992, which is currently under review.  WT/TPR/M/324/Add.1 
 
- 40 - 
 
  Question 
Has the Government of Botswana strengthen or put in place any new national legislation to make 
progress toward achieving CITES category 1, or legislation that meets the requirements for implementation of CITES to ensure that internatio nal trade in specimens of wild animals and plants 
does not threaten their survival? 
 Answer 
Under the CITES, Botswana is in the process of reviewing legislation to move it from 
Category 2 to Category 1.   Page 124 paragraph 4.116: The report mentions that the Botswana Tourism introduced an 
Ecotourism Certification System to encourage eco-friendly tourism products and services. Is this system part of larger sustainability program or pl an? Please describe what sustainability measures 
or standards must be met to achieve the certification.  
 
Answer 
The system is part of the Botswana national  ecotourism strategy. The system covers an 
array of standards that include environmental management, cultural resources 
protection, community development an d socio-economic responsibilities. 
  
QUESTIONS FOR LESOTHO  
 
Part I: Questions on the Secretariat report 
 WT/TPR/S/324  
page 6, paragraph 18: The Report states that Lesotho enacted many new laws to modernize its 
institutional and legal framework for financial services during the period under review. What are 
some of the major laws enacted that modernize financial services? What is the status of their implementation? 
 
Answers 
Below are the major laws that have been enacted to mordernise financial services: 
Money Transfer Regulations 2014 
Foreign Exchange Regulations of 2014 Credit Only and Deposit Taking Microfinance Regulations of 2014 
Stamp Duties Act (Amendment) no. 14 of 2014 
Capital Market Regulations of 2014 Treasury Regulations of 2014   Status: Currently being implemented: these laws/regulations have just been enacted 
(all in 2014) and no review has been made to measure impact 
  
WT/TPR/S/324, Annex 2 
 3.3.3 State trading, state-owned enterprises, and privatization 
 
Page 170, paragraph 3.70: The Secretariat's Report states that Lesotho has never submitted a 
notification on state trading enterprises to the WT O. Please provide an update as to when Lesotho 
will make its required notification. 
 
Answer 
Formal notification will be done as soon as possible. 
 
 Pages 172-173, Paragraph 3.82 and Table 3.5: Pa ragraph 3.82 indicates that not all copyright 
term-lengths are in-line with TRIPS. Table 3.5 shows that the terms for photographic works, 
performers rights and rights of phonogram produc ers and shorter than prescribed in TRIPS. When 
does Lesotho plan to adjust the term of copyrigh t protection for photographic works, performers, 
or phonograms to be in-line with the terms specified in the TRIPS agreement? 
 WT/TPR/M/324/Add.1 
 
- 41 - 
 
  Answer 
Lesotho is working towards the alignment of  the terms of copyright protection for 
photographic works, performers, or phonograms to be in line with the terms specified in the TRIPS Agreement. 
 
 Part II: Questions on the Government report 
 WT/TPR/G/324 5 Regional and Multilateral Trade Relations   
Page 16, Paragraph 5.2: The Government report notes that "Lesotho is committed to undertaking 
all national processes related to the ratification of the Trade Related Aspects of Intellectual 
Property Rights Agreement (TRIPS), and the WT O Trade Facilitation Agreement (TFA)." Could 
Lesotho provide an update on when it expects to formally submit its Category A notification and 
deposit its letter of acceptance of the WTO Trade Facilitation Agreement?  
Answer 
The process of ratification is at its final st ages and the Category A submission will be 
done before the MC10  
 
Part III: Other Questions:  
Does Lesotho have plans to join the WIPO Internet  Treaties (WCT and WPPT) or the new Beijing or 
Marrakesh treaties? 
 Answer 
Lesotho has plans to join the New Beijing an d Marrakesh Treaties as well as the WIPO 
Internet Treaties  
  
QUESTIONS FOR NAMIBIA  
 
Part I: Questions on the Secretariat report 
 WT/TPR/S/324 2.3 Trade Agreements and Arrangements 
 
African Union (AU) Page 15, paragraph 2.34: The Secretariat report notes the NEPAD is the African Union's program 
for economic and social development in Africa . This overview does not note environmental 
challenges or goals. Can the Government of Namibia detail any active cooperative environmental 
programs? If so, what do these environmental programs address? Page 15, paragraph 2.35: The Report notes th at the NEPAD promotes regional economic 
integration priorities, including climate change and natural resource management. Does the 
Government of Namibia participate in any natural resource management projects that include wildlife conservation and combatting poaching? Do  the Governments of SACU, specifically Namibia, 
engage in any joint wildlife conservation programs through NEPAD? If so, please describe. Do any 
resource management projects in Namibia include ecosystem protections?  Answer 
Namibia's environmental management system is one of the most successful community 
based natural resource programmes in the worl d. 44 percent of the total land surface is 
under conservation friendly land use and incl udes national parks, conservancies, private 
nature reserves, game farms and tourist concessions. Namibia has the largest national 
park in Africa, the only country with the en tire coast line (Namib Naukluft) in protected 
areas. Namibia has the largest population of  black Rhinoceros in the world, largest 
cheetah population, and significant popula tion of elephants and other species. 
  WT/TPR/M/324/Add.1 
 
- 42 - 
 
  2.3.7 Preferential trade agreement between SACU and MERCOSUR 
 Page 18 paragraph 2.53: The report notes that the agreement covers trade in non-agricultural 
products, including fish and other sea products, and processed agricultural products. Can the 
Government of Namibia elaborate on how the agreement "covers fish and other sea products." Are 
there any measures in place under this agreement to combat illegal, unreported and unregulated (IUU) fishing? 
 
Answer 
Namibia to provide an answer at a later stage.  
 
3.2 Customs Procedures and Valuation  
Page 20 paragraph 3.8: The Secretariats report notes that the SACU trade partnership strategy 
was also developed to, inter alia , strengthen the consultation process between customs and 
business, and develop an Authorized Economic Operator (AEO) program aligned with the WCO 
Framework of Standards to Secure and Facilitate Global Trade (SAFE), and is aimed at rewarding 
compliance; securing and facilitating legitimate trade; and promoting mutual recognition among member States and third parties. Does this partnership include cooperation, such as information sharing, to stop illegal trade in flora and fauna? Can the Government of Namibia provide details on 
any such projects?  
 Answer 
Namibia to provide an answer at a later stage.   
WT/TPR/S/324, Annex 3 
 Page 208 paragraph 1.7: The Secretariat report notes that in 2004, Namibia adopted Vision 2030 
which spells out the country's medium-term development programs and strategies to achieve its 
national objectives. Are sustainability targets an d environmental conservation among the goals to 
improve the quality of life of the people of Namibi a? If so, please elaborate on such goals and any 
recent steps Namibia has taken to achieve them.  
 
Answer  
Namibia to provide an answer at a later stage 
 
 3.4.3 State trading, state-owned enterprises, and privatization  
 
Page 233-34, paragraph 3.94 and Table 3.4: According to the Secretariat's Report, Namibia has 
stated to the WTO Working Party on State Trading Enterprises that it has no state trading 
enterprises. However, according to table 3.4 of the Secretariat's Report, the Diamond Board of 
Namibia has a monopoly on trade in diamonds as the result of specific legislation enacted in 
Namibia. Given the working definition of "state trading enterprise" in the Understanding on the Interpretation of Article XVII of the General Agr eement on Tariffs and Trade 1994, that references 
"[g]overnmental and non-governmental enterprises.  which have been granted exclusive or special 
rights or privileges. In the exercise of which th ey influence through their purchases or sales the 
level or direction of imports or exports," please clarify how the Diamond Board of Namibia does not qualify as a state trading enterprises to be notified to the WTO's Working Party. 
 
Answer  
Namibia to provide an answer at a later stage. 
 
 3.4.5 Intellectual property rights 
Page 238, Paragraph 3.106 and table 3.5:  
 
Does Namibia have plans to join the WIPO Internet Treaties (WCT and WPPT) or the new Beijing or Marrakesh treaties? 
 WT/TPR/M/324/Add.1 
 
- 43 - 
 
  Answer 
Namibia will provide responses to this question at a later stage. 
 Pages 238-239, Paragraphs 3.103 and 3.4.5.1: What is the relationship between the new Business 
and Intellectual Property Authority (BIPA) under the Ministry of Industrialization Trade and SMEs Development (MITSD) and the Audiovisual Media,  Copyright Services and Regional Offices 
Directorate of the Ministry of Information and Communication Technology? 
 
Answer  
Namibia will provide a response to this question at a later stage.  
 
Pages 237-240, Section 3.4.5: Section 3.4.5 does  not address the enforcement of intellectual 
property rights. Can the Government of Namibia please provide a brief overview of what 
mechanisms are available through the court sy stem to enforce patents, copyrights and 
trademarks? What authority does the customs agency have to enforce against piracy and counterfeiting at the borders? 
 
Answer  
Namibia will provide a response to this question at a later stage.  
 
Page 238, paragraph 3.107:  Are there provisions in the civil and/or criminal laws to enforce 
against copyright piracy? What penalties are provided for such violations? 
 
Answer  
Namibia will provide a response to this question at a later stage. 
 
 Page 239, paragraphs 3.113-3.115: Are there provis ions in the civil and/or criminal laws to 
enforce against trademark counterfeiting? What penalties are provided for such violations? 
 
Answer  
Namibia will provide a response to this question at a later stage. 
 
 Page 240, paragraph 3.115: The report indicates that only one trademark registered in 2014 due, 
in part, to an examination backlog. Could Namibia please provide an update on the status of this 
backlog?  Answer  
Namibia will provide a response to this question at a later stage.   
4 Trade Policies by Sector 
4.3 Fishing and Aquaculture Page 247 paragraph 4.41: The report notes that Namibia's marine resources are found in one of 
the most productive fishing grounds in the world, and that fisheries continue to provide an important contribution to Namibia's economy, though  its contribution to real GDP has fallen over 
the period reviewed mainly due to poor catches and higher fuel and labor costs. Please provide 
some context for the declining catches. Is this domestic over-exploitation or are there issues with 
illegal, unreported or unregulated fishing in Namibia's EEZ? 
 Answer  
Namibia will provide a response to this question at a later stage.   
Page 248 paragraph 4.45: The repo rt states that MFMR sets a total allowable catch (TAC) annually 
for all major or commercial fisheries with the objective of managing resources sustainably and 
preventing overexploitation of Namibian fish stoc ks. Please clarify and expand on the actions that 
the government is taking to ensure that the total allowable catch conforms to the allowable 
biological catch. WT/TPR/M/324/Add.1 
 
- 44 - 
 
  Answer  
Namibia will provide a response to this question at a later stage. 
 Page 249 paragraph 4.41: The report states that the Fishery legislation in Namibia is unchanged 
since the last TPR report, and that MFMR is in th e process of reviewing and updating policies, the 
Marine Resources Act and its regulations, as well as the Inland Fisheries Act and Regulation. When are the updates anticipated to be final? Will th ese updates include measures to recover or more 
sustainably utilize Namibia's marine fisheries? Does Namibia intend to ratify and implement the 
Port State Measures Agreement?  Answer  
Namibia will provide a response to this question at a later stage.   
Page 248 paragraph 4.44: The report notes that Namibia's Strategic Plan would be active from 
2009-14—has Namibia developed a new Strategic Plan for 2015 to 2020? If so, please outline. Will 
the objectives include sustainable management of marine fisheries? 
 
Answer  
Namibia will provide a response to this question at a later stage.  
 
Page 248 paragraph 4.45: The report notes that MFMR sets a total allowable catch (TAC) 
annually—and in a footnote, that fishery scientists in the Ministry make suggestions for the TAC to 
a working group composed of economists and scienti sts, but the advice that reaches the Minister 
must first clear the Marine Resources Advisory Council which includes various, presumably commercial, stakeholders. Are there measures in place to prevent commercial interests in the 
Advisory Council from making TAC recommendations that do not conform to the allowable 
biological catch? Please clarify and expand on the actions that the government is taking to ensure that the total allowable catch conforms to the allowable biological catch.  
Answer  
Namibia will provide a response to this question at a later stage. 
 
Page 251 paragraph 4.60: The report mentions a study on the nature and outcomes of policies, 
incentives and management procedures in the Namibian hake industry that concluded despite 
current over-capacity, the government continues to  reward new investments. Please provide more 
information on the policies, incentives and management procedures or assistance programs in the 
Namibian fishing industry. Is the Namibian govern ment taking steps to address the inefficiency 
and discipline harmful over-capacity? If so, please  explain. Of the 18 notifications that Namibia 
made to the WTO (noted in paragraph 2.15 on page 216), did Namibia make any notifications for 
assistance programs to marine capture fisheries? Please detail if so. 
 Answer  
Namibia will provide a response to this question at a later stage.   
4.4 Forestry 
Page 251 paragraph 4.62: The report provides a brief overview of Namibia's biodiversity, and 
notes forest area is declining. The report also notes that the government is aiming to promote 
utilization and commercialization of forest products. How is Namibia balancing these economic 
aims with sustainable forestry management practices? 
 Answer  
Namibia has a regulatory framework in line with the Forestry ACT of 2001. This enables empowers MAWF to control the use of natu ral resources through a system of issuing 
permits. Such permits are issued pending th e inspection and assessment of resources. 
In some part s of the country there is ex cessive amount of woody vegetation that 
threatens other land uses (Bush encroa chment). Most of the products for 
commercialisation are obtained from the encr oached areas. Note: As the population 
increase, the land use needs also increa se. Hence the declining forest areas. 
 WT/TPR/M/324/Add.1 
 
- 45 - 
 
  Questions 
Does Namibia have in place any designated conservation areas to protect threatened species?  
Answer  
Namibia has a programme on community fore stry which fosters cooperation between 
government and concerned communities to ma nage community forests. Such community 
forestry are legally gazetted and managed in  line with approved forestry management 
plans. Such plans are deigned to promot e sustainable use of forest resources. 
 
 4.6 Manufacturing Page 259 paragraph 4.110: The report notes that Namibia's manufacturing sector "is largely based 
on its resource endowment of fisheries and meat", but Table 4.8 only reports data on meat processing. Is data available on the fisheries sector 's contribution to GDP? If so, please provide. 
 
Answer  
Namibia will provide a response to this question at a later stage. 
 
 
p. 262, paragraph 4.124: The Report states that Namibia has not yet signed the SADC Protocol on 
trade in services due to the internal process before signature by the Head of State. What is the status of this internal process? 
 
Answer 
The internal process is ongoing in this regard. 
 
 Part II: Questions on the Government Report 
 Page 29, paragraph 3.3: The Government report notes the government has embarked on the 
establishment of a National Single Window. In light of these steps, could Namibia provide an update on when it expects to formally submit its Category A notification and deposit its articles of 
acceptance the WTO Trade Facilitation Agreement? 
 Answer 
The internal process of ratifying the TFA has commenced and once that process is 
finalized, Namibia will deposit its instrume nt of ratification through the necessary 
processes. Namibia has concluded its Cate gory A commitments and will be notified 
before the 10th Ministerial Conference. 
  QUESTIONS FOR SOUTH AFRICA – ANNEX 4  
 Part I: Questions on the Secretariat report  
WT/TPR/S/324  
2.3 Trade Agreements and Arrangements 
2.3.2  African Union (AU) 
Page 15, paragraph 2.34: The Secretariat report notes the NEPAD is the African Union's program 
for economic and social development in Africa . This overview does not note environmental 
challenges or goals.  Answer 
African Convention on Conservation of  Nature and Natural Resources (Maputo 
Convention 2003) – South Africa has ratified this AU Convention which aims to promote 
transboundary management of natural resources,  however it has yet to come into force. 
 
African Union Climate Change Strategy – SA ha s provided inputs into this Strategy which 
is being finalised by the AU Commission. 
 
African Common Strategy on Combatting Ille gal Exploitation and Illegal Trade in Wild 
Fauna and Flora - – SA has been involved wi th development of this Strategy which is 
being finalised by the AU Commission. WT/TPR/M/324/Add.1 
 
- 46 - 
 
  Furthermore, South Africa is engaged at a SA DC level in implementing the SADC Protocol 
on Wildlife Conservation and Law Enforcem ent and has signed a bilateral MoU on 
Cooperation in the Field of Biodiversity Co nservation and Management with Mozambique 
in April 2014. 
 
Can the Government of South Africa detail any active cooperative environmental programs? If so, what do these environmental programs address? 
 
Answer  
Please refer to response above.  
 
Page 15, paragraph 2.35: The Report notes th at the NEPAD promotes regional economic 
integration priorities, including climate change and natural resource management.  
Does the Government of South Africa participate in any natural resource management projects 
that include wildlife conservation and combatting poaching? Do the Governments of SACU, specifically South Africa, engage in any joint wildlife conservation programs through NEPAD? If so, 
please describe. Do any resource management projects in South Africa include ecosystem 
protections?  Answer 
NEPAD Environment Initiative, which co ntains eight subthemes for priority 
interventions:  Combating Desertification 
Wetland Conservation 
Invasive Alien Species Coastal Management 
Global Warming and Climate Change 
Trans-frontier Conservation Areas (TFCAs) Environmental Governance Financing 
 
South Africa has been involved in all of  these to a lesser or greater extent.  
For example, on TFCAs, South Africa has established six TFCAs with neighbouring 
countries. TFCAs are becoming a development and a conservation model that provide a 
platform for collaboration in improving th e management and use of shared natural 
resources such as watersheds and habitats of  animal species with large home ranges. In 
addition to creating an enabling environment for collaboration in dealing with issues of 
transboundary significance such as wild life crimes, TFCAs serve as nodes for 
socio-economic development. They are lo cated in rural areas often surrounded by 
disenfranchised communities with limit ed employment opportunities. Tourism 
development, investment an d rehabilitation of ecosystems in TFCAs will promote 
economic development by creating jobs in  geographically remote areas as well as 
providing of alternative land-use options in marginal lands thereby contributing to food 
security and improved livelihoods in these ar eas. Further, TFCAs involve two or more 
countries so their implementation fosters coop eration, peace and contribute to regional 
integration. 
 
 2.3.7 Preferential trade agreement between SACU and MERCOSUR Page 18 paragraph 2.53: The report notes that the agreement covers trade in non-agricultural 
products, including fish and other sea products, and processed agricultural products. Can the 
Government South Africa elaborate on how the agreement "covers fish and other sea products?" Are there any measures in place under this agreement to combat illegal, unreported and 
unregulated (IUU) fishing? 
 Answer 
The SACU – MERCOSUR agreement is a preferential trade agreement and therefore does not provide tariff preferences on  all tariff lines. Since there is  no separate agreement on 
Fisheries and other sea products, fisheries and other sea products are covered in the 
main agreement as all other products. The ag reement covers fish and other sea products 
listed in Annexure I and II (Offer of MERC O S U R  t o  S A C U  a n d  O f f e r  o f  S A C U  t o  WT/TPR/M/324/Add.1 
 
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  MERCOSUR) of the SACU-MERCOSUR agreement as wholly obtained products (provided 
they comply with the relevant rules).  Page 20 paragraph 3.8: The Secretariats report notes that the SACU trade partnership strategy 
was also developed to, inter alia , strengthen the consultation process between customs and 
business, and develop an Authorized Economic Operator (AEO) program aligned with the WCO 
Framework of Standards to Secure and Facilitate Global Trade (SAFE), and is aimed at rewarding 
compliance; securing and facilitating legitimate trade; and promoting mutual recognition among 
member States and third parties. Does this partnership include cooperation, such as information sharing, to stop illegal trade in flora and fauna?  
Answer 
The partnership does not include cooperation such as information sharing on flora and 
fauna. The AEO program is about preferred traders 
 
Can the Government of South Africa provide details on any such projects?   
Answer 
There are no special projects on flora and fauna.  
WT/TPR/S/324 – Annex 4 2 Trade and Investment Regimes 
2.2 Trade Agreements and Arrangements 
Page 293, paragraph 2.8: The Secretariat report notes that, with regards to the WTO Trade 
Facilitation Agreement, South Africa "…has yet to notify its category A measures. According to the 
authorities, the ratification process is ongoing." Can South Africa provide an estimate on when it 
expects to submit its Category A notification and deposit its letter of acceptance of the WTO TFA? 
 
Answer 
Section 231(2) of the South African Constitution states that all international Agreements 
shall bind the Republic only after it has been  approved by resolution of both Houses of 
Parliament. The only exceptions to this ru le are in Section 231(3): Agreements of a 
technical, administrative or  executive nature, or Agreements which do not require 
accession or ratification. Consequently Pa rliament is only required to approve 
international agreements which require ratification or acce ssion, and which are not of a 
technical, administrative  or executive nature.  
 The umbrella Agreement creating the WTO (the Marrakesh Agreement Establishing the 
WTO) is a major multilateral instrument. Furt hermore Article 3 of the Protocol demands 
that the amendment thereof has to be accepted  by members. Consequently this Protocol 
plus its Annex the TFA fall under Section 231( 2) of the Constitution and Parliamentary 
approval is required. The domestic process is  still ongoing and it would be difficult to 
provide an indicative date wh en it will be concluded.  
  
Page 298, paragraph 3.8: The Secretariat's report states that South Africa allows for the use of 
alternative dispute resolution procedures for appellants who are still unsatisfied with the decisions 
of a customs officer following the decision of the appeal committee. Can South Africa please 
describe the alternative dispute resolution procedures? 
 Answer 
The alternative dispute resolution procedures are outlined in the Customs and Excise Act 
1964, Chapter XA and the rules thereto. 
 And, do these procedures allow for the right to appeal to a judicial authority without penalty? 
 
Answer 
Yes 
 
 WT/TPR/M/324/Add.1 
 
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  3 Trade Policies and Practices by Measure  
Page 301, Section 3.1.3 Standards and other technical requirements: It is our understanding that 
global technology firms are experiencing significant delays, often up to a year, in obtaining licenses for their computer products and equipment from the South African Bureau of Standards 
(SABS). What steps is South Africa taking to address these delays? 
 Answer 
This question refers to the National Regula tor for Compulsory Specifications (NRCS) in 
terms of the Letters of Authority (LoA) appr oval process that is prescribed in the 
compulsory specifications (tec hnical regulations) related to all Electrical and Electronic 
Products.  
(This function was performed by the South African Bureau of Standards (SABS) prior to 
2008, when the NRCS was established in terms of the NRCS Act, Act 5 of 2008). 
This is done in terms of the section 14 of the NRCS Act, Act 5 of 2008, that states that no 
person may import, sell or supply a commo dity, product or service to which a 
compulsory specification applies, except in  accordance with the specification. The 
objective is to protect the South Afri can consumer against unsafe products. 
It is the responsibility of the importers to ac quire the required approval prior to shipping 
the containers into the country. The same  requirement is applicable to local 
manufacturers prior to placing their products on the market in terms of the NRCS Act.  Processing of LoAs requires detailed attentio n especially on imports as the products are 
imported as finished goods, the complexity of the test reports coupled with incorrect 
and misrepresented information has necessita ted NRCS to become more rigorous in 
assessing the applications before approval is granted. 
The maximum turnaround time for issuing a LoA is 120 days. In instances where it goes 
beyond the 120 days, it is because of the su bmission of insufficient documentation and 
non-admissible test reports.  
This maximum turnaround time was recently  reduced by the Minister as an interim 
measure, from 120 working days (effect ively 6 months) to 120 calendar days 
(effectively 4 months). The NRCS is in the process of developing a risk-based approach to LoAs. The aim is to 
maximise its resource utilisation by calculating the risk of an application. The risk-based 
approach will be used to determine risk le vels based on product, company and country 
of origin. 
The target date for rolling out the risk ba sed approach is mid-2016 as it would be 
contained in regulations.  
 
3.1.4.2: Main SPS requirements Page 307-308, paragraphs 3.40-3.45: We understand that South Africa recently adopted a Cabinet 
Decree concerning countries classified as negligible risk status for bovine spongiform 
encephalopathy (BSE) by the World Organization for Animal Health (OIE). Could South Africa 
provide a copy of this decree and explain how it  views this decree in light of its commitments 
under the WTO SPS Agreement? 
 
Answer 
The South African Cabinet made the following  decision regarding the importation of 
cattle and bovine products on 24 June 20 15: Cabinet approved that the relevant 
international standards and other scientific measures be implemented with a view to 
ensuring adequate risk management is applied when importing cattle and bovine 
products. This alignment of South Africa's  import requirements with international 
scientific guidelines will strengthen the county's position in international trade. This will 
broaden access to sufficient, safe and nutri tious food for people and animals through 
strategic sourcing and will increase job crea tion through importation of beef products 
intended for further processing in South Africa.' The cabinet decision of 24 June 2015 is 
in line with the WTO SPS Agreement  
 
Question 
Please describe South Africa's requirements for the import of poultry meat from countries affected 
by highly pathogenic avian influenza (HPAI) and explain these requirements in light of 
South Africa's commitments under the WTO SPS Agreement. 
 WT/TPR/M/324/Add.1 
 
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  Answer 
Upon receipt of a notification of an outbreak  of highly pathogenic avian influenza in any 
trade partner, South Africa places trade restrict ions on the import of live poultry, birds, 
meat and other products derived from poultr y and birds from the affected country into 
South Africa. South Africa does not import any poultry / birds or products thereof from 
countries where Highly Pathogenic Avian Infl uenza occurs in domestic poultry. Trade 
restrictions are placed on the entire co untry and include the following commodities: 
‐ Live poultry, pigeons and other birds 
‐ Eggs (excluding SPF eggs) 
‐ Fresh (including frozen) poultry meat  
‐ Other poultry products not subjected to a process to ensure the satisfactory 
inactivation of the avian influenza vi rus (must be proven scientifically). 
This suspension excludes poultry / birds or products thereof from NAI-free compartments according to the OIE guidelines . The requirements of such compartments 
are agreed upon between the veterinary auth orities of South Africa and the affected 
country. South Africa is willing to consider re gionalisation providing that the country in 
question is able to provide information to de monstrate that regionalisation is applied in 
compliance with the recommendations of th e World Organisation for Animal Health 
(OIE) Terrestrial Animal Health Code  Chapter 4.3 on Zoning and Compartmentalisatio n read together with the Avian influenza 
Chapter, Chapter 10.4. 
 
Question 
South Africa is a member of the WTO and apply SPS measures e the WTO Agreement on the 
Application of Sanitary and Phytosanitary Meas ures (SPS Agreement)": Please describe South 
Africa's import requirements concerning trichi nae, pseudorabies, and porcine reproductive and 
respiratory syndrome and explain these requirements  in light of South Africa's commitments under 
the WTO SPS Agreement. 
Answer  
South Africa follows international guidelines  set by the World Organisation for Animal 
Health (OIE) for trade when it comes to the following diseases: 
Trichinae: South Africa follows the guidelin es set in the OIE Terrestrial Animal Health 
Code, Chapter 8.16 Aujeszky's Disease (Pseudorabies): South Afri ca follows the guidelines set in the OIE 
Terrestrial Animal Health Code, Chapter 8.2 
Porcine reproductive and respiratory syndrome (PRRS): Unfortunately there are no international guidelines provided by the OIE even though this is a OIE listed disease of 
concern. Thus South Africa conducted a risk review, taking into account measures put in 
place by other countries free from PRRS. South Africa has put restrictions in place due to 
PRRS for the import of: ‐ Live pigs 
‐ Porcine genetics 
‐ Pork meat - Please see attached docume nt entitled: A risk review of Porcine 
Reproductive and Respiratory Syndrome vi rus (PRRSv) entering the Republic of 
South Africa via imported pork. 
These measures are the same and a pplied to all countries uniformly. 
 
Question 
Please describe South Africa's requirements concer ning Salmonella and explain these requirements 
in light of South Africa's commitments under the WTO SPS Agreement.  
Answer 
In terms of the "Procedure Manual – Microb iological Monitoring of Imported Meat 
21 October 2011", imported meat is subjected to  microbiological monitoring upon arrival 
in South Africa. The requirements with regard to Salmonella are: S. enteritidis and 
S. typhimurium, must be absent in 25g. Any Salmonella that is de tected must be typed 
and the type will determine the outcome.  
 WT/TPR/M/324/Add.1 
 
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  Salmonella other than S.enteritidis and S. typhimurium is handled as follows: 
Commodity Number of 
samples (n) Allowable number 
of marginally 
acceptable (c) Minimum (m) 
cfu/g Maximum (M) 
cfu/g 
All products 5 3 Absent in 25g - 
 
Any product that fits within the allowable nu mber of marginally acceptable as described 
above must be subjected to heat treatment before release. 
 
Meat that is produced locally is monitored.  The above measure is consistence with the requirements as stipulated in the Codex 
Alimentarius Code of Hygiene Practice for meat (CAC/RCP 58-2005), Guidelines for the 
control of Campylobacter and salmonella in chicken meat (CAC/GL 78-2011). It is also 
consistent with article 2 and 5 of the WTO Ag reement on the Application of Sanitary and 
Phytosanitary Measures (SPS Agreement). While South Africa  has made this information 
available to the interested trading partners including the USA, it is in the process of 
notifying the WTO to ensure consistence with article 7 of the above WTO SPS 
agreement. 
 South Africa bases import requirements up on international standards and guidelines 
while taking into consideration the local standards. 
 
South Africa frequently enters into consul tation with trading partners in order to 
negotiate import conditions for animals and an imal products. Consultations take place in 
the form of meetings as well as written communications. 
  
3.2 Measures Directly Affecting Exports 
3.2.3 Export prohibitions, restrictions and licensing  Page 310 paragraph 3.64: The report notes that South Africa maintains export control, including 
export permits (licenses) and prohibitions on gr ounds of safety, security, and the environment, 
and to ensure compliance with international obligations under treaties and conventions to which it 
is a signatory. South Africa is party to CITES, bu t has been identified as a Party requiring attention 
as a priority under the National Legislation Project. Has the Government of South Africa 
strengthened or put in place any new national legislation to make progress toward achieving CITES 
category 1, i.e. legislation that meets the requirem ents for implementation of CITES to ensure that 
international trade in specimens of wild animals and plants does not threaten their survival? Please 
detail any progress.  
 Answer 
The Convention on International Trade in Endangered Species (CITES) Regulations 
promulgated in terms of National Enviro nmental Management: Biodiversity Act, 2004 
(Act No. 10 of 2004) (NEMBA) meet the requir ements for Cat 1 Legislation in terms of 
CITES. 
 
The document from the CITES website that reflects South Africa as a country with Cat 1 legislation can be accessed through the following links: 
- http://cites.org/eng/legislation 
- https://cites.org/sites/de fault/files/eng/prog/Legis lation/CITES-NLP-Cat1.pdf. 
 The Department is in a process of finalising additional national legislation relating to 
CITES I species, in that all CITES I species that are not already listed as threatened or 
protected species, are now to be included  as protected species. The possession and 
selling of imported specimens will be regulate d by means of a permit, and the selling of 
the imported specimen will be prohibited under  certain circumstances. This is an aspect 
that is currently not regulated in  terms of the CITES Regulations. 
 
 WT/TPR/M/324/Add.1 
 
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  3.2.4 Export subsidies, finance and assistance 
pages 310-311, 355, paragraphs 3.67-3.76: The Report notes that South Africa has implemented 
a series of industrial development zones (IDZ) under its Spatial Development Initiative (SDI) programmes. Firms that locate in those zones will benefit from incentives, such as duty suspension 
on imports of raw materials, including machinery used in the production of goods intended for 
export. Further, Table A3.2 of this report provides a list of incentive schemes available to South African exporters for the promotion and de velopment of exports and export markets.  
 
The Report, including Table A3.2 also explains that South Africa's Sector Specific Assistance Scheme (SSAS) provides reimbursable grants to priority industries, which must be used to, inter alia , stimulate exports, diversify exports, and stimulate the participation of SMEs in the 
export sector. In addition, grants are also av ailable under the Project Funding for Emerging 
Exporters, which targets new exporters. This re port describes other sector-specific programmes 
aimed at promoting exports, such as the Moto r Industry Development Programme (MIDP), the 
Productive Asset Allowance for the automotive indu stry, Duty Credit Certificates for the Textiles 
Industry, and Fund for the Committee on Secondary Manufacture. Please further explain the above-mentioned programs in light of Articl e 3 of the WTO Subsidies Agreement regarding 
subsidies contingent upon export. 
 Answer 
The programs described above generally are designed to promote export but are not 
contingent on export performa nce. In particular, it should be noted that the MIDP was 
discontinued in 2012 and replaced by the Automotive Production and Development 
Program (APDP), which is neither in law not in  fact contingent on exports. Further, the 
Duty Credit Certificate Scheme for the text ile industry has also been discontinued. 
 Please also explain whether South Africa plans to notify these programs, pursuant to Article 25 of 
the Subsidies Agreement. 
 Answer: 
South Africa is in the process of reviewing it s incentive programs and will notify these to 
the WTO in due course. 
  
3.3.4 Government procurement 
page 318, paragraph 3.114: The Secretariat notes that South Africa is neither a member of nor an 
observer to the WTO GPA. The addition of South Africa to the GPA would constitute an important 
expansion of the GPA. In light of the adoption of  the revised GPA by all Parties, which includes 
language that would allow for necessary and temporary transitional measures for new developing country members, does South Africa have plans to consider accession to the WTO GPA?  
Answer 
South Africa does not plan to join the Gove rnment Procurement Agreement at this stage. 
 
 
3.3.5 Intellectual Property Rights  
Page 319, Paragraph 3.116: Does South Africa have a time frame for ratifying the WCT and WPPT 
or joining the Beijing or Marrakesh treaties? 
 Answer 
South Africa is still in the process of developing its IP policy. 
 page 319, Table 3.7: What is the expected re lationship between the draft Copyright Amendment 
Bill, should it become law, and the existing Performers Protection Act, since both pieces of 
legislation cover some of the same activities?  
Answer 
South Africa is still in the process of developing its IP policy. 
 page 322, Paragraphs 3.118 and 3.120: What is the current status of the draft Copyright 
Amendment Bill and the draft Cybe rcrimes and Cybersecurity Bill? WT/TPR/M/324/Add.1 
 
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  Answer 
South Africa is still in the process of developing its IP policy. 
 Part III: Other Questions  
On February 25, 2014, South Africa's parliament passed the Private Security Services Industry 
Regulation Amendment Bill, which includes a requirement of at least 51 percent local 
(South African) ownership of foreign-owned private security firms. The bill was sent to President 
Zuma for review and signature. Can South Africa please provide an update as to where this 
stands?   Answer: 
The Bill is still under consideration and South Africa's international commitments will be 
taken into account in this process.  
Question 
It is our understanding that South Africa is proposing a formula change to the sharing of SACU 
revenue. What is the anticipated impact on other SACU member states of South Africa's proposed 
formula change for revenue sharing? 
 Answer 
The review of the revenue sharing arrangem ent is a collective decision of all SACU 
Member States. It is still under consideratio n and therefore the anticipated impact will 
not be determined at this stage.  
 
QUESTIONS FOR SWAZILAND  
 
Part I: Questions on the Secretariat Report 
 
WT/TPR/S/324, ANNEX 5  
3.3.3 State trading, state-owned enterprises, and privatization 
Page 392, paragraph 3.89: The Secretariat's Report states that Swaziland has not submitted any 
notification on state trading enterprises to the WT O. Yet, it appears that state enterprises have a 
significant role in, among other areas, agricultural trade. Please provide an update as to when 
Swaziland will make its required notification.  
Answer 
WTO notifications are co-ordinated by the International Trade Department (ITD) for the 
various Government Ministries, department and parastatals in the country. Over the 
years the Department has been faced wi th human resource challenges hence the 
non-submission of the notifications of state trading enterprises and others as well. The 
Ministry of Commerce, Industry and Trade is working on addressing the challenges 
faced by the Department. 
 
3.3.5 Intellectual property rights Pages 398 and 400, paragraphs 3.117 and 3.130: How does the new planned National Intellectual 
Property Strategy relate to the existing 1912 Copyright Act and the draft Copyright and 
Neighbouring Rights Bill?  Answer 
The Process is still at stakeholders' consulta tion stage. This question could be best 
answered once the draft of the strategy has been completed.  
 
Page 398, paragraph 3.117: The report indicates that a National Intellectual Property Strategy is 
being developed and is at the stakeholder consultation phase. Could Swaziland please share an 
estimated timeline for completion of the National Intellectual Property Strategy? 
 
Answer 
It is anticipated that the strategy will be w ill be finalized during the first half of 2016. 
 WT/TPR/M/324/Add.1 
 
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  Page 398, paragraph 3.118 and Table 3.8: Is Swaziland still planning to join the WIPO Internet 
Treaties? 
 Answer 
Joining the internet treaties is still in the country's plans, however this is anticipated 
after the enactment of the Copyright and Neighbouring Rights Bill.  
Page 400, paragraphs 3.130: What is the status of the drafted Copyright and Neighbouring Rights 
Bill? 
 Answer 
The Copyright and Neighbouring Rights Bill has been Presented to the Portfolio Committee of the House of Assembly in Parliament.  
Part II: Questions on the Government Report 
 
Page 48, paragraph 4.8: The Government of Swaziland notes, "The Trade Facilitation Agreement is 
still in the process of ratification and committees have been successfully formed and awaiting Cabinet approval." Does Swaziland have any estimates regarding when it expects Cabinet approval, and when it expects to submit its Catego ry A notification? Notification of the category A 
commitments will resume shortly after Cabinet appr oval. The process of the ratification of the TFA 
and the notification of the category A commitments will run parallel. 
 Part III: Other questions 
It is our understanding that South Africa is proposing a formula change to the sharing of SACU revenue. What is the anticipated impact on other SACU member states, specifically Swaziland, of this proposed formula change for revenue sharing?  
 
Answer 
The review of the revenue sharing arrangem ent is a collective decision of all SACU 
Member States. It is still under consideratio n and therefore the anticipated impact will 
not be determined at this stage. WT/TPR/M/324/Add.1 
 
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  SWITZERLAND 
 Economic Environment 1.3  Trade and investment performance 
Para. 1.18 states that the business environments in SACU countries collectively underperformed in 
2015, which will likely constrain FDI inflows and the economic performance in the near future. According to table 1.2, the ease of doing business rank decreased for every SACU member state 
since 2008, showing in particular that costs to ex ports and imports increased quite significantly. 
What are the possible reasons behind this underperformance?  Answer 
‐ The reasons for underperformance cannot be attributed to inactivity, sluggish or 
inertia. This is because a number of vibr ant and strategic reform measures have 
been planned, designed and proposed for improvements of the business and 
investment environment, however the impl ementation process appears to be slow 
and tardy, therefore as other countries fr om other regions seems to be faster and 
more efficient in implementing reform measures, the ranking of SACU countries 
decreases.  
 ‐ SA has slipped 4 places in the international ranking from 69th in DB 2015 to 73rd in 
DB 2016. SA lags in particular on Getti ng Electricity (168 of 189), trading across 
borders (130th), enforcing contracts (119t h), Registering property (101th) and 
Dealing with Construction Permits (90th). The government is taking steps to lower 
the cost of doing business in South Africa. The Ports Regulator of South Africa has 
begun a 10-year programme to ensure tariffs better reflect the cost of using port 
assets such as berths and quay walls. Carg o dues on export containers are 38 per 
cent lower than three years ago. The port of Durban has implemented an integrated 
ports management system, dramatically re ducing turnaround times by replacing 
manual processes and improving train loadin g and cargo shipment. Furthermore, the 
refurbishment and development of South Af rica's ports infrastructure continues. 
Please check with Angelika if she's got a figure for you. 
‐ The Cities Doing Business 2015 report for South Africa was produced by the World 
Bank on behalf of the National Treasury , Department of Trade and Industry, South 
African Cities Network and nine urban ce ntres. Local firms ev aluated performance 
across six indicators. The survey found that South African entrepreneurs face 
different regulatory hurdles depending on  where they establish their businesses. 
Across the nine participating cities, it is easiest to start a business in Ekurhuleni, 
Johannesburg and Tshwane; deal with cons truction permits in Cape Town; get a 
commercial electricity connection and enforc e a contract in Mangaung; and register 
property in Johannesburg. Ther e is no relationship between the size of the city and 
the rankings, and no single city performs equally well on all indicators. The results 
suggest that well-targeted administrati ve improvements that do not require 
legislative changes can make a difference fo r small or medium-sized firms. If each 
metro were to adopt the good practices found  across the nine cities for construction 
permits, getting electricity and enforcing contracts, they would surpass the average 
performance of high-income members of the Organisation for Economic Cooperation 
and Development. 
 
What measures are the SACU countries planning to take to improve the business climate?   Answer 
In Namibia a number of initia tives are under way to create  a conducive business climate 
for both domestic and foreign investors. Step s are at an advanced stage to set up a One 
– Stop - Shop facility to be known as Inte grated Client Service Facility (ICSF) in the 
country to provide comprehensive informatio n and an efficient admission procedure to 
all foreign investors in the country.  The Government is working on an effort to create a single window for trade transactions 
that would allow traders to file standard information and documents through a single 
window entry point to fulfill both import, ex port and transit shipment. Such relevant 
information will then be shared by all relevant parties involv ed in trade such as public 
entities, including immigration, customs & ex cise, vehicle registration authorities, as WT/TPR/M/324/Add.1 
 
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  well as private participants like banks,  insurance companies and import/export 
agencies.  A robust e-governance project is being spearh eaded by the Office of the Prime Minister 
that will usher in the usage of electronic medi um in a number of functional areas such as 
electronic payments and recognition of elec tronic signatures in legal documents.  
The Ministry responsible for property regist ration is currently working on a project 
regarding business re-engineering and possible inter face linkages to other institutions 
such as company registrations and municipalit ies in order to streamline the process of 
property registration and deeds transfers, as well as to reduce all costs involved 
For South Africa, see the response provided to the previous question. 
 
 The Common Regime 
 
Overview Concerning para 2.2, the report states that one of the goals of the SACU Agreement of 2002 
(Art. 2) is to increase investment opportunities in the Common Customs Area. What concrete 
measures are planned to implement this?   Answer  
SACU Member States are signatories to the SADC Protocol on Fi nance and Investment 
(FIP). The Protocol gives legal and practica l effect to the Parties' commitments under 
the SADC Treaty. The two overarching objectives of the FIP are i) to improve the 
investment climate in each Member State an d thus catalyse fore ign and intraregional 
investment flows; and ii) to enhance cooper ation, coordination and harmonisation in 
domestic financial sectors in the region. 
 
On the trade side, work undertaken to expa nd market access for goods manufactured in 
the customs area makes the region more attr active for foreign and local investors who 
intend to take advantage of the new foreig n markets resulting from trade arrangements. 
 
Para. 2.6 indicates that the SACU Agreement does not establish provisions for trade in services. However, SACU member states decided in 2012 to make trade in services a priority area in the 
Union's work program, while this work is still at the very beginning. What is the calendar and what 
are the next concretes steps to achieve this?   
Answer 
The region has not yet agreed on a fixed timeframe, this will be guided by the 
preliminary assessment on the scope and n eed for developing a legal framework. 
 
Furthermore, para. 2.6 notes that the main focus of the SACU Agreement is related to customs, 
while non-tariff measures are not yet harmonized within the Union. Did the SACU states elaborate the possibilities for a harmonization of non-tariff measures? 
 
Answer 
SACU Member States agreed to harmonize the non-tariff measures under the SADC 
Protocol on Trade. 
 How do the SACU states assess the perspectives with regard to a possible harmonization of non-tariff measures within the Union in future , aiming to facilitate regional trade? 
 
Answer 
Same as above. 
 
2.3 Trade agreements and Arrangements 2.3.1 Participation in the WTO 
Para. 2.28 states that SACU's notification obligations are fulfilled with varying degrees of 
regularity. Can SACU members indicate when they will notify their quantitative restrictions according to the Decision on Notification Procedures for Quantitative Restrictions, adopted by the Council for Trade in Goods in (G/L/59/Rev.1)?  
 WT/TPR/M/324/Add.1 
 
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  Answer  
Although Article 25 of the 2002 SACU Agreem ent contains provisions for import and 
export prohibitions and restrictions, there is no obligation to harmonise quantitative 
restrictions in SACU. Article 25 (5) of th e SACU Agreement stipulate that "Member 
States shall co-operate in the application of import restrictions with a view to ensuring 
that the economic objectives of any import  control legislation in any State in the 
Common Customs Area are attained." 
With regard to the Decision on Notification  Procedures for Quantitative Restrictions, 
adopted by the Council for Trade in Goods in (G/L/59/Rev.1), members should note that 
SACU is not a WTO Member but its individual  Member states are. Thus there is no 
notification obligation on SACU to notify it s quantitative restrictions, but it is an 
obligation of its individual Member States. The WTO Secretariat repo rted in its factual 
information on notifications received on quanti tative restrictions circulated in document 
G/MA/114 of 22 May 2015, that only 27 Members have submitted the required 
notification since 2012. Thus only 16.7 percent of the WTO's 161 Members have 
complied with the notification obligation. Swit zerland itself only submitted 1 notification 
on quantitative restrictions that was circ ulated in document G/ MA/QR/N/CHE/1 of 11 
March 2014.  
The notification format as contained in docu ment G/L/59/Rev.1 Anne x 1 is intricate and 
comprehensive and notification fulfillment is  quite resource intensive that makes it 
difficult for developing countries to comply. Although South Africa has started with the 
preparation of the notification, it also finds it  difficult to submit the notification due to 
different government authorities and domest ic legislation dealin g with quantitative 
import and export control. South Africa is  also experiencing constraint in skilled 
resources to complete a full no tification. To complete the notification, South Africa is 
considering requesting assistance from the Se cretariat as provided for in paragraph 6 of 
the Decision on Notification Procedures fo r Quantitative Restrictions, adopted by the 
Council for Trade in Goods on 22 J une 2012 in Document G/L/59/Rev.1 . 
 2.3.4  Relations with the EU Para. 2.41 include information on the SADC-EU Economic Partnership Agreement (EPA). When 
does SACU expect the EPA to be signed? Can SACU already provide information about a possible 
entry into force of the EPA?   
Answer 
Entry into force of the Agreement will to a large extent depend on the ratification 
processes of the Member States of both parties.  In light of the end date of the EU Market 
Access Regulation (1528/2007) , the SACU Member States will work towards finalising 
the signing and ratification processes by October 2016.  3. Trade Policies and Practices by Measure 
3.4  Tariffs and Other Charges  
3.4.2 Bindings  
According to para. 3.25 of the Secretariat's report, all tariff bindings are ad valorem , including 
lines to which specific, mixed or formula duties apply. Therefore, the imposition of non- ad valorem  
duties, including specific, mixed and formula does not ensure compliance by the SACU countries 
with their binding commitments. Could the SACU countries indicate how do they control and 
ensure that the non- ad valorem  duties levied at the border are not higher than the bound rates for 
the same national tariff line? Please refer to the list of products listed in table 3.5.   
Answer 
In consideration of applications for increases in the duty where the bound duty is an ad-
valorem duty, whilst the applied rate is in non-ad-valorem terms (formula or specific 
duties), the International Trade Administra tion Commission of South Africa (ITAC) 
calculates the ad-valorem equiva lent of the proposed applied duty to ensure that it does 
not exceed the ad valorem bound rate. 
 WT/TPR/M/324/Add.1 
 
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  Annex 1 – Botswana 
2. Trade and Investment Regime 2.4 Investment regime Para 2.21 states that the citizen reservation requ irements are perceived to be discriminatory and 
non-transparent. Could you further explain, what the citizen reservation entails and whether the 
government is reflecting to encourage furt her foreign investments via a policy reform? 
 
Answer 
The reservations are stipulated in the relevant  Acts and Policies. The reserved activities 
are at small scale, require low level of star t-up capital and do not require specialised 
skills nor sophisticated technologies. However,  foreigners are allowed to participate in 
the reserved activities through Joint Ventures with the locals. This is a government 
initiative aimed at empowering the locals an d eradication of poverty especially in rural 
areas. 
 
 3. Trade Policies and Practices by Measure 
3.1 Tariffs and Other Charges 
3.1.4 Tariffs  According to para. 3.16 of the Secretariat's report, the 2015 MFN applied rates appear to be higher 
than the bound rate for 16 tariff lines in Botswana. Could Botswana specify if this is really the case 
and if so, when does it intend to align its applied rates to the level of its bound rates?  
Answer 
Botswana as a member of SACU applies a co mmon external tariff to its third parties, 
which was determined by a common denomina tor principle within the Customs Union, 
and has led to the anomaly. SACU Member St ates continue to engage with a view to 
come up with a solution.  3.3 Measures Affecting Production and Trade  
3.3.2 Competition policy and price controls 
 Para. 3.91 describes Botswana's new Competition Law and Regulations enacted in 2009 and 2011 
respectively, pointing out certain specific practi ces (e.g. agreements related to IPR holders). Are 
anti-competitive practices such as vertical agreements and horizontal agreements between 
businesses as well as the abuse of a dominant position covered by its Competition Law and 
Regulations? If so, could Botswana please provide more information on these practices? Is there 
any control of mergers under Botswana's new Competition Law. Furthermore, Botswana's Competition Law covers all areas of the economy,  with some exceptions. Could Botswana please 
name these economic sectors and explain the reason behind the exceptions? 
 
Answer: 
YES, they are covered by  the Competition law. 
Horizontal agreements 
Section 25 of the Competition Act, 2009 pr ovides for prohibition of horizontal 
agreements. The section states that: An ente rprise shall not enter into a horizontal 
agreement with another enterprise if the agreement involves any of the following 
practises: (a) directly or indirectly fixing a purcha se or selling prices or any other trading 
conditions; 
(b) dividing markets by allocati ng customers , suppliers, territo ries , or specific types of 
goods or services: (c) bid-rigging, except where the person requ esting the bids or tenders is informed of 
the terms of the agreement before the ti me that the bids or tenders are made; 
(d) restraints on production or sa le , including restraint by quota; 
(e) a concerted practise; or  
(f) a collective denial of access, of an en terprise , to which is an arrangement or 
association crucial to competition. Vertical agreements  Section 26 of the Act, provides for prohibitio n of vertical agreements. The section states 
that: WT/TPR/M/324/Add.1 
 
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  An enterprise shall not enter into a vertic al agreement with another business to the 
extent that the agreement involv es resale price maintenance.  
It further provides that a supplier may recommend a minimum resale price maintenance to the reseller if the supplier makes it clea r to the reseller that the recommendation is 
not binding OR the product has the recommended price stated on it.  
Abuse of dominance  Section 30 provides that , any conduct on th e part of one or more enterprises is subject 
to prohibition by the Authority if, following  an investigation by the Authority, such 
conduct is determined to amount to an ab use of dominant position in any market. A 
dominant position refers to a situation in which one or more enterprises possess such 
economic strength in a market as to allow the enterprise or enterprises to adjust prices 
or output without effective co nstraint from competitors. 
YES , the Law covers merger control Part X of the Competition Act provides for co ntrol of mergers. The chapter covers a wide 
range of provisions including: Acquisition of control of Mergers; Exemptions from 
merger control; threshold for mergers; pre-notification of mergers; hearing in relation to mergers; assessment of mergers; determinat ion of proposed mergers; acceptance of 
undertakings; Revocation of approval of me rgers; merger implemented in contravention 
of Act; enforcement of directions among others.  The Competition Act of Botswana DOES NOT explicitly make any exceptions to any 
economic sector. Rather, the Act has made ex ceptions to certain economic areas across 
board.  
Section 3(3) provides that the Act does not apply to: agreements relating to protection, licensing  and assignments of rights under any law 
governing intellectua l property rights; 
enterprises operating on the basis of statutory monopoly; 
practises authorised by any law or scheme; 
any collective bargaining activity or agreemen t negotiated or concluded in terms of any 
labour legislation; conduct designed to achieve a non-commercial socio-economic objective; any practise or agreement relating to expo rts of goods from Botswana; or supply of 
services outside Botswana; 
any practise or agreement approved under  an international agreement to which 
Botswana is party to; and  
services carried out under a contract of employment. 
 Para 3.92 states that a new Competition Authority was established to implement the competition 
policy and enforce the act. How does Botswana ensure the independence of its Competition 
Authority?  Answer: 
Section 4 of the Act establishes the Competit ion Authority as a body corporate vested 
with powers to run its own affairs. It re ports to the Competitio n Commission, which is 
the body responsible for the general policy direction of the Authority as well as the 
adjudicative body (section 9). The decisi on of the Competition Authority and the 
Competition Commission can only be appe aled to the High court (Part XI). 
 
 
Annex 2 – Lesotho 3. Trade Policies and Practices by Measure 3.1 Measures Directly Affecting Imports 
3.1.4 Tariffs 
 According to para. 3.17, in Lesotho there are two tariff lines for which the applied tariff rates 
(specific duty) are higher than their bound levels (60%). Could Lesotho indicate how it will ensure 
the consistency between its bound and applied rates?  
Answer: 
Lesotho as a member of SACU applies a common external tariff to its third parties, which 
was determined by a common denominator principle within the Customs Union, and has l e d  t o  t h e  a n o m a l y .  S A C U  M e m b e r  S t a t e s  c o n t i n u e  t o  e n g a g e  w i t h  a  v i e w  t o  c o m e  u p  
with a solution. WT/TPR/M/324/Add.1 
 
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  4. Trade Policies by Sector 
4.2 Mining and quarrying 4.2.2 Policies  
Para. 4.34 states that in order to apply for a mining lease, investors must first obtain an 
environmental impact assessment license. Which criteria or guidelines are requested by the Department of Environment to execute these EIA? 
 
The environment Act of 2008 provides the sche dules of business activities that require 
EIA The Department of Environment, within th e Ministry of Tourism, Environment and 
Culture – Ms. T. Matela Senior Environment Of ficer – EIA can be contacted on telephone: 
+266 22311767 for further details.  
Furthermore, the terms and conditions governing a mining lease are subject to 
individual negotiations. What is Lesotho under taking in order to re nder the system more 
transparent and predictable? Which institutional settings are in place? 
This was the case before the developmen t of the Mining Policy in 2015 which has 
introduced strategies to minimize negotiab ility of contracts and ensure uniformity in 
awarding of mining leases. The Ministry of Mining is current ly reviewing the mining legal 
framework to align it to the newly developed policy. 
 
Institutional Setting For awarding of mining lease there is a Boar d made up of the Representatives from the 
Ministries of Mining and Finance, 2 members of the public with knowledge and 
experience in, mining, environment, en gineering or geological matters and a 
representative of Chamber of Commerce 
Decisions with regard to negotiating terms an d conditions of the mining lease are made 
with the Ministry of Mining.   
Annex 3 – Namibia 
3. Trade Policies and Practices by Measure 3.3 Export prohibitions, restrictions, and licensing 
3.3.1 Export taxes, charges, and levies 
 Para 3.63 states inter alia that an export tax of 10% is collected on unprocessed diamonds. What 
is the purpose of such a tax and how are these funds used? 
 Answer  
Namibia will provide an answer at a later stage. 
 
3.4 Measures Affecting Production and Trade 3.4.2 Competition policy and price controls 
 
According to para. 3.91 , the Namibian Competition Commission (NaCC) is responsible for 
regulating competition across all economic sectors.  How does Namibia ensure independence of the 
NaCC? 
 Answer: 
Section 4 of the Competition Act 2, 200 3 established the Namibian Competition 
Commission (NaCC) as an independent juristic body that is subject only to the Namibian 
Constitution and the Law. The Competition Act applies to all economic activity within or having an effect on the Namibian market.  
Section 3(2) of the Act "binds the State" in so far as the State engages in trade business 
for the production, supply or distribution of  goods or the provision of any service….."  
The Commission has the statutory func tions of investigating and remedying 
anti-competitive practices, inclusive of  restrictive business practices and anti-
competitive mergers, and of opening up ma rkets, promoting advocacy, education and 
awareness on the principles of fair compet ition. It furthermore has the function and 
powers to establish cooperation and exch ange information with other competition WT/TPR/M/324/Add.1 
 
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  authorities, and to advise the Government on matters related to public interest and 
sector regulation.  All its decisions in terms of anticompetitive practices are reviewed by the High Court of 
Namibia. The High Court can impose pecuni ary penalties for contraventions of the 
Competition Act.  
The Ministry of Industrialisation, Trade an d SME Development have legislative powers 
only to review merger decisions upon  application by the merging parties. 
 
Para. 3.91  further states that there are four authorities regulating specific sectors, some of them 
with overlapping competences with the NaCC. Th e conclusion of Memoranda of Understanding 
between these authorities should remedy this conf licting situation. Could Namibia please elaborate 
on further plans to remedy this situation? 
 Answer 
Namibia has a number of sector regulators in  key sectors, such as financial services 
sector, the non-banking services sector, the communications services sector, the 
regulation of ports and the di stribution of electricity.  
These sectors have concurrent jurisdiction wi th the NaCC with regards to competition.  
Section 67 of the Competition Act 2, 200 3 mandates the Commission to conclude 
agreements with sector regulators on concurrent jurisdiction.  
The NaCC has concluded Cooperation Agreemen ts (MOU's) with all sector regulators, 
namely, BON, CRAN, NAMFISA, NAMPORT and ECB. The Agreements cover the following 
areas: (i) purpose and basis of the Agreemen t; (ii) complaints re lated to restrictive 
business practices; (iii) application for approval with regard to mergers and 
acquisitions; (v) sharing of information; and (vi) confidentiality and use of information.  
 
Annex 4 – South Africa 
1.  Economic Environment 1.2  Recent Economic Developments Para. 1.10 to 1.14  describe the current economic headwinds South Africa is currently facing. 
Furthermore, the depreciation of the rand continues, affecting South Africa's competitiveness and 
economic uncertainty accordingly. Could South Africa share information on the impact of such a challenging economic situation on SACU's revenue and budget? 
Answer 
At the time of the February 2015 Budget, the SACU revenue Pool was projected to be 
R51 billion next year, then decline to R36.5 bi llion in 2016/17, as a result of a decline in 
customs duties associated with lower import  projections. As the economy recovers and 
imports rise, SACU revenue is expected to increase to R45. 4 billion in the outer year. A 
combination of lower-than expected real yiel ds, the timing of new debt issuance and the 
weaker exchange-rate forecast is expected  to increase receip ts from financial 
transactions. 
 1.3 Foreign Direct Investment 
 
Table 1.3  shows a certain variability concerning FDI in- and outflows. The Promotion and 
Protection of Investment Bill (published for public comments in 2013, para 2.15) could improve 
predictability and in vestors' confidence. Para 3.120 states that a main objective of the new 
Intellectual Property policy (published for pub lic comments in 2013) is the establishment of 
confidence to attract investments. When will the Promotion and Protection of Investment Bill and the IP Policy enter into force? 
 
Answer 
The Bill is currently subjected to consultati on in the Portfolio Committee on Trade and 
Industry until the end of November 2015. It is  expected that Bill will brought before the 
National Council of Provinces and the National  Assembly during the first quarter of 2016 
where-after it will be signed  into by the President. 
 
Regarding investment conditions, will the Investment Bill prevail over other laws or policies?  WT/TPR/M/324/Add.1 
 
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  Answer 
No. The Investment Bill will coexist side by si de with other legislation. It does not seek 
to override other existing legislation.  
3. Trade and Investment Regime 
3.1 Investment Regime  
Table 2.2  g ive s  an ove rvie w on the  South Afr ic a' s  BI T s . Se veral BI T s  with Europ e an countrie s  
have been terminated, while others remain in force (such as China, Czech Republic, Korea, Russian Federation). What were the criteria applied to terminate some BITs, but not other - very similar - BITs? 
 
Answer 
 
The duration process of the BITs was the main criteria that was applied when the 
decision terminate the BITs was taken. It wa s agreed that terminat ion was going to take 
place on a regional basis with regard to BITs that were at the end of their duration. Once 
we had dealt with one region we wo uld then move to the next one. 
 What is the role of FDI stock in a partner country when taking such decisions?  
Answer 
FDI stock does play an important role in the decision. South Africa has very strong 
legislation with regard to protection of property and assets, whether domestic or 
foreign. It was therefore understood that such stock would protected under existing 
domestic laws as well as the survival clause  o f  t h e  B I T s  w h i l e  t h e  I n v e s t m e n t  B i l l  i s  
being taken through the Parliamentary process.  
 
3. Trade Policies and Practices by Measure 3.1 Measures Directly Affecting Imports 3.1.1  Customs procedures and requirements 
 
Para 3.12  states that the base of the VAT, for local supplies, is the "domestic open-market value". 
For imports, the taxable value is the f.o.b. cu stoms value plus a 10% mark-up on the customs 
value. What is the reason of the mark-up on the customs value? 
 Answer 
For customs value purposes, South Africa ap plies and complies with the Agreement on 
Implementation of Article VII of the Gene ral Agreement on Tariffs and Trade. This 
means that the primary basis for customs valu e 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 
instead of CIF prices for customs value purp oses. The purpose of the 10% factor is to 
ensure that local products an d imported products compete on an equal footing insofar as 
VAT is concerned. The 10% factor is therefor e 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 approximately 11%. This figure was then rounded off to 10%.  3.1.2 Import prohibitions, restrictions, and licensing 
 
According to table 3.1  the fill rates of many tariff rate quotas are very low. What are the reasons 
for the underutilization of tariff rate quotas? What is South Africa undertaking in order to improve 
the utilization of the tariff rate quotas?  
 Answer 
Underutilization of tariff quotas can be attr ibuted to various factors. As a rule, no 
restrictions are placed on the issuing of im port permits in relation to TRQs. Market 
conditions are in most cases the reason for the low fill rates of TRQs. Often, the difference between the IQTR and the MFN applie d rate is very low and importers opt not WT/TPR/M/324/Add.1 
 
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  to use the relevant permits. The administrati on system of the market access quotas is 
transparent and aims at facilitating of imports of the TRQ access quantities.  3.3 Measures Affecting Production and Trade 
3.3.2 Competition policy and price controls 
 According to para. 3.83 , intermediate and large merging parties have to notify the Competition 
Commission (CCSA) of a merger before it is implemented and, however, small mergers may be 
notified voluntarily or upon the CCSA's instruction. Could South Africa please provide more information regarding these instructions, in particular the CCSA's criteria?   
Answer 
The Competition Act 89 of 1998 ("the Act") requires that the Minister set merger 
thresholds, based on the asset values and turn over of the merging firms, which classify 
transactions as:  
• large (above the higher threshold),  • intermediate (between the lower and higher thresholds) and  
• small (below the lower threshold).  
On 6 March 2009, the Minister published th e following thresholds in the Government 
Gazette . These thresholds took effect since 1 April 2009 and are as follows:  
‐ Merger thresholds as at 1 April 2009 
Thresholds Combined turnover / Asset value Target turnover / asset value ‐ Lower threshold R 560m  R 80m 
‐ Higher threshold R 6 600m R 190m 
 Small mergers in contrast to both large an d intermediate merger transactions do not 
require mandatory notification and approval. According to Section 13(3) of the Act, the 
Commission has discretion to require the pa rties to a small merger to notify the 
Commission of that merger, if the merg er may substantially prevent or lessen 
competition or cannot be justified on public interest grounds. A merger contemplated in 
terms of section 13(3) may not take further st eps to implement that merger until it has 
been approved or conditionally appr oved. More detail is provided under: 
http://www.compcom.co.za/wp-conte nt/uploads/2014/09/Small-Merger-
Notification.pdf. 
 The Commission continually monitors and id entifies small mergers that may require 
notification. In addition to the monitoring  function the Commission also relies on the 
public and competitors of merging part ies to alert the authority to possible 
anti-competitive transactions. The Commissi on will evaluate whether small mergers 
require notifications on its own merits, subj ect to the guidance provided by section13 
(3) of the Act.  
 The Commission will require a notification of  a small merger which meets the following 
criteria: 
• At the time of entering into the transact ion any of the firms, or firms within their 
group, are subject to an investigation by the Commission in terms of Chapter 2 of the 
Act (Restrictive Practices Abuse of Dominance) and/or; 
• At the time of entering into the transact ion any of the firms, or firms within their 
group, are respondents to pending procee dings referred by the Commission to the 
Competition Tribunal in terms of Chapter 2 of  the Act (Restrictive Practices Abuse of 
Dominance).  
The Commission also advises parties to small mergers which meet the above criteria, to 
voluntarily inform the Commission of such in tention to enter into a transaction. Such 
firms are required to provide the Commission with sufficient detail/information on the 
parties, the transaction and the affected markets within which the transaction takes place. 
 
 WT/TPR/M/324/Add.1 
 
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  3.3.4 Government procurement 
 Para. 3.102 states that the government procurement market is not open to foreign bidders. What 
are the processes and conditions for the procurement of goods or services that are not produced 
nationally and need to be imported? 
 Answer 
The goal of SA procurement is, firstly, to advance economic transformation and enhance 
the economic participation of black people in  the SA economy. Procurement is therefore 
used as an enabler for socio-economic transf ormation. It is for this reason that the 
Preferential Procurement Policy Framewo rk Act and Preferential Procurement 
Regulations of 2011 makes provision for the pr eference point system. This system rates 
the bidders in terms of their ability to perform the task and the socio economic standing. 
The regulations also makes provision for thos e bidders who do not have a scorecard to 
be rated against.  
SA also wants to boost their manufacturing  sector hence the need for designated 
sectors. Preference will be given to manufac turers within SA. If products are imported, 
there are certain mandatory requirements th at a foreign bidder must abide by, in the 
interest of SA.  Para. 3.105  outlines the regulations and institutions related to government procurement. What 
are the institutional arrangements and regulations to assure transparency and accountability as 
well as competition in the government procurement processes?  
Answer 
 Section 217 of the South African Constituti on, Section 38 (1) (iii) of the Public 
Finance Management Act, an d Section 112 (1) of the MFMA require " an appropriate 
procurement and provisioning system wh ich is fair, equitable, transparent, 
competitive and cost effective." 
 Competition in the procurement process:-  
 Preferential Procurement Regulations, 2011,  section 5 and 6, makes provision for 
departments and entities/ institutions to  utilize the 90/10 and 80/20 preference 
points system. Bidders compete in term s of price and socio-economic goals. 
 Preferential Procurement Regulations, 2011, section 4, makes provision for bids to 
be evaluated in terms of functionality. A sele ction criteria is approved prior to the bid 
being published. Bidders will therefore compete on ability. 
 National Treasury practice notes and Muni cipal Regulations requires departments/ 
entities/ institutions to establish structures within the organization for bid 
evaluation, drafting of specification and bid adjudication. These structures ensure 
fairness, competitiveness, cost effectiv eness and transparency throughout the 
procurement process. 
 
 Accountability in the procurement process:- 
The Public Finance Management Act and the Municipal Finance Management Act provides 
for the functions of the accounting offi cers and accounting authorities. The 
accountability of an organ of state rests with the accounting officer or authority. 
Functions within the department/ entities / inst itutions are then delegated to officials in 
writing for a specific function. The administra tion of the procurement process rests with 
the executive SCM. The adjudication of bids  rests with the adjudication committee and 
or approval with the accounting offi cer and or the accounting authority. 
Transparency in the procurement process:- 
 The eTender Publication Portal was deve loped in order to improve access to 
government business opportunities. www.etende rs.gov.za provides a single point of 
entry where government busine ss opportunities are advertis ed electronically in an 
easily accessible format and at no charge  to businesses. The e-Tender publication 
portal was launched on 1 April 2015 in a ccordance with Minister's announcement. 
The launch was supported by National Trea sury Instruction note 1 of 2015 directing 
all national and provincial government in stitutions to publish bids above R500 000 
on the e-Tender portal. 
  Prospective suppliers are now able to  self-register on the CSD website 
www.csd.gov.za. The CSD interfaces to So uth African Revenue Service (SARS) to WT/TPR/M/324/Add.1 
 
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  enable tax clearance certificate verifica tion and the Companies and Intellectual 
Property Commission (CIPC) for verificati on of business registration and business 
ownership information. The CSD furthermore verifies supplier information with the register for tender defaulters and database of restricted suppliers, and verifies South 
African identification numbers with th e Department of Home Affairs (DHA). 
  The Procurement Plans of Departments and Public Entities are published on the 
OCPO website on a quarterly basis. The pu blishing of the procurement plans on a 
quarterly basis allows for transparency in  the procurement of goods and services 
within the Public Sector. It further prom otes transparency and visibility in the 
supplier market in that suppliers are afford ed equal and fair opportunities to public 
procurement. Suppliers become aware of the service, products/ goods required 
within the public sector. The publishing of the procurement plans further prevents the abuse of the supply chain system in th at no supplier is unfairly advantaged in 
terms of having access to bid information. Th e publishing of the bids quarterly allows 
suppliers equal footing in terms of prepar ation and response to public procurement 
of service, products/ goods. 
 Treasury Regulations 16.A6.3 also allows for bid awards to be published in the 
medium in which the bid was advertised. The details that must be published is in the Treasury Instruction Note 32 . 
 
3.3.5 Intellectual property rights 
The Secretariat's report states in para. 3.120  that a draft IP policy was published in 2013 for 
public comments and that the main objectives of the draft policy include inter alia the introduction 
of a public health aspect perspective into nati onal IP laws. Could the South African authorities 
specify how this will be implemented, specifically in the field of patents?  
Answer 
South Africa is still in the process of deve loping its IP policy and once finalised the 
implementation thereof will be addressed.  
When will this IP policy enter into force and what is the timeline of implementation? 
 Answer 
See response provided above.  How is compliance of the IP policy and its implementation in the national IP law with WTO law and 
in particular with the TRIPS Agreement addressed and reflected? 
 Answer 
South Africa's IP policy and its implementation once finalised, will take due 
consideration of all South Africa's intern ational commitments related to intellectual 
property.  
The Secretariat's report states in para 3.121  that, in accordance with the Patent Act, at any time 
after the expiration of 3 years from the date of the grant of a patent or 4 years from the date of filing a patent, whichever is later, any interested  person may apply to the CIPC for the grant of a 
licence under the patent, provided that a market for the patented invention is not being supplied, 
is not being supplied on reasonable terms in South Africa, or it is in the public interest that a licence or licences should be granted.   
Could the South African authorities specify the procedure, which can lead to the grant of a 
compulsory licence?  
Answer 
This will be addressed in the development of the IP policy. 
 
Please explain to what extend this procedure and the steps required to be taken by an applicant 
for a compulsory licence are consistent with article 31 TRIPS?  Answer 
See the response provided above. WT/TPR/M/324/Add.1 
 
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  Article 31(b) TRIPS requires that the proposed user has made efforts to obtain authorization from 
the right holder on reasonable commercial terms and conditions. How is this implemented in practice and what happens if such efforts have not been successful within a reasonable period of time?  
 
Answer See the response provided above. 
 
 Annex 5 – Swaziland 3. Trade Policies and Practices by Measure 
3.3 Measures Affecting Production and Trade 
3.3.2 Competition policy and price controls  
According to para. 3.80 , the Swaziland Competition Commission (SCC) is an independent body. 
How does Swaziland ensure the independence of the SCC?  
Answer 
T h e  C o m m i s s i o n  i s  g o v e r n e d  b y  B o a r d  o f  C o mmissioners from different organizations. 
Decisions by the Commissioner are independent and can only be appealed in the High Court. 
 
Furthermore, para. 3.80  describes the SCC's enforcement actions as inadequate due to a lack of 
financial and staff resources. Could Swaziland please elaborate on its plans to remedy the 
situation? 
 Answer 
Continued advocacy for an increased su bvention from Government and other 
cooperating partners would im prove the financial situation of the organization. As a 
result the enforcement actions will be improved.  
 
General Questions  
WTO Trade Facilitation Agreement: Botswana has already submitted its Category A notification 
and South Africa as well as Swaziland indicate that work in this regard are ongoing. Could all SACU Members, except Botswana, estimate when the notification process for Category A will be 
completed? Further, could the SACU Members elaborate on the status of work regarding their 
ratification processes for the TFA?   Answer 
Answer provided to similar question from the EU above.  
 
_______________ 
 WT/TPR/M/324/Add.1 
 
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  TPR RESPONSES TO QUESTIONS RE CEIVED AFTER THE DEADLINE 
CHINA 
 Part I. Questions based on Report by the Secretariat (WT/TPR/S/324) 
Page 14, Para 2.23 
2.23. In accordance with Article 31 of the 2002 SACU Agreement, no SACU member State can negotiate or amend a trade agreement without consent from the others. SACU members currently 
have a unified approach towards negotiations with third parties on an ad hoc basis. An annex 
establishing a Common Negotiating Mechanism (CNM) has been drafted and awaits adoption.  Question 1  
Please introduce in detail the unified approach towards negotiations among SACU members with 
third parties. And when will the Common Negotiating Mechanism (CNM) be adopted? 
 
Answer 1 
The Common Negotiating Mechanism (CNM) out lines a process that SACU should follow 
in ensuring a unified engagement in its negoti ations with third parties. The processes to 
adopt the Annex on CNM is ongoing.  
 Page 17, Para 2.45 2.45. During the transition period, a "market access regulation" (in place until October 2016) will 
regulate trade between the EU and BLNS, while th e TDCA will continue to govern trade between 
the EU and South Africa.  
Question 2  
Please introduce in detail the "market acce ss regulation" between the EU and BLNS. SACU 
members have signed multiple regional and bilate ral free trade agreements, therefore subject their 
trade partners to different access conditions to the SACU market. How do SACU members address 
the uncertainty in implementing the obligations of  different agreements under such circumstances? 
 Answer 2 
There is no uncertainty due to common and uniform application of the CET by customs 
authorities. The market access regulation (1528/2007) is a unilateral arrangement by the EU to secure continued market acce ss whilst completing negotiations on the 
Economic Partnership Agreement (EPA).  
 Page 18, Para 2.53 
2.53The agreement covers trade in non-agricultural products, including fish and other sea 
products, and processed agricultural products. In  addition, the individual EFTA States and SACU 
concluded bilateral agreements on basic agricultural products, which form part of the free trade area package. Since the entry into force of the agreement, EFTA States grant the SACU members 
duty-free entry for all non-agricultural goods. The SACU States are to dismantle their tariffs 
progressively over a period not exceeding nine year s; 76.8% of their tariff lines were duty-free in 
2015. 
 
Question 3  
Please introduce the effects of EFTA-CU agreements on agricultural and non-agricultural products.  
 
Answer 3 There has been no notable effects for SACU on non-agricultural trade resulting from 
tariff phasedown. The trade in basic and proc essed agricultural products has been in 
favour of SACU until 2011 since then SACU expo rts declined resulting in a negative trade 
balance. However the overall trade balance remains in SACU.   
Question 26 
What are the countries included in the SADC EPA Group? Why are negotiations conducted in the 
name of SADC instead of SACU in EPA and African Tripartite FTA (TFTA) talks?  
 WT/TPR/M/324/Add.1 
 
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  Answer 26 
The countries of the SADC EPA group ar e the 5 SACU member states (Botswana, 
Lesotho, Namibia, South Africa and Swaziland, and Angola and Mozambique). The negotiations were premised on the basi s of the recognized Regional Economic 
Communities.  
In the Tripartite the negotiations are not co nducted in the name of SADC by the SACU 
Member States. Because SACU is a customs uni on, it has to negotiate as one entity in 
order to maintain the integrity of its common external tariff.  
 Page 40, Para 5.3 5.3. In terms of the process and timeframe for en try into force, the Agreement has been subjected 
to a legal vetting process. Thereafter, the Agreement will be presented to Cabinet and, if 
approved, submitted to the South African Parliament for ratification. Once ratified, the Agreement may be signed, and it will enter into force once all Parties have concluded their own respective 
national approval processes. 
Question 27 Please introduce the specific timetable for the entry into force of EPA. Has SACU set a target time 
for the approval and signing of EPA? Before the si gning, can the EPA provisions be implemented on 
an ad hoc basis?   Answer 27 
Entry into force of the Agreement will to a large extent depend on the ratification 
processes of the Member States of both parties.  In light of the end date of the EU Market 
Access Regulation (1528/2007) , the SACU Member States will work towards finalizing 
the signing and ratification processes by October 2016. 
 Part III. Other Questions 
 
Question 29  
It has been reported that SADC is considering the possibility of creating a regional currency and establishment of a Common Monetary Area with SACU. Could this be confirmed and if so, could 
more information be provided? For example, what would be the base currency?  
 Answer 29 
SADC Member States have revised the Region al Indicative Strategic Development Plan 
(RISDP) and have identified new priorities.   
Question 30  
According to Art.28 of the SACU Agreement, Botswana and other members agreed to harmonize product standards and technical regulations. Do SACU member countries have a common policy on these issues? Could you give some examples of concrete measures taken to this end? Could you 
give an update on the progress in harmonizin g customs procedures, standards, sanitary and 
phytosanitary measures, and in competition and counter-unfair trade practices since the last review?  
 
Answer 30  No. SACU does not have a common policy on st andards, technical regulations, and SPS.  
For Customs, SACU member states are revi ewing Customs Legislations and Policies to 
align to international best practices such as the Revised Kyoto Convention and the WTO Trade Facilitation Agreement (TFA). SACU Secretariat is supporting the Member States with this process and the ultimate objectiv e is to ensure harmonization of Customs 
regulations, policies and procedures that relates to the Common External Tariff. Thus far 
work is still at an initial phase and an asse ssment of the Customs legislative frameworks 
will take place before end of December 2015.  
 
Question 31  
The SACU membership consists of four middle-income countries and one least developed country, 
Lesotho. Are there any schemes for South-South cooperation within SACU? If so, please introduce 
the relevant arrangement and give some examples , such as preferential treatment for Lesotho 
provided by other SACU members.   WT/TPR/M/324/Add.1 
 
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  Answer 31  
There are no explicit South-South cooperatio n policies in SACU. However, policy decision 
undertaken in SACU takes into account di fferences in Member States economic 
developments in line with the SACU Agreem ent, 2002. These relate to amongst others 
the establishment of the development compon ent of the revenue sharing formula which 
aims to compensate the least developed econ omies. Further, there is infant industry 
protection which applies mostly to  the least developed economies.  WT/TPR/M/324/Add.1 
 
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  HONG KONG, CHINA 
 The Common Regime Harmonisation (Services) 
(WT/TPR/S/324: Page 12 para 2.6) 
 1. The 2002 SACU Agreement is limited to the lib eralization of trade in goods. The Agreement 
does not establish provisions for trade in services. In 2012, SACU member States decided to make 
trade in services a priority area in the Union's work programme. Work in this area is still at infancy stage.  
Question 1 
Further to making trade in services a priority area in the Union's work programme, have there been further actions that the Union has adopted or is preparing to adopt across member States to 
enhance liberalisation of trade in services? 
 Answer 1 
The region has not yet agreed on a fixed timeframe, this will be guided by the 
preliminary assessment on the scope and n eed for developing a legal framework. 
 Harmonisation (Value-added Tax) 
(WT/TPR/S/324: Page 28 para 3.31) 
2. The SACU agreement does not provide for ha rmonization of value-added tax (VAT). Each 
SACU country continues to set its own VAT. Differences are significant in respect of tax bases and 
rates, as well as in experience with VAT. 
 Question 2 
Are there any plans to harmonise VAT among member States? What are the 
considerations/difficulties that are preventing the SACU from harmonising their VAT?  Answer 2 
There are no plans to harmonise VAT within SACU Member States.  WT/TPR/M/324/Add.1 
 
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  KOREA, REPUBLIC OF 
 PART I: Questions Regarding the Secretariat Report 
 
Page 25 (Para 3.25) 
All tariff bindings are ad valorem, including lines to which specific, mixed, or formula duties apply. Therefore, the imposition of non-ad valorem duti es, including specific, mixed, and formula does 
not ensure compliance by the countries with their binding commitments (Table 3.5). Tariff quotas 
were included in the commitments made by South Africa and apply to imports of selected agricultural products.  
Question 1 
Tariff bindings by all SACU members are at ad valorem rates. The imposition of non-ad valorem rates on some tariff lines creates a risk of non- compliance by SACU Members with their individual 
tariff bindings, and the use of formula duties based on reference prices does not ensure conformity 
with obligations under the WTO Agreement on Customs Valuation. What measures does SACU intend to take to ensure its tariff regime is WTO compliant?  
Answer 1 
In consideration of applications for increases in the duty where the bound duty is an ad-
valorem duty, whilst the applied rate is in non-ad-valorem terms (formula or specific 
duties), the International Trade Administra tion Commission of South Africa (ITAC) 
calculates the ad-valorem equiva lent of the proposed applied du ty to ensure that it does 
not exceed the ad valorem bound rate.  WT/TPR/M/324/Add.1 
 
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  SINGAPORE 
 PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT II TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
 
Page 14 (Para 2.25)  
Question 1 
We note that SACU is negotiating a PTA with In dia. Does SACU have plans to negotiate trade 
agreements with other Asian countries?   
Answer 1 
SACU priority is to conclude current nego tiations prior to engaging in new trade 
negotiations.  
 
Page 12 (Para 2.6)  
Question 2  
We understand from the WTO Secretariat report that SACU member states decided in 2012 to make trade in services a priority area in the Union's work programme. Could SACU elaborate on the elements for trade in services in the work programme? 
 
Answer 2  
The region is yet to agree on the elements to be included in the work programme. 
 
_______________ 
 
 
 WT/TPR/M/324/Add.1 
 
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  ANNEX 1 
BOSTWANA - TPR RESPONSES TO QUESTIONS RECEIVED AFTER THE DEADLINE 
CHINA 
 
Annex 1-Botswana 
Page 57, Para 1.8 1.8 …nevertheless FDI flows have been volatile while portfolio investment has declined since 2009. 
 
Question 4  
What's the reason for the FDI volatility and decrease of indirect investment in Botswana?  
Answer   
FDI flows have to a larger extent mirrored the movement of investment flows across the world. In this regard, Botswana has not be en spared by the recent global economic 
crisis thus affecting the levels of invest ment into the country. However, with the 
relocation of the diamond aggregation from  London to Botswana, there has been an 
increase in investment part icularly from diamond cutting  and polishing as well as 
jewellery manufacturing entities. 
Page 65, Para 2.21 2.21 The citizen reservation requirements affect foreign investors' decisions, as they are perceived to be discriminatory and non-transparent especial ly if reservations are not well defined and/or 
change often. 
 Question 5  
Does the government of Botswana have a plan for improving the business environment? If so, 
please provide details.  
Answer  
The Government has been reviewing its inte rnal processes and has developed the Doing 
Business Reform Roadmap that was adopted in 2015. The Roadmap aims to improve all the administrative and regulatory framework as  well as institutional structures that are 
an impediment to the ease of doing business. 
 Page 66, Para 2.26 
2.26. Land in Botswana is divided into three categories (freehold, state and tribal). Land, no 
matter its category, can be put to any use. Freehold land, which amounts to 3% of Botswana's land area, is the only type of land…. The Government has set aside land for investors. 
 
Question 6  
How does the government of Botswana choose the land to be set aside? Is reserved land limited in some regions only? What procedures do foreign investors need to complete to lease the land?  
 
Answer  
Land is set aside for investment based on government priorities and advice by the 
competent authority responsible for investment facilitation. Land is reserved all over the 
country where there is po tential for investment. 
Both foreign and domestic investors need to apply for land through Botswana 
Investment Trade Centre, Ministry of Agri culture and other investment facilitating 
agencies. Land applications are to be  accompanied by business proposals. 
 Page 85, Para 3.92 
3.92. …In accordance with the Competition Law, a Competition Authority was established to 
implement the Competition Policy and enforce the Ac t. The Competition Authority is responsible for 
preventing anticompetitive practices in the economy, even in areas where there is another 
regulator such as the Civil Aviation Authority, the Botswana Communications Regulatory Authority 
(BOCRA), the Non-banking Financial Institution Re gulatory Authorities (in charge of non-banking 
financial institutions), and the Bank of Botswana (financial institutions). These institutions have WT/TPR/M/324/Add.1 
 
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  memoranda of understanding (MoUs) with the Comp etition Authority and the Act provides for the 
establishment of a consultation mechanism between the Authority and sector regulators.  Question 7  
Please introduce the specific measures for consul tation and coordination between the Competition 
Authority and sector regulators regarding the regulation of enterprises.  
 
Answer: 
Competition Act mandates the Competition Au thority (CA) and sector regulators to 
establish a mechanism through which they can have regular contact. The CA has signed 
MoUs with sector regulators which provid e for the establishment of Joint Working 
Committees (JWCs) made of re presentatives from the Author ity and the regulators. The 
JWCs meet regularly to assess the effectivene ss of the MoUs in facilitating cooperation 
between the partners and also to identify opportunities for joint initiatives aimed at 
addressing anti-competitive behaviour in the sectors. WT/TPR/M/324/Add.1 
 
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  HONG KONG, CHINA 
 Trade Policies and Practices by Measure  
State-owned Enterprises and Privatization 
(WT/TPR/S/324: Page 87 para 3.101; Page 90 para 3.106) 
1. The Privatization Master Plan II has the main objective of identifying services and public enterprises that are suitable for privatization. 
 Question Could Botswana advise the considerations/criteria taken into account in identifying the services 
and public enterprises suitable for privatization? 
 Answer : 
The process of identifying public enterprise s as candidates for privatisation for the 
Privatisation Master Plan II is two-fold. Th e first stage involved the review of the 
performance of the parastatal s, while the second stage involved the assessment of the 
desirability and feasibility for privatisation of  the public enterprises and the results were 
graded against the Privatisation Decision Grid.  (WT/TPR/S/324: Page 88 para 3.102) 
Foreign participation in privatization is encouraged and any restrictions on foreign ownership are to be decided on a case by-case basis.  
Question 
Could Botswana explain the considerations behind the case-by-case decisions, and give examples on restrictions on foreign ownership? Are the restrictions industry/sector specific?  
 
Answer : 
The Desirability Criterion asse sses whether there is relative  advantage or disadvantage 
that the private sector has over Government  in providing a particular service. Key 
factors to be considered include: 
a) Whether the private sector will have relative advantage over Government in 
 improving  delivery of goods and serv ices (efficiency and productivity); 
 Whether there will be creation of opport unities or prospects for citizen economic 
 empowerment; b) Whether Government's social and develo pmental objectives will continue to be 
 delivered; and 
c) Whether Government will have adequate returns from the priv atisation and/or be 
relieved of the financial.  
 
The Feasibility Criterion is dete rmined by the ease of privat isation and the attractiveness 
of the activity to the private sector. Key factors to be considered include whether: 
 the parastatal is (still) profitable; 
 there is a competitive market position and growth potential; 
 there is investor appeti te for such a PE; and 
 there are any necessary sector reforms, le gislative changes and  PE restructuring 
to support PEs divestiture. 
 THE PRIVATISATION DECISION GRID 
 
The grid divides privatisation candidates into  four categories based on the feasibility and 
desirability criteria as shown below: WT/TPR/M/324/Add.1 
 
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  14Privatisation Decision Grid
Not desirable under current 
conditions and not 
immediately feasible
(D)Desirable under current 
conditions but not 
immediately feasible
(B)Desirable under current 
conditions and immediately 
feasible
(A)Feasible but not desirable 
under current conditions 
(C)
DesirabilityFeasibility
 
 
The four grid categories are: Quadrant A: Divest/Contract Out; Quadrant B: Restructure prior to Divestiture; Quadrant  C: Commercialise and corpor atisation; and Quadrant D: 
Monitor Performance. 
Regarding services, the Government is current ly implementing the first tranche of the 
Public Services Outsourcing Programme (PSOP) that was approved in February 2011. The first tranche of activities under the pr ogramme involves the mandatory outsourcing 
of landscaping and gardening services while cleaning and security guarding services 
were optional. Outsourcing of services ther efore under the Privatis ation Master Plan II 
will focus on the second tranche of the PSOP. This will cover the outsourcing of 
gardening, cleaning and security services for government offices outside the 
government enclave. Other key outsourcing pr ojects, that are not under the PSOP, will 
also be implemented as and when iden tified and approved by Government. 
 
Telecommunications 
(WT/TPR/S/324: Page 115 para 4.75) 
 
1. According to the Secretariat's report, the Botswana government has started to privatise 
state-owned Botswana Telecommunications Corporation (BTC). The BTC was split into two wholly state-owned companies in 2012, namely the Bo tswana Telecommunications Corporation Ltd. 
(BTCL) and Botswana Fibre Networks Ltd. (BoFiN et). The Botswana government has planned to 
sell up to 49% of BTCL's shares through initial public offering (IPO) in end-2014, but the sale was postponed to the second half of 2015/16. BoFiNe t remains wholly state-owned but it "will be 
partially privatised in due course". 
 Question What are the factors leading to the postponement of the IPO for BTCL in end-2014? Has the launch 
of the IPO taken place yet? Would legal persons in Botswana with foreign capital be allowed to buy 
the shares of BTCL in the stock market? What factors have been considered in deciding the distribution of shares of BTCL? 
 
Answer : 
 The launch of the IPO for BTCL was postponed in 2014 due to the need to secure 
 funding for underwriting offer of subscrip tion as required by the Botswana Stock 
 Exchange. The underwriter has now been  identified and will follow rules and 
 procedures of the Stock Exchange.  Only Botswana citizens and 100% citizen owned companies can acquire the shares.  
 Mechanisms have been devised to ensure eq uitable and fair distribution of the share 
 amongst all eligible person s with caps to be set. 
 
What is the latest plan for the privatisation of BoFiNet? How will BoFiNet be privatised? 
 Answer :  
There are no plans to privatize Bofinet. WT/TPR/M/324/Add.1 
 
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  THE RUSSIAN FEDERATION 
 QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/324 ANNEX 1 - BOTSWANA) 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1.8 Sanitary and phytosanitary requirements 3.54 p 80 
 
In order to protect plant health, imports of plants and other plant-related material require an import permit and the importation of some plant pr oducts is prohibited. Import permits are issued 
by the Division of Plant Protection under the Department of Crop Production. Efforts to establish 
the National Plant Protection Organization (NPPO) have been undermined by resource constraints. 
Imports also require an original phytosanitary certificate issued in the country of origin. If the imported articles are not accompanied by the required documentation they are re-exported or 
destroyed. In addition, imported plants and plant products are subjected to inspection at approved 
ports of entry and may be disinfected and destroyed if necessary.  
Question 
What requirements and deadlines have been set up by the competent authorities for obtaining the 
certificates for Botswana origin products? Are there any additional grounds for refusals in obtaining an import permit other than those that are listed in the legislation?  
 
Answer  
To be issued a Phyto-sanitary certificate fo r Botswana originating product, the exporter 
has to meet the requirements of the impo rting country. There is no deadline for 
obtaining the certificates except that the ce rtificate must be produced at the time of 
crossing the border. Requirements are that the importer/exporter makes an application 
to Division of Plant Protection specifying name of product, quantity and source after 
which they are offered a Phyto-sanitary impo rt permit. The permit specifies conditions 
to be met before importation/exportation.   
3.55 p 80 
Disease prevention and control continues to be based on the Diseases of Animals Act of 1977 (as 
amended). As in the case of plants and plant products, any person who suspects or has reason to 
suspect that animals are affected by a disease needs to report it immediately, and as far as 
possible keep the animals separated. If an area is declared as infected no animals should be 
moved from or into that area, without being previously disinfected and granted a written 
permission from a veterinary officer. The Director of Veterinary Services is required to issue an 
import (export) permit for any animal, animal product, or other pathogenic agent capable of causing diseases in animals. In addition Botswana applies strict controls at the borders including, inter alia , quarantine, testing and inoculation of suspected animals. As part of the disease control 
strategy, the country is divided into fenced-off control zones. These are: the OIE-recognized FMD-
free area (no buffalo may enter) and the livestock free areas (no livestock may enter). The principle is to separate livestock and buffalo, vaccinate cattle at risk and keep them separate from 
OIE-recognized FMD-free cattle. The movement of an imals is also controlled. There are quarantine 
points for the movement of animals.  
Question 
Please specify from what and to what particular zones free of domestic animals dangerous 
diseases could the susceptible livestock be exported and imported. What is the origin of the breed cattle? Please explain the ways to control the spread of the bovine spongiform  encephalopathy ? 
What are the import requirements for the pedigree cattle? What are the priorities for the 
importation (dairy products , meat products, etc.)?  
 
Answer  
Movement of animals between zones, import ation and exportation of livestock can be 
done to and from any zone subject to a written permit from the Department of 
Veterinary Services. In cases of outbreaks movement, exportation and importation can 
be prohibited until such a time when it is  deemed safe to allow for movement. Breed 
cattle are of different origins. Spongiform en cephalopathy is controlled like other animal 
diseases by constant monitoring for the disease, separating suspected animals and 
ensuring that there is controlled movement  of animals from the affected zones.  WT/TPR/M/324/Add.1 
 
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  The import requirements for the pedigree ca ttle are the sanitary certificates from the 
originating country.  3.56.  p 80 
Botswana does not have regulations on biotechnology or genetically modified organisms. 
 Question 
Please describe the current regulations regarding the GMO products circulation in Botswana? Is there a specific reason for the absence of a regulation act? Is there an intention for developing such regulation later?  
 
Answer  
There are currently no regulations regarding GMO products. However, Botswana is 
currently developing a Biosafety Act which will guide the use of GMOs. 
 
3.2 Measures Directly Affecting Exports 3.2.1 Export procedures and requirements 
3.57 p 80 
 Exporters, like importers, need to register as a business or a company under the Company Act, and obtain a trading licence under the Trade Act (for registered businesses or companies); while 
individuals need a hawker's/street vendor licenc e prior to engaging in any commercial activity 
(Section 2).  
Question 
Please provide information on the body responsible for licensing.  During what time period should 
the licensing committee consider the appeal to obtain a trading license?  Article 12 of the Trade Act 
provides the general refusal grounds for obtaining a license. Are there any special grounds for such 
refusals? Is there any possibility of an electronic application submission?  
 Answer   
Licensing function in Botswana is delegate d to Local Authoritie s. The Trade Act and 
Industrial Development Act provide for recour se in cases of grievance with a Licensing 
Committee's decisions. Appeals to the Regi onal Appeals Board are to be submitted 
within 30 days of notification of the decision.  
Under e-Gov, Government in tends to automate all services including licensing. 
 
3.2.3 Export prohibitions, restrictions, and licensing 
3.64 p 81  Export permits issued by the Department of Agribusiness Promotion at the Ministry of Agriculture 
are required for the following products: animal f eed for poultry and livestock, sorghum grains and 
sorghum products, maize grain and maize products, millet grains and millet products, wheat grain and wheat products, pulses (castor beans and groundnuts), sunflower seed and basic foods and 
vegetables not exceeding a specific quantity stipulated by law. Permits are issued to a holder of a 
valid trading licence, who could either be a citizen of Botswana, a resident foreign national or a company or firm registered and carrying on business in Botswana. Permit applications must be 
accompanied by the trading licence and certificate of incorporation; and a sanitary and 
phytosanitary permit and/or Botswana Bu reau of Standards (BOBS) Certificate. 
 Question 
Please clarify the rationale behind the introduction of export restrictions for agricultural goods, for example for cattle.  
 
Answer  
Rationale for export restrictions are due to food security concerns. Botswana applies the 
restrictions to guard against seasonal shorta ges. An export restriction on live cattle is 
mainly due to economic reasons. 
 WT/TPR/M/324/Add.1 
 
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  SINGAPORE 
 Trade and Investment Policies 
 
Annex 1, Page 65 (Para 2.21) 
 
The WTO Secretariat Report mentions that foreign investment in Botswana is already regulated by 
an array of laws. We also understand that Botswana is in the process of developing an Investment 
Facilitation Law. How would the new law consolidat e and streamline existing acts, and when is the 
law expected to be passed?   
Answer   
The development of Botswana Investment Facilit ation Law is still at its initial stage. The 
Government is working in partnership wi th UNCTAD to identify ways in which 
investment laws could be co nsolidated or streamlined. 
  WT/TPR/M/324/Add.1 
 
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  THAILAND 
 QUESTIONS REGARDING THE SOUTHERN AFRICAN CUSTOMS UNION REPORT 
 
3.1 Trade Policies and Strategies 
Page 7 (Paragraph 3.2 ) 
 
Question 1 
What kind of businesses that are eligible and given priority for trade and investment schemes of BITC?  
 
Answer   
In line with government's initiative of dive rsifying the economy, BITC has designated 
the following sectors as prio rity sectors for investment: 
 • Agriculture & Agro-processing; 
• Mining and Resource beneficiation; 
• Manufacturing; • Financial and Business Services; • Business Process Outsourcing 
• Applied Information Communication Technology (ICT); 
• Transport, Cargo and Logistics; • Hospitality & Tourism; 
• Education & Skills development; and 
• Health Care Services.  
 
Question 2 
In addition, Thailand can possibly get the bene fit from the Special Economic Zones (SEZ) in 
Botswana. What are the incentives that FDI can get from SEZ?   
Answer  
Currently, the government is offering the following incentives for companies operating 
in Botswana: 
 No foreign exchange controls; 
 Remittances and full repatriation of  profits and dividends allowed; 
 15 % for Manufacturing, Financial services  companies & companies registered in 
the Innovation Hub (22% Corporate tax for other sectors); 
 Low personal income tax, maximum 25%;  
 12% Value Added Tax; 
 Possible tax holidays for a period of 5 – 10 years through the Development 
Approval Order dispensation; 
 Duty-free import of machinery and equipment for manufacturing purposes; 
 200% deductible Tax Allowance for Training costs; 
 IFSC certified companies are exempted  from Withholding Tax on interest; 
dividends, management fees and royaltie s paid to non-resident director; and 
 IFSC companies are also exempted from VAT and Capital gains tax. 
Plans are at an advanced stage to develop specific incentives for SEZs.  
  4.2 Agriculture Sector  
Page  9 (Paragraph 4.3 ) 
 
Question 3 
What is the Green box support? Does it in line with FTA of WTO  
regulation? Please clarify on this point. 
 
Answer 
Green box supports/ subsidies are those agricu ltural domestic supports considered to 
have no or atmost minimal di storting effects on trade or production. Green box supports 
can be used without limitation, if it complies with the criteria of Annex 2 of the AoA. 
These subsidies should be provided throug h publicly funded government programmes WT/TPR/M/324/Add.1 
 
- 80 - 
 
  and should not involve transfers from consum ers and should not result in price support 
to producers.  4.3.4 Tourism 
Page 124 (paragraph 4.116)  Question 1 
Thailand would like to seek more clarification on sub-sectors and activities of tourism and travel related services to be covered and any specific criteria or qualification that foreign investors need to abide by under the Ecotourism Certification System.  
Answer 
To be responsed to at a later stage, within the stipulated one month period. WT/TPR/M/324/Add.1 
 
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  BOSTWANA – OUTSTANDING RESPONSES 
THAILAND 
 4.3.4 Tourism 
Page 124 (paragraph 4.116)  Question 1 
Thailand would like to seek more clarification on sub-sectors and activities of tourism and travel related services to be covered and any specific criteria or qualification that foreign investors need to abide by under the Ecotourism Certification System  
Page 124 paragraph 4.116: The report mentions that the Botswana Tourism introduced an 
Ecotourism Certification System to encourage eco-friendly tourism products and services.  
 
Answer 1 
Ecotourism Certification is not compulsory , but voluntary with the aim to protect 
Botswana's precious resources to ensure that  natural and cultural heritage is enhanced, 
historic and archeological resour ces are protected and restored.  
 For operators to qualify for Ecotourism Certification they are required to develop, where possible, or adopt a code of conduct to guid e their operations and the following thematic 
areas should be an integral pa rt of the code of conduct; 
 Water Conservation: Conserve water through the uses of flow restrictions, low 
flush toilets & efficient kitchen equipment 
 Energy: Use alternative energy sources (sun & wind), 
 Biodiversity: Conduct conservation programs and support local conservation 
projects, 
 Manage waste and recycle:, Compost all bi odegradable materials including kitchen 
waste, 
 Distribute economic benefits of tourism to the community: More than 60% of the 
employees come from the lo cal community and region, 
 Marketing and promotions: Print all materi als on recycled paper using non – toxic 
ink, 
 Offer a complete ecotourism experience: Design and deliver quality environmental 
education programs,  
 Employ only trained guides and qualified St aff: Ensure that guides are adequately 
trained to provide a quality ecotourism experience, 
 Respect local and traditions cultures: Cooperate with Batswana cultural groups 
and respect their privacy, 
 Develop partnerships and distribute he code  of conduct: hire local entertainers and 
story tellers, introduce guests to the traditions and cultural heritage of the region 
through planned encounters with locals, and  
 Respect standards and guidelines: comply  with Botswana Tourism Organization 
Standards, and Implement the Ecotourism Best Practices. 
 
Accommodation: 
The Ecotourism Accommodation Standards ca n be applied to all facilities within 
Botswana that operate under the Depart ment of Tourism's A or B licenses i.e 
accommodation on fixed sites.  Travel/Activities: 
Ecotour standards can be applied to all oper ations within Botswana that operate under 
the Department of Tourism from  C-I i.e mobile safaris, travel agents, tour operators, 
water travel & activities, travel activi ties(cycling), and foreign based transfer 
companies. 
 The Ecotourism Certification is non-discrimi natory between local operators and foreign 
operators. 
  WT/TPR/M/324/Add.1 
 
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  Question 2 
Is this system part of larger sustainability program or plan? Please describe what sustainability 
measures or standards must be met to achieve the certification  
Answer 2 
The Ecotourism Certification System is part of the National Ecotou rism Strategy (2002). 
Operators must first be licensed to qualify for certification, and they should comply with 
all national (relevant) laws; i.e. Comp anies Act (2007), Environmental Impact 
Assessment Act (2011), Botswana Tourism Organization Act (2009), Tourism Act 
(2009), Public Health Regula tions (2008), Waste Management Act (1998) Wildlife and 
National Conservation and National Parks Act (1992), Town and Country Planning Act 
(1977) Control of Smoking Act (1992), and the Trade Act 2003, as well as meet the Code 
of Conduct guide.  
 WT/TPR/M/324/Add.1 
 
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  ANNEX 2 
LESOTHO - TPR RESPONSES TO QUESTIONS RECEIVED AFTER THE DEADLINE 
CHINA 
 
Annex 2- Lesotho 
Page 149, Para 1.18 1.18 During the period 2008-13, FDI increase d substantially, especially after 2010. In 
that year, investment rose to US$1.4 billion from about US$0.6 billion in 2009, mainly 
reflecting the rise in invest ment in the mining sector. 
 Question 8 
During the period under review, has the go vernment of Lesotho introduced relevant 
policies to encourage foreign investme nt? If so, please provide details. 
 
Response 
The Government has recently adopted the National Investment Policy. The objective of this policy 
is to promote investments in the country through an enabling environment with a view to grow the 
economy, create employment, alleviate pove rty and attain sustainable development.  
 Page 155, Para 2.22 2.22 During the period under review, Lesotho  also implemented the "One-Stop Business 
Facilitation Centre" (OBFC) to simplify and streamline business procedures and facilitate 
FDI…. it places a number of procedures under one roof.  
Question 9 
Please introduce detailed procedures.  
Response 
Detailed information is accessible on  OBFC's website: www.obfc.org.ls  WT/TPR/M/324/Add.1 
 
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  THE RUSSIAN FEDERATION 
 QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/324 ANNEX 2 – LESOTHO) 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 3.1.6 Import prohibitions, restrictions and licensing 
3.34 p 164 
 The permits are issued by different ministries and their requirements and duration vary depending on the product. They apply to imports from all co untries, except for clothing, tyres, vehicles and 
fuel where they apply only to imports from ex tra-SACU countries; and are in general automatic, 
except for instance in the case of agricultural pr oducts. Indeed, for milk, sugar, bread, meat, fresh 
fruit, fresh vegetables, pulses, beans, peas, red meat, poultry and eggs, permits are granted 
depending on the supply of locally produced go ods. Permits may be valid for one shipment 
(e.g. clothing, milk, dairy products and livestock) , one year (e.g. petroleum fuel, precious stones 
and alcoholic beverages), one month (e.g. sugar, bread, fresh fruit and vegetables) or three 
months (i.e. bank notes, gold securities or fo reign currency). Moreover, in most cases importers 
must hold a trading license (see Section 2.3.3) to apply for one of these import permits; exceptions were clothing, tyres, vehicles, milk, dairy products and bank notes, gold securities or foreign currency. 
 
Question 
Could you please clarify whether the permits are valid for one shipment only. Moreover, the TPR 
Report doesn't indicate the sanitary or phytosanitary certificate as one of the main documents. 
Could you please clarify whether the mentioned certificate is a mandatory requirement for an importer? 
 
Response For agricultural commodities (sugar, bread, meat, fresh fruits, fresh vegetables, pulses, 
beans, peas, red meat, poultry and eggs), im port permits are valid for a period of one 
month with an exception of dairy / milk wh ereby single entry consignment applies. For 
other commodities, it depends on an indivi dual importer to spread his/her shipment 
within the specific validity of an import pe rmit issued. SPS certificates are required for 
importation of all agricultural products. 
 3.1.9 Sanitary and phytosanitary requirements 
3.55 p 168 
Lesotho's national enquiry point for SPS measures is the Department of Livestock Services of the Ministry of Agriculture and Food Security. Lesotho has not submitted any notifications on SPS measures to the WTO, neither has it notified its national notification authority.  
 
Question 
Could you please provide the internet link where we could get acquainted with the Lesotho's 
phytosanitary requirements. 
 Response  
There is no internet link but the SPS Contact Point is: 
Ministry of Agriculture and Food Security P O Box 24 Maseru 100 
Tel: +266 22322741 
Email : seeisotabitha@yahoo.com  
 WT/TPR/M/324/Add.1 
 
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  ANNEX 3 
NAMIBIA - TPR RESPONSES TO QUESTIONS RECEIVED AFTER THE DEADLINE 
CHINA 
 
Annex 3- Namibia 
Page 213, Para 1.22 1.22 Encouraging domestic and foreign investment, and continuing efforts to implement policies to 
create a regulatory environment that fosters pr ivate sector development will enhance the business 
environment and promote competitiveness and investment, thereby facilitating development spill overs.  
Question 10 
Has the government of Namibia set specific goal s in promoting foreign investment? Are there any 
concrete measures to realize these goals?$ 
 
Answer The revised Investment Bill is geared to wards promoting both foreign and domestic 
investment. It is also geared towards havi ng a transparent invest ment regime and to 
provide an efficient dispute resolution mechanism involving investment. The Bill 
provides for matters on investment promot ion, admission, treatment and management. 
 
Page 260, Para 4.117 
4.117. In 2009-10, Namibia developed an Indust rial Upgrading and Modernization Programme 
(IUMP), drawing upon the knowledge and regional expertise developed during the formulation of 
the SADC IUMP. The goal of the programme is  to support the dynamics of upgrading and 
modernization of industries and related services, and to improve their competitiveness, growth, job creation and access to national, regional and international markets. Projects are only 
considered if they operate primarily in the following categories: agro-food processing; fish 
processing; pharmaceuticals and cosmetics manufacturing (including biodiversity-based products); and minerals beneficiation (metallic and non-metallic).  
Question 11 
It is known that the government of Namibia has developed Industrial Upgrading and Modernization 
Programme covering pharmaceuticals. Does this programme cover the industry of traditional 
Chinese medicine (TCM)? 
 Answer 
The programme targets to support all manufacturing activities using natural based 
ingredients irrespective of where they are sourced from, provided  that the companies 
meet the basic set criteria, which can be ob tained the Ministry of Industrialization, 
Trade and SME Development 
 
Page 261, Para 4.119 4.119Where an investor wishes to establish a new manufacturing venture in Namibia, or relocate 
an existing operation to Namibia, a special tax package may be negotiated through the MITSD 
which makes recommendations to the Ministry of Finance.  
Question 12 
Are there any differences in the treatment for dome stic and foreign enterprises in this special tax 
package? If so, please provide details.  
Answer 
There is no difference in the treatment of do mestic and foreign enterprises in the special 
tax incentives package. All enterprises in Namibia that meet the requirements 
regardless of nationality qualify to  apply for special tax incentives. 
 WT/TPR/M/324/Add.1 
 
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  Page 261, Para 4.120 
4.120.According to the Namibian Manufacturers' Association, the incentives available to manufacturers and exporters of manufactured go ods are not sufficient. Manufacturers face a 
challenge obtaining "manufacturer status" from the relevant ministries. Firstly, the production 
processes currently employed by several industries – including fish and meat processing, textiles, 
pharmaceuticals and automotive industries – are not regarded as falling within the definition of manufacturing and therefore are not eligible for th ese incentives. Secondly, this status has to be 
granted by two Ministries (MITSD and MoF), thus  increasing bureaucracy and red tape, and whose 
requirements reveal a tension between revenue protection and enhancing manufacturing activities.  Question 13 
What are the concrete standards for issuing "manufacturer status" by related ministries? What production process has to be employed by TCM ente rprises in order to comply within the definition 
of manufacturing, thus obtaining the "manufacturer status"? 
 
Answer Criteria for Selection of granting Manufacturing status: 
For the company to be considered for manufactu ring incentives, it needs to comply with 
the following:  Firstly the company should be classified  as manufacturer under the International 
 Standards Industrial Classification of all Economic Activities (ISIC).  
 Secondly, if indeed the company is classifi ed under manufacturing as stated above, 
 it should further meet the following re quirements as stipulated by Section 5 A 
 (Registration of companies as registered  manufacturers) of the Income Tax Act, 
 Act 24 of 1981, which states the following: 
  
(1) A company which conducts or intends to conduct a manufacturing activity and which 
requires to be recognised as a registered ma nufacturer in respect of that manufacturing 
activity for the purposes of this Act, may apply for registration to the Minister.  (2) An application for registration in terms of subsection (1) shall- 
(a) Be made in writing to the Minister; and 
(b) Be accompanied by such information or  documents as the Minister may require. 
 
(3) Upon receipt of an application in terms of  subsection (1), the Mi nister may register a 
company in respect of the manufacturing activi ty applied for if the Minister, acting with 
the concurrence of the Minister of Trad e and Industry, is satisfied that the 
manufacturing activity concerned - 
(a) Is or will be beneficial to the Namibian  economy by way of ne t employment creation, 
net value addition, replacement of import s or an increase in net exports; and 
(b) Represents or will represent an investme nt in a new manufacturing activity or a 
substantial expansion of an existing manufacturing activity. 
  Eligibility and Registration 
 Enterprises involved in manufacturing  
 Application to the Ministry of Indust rialization, Trade and SME Development 
(MITSD) 
 
The application is submitted to the MITSD, which conducts an inspection of the manufacturing facilities of the applicant. This  is to ensure that indeed the applicant is 
manufacturing the specific products mentione d. Based on the findings, the applicant is 
either recommended or not to the Ministry  of Finance (MoF) for consideration. MoF 
based on or the Ministry of MITSDs reco mmendation and their consideration will grant 
the manufacturing status to the applicant. 
 
Page 266, Para 4.146 4.146 The Banking Institutions Amendment Act, 2010 (Act No. 14 of 2010) amending the Banking 
Institutions Act, 1998 (Act No. 2 of 1998) includ es provisions…. to authorize foreign banking 
institutions to open branches in Namibia…  Question 14 
In addition to setting up branches, can foreign banking institutions invest in other forms in WT/TPR/M/324/Add.1 
 
- 87 - 
 
  Namibia? 
 Answer Yes they can for as long as such institut ions observe the requirements set out in 
regulatory frameworks of those sectors.  
 Page 26, Para 3.9 
1.50Secondly, the NDP4 focuses on foundation issues: without these foundations, other efforts are 
not likely to succeed. Such issues include – making Namibia the preferred investment location in Africa.  
Question 24 
Please introduce the objective and specific measures for improving the Namibian investment 
environment. 
 
Answer The revision of the Investment Act is one of  the measures aimed at improving Namibia's 
investment environment. The revision aims at creating a more favourable environment 
for domestic and foreign investment. The Namibian Investment Centre has also 
embarked on a study to review Namibia's Inve stment Incentives Regime with the aim of 
improving the competitiveness of the incent ives offered to both local and foreign 
investors, leading to a more  attractive and competitive investment environment. The 
Ministry of Industrialisation, Trade an d SME Development has re-strategized its 
investment promotion activities to encour age and target investments to Namibia's 
priority areas which also include joint vent ures and partnerships with Namibians, as 
well as to ensure that investments have a broader development impact.  
To improve the investment environment, Na mibia has to improve her ease of doing 
business. The reduction in cost of starti ng-up a business can be achieved through 
enhanced policy coordination amongst all the various regulators. The Ministry undertook 
consultations with World Bank experts in this  regard. The Ministry has also established a 
Business and Intellectual Proper ty Authority (BIPA) to impr ove service delivery and the 
effective administration of business and inte llectual property rights registration by 
serving as a single window. This process is viewed as an effective business registration 
and licensing tool which is crucial as it fa cilitates and increases the rate of business 
establishment, investments and growth of existing enterprises.  WT/TPR/M/324/Add.1 
 
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  HONG KONG, CHINA 
 (WT/TPR/S/324: Page 233 para 3.96) 5. The SOE Governance Council must submit a proposed plan for the restructuring of any 
provisionally identified SOEs to the Cabinet for determination. No privatization of SOEs has taken 
place since 2008, nor is any planned at this time.  
Question 
Could Namibia advise further the functions of the SOE Governance Council? Is there any particular 
reason why there has not been any privatization of SOEs since 2008?   
Answer 
Some of the functions of the SOE Govern ance Council is to develop common policy 
frameworks, establish common principles of corporate governance and good practices 
for SOEs; to determine criteria for the performance management and evaluation of SOEs 
and develop appropriate means for monitoring their performance.  The Government of Namibia has recently estab lished a Ministry of Public Enterprises to 
monitor their performance and to make appropriate recommendations for restructuring, 
if deemed necessary.   Other Measures 
(WT/TPR/S/324: Page 208 para 1.10) 
 10. In 2011, the New Equitabl e Economic Empowerment Framework (NEEEF) was introduced in 
Parliament. The objective of NEEEF is to enco urage firms to bring previously disadvantaged 
Namibian shareholders on board, to train and promote them into senior management positions, to use procurement to stimulate more local busi nesses, and to promote the well-being of the 
communities in which they operate. Companies wanting to do business with Government or 
requiring licences from Government would have to be scored on each of NEEEF's five pillars, three 
of which are mandatory (ownership, management control and employment equity, and human resources and skills development).  
 
Question 
Could Namibia explain if this Framework covers firms with foreign investments and if it is 
applicable to some particular sectors or all sectors? Would there be any impact on foreign 
investments?  
Answer 
The NEEF is currently under review and th e new framework is yet to be adopted. 
 (WT/TPR/S/324: Page 231 para 3.81) 
11. Three facilities for the SME Financing Strategy have been proposed: a credit guarantee 
scheme designed to address the challenge of inadequate collateral; a catalytic first loss venture capital fund designed to finance the growth-ori ented SMEs; and a challenge fund, a theme-based 
risk-sharing facility that will address the needs of MSMEs in terms of non-financial services that 
will enhance their growth and development. The th ree facilities are currently under consideration. 
 
Question 
Could Namibia explain if the facilities would be available to SMEs with foreign investment? Are they 
sector specific or open to all sectors? Wh at does "theme-based risk-sharing" refer to? 
 
Answer 
The facilities are available to all SMEs regist ered in Namibia and it covers all sectors. 
Theme-based risk-sharing refers to the proce ss where the government aims to reduce or 
share in the risk of financing stakeholde rs/partners specific theme based financing 
facilities towards SMES .  
 
 WT/TPR/M/324/Add.1 
 
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  THE RUSSIAN FEDERATION 
 QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/324 ANNEX 3 - NAMIBIA) 
 
3.47 p 226 Animals may only be imported from countries fr ee from bovine spongiform encephalopathy (BSE) 
and foot-and-mouth disease (FMD) where vaccination is not practiced. In practice, live animals are 
usually only imported from South Africa or occa sionally Botswana. Veterinary staff based at the 
border are available 24 hours a day to verify compliance with import and export requirements. All shipments of animals or animal products are verified, even if an MRA is in place. Heavy fines (N$1 
million or imprisonment for a term not exceeding 20 years) are levied in the event of 
contravention or failure to comply, if found guilty in a court of law. In the event of an immediate risk of a disease being introduced or further spread in Namibia from another country, emergency 
restrictions may be put in place to prohibit imports. A health certificate is required for the 
exportation of animals, animal products and restricted material. A quarantine regime is operable in Namibia only for pets. 
 
Question 
According to the paragraph 3.47, fines (NAD 1 million) or imprisonment not exceeding 20 years are levied in the event of contravention or failure to comply  with import and export requirements, 
if an importer/exporter is found guilty in the court of law. What other such measures (guiding 
importers' liability) are provided for in the Namibian legislation?  
Answer 
Imports of animals and animal products co ntravening to the Animal Health Act are 
prohibited. In the event of illegal importations  the following provision of animal health 
act applies. 
 
 The court fine NAD 1 million or im prisonment not exceeding 20 years 
 The court fine NAD 1 million and im prisonment not exceeding 20 years 
 Animal or and animal products are dest royed or disposed without compensation 
and at the cost of the importer 
 WT/TPR/M/324/Add.1 
 
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  THAILAND 
 4.8 Participation in the Multilateral Trading System - WTO Page 33 (Paragraph 4.24) 
 
Question 6 
As a net food-import developing country, wh at kind of food does Namibia import?  
 
Answer  In broad terms, Namibia imports grains, ce reals, fruits and vegetables products.  
 
4.6 Manufacturing 
Page 260 (paragraph 4.114) 
 
Question 2 
Thailand has the expertise in construction sector, both domestic and foreign markets, while 
Namibia's policy is to be a distribution center of SACU and SADC. We would like to ask for 
information regarding major infrastructure projects of Namibia that Thailand can be a co-
developer.  Answer 
Such construction projects, once available,  are normally made available through print 
media for bidders to express their intere st. Government encourages business to 
business networking through the Chambers of Commerce and Investment Centre and 
through local representation in Namibia.  WT/TPR/M/324/Add.1 
 
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  NAMIBIA – OUTSTANDING RESPONSES 
EUROPEAN UNION 
 Question 2 
What is the current state of play and intentions  of the government regarding the legislation on 
public procurement given the above shor tcomings identified by the IPPRN? 
 
Answer 2 
The current system will shortly be phased out with the implementation of the recently adopted Public Procurement Bill. The organisa tional structure under the new system will 
have an oversight body as well as a Revi ew Panel for the review of complaints. 
Transparency, accountability, fairness, integrity, value for money, efficiency and 
effectiveness will be enhanced as the proc urement processes under the new law will be 
in accordance with international best pr actices. The procurement system across the 
public sector will be harmonized as all pu blic entities will be required to perform 
procurement activities in full compliance with  the law using standard bidding documents 
and compliance will be monitored. The oversigh t body will also have the responsibility to 
plan and implement capacity building strategi es and to submit an annual report on the 
functioning of the procurement sy stem to the Minister to be tabled in Parliament. A copy 
of the adopted Bill will be posted on the Ministry's website as soon as available.  WT/TPR/M/324/Add.1 
 
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  SWITZERLAND 
 Question 9 
Para 3.63 states inter alia that an export tax of 10% is collected on unprocessed diamonds. What 
is the purpose of such a tax and how are these funds used? 
 Answer 9 
The Minerals Act, Act (Section 114 (1) (a) ma kes provisions for the payment of royalties 
(!))> This is basically a form of rent, beca use the Mineral resources of the country are 
all vested in the state. This Royalty is also  reiterated in the Diamond Act UNDER Section 
62, but the it is called "Export Duty", but it is essentially the same thing as the Royalty 
referred to in the Minerals Act. These are pa id to the Mining Commissioners office minus 
cost of Sales. The Office of the Mining Commissioner has a pay point as Authorised by the Treasury Department of the Ministry of  Finance. All moneys are credited to a 
Ministry of Finance Account. WT/TPR/M/324/Add.1 
 
- 93 - 
 
  UNITED STATES 
 Question 3 
Please provide some context for the declining catches. Is this domestic over-exploitation or are 
there issues with illegal, unreported or  unregulated fishing in Namibia's EEZ? 
 Answer 3 
Answer-Page 247 paragraph 4.41 
It should be noted that the overfishing wh ich happened before Namibian's independent 
made more harm to our fisheries resources. Most of the fish stocks in the Namibian 
water had collapsed before 1990 that is wh y relevant policies, laws, strategies and 
management system were identified and adopted to start rebuilding the fisheries 
resources. Naturally as we a ll know fisheries resources take  long to recover and as we 
speak the Namibian fisheries resource s are in the recovering process.  
It is therefore important to understand that the poor catches which are experienced it is 
not because of the overfishing but rather  changes in the climatic condition.  
 
Question 4 
When are the updates anticipated to be final?  
Will these updates include measures to recover or more sustainably utilize Namibia's marine fisheries?  
Does Namibia intend to ratify and implement the Port State Measures Agreement?  
Page 249 paragraph4.41  
Answer 4 
 The process of reviewing Policies and lega l frame works do take time because of 
the consultation required with all stakeholders. The Ministry is anticipating that 
by the end of 2017 the process might be completed. 
 Measures to recover and sustainable utilis ation have always been part of our 
Policies and legal framework as they are developed or drawn up in accordance 
with the FAO CODE of Conduct for Responsible Fisheries and the United Nation 
Law of the Sea UNCLOS. The review of policies and legal framework focuses on 
ensuring fish stock sustainability while at the same time pr omote value addition 
and socio-economic contribution of fish eries and aquatic resources to Namibia's 
economy. 
 Question 5 
Page 248 paragraph 4.44: The report notes that Namibia's Strategic Plan would be active from 
2009-14—has Namibia developed a new Strategic Plan for 2015 to 2020? If so, please outline.  ‐ Will the objectives include sustainable management of marine fisheries?  
Page 248 Paragraph 4.44 
 
Answer 5 The Ministry of Fisheries and Marine Resource s has a Strategic Plan which is active from 
2012 to 2017. The main focus of this strategi c plan is to sustain Namibia's international 
acclaimed image in fisheries resources manage ment, while ensuring that set targets for 
biomass levels of different species are achiev ed. The plan also provides for the inclusion 
of environmental impacts due to climate chan ges in fisheries resour ces, while providing 
for continuous scientific research and acti vities such as the ecosystem approach to 
fisheries to support resour ce management efforts.  
This strategic plan is concerned with the so cio-economic aspects of fisheries activities 
such as their contribution to employment cr eation, to food security and to the overall 
national economy. It also addresses issues such as value addition, market and product 
diversification, external economic factors,  and International agreements, all of which 
have the potential to significantly influe nce the growth of the fisheries sector. 
 Question 6 
Page 248 paragraph 4.45: The report states that MFMR sets a total allowable catch (TAC) annually 
for all major or commercial fisheries with the objective of managing resources sustainably and 
preventing overexploitation of Namibian fish stoc ks. Please clarify and expand on the actions that 
the government is taking to ensure that the total allowable catch conforms to the allowable 
biological catch.  WT/TPR/M/324/Add.1 
 
- 94 - 
 
  Answer 6 
Answer-Page 248 Paragraph 4.45 Since 1992 our laws (Acts) have been maki ng provisions for the establishment of the 
Marine Resources Advisory Council. The Act al so made provision for appointment of the 
members of that council in terms of number an d from which institutions of the society 
they should be drawn. It is important to  note that the appointment of the council 
members has been done in accordance with the Marine Resources Act, Act No.27 of 
2000. It should be noted that Namibia has not detected any commercial interests among 
the Advisory Council Members ever since it came  to force. Namibia always set TACs that 
conforms to the recommended TAC of the scientists.  
Question 7 
‐ Please provide more information on the policies, incentives and management procedures or 
assistance programs in the Namibian fishing industry.  
‐ Is the Namibian government taking steps to address the inefficiency and discipline harmful 
over-capacity? If so, please explain.  
‐ Of the 18 notifications that Namibia made to th e WTO (noted in paragraph 2.15 on page 216), 
did Namibia make any notifications for assistance programs to marine capture fisheries? Please 
detail if so.  
 Answer 7 
There is no change in the management of Hake fishery. The same management 
measures have been in place, since the fishery Department under the Ministry of 
Agriculture became a stand-alone Minist ry. The Policy of Namibianization was 
introduced first in a Policy document entitl ed "The White Paper", which was adopted at 
the end of 1991. The policy of Namibianization is for the whole fisheries sector and not 
only meant for hake fishery. Knowing where we were coming from the policy aimed to 
rebuild the fisheries stocks (which were over fished by the international distance water 
fleet because of the open access, which wa s administered by then the South Africa 
Apartheid regime); and develop a Namibian  Fishing Industry. In 1994 the long-term 
rights were introduced and the process and th e terms of granting fishing rights remain 
the same. The right holders' term of fishing right do come to an end and companies do 
leave the industry unless they meet the cond itions attached to those terms then their 
terms can be extended.  
The vessel quota system was introduced in 1994 in the hake fishery but did not live long 
as it was based on the vessel capacity which if  the vessel is big in terms of holding it 
required more quota. In 1995 a pro rata quot a allocation system was introduced and it 
is still in force today.  
 WT/TPR/M/324/Add.1 
 
- 95 - 
 
  ANNEX 4 
SOUTH AFRICA – TPR RESPONSES TO QUESTIONS RECEIVED AFTER THE DEADLINE 
CHINA 
 
Page 17, Para 2.45 
2.45. During the transition period, a "market access regulation" (in place until October 2016) will regulate trade between the EU and BLNS, while th e TDCA will continue to govern trade between 
the EU and South Africa. 
 Question 2 
Please introduce in detail the "market a ccess regulation" between the EU and BLNS. 
SACU members have signed multiple regional and bilateral free trade agreements, therefore 
subject their trade partners to different acce ss conditions to the SACU market. How do SACU 
members address the uncertainty in implementing the obligations of different agreements under 
such circumstances?  
 Answer 
SACU shares a common external tariff and th erefore any imports into the customs union 
are subjected to similar tariff treatment across SACU Member countries. The TDCA between South Africa and the EU was signed prior to the review of the SACU Agreement 
2002 which introduced the Common Negotiatin g Mechanism. Thus, whilst all imports 
from the EU are subjected to the above SACU  common eternal tariff, BLNS did not have 
access to benefits conferred by the TDCA. BLNS however ha ve access into the EU under 
its GSP schemes, including as covered under the EU market access regulation. Thus, the 
market access regulation referred to in the qu estion is rather an EU initiative affecting 
only exports to the EU from BLNS, until such time that the recently concluded Economic 
Partnership Agreement between SACU and the EU enters into force.  
 
Annex 4-South Africa Page 295, Para 2.15 2.15. On 1 November 2013, the authorities publ ished, for public comment, the Promotion and 
Protection of Investment Bill. 
 Question 15 
Except for those introduced at the end of this section, are there any contents of encouraging 
foreign investment in this bill? If so, please provide details.  
Answer 
There is no language or section in the draf t bill that makes specific reference to the 
issue of promotion. It is however understood that the protection that is contained will 
provide the necessary assurance to current  investors which will encourage them to 
increase their investments in the Repub lic. Such protection will further promote 
confidence among potential or new invest ors that may want to establish business 
operations in the Republic.   
 
Page 337, Para 4.97 4.97 The APDP has four key elements: (a) tariff measures, i.e. stable import tariffs set at 25% for 
completely built up vehicles (CBVs) and 20% for components used by vehicle assemblers; (b) a 
local assembly allowance (LAA); (c) production incentives (PI); and (d) an Automotive Investment Scheme (AIS). The LAA allows vehicle manufacturers with a plant volume of at least 50,000 units per annum to import a percentage of their componen ts duty-free. The PI consists in an allowance 
for duty-free imports of vehicles or components, calculated as a percentage of manufacturing 
value addition (MVA) in South Africa's supply chai n. The AIS provides for a non-taxable cash grant 
of 25% of the value of qualifying investment in  productive assets by component manufactures and 
tooling companies. An additional a non-taxable ca sh grant of 5 to 10% may be made available for 
projects that meet a list of economic benefit criteria.  WT/TPR/M/324/Add.1 
 
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  Question 19 
Please explain the basis for setting the above-mentioned respective subsidy standard in car 
manufacturing industry.  
Answer 
The process of designing a specific suppo rt mechanism involves the following key 
activities, amongst others; 
1. Global assessment and evaluation of the industry including comparative analysis of 
related issues, 
2. Local economic assessment of the industry and related variables,  
3. Setting a vision, objectives and direction for the local industry, 
4. Alignment of the vision to a set of levers based on resource availability. 
 Following on this inclusive process (includes consultation with key industry 
stakeholders such as the private sector an d labour), a specific support program is 
designed and implemented.  
South Africa 
Page 38, Para 3.7 3.7 To reach this vision, the NDP sets long-term targets for investment, growth and employment creation, and provides a holistic plan for reachi ng these targets, drawing on other policies and 
programmes. 
 Question 25 
Please provide details of investment targets in NDP.  Answer 
The Medium Terms Strategy Framework (MTSF)  targets include increasing investment 
rate to 25% of GDP.  Question 30 
According to Art.28 of the SACU Agreement, Botswana and other members agreed to harmonize product standards and technical regulations. Do SACU member countries have a common policy on these issues? Could you give some examples of concrete measures taken to this end? Could you 
give an update on the progress in harmonizin g customs procedures, standards, sanitary and 
phytosanitary measures, and in competition and counter-unfair trade practices since the last review? 
 
Import and export regulations and requirements are not fully harmonized. The transit procedures 
(domestic and external) and securities (bond/guarantee) requirements differ within the five Member States. Procedures related to manageme nt of customs warehouses (bonded warehouses, 
manufacturing warehouses and storage warehouses) are also not fully harmonized.  
 The regional work towards harmonization of cust oms procedures is ongoing. Thus far, progress 
recorded include introduction of the Single Administrative Declaration (SAD) form and it is used as 
a common customs declaration in SACU. With the advent of modernization of customs systems, 
processes and procedures, an electronic version is implemented respectively at a national level as 
part of automation process. Work is underway to harmonize procedures for import and export data 
exchange with the objective of strengthening cooperation and improving trade data matching 
process.   
 
SACU Member States are using the SAD 500 document  for import and export procedures. There is 
no requirement to have identical documentation..  
 
The harmonization of SPS measures is done on the level of the Southern African Development Community (SADC). 
 WT/TPR/M/324/Add.1 
 
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  JAPAN 
 INTERNATIONAL ARRANGEMENTS AND TRADE NEGOTIATIONS 5.1 The Economic Partnership Agreement (EPA) 
 
(Question 1: Page 39 and 40, Paragraph 5.1-5.3)  It is widely recognized that ensuring the effectiveness of the SADC Free Trade Area (SADC FTA) is 
a crucial task for South Africa to establish its position as the regional hub of production and 
logistics in Southern Africa. On the other hand, in some SADC countries and regarding some products, tariff reduction based on the SADC FTA has not been effectively implemented yet. Please express the view of South African government on such a challenge concerning the SADC FTA 
implementation and possible concrete measures to improve such shortcomings promptly.  
 Answer 
South Africa strives to maintain the integrit y of the SADC Protocol on Trade as a rules-
based system for regional trade. South Africa  continues to work with the member states 
concerned (mainly Zimbabwe, and to a lesser  extent Malawi and Tanzania), both in 
SADC fora and bilaterally, to resolve the outstanding implementation issues. South 
Africa is concerned about the negative impa ct that non-compliance could have on the 
success of the current drive for regional indu strial development and building of regional 
value chains, and also on investor confidence  across the region. All of these are critical 
underpinnings for successful economic  development in the region.  
 The assertion above that South Africa aims to  "establish its position as the regional hub 
for production and logistics" is unfounded speculation. South Africa has consistently 
been advocating the need for regional indust rial development and diversification of the 
manufacturing base over recent years. The country fully supports the prioritization of 
industrial development, the recently adopte d SADC Industrialization Strategy, and the 
on-going work to develop an action plan in this regard.  
  
(Question 2: Page 39 and 40, Paragraph 5.1-5.3)  
It is widely acknowledged that a One Stop Bo rder Post (OSBP) among South Africa and its 
neighbouring countries is a salient initiative to expand regional trade. At the moment, it is 
understood that the Government of South Africa is preparing for the establishment of the Border 
Management Agency. In this context, please indicate the schedule and the timing of the 
establishment of a Border Management Agency. In addition, please specify the name of the 
Department which is in charge of trade faci litation measures including OSBP before the 
establishment of the Border Management Agency.  Answer 
The Border Management Agency (BMA) Bill wa s published in the Government Gazette for 
public comments, which were subsequent ly collated for cabinet's approval and 
submission to Parliament. This process is  still ongoing. The OSBP and the BMA are 
facilitated by the Departments of National  Treasury and Home Affairs respectively  
  
ANNEX 4 SOUTH AFRICA 
3 TRADE POLICIES AND PRACTICES BY MEASURE 3.1 Measures Directly Affecting Imports 3.1.3 Standards and Other Technical Requirements 
 
(Question 3: Page 302, Paragraph 3.28)  It is reported that the gap between imported electric products and locally produced electric 
products is not negligible in terms of the duration of respective administrative periods to obtain the 
Letter of Authority. Please specify the average du ration of period from the application to the 
issuance of the Letter of Authority in the case of  imported electric products and in the case of 
locally produced electric products, respectively. 
 Answer S e c t i o n  1 4  o f  t h e  N R C S  A c t ,  N o  5  o f  2 0 0 8 ,  s t a t e s  t h a t  n o  p e r s o n  m a y  i m p o r t ,  s e l l  o r  
supply a commodity, product or service to wh ich a compulsory specification applies, WT/TPR/M/324/Add.1 
 
- 98 - 
 
  except in accordance with the specification. The objective is to protect the South African 
consumer against unsafe products.  Processing of LoAs requires detailed attentio n especially on imports as the products are 
imported as finished goods, the complexity of the test reports coupled with incorrect 
and misrepresented information has necessita ted NRCS to become more rigorous in 
assessing the applications before approval is granted. 
 
The maximum turnaround time for issuance of Letters of Authority for both locally 
produced and imported products is 120 days. (Question 4: Page 302, Paragraph 3.28)  
It is considered that the spot check in the product retail market is effective to verify the actual 
compliance to regulations to achieve the fair market competition. Does the South African government have any plan to implement such pe riodical spot checks in the near future?  
 
Answer Periodical spot checks/inspections at retail outlets form part of the NRCS market 
surveillance and enforcement strategy which in cludes: inspection at source and retailer, 
sampling, sanctions, confiscation and destruction.   Inspection at source is still considered the most effective method of market surveillance 
as it identifies non-compliant products prio r to it been placed on the market, thus 
reducing the risk to the safety of the South African consumer.  
 
(Question 5: Page 302, Paragraph 3.28)  With regard to the initial registration of agrochemicals, it takes a long period of time for registering 
newly developed agrochemicals because of the long-lasting review process. It prevents South 
African farmers from using high quality agrochemicals to deal with harmful insects. How does your government see this situation?  
Answer 
Registration of agrochemicals takes about 14 months from the date of submission. This 
timeframe is in line with othe r countries for newly developed agrochemicals. We are of 
the view that the 14 months period is reason able to allow South African farmers to have 
access to new products.  
 
(Question 6: Page 302, Paragraph 3.28)  In the process of applying for initial registration of agrochemicals, especially the preparation of "summary of toxicity report" which is required to  be submitted for the review process takes long 
time. Could you specify the legal basis for requiring the submission of the report? We would be 
grateful if you could accept the original data of exporting countries instead of the summary.  
 
Answer 
South Africa relies on scientific data to support  registration. Original toxicological data is 
accepted to support the registration. Summary toxicity reports from the regulatory 
authorities and independent toxicologist(s) en able us to register the products to be 
registered quicker.   (Question 7: Page 302, Paragraph 3.28)  
Please explain the measures of any for shortening or simplifying the review period and process by 
the NRCS in the near future.  
Answer 
This maximum turnaround time was recently  reduced by the Minister as an interim 
measure, from 120 working days (effect ively 6 months) to 120 calendar days 
(effectively 4 months). 
 The NRCS is in the process of developing a risk-based approach to LoAs. The aim is to maximise its resource utilisation by calculating the risk of an application. The risk-based WT/TPR/M/324/Add.1 
 
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  approach will be used to determine risk le vels based on product, company and country 
of origin.  The target date for rolling out the risk ba sed approach is mid-2016 as it would be 
contained in regulations. 
  
3.3 Measures Affecting Production and Trade 
3.3.1 Incentives  (Question 8: Page 311, Paragraph3.77) 
In the article 6 of revised BBBEE (Act No.46 of 2013), the new paragraph "(e) determining criteria 
for the awarding of incentives, grants and inve stment schemes in support of broad-based black 
economic empowerment" which was added to the Ar ticle 10 of (Act 53 of 2003) seems unrelated 
to the rule pertaining to government procurement (previous Article 10 (1) (b) of Act 53 of 2003) 
which was regarded as part of the exception permitted under the paragraph 8 (a) in GATT Article 3. Rather, the revision appears to pertain to general rules of investment. Please explain the 
consistency of this revision with WTO rules on national treatment (Article 2 of WTO TRIMS). 
 Answer Section 6 of the Broad Based Black Econom ic Empowerment Act 2013 amends Section 10 
of the Broad Based Black Economic Empowe rment Act 2003 by providing that "every 
organ of state or public entity must take in to account and as far as possible, apply any 
relevant code of good practice in terms of this act in… "(e) determining criteria for the 
awarding of incentives, grants and investme nt schemes in support of broad-based black 
economic empowerment". Reference to investme nt schemes in paragraph (e) is made in 
the context of Government's procurement policy process and not in the context of 
establishment of business operation. The inve stment scheme referred to in paragraph 
(e) would therefore qualify as subsidy in terms of paragraph 8 (b) of GATT Article 3 
which allows for "payment of subsidies excl usively to domestic producers, including 
payments to domestic producers derived from the proceeds of internal taxes or charges 
applied consistently with the provisions of this Article and subsidies effected through 
governmental purchases of domestic products ". The investment scheme in question is 
therefore not a trade related investment measure but a procurement measure which 
falls under the exception in Article 8 (b) of GATT Article 3. 
 3.3.4 Public Procurement 
 
(Question 9: Page 318, Paragraph 3.110) Several cases have been reported where proposed programs were dismissed without substantial reasons. Japan is concerned about the operation of NIP. In order to ensure transparency, we 
request a mechanism to enable NIP obligators to request for disclosure of the rejection reasons 
and appeal against the correspondence and guidan ce from the NIPP Secretariat when necessary. 
Please explain the view of the government regard ing the possibility and necessity of developing 
such a mechanism to ensure transparency.  
 Answer 
The South African Constitution provides for fair administrative action and allows 
affected parties to approach the High Court in South Africa where they are of the view that the administrative process was not fair.  
 
4 TRADE POLICIES BY SECTOR  
(Question 14: Page 324) 
Please express the views of your government on  the background and policy reasoning of raising 
import tariffs on some steel products. 
 
Answer South Africa has made binding commitments on its tariffs. However, where there is 
policy space between the applied and the bound ra te, South Africa is entitled to use that 
policy space through a process of investigatio ns. The outcomes of these investigations WT/TPR/M/324/Add.1 
 
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  are made public through reports that are pub lished on the ITAC website. Report No: 505 
provide the details of the investigat ion covering some steel products. 
 (Question 15: Page 324) 
In terms of additional steel products under consideration for raising tariffs, kindly share the list of 
products as well as the envisaged process and schedule for consideration and implementation.  
Answer 
The list of steel products currently under cons ideration includes flat-rolled products of 
iron or non-alloy steel, semi-finished products  of iron or non- alloy steel, cold rolled 
products of iron or non-alloy steel, angles, shapes and sections of iron or non-alloy 
steel, bars and rods. The normal process for tariff investigations takes 6 months and the 
investigations are conducted within the relevant legislative framework. 
 
(Question 16: Page 324) 
If import tariffs of high-quality steel products which are not produced locally are raised, while other steel products falling under the same HS code, there is little effect of protecting the domestic 
steel industry in this light, but there are consid erable effects in terms of eradicating the global 
competitiveness of the downstream industry such as motor vehicles. Kindly indicate how your government is going to keep these cases to the minimum.  
Answer 
The rationale for amending tariffs on steel incl uding the high quality steel is contained in 
report No: 505, which is published on the ITAC website. 
 
 4.2 Mining and Energy 
4.2.1 Mining 
4.2.1.1 Overview  (Question 17: Page 331, Paragraph4.60) 
Is the draft amendment bill of the Mineral an d Petroleum Resources Development Act (MPRDA) 
under deliberation consistent with WTO rules particularly the Article 11.1 of GATT?  
Answer 
This bill is still under consideration and due co nsideration will be given to South Africa's 
WTO obligations in this process. 
 
 4.3 Manufacturing 4.3.1 Key Subsectors 
4.3.1.1 Automotive Industry 
 (Question 18: Page 336 and 337, Paragraph 4.96 and 4.97) 
Please reveal the policy objective and background to launch the review process of the APDP in 
2014. Please implicate the major changes to the current APDP as well as the time schedule of publication and implementa tion of those changes. 
 
Answer The APDP was announced in September 20 08 for implementation by January 2013. 
During 2008/ 2009 the world economy was hit by a financial crisis whose impact is still 
felt today and therefore it became necessary to evaluate whether the APDP's objectives 
would still be achieved under the prevailing economic enviro nment with a view to make 
amendments where appropriate such that th e most optimal economic benefits would 
still be realized. 
 The outcomes of this review will be published during November 2015 for 
implementation thereafter. 
 WT/TPR/M/324/Add.1 
 
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  (Question 19: Page 336 and 337, Paragraph 4.96 and 4.97) 
It is observed that the condition of assembling over 50,000 CBU units to enjoy the benefit of VAA (Volume Assembly Allowance) stands as an entry hurdle for potential new investors to assemble CBUs (completely built units), who would contribute to the expansion of the automotive industry in 
South Africa. Please explain the rationale to set such a condition despite such an observation. 
 Answer 
The idea behind setting a minimum volume th reshold was to steer the industry towards 
high volume production leading to provid ing better economies of scale for component 
suppliers.  
(Question 20: Page 336 and 337, Paragraph 4.96 and 4.97) 
The current APDP will be valid up to 2020. Does the South Africa government intend to keep supporting the automotive industry by policy ince ntives to the similar degree as it is, and what 
kinds of policy incentives are envisaged? Plea se also explain the policy planning process and 
schedule of the post-2020 policy framework.  
Answer 
The South African government intends to sustain an environment that supports the 
existence and growth of automotive production into the future through a variety of policy measures that will be developed at appropriate times. The publication of the 
outcomes of the recent APDP review should  provide a sense of direction and timelines 
for the development of a post 2020 policy framework.  
(Question 21: Page 336 and 337, Paragraph 4.96 and 4.97) 
Does the South African government have any intention/plan to develop a master plan of the national automotive industry in South Africa, to set the vision and the growth scenario which will 
guide all the relevant stakeholders and policy planning process? 
 Answer The South African government will continue to  work with key stakeh olders and partners 
in sustaining and growing the automotive indu stry as it is an important contributor to 
the local economy regarding investment , exports, employ ment and general 
development. 
 
(Question 22: Page 336 and 337, Paragraph 4.96 and 4.97) The APDP incentive earned by a car manufacturer, namely the Production Rebate Credit 
Certificate, is resalable to any other companies including pure importers of CBU (completely built 
unit). Please explain the rationale to allow the resa le of the APDP incentive to importers of CBU, 
which seems to contradict the intended policy objective to stimulate production in South Africa.  
Answer 
The APDP and its predecessor also sought to encourage competition in the market for the benefit of consumers. Thus those who ea rn the benefit will realize the value through 
selling the certificates, and thus share it with  importers otherwise they might fully lose 
that value if they have no duties to o ff-set with the earned rebate certificates. 
 
(Question 23: Page 336 and 337, Paragraph 4.96 and 4.97) 
While the APDP incentive is applicable to offset the import duty of CBUs by 100% of PRCC value, which has a secondary effect to reduce the ad valorem tax on CBUs, it is applicable to offset the import duty of components only by 80%. This could imply that the CBUs import is more rational 
and encouraged implicitly rather than the components import for local assembly. Please explain 
the rationale of the applicable percentage of the APDP incentive for offsetting import duty in the case of CBUs import and in the case of components import. 
 
Answer P R C C s  e a r n e d  o n  C B U s  o f f s e t  i m p o r t  d u t y  o n  C B U s  b y  1 0 0 % .  P R C C s  e a r n e d  o n  
Components offset import duty on Components by 100% but offset import duties on 
CBUs by 80%.  
 WT/TPR/M/324/Add.1 
 
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  KOREA, REPUBLIC OF 
 Page 317 (Para 3.107) 
 
In evaluating a tender, out of 100 points, governme nt agencies must allocate 90 to the reference 
price submitted by the tenderer. This is in line with what procurement seeks to achieve, namely 
getting best value for money. The 10 remaining points are allocated in respect of previously 
disadvantaged persons in accordance with th e Black Economic Empowerment (BEE) programme 
depending on ownership, management, and employment goals. Where the contract is below a prescribed threshold value (currently 1 million rand ), the preference system operates on the basis 
of 80/20 split. The award of preference points is  tied to a supplier's certified broad-based black 
economic empowerment (BBBEE) status in accordance with the Broad-Based Black Economic 
Empowerment Act. The higher the BBBEE rating of a supplier, the higher the number of preference 
points awarded. The regulations to the PPPFA give  guidance on how to calculate the points for 
price and categories of preference. The regulation s then require the tender to be awarded to the 
bidder that scores the highest number of points. Exemption from provisions of the PPPFA might be 
justified on grounds of public or national security interests..   
 
Question 2 
 For investors with plans to invest in South Africa, regulations on ownership and possible restriction 
from participation in the Government Procurement market as a result of the "Broad-Based Black 
Economic Empowerment (BBBEE)" policy have been identified as sources of major concern.  
In particular, it has been pointed out that BBBEE regulations are quite complex and are difficult to 
understand.  
1. Taking this into account, could South Africa clarify whether foreign companies are subject to 
more stringent restriction on ownership? 
 Answer 
The BBBEE regulations apply equally to  domestic and foreign companies. 
In terms the Broad-Based Black Economic  Empowerment (B-BBEE) Codes of Good 
Practice (the Codes), all enti ties operating in the South African economy are required to 
make a contribution towards the objectives of B-BBEE through compliance with the 
Codes including ownership. However, it is no ted that there may be multinationals that 
have global practices preventing them from  complying with the ownership element of 
the Codes through the traditional sale of shares  to black people (South Africans). In this 
instance, the Codes provide for an Equity Equivalent Investment Programme (EEIP) 
which the multinational corporation can cont ribute towards under Statement 103. Such 
contributions count towards the ownership el ement of B-BBEE made by multinational. 
The value of these EEIP contributions may be measured against 25% of the value of the 
multinational's South African operations or may be measured against 4% of the Total 
Revenue from its South African operations  annually over the period of continued 
measurement.  
 The EEIP must be approved by the Minister of  Trade and Industry in order to qualify for 
ownership points on the scorecard. Where a pproval for an EEIP has been granted, the 
programme and points awarded may not form part of any other B-BBEE element in the 
multinational's B-BBEE Scorecard. The multinat ional must still comply with the rest of 
the elements under the Codes. 
Further, a memorandum of agreement will be  entered into between the department and 
the multination in question regarding the administration and implementation of the EEIP.  
 
The multinational will submit pr ogress reports to the departme nt and site visits will be 
conducted as part of monitoring the progra mme. The Minister is able to withdraw the 
EEIP certificate at any point as a result of non-compliance. 
 The EEIP must focus on enterprise and supp lier development, research and development 
as well as critical and core skills. The ma ximum period for the EEIP is 10 years.  
 WT/TPR/M/324/Add.1 
 
- 103 - 
 
  However, local companies must comply with th e Codes or relevant Sector Code. There is 
no option of an EEIP.  In light of the above, it is clear that B-BBEE is not aimed at negatively affecting 
multinationals but to drive a developmen tal agenda and respond to government 
outcome 4 which is facilitate broad-based economic participation through targeted 
interventions to achieve more inclusive growth  as aligned to the National Growth Path, 
National Development Plan, and Industrial Policy Action Plan. 
 Ownership requirements are even flexible when  it comes to Multinationals as they have 
an option to be exempted from B-BBEE ownership through the EEIP provided they 
satisfy the EEIP requirement.  
 To date South Africa has received R1, 022 billion worth of investments from the 
following companies participating in the EEIP: 
• Hewlett Packard: R 93, 2m. • Microsoft SA: R 36, 2 m. 
• Turner & Townsend :R19,5m 
• Liebherr : R 18,2m. • Hansen Transmission SA: R 34,2m. • IBM SA: R 700m. 
• DELL SA: R 121m. 
 
2. In addition, could South Africa clarify whether companies which have received foreign 
investment will be denied access to the public procurement market?  
 Answer 
No company will be excluded from the publ ic procurement market based on foreign 
investment.  The public procurement process is a fair and transparent process. The Preferential 
Procurement Policy Framework Act (PPPFA), 2000 (Act No. 5 of 2000) governs public 
procurement.  
 
The PPPFA Regulations further provide rules and co nditions for organs of state in case of 
designated sectors where in the award of the tenders local production and content is of 
critical importance, to advertis e such tenders with specific tendering condition that only 
locally produced goods, services, works or lo cally manufactured goods, with a stipulated 
minimum threshold for local producti on and content will be considered. 
 
National Treasury will issue instructions, circ ulars and guidelines to all organs of state 
with specific reporting mechanisms to  ensure compliance with the above. 
 
The following sectors have been designated: 
 
Industry/sector/sub-sector Minimum threshold for local 
content 
Buses (Bus Body)  80% 
Textile, Clothing, Leather and Footwear 100% 
Steel Power Pylons, 
Monopole Pylons, Steel Substation Structures, Powerline Hardware, 
Street Light Steel Poles, 
Steel Lattice Towers  100% 
Canned / Processed Vegetables 80% 
Pharmaceutical Products:   
OSD Tender 
Family Planning Tender 70% (volumes) 
50% value 
Rail Rolling Stock 65% 
Set Top Boxes (STB) 30% 
Furniture Products:   WT/TPR/M/324/Add.1 
 
- 104 - 
 
  Industry/sector/sub-sector Minimum threshold for local 
content 
Office Furniture 
School Furniture 
Base and Mattress 85% 
100% 
90% 
Solar Water Heater Components 70% 
Electrical and telecom cables 90% 
Valves products and actuators  70% 
Residential Electricity Meter :   
Prepaid Electricity Meters 
Post Paid Electricity Meters  SMART Meters 70% 
70%  50%  
Working Vessels/Boats (All types): 60%  
Components 10% - 100%  
Conveyance Pipes  80% - 100%  
Transformers and Shunt Reactors:  
Class 0 
Class 1 
Class 4 
Components and conversion activities 90%  
70%  
10%  
50% - 100%  
 Other industries, sectors and sub-sectors ar e still being considered for designation. 
Once a thorough research and consultati ons have been concluded a decision to 
designate will be communicated to the public.  
 WT/TPR/M/324/Add.1 
 
- 105 - 
 
  THE RUSSIAN FEDERATION 
 QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/324 ANNEX 4 – SOUTH AFRICA) 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 3.1.7 Sanitary and phytosanitary requirements 
3.45 p 308 
 For meat products, additional import requirements set by the Directorate of Veterinary Public Health with respect to the slaughtering procedures  and abattoirs of the exporting country must be 
complied with. Permits for meat products may only be issued if they are imported from a place 
approved by the National Executive Officer by noti ce in the Gazette. Meat must be stored at an 
approved facility until the prescribed veterinary procedures are performed, and the meat is 
inspected, sampled, and/or tested. These procedures  vary according to the origin of the meat. The 
executive officer might in the "public interest" suspend or withdraw a permit, or impose new or additional conditions on a permit. 
 
 Question 1 
According to paragraph 3.45, the executive officer may in the 'public interest' suspend or withdraw 
a permit, or impose new or additional conditions on permit. This provision is not consistent with 
Article 2 of the SPS Agreement, as this SPS measure represents unjustified discrimination. Could you please comment on this measure?  
 
Answer The paragraph mentioned is consistent with Article 2 of the SPS Agreement. The basis 
on which the national executive officer ma y withdraw a permit, or impose new or 
additional conditions on permits will be base d on an assessment, as  appropriate to the 
circumstances, of the risks to human, animal or  plant life or health, which is equivalent 
to scientific justification which is provided for in Article 2(2). If there is a potential 
threat to the public related to a commodity to  be imported, the national executive officer 
will be in his right to implement preventative  measures to ensure the protection of the 
flora and fauna of the Re public of South Africa. 
 
 3.1.4.3 Genetically modified organisms (GMOs) 
 
3.47. p 308 In order to give effect to the 2000 Cartagena Biosafety Protocol, the Genetically Modified Organisms (GMO) Act was amended in 2006; and the Amendment Act, as well as related 
regulations came into operation in February 2010. The new legislation seeks to provide for the 
"responsible development, production, use and application of GMOs", as well as an "adequate level of protection" during all activities involving GMOs that may have an adverse impact on the 
conservation and sustainable use of biological diversity, and human and animal health. In addition, 
it seeks to ensure that, inter alia , GMOs do not present a hazard to the environment, and to 
establish appropriate procedures for the notification of specific activities involving the use of 
GMOs. 
 Question 
Please elaborate on the principles of the GMO sa fety. Whether the principle of equal security is 
used while evaluating the GMO products if the si gnificant human settings (size, nutritious etc.) for 
GMOs are the same with the ones for the non-modified organism predecessor.  
Answer 
 South Africa is a member of the Codex Alim entarius Commission, as a result it follows 
the Codex internationally recognised standard s, codes of practice, guidelines and other 
recommendations for the evaluation of the safe ty of food and feed derived from GMOs.  
 3.51. p 309 
Permit applications have to be submitted to the Registrar in hard and electronic formats.  WT/TPR/M/324/Add.1 
 
- 106 - 
 
  The application must include: 
 
 a scientifically based risk assessment; 
 proposed risk management measures; 
 a copy of the public notice as required under the GMO Regulations; and 
 an assessment of the impact of the proposed activity on the environment and the 
socio-economic benefits of the activity, if required by the Executive Council. 
 
Question 
It is mentioned in paragraph 3.51. that a scientifi cally based risk assessment is required in order 
to submit an application for activities involving GMOs. Could you please clarify whether the 
assessment is carried out by private entities or by competent authority? 
 Answer 
The GMO Act makes provision for the appointment of an Advisory committee. The 
Advisory Committee (AC) is appointed by th e Minister of Agriculture, Forestry and 
Fisheries and consists of ten scientists wh o are experts in various scientific fields 
relating to GMOs.  
 3.53. p 309 South Africa has approved GMO permits for herbicide-tolerant soybean, maize, and cotton, insect 
resistant maize and cotton, as well as stacked insect-resistant and herbicide-tolerant maize and 
cotton for commercial release and/or for food and animal feed.  
Question 
Please specify the approved activities for each type of mentioned GMOs (food, feed and outdoor 
plant cultivation). 
 
Answer 
GMO  Approved activity  
insect resistant maize  Commodity clearance (i.e. for Food, feed 
and processing only) and  General release (i.e. commercial 
release/planting) 
herbicide-tolerant maize  Commodity clearance (i.e. for Food, feed 
and processing only) and 
 General release (i.e. commercial 
release/planting) 
stacked insect-resistant and herbicide-tolerant 
maize   Commodity clearance (i.e. for Food, feed 
and processing only) and 
 General release (i.e. commercial 
release/planting) 
herbicide-tolerant soybean  Commodity clearance (i.e. for Food, feed 
and processing only) and  
 General release (i.e. commercial 
release/planting) 
stacked insect-resistant and herbicide-tolerant 
soybean  Commodity clearance (i.e. for Food, feed and 
processing only)  
insect resistant cotton General release (i.e. commercial 
release/planting) 
herbicide-tolerant cotton  Commodity clearance (i.e. for Food, feed 
and processing only) and  General release (i.e. commercial 
release/planting) 
stacked insect-resistant and herbicide-tolerant 
cotton General release (i.e. commercial 
release/planting) WT/TPR/M/324/Add.1 
 
- 107 - 
 
  SINGAPORE 
 Annex 4, Page 295 (Para 2.16)  
4. We note that under the dispute resolution section of the Promotion and Protection of 
Investment Bill, the Government may consent to international arbitration, subject to the exhaustion of domestic remedies. How would the ex haustion of domestic remedies be established? 
 
Answer In terms of the Constitution, any party has the right to access to the courts in South Africa and can even approach the Constitutional Court. Once the judicial process in 
South Africa has been exhauste d, parties may agree to intern ational arbitration in terms 
of the Promotion and Protec tion of Investment Bill. 
 
 
Trade and Investment Policies  
Annex 4, Page 296 (Para 2.18) 
 We understand that South Africa has terminated some Bilateral Investment Treaties, following a 
review in 2010. What is South Africa's policy towards negotiating new BITs? 
 
Answer Cabinet decided to refrain from entering into  BITS in future unle ss there are compelling 
economic and political reasons. South Africa  is currently developi ng a new investment 
act to codify typical BITS prov isions into domestic law.  WT/TPR/M/324/Add.1 
 
- 108 - 
 
  THAILAND 
 QUESTIONS REGARDING THE SOUTHERN AFRICAN CUSTOMS UNION REPORT  
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
4.3.1.1 Automotive industry 
Page 336 (paragraph 4.95)  Question 3: Thailand is the center of automotive production in the region and the number 1 exporter of rubber products in the world, while South Africa is the leader of the automotive industry in the region. Thailand can be a supplier of parts and raw materials for South Africa. We 
would like to know the demand of South Africa on parts and raw materials. 
 Answer 
South Africa has a growing automotive indust ry consisting of 8 automotive assemblers. 
The industry has set a target to produce 1,2 million vehicles by 2020.  WT/TPR/M/324/Add.1 
 
- 109 - 
 
  SOUTH AFRICA – OUTSTANDING RESPONSES 
CHINA 
 Question 2 
Please introduce in detail the "market access regulation" between the EU and BLNS. SACU members have signed multip le regional and bilateral free trade agreements, therefore 
subject their trade partners to different access conditions to the SACU market. How do SACU 
members address the uncertainty in implementing the obligations of different agreements under 
such circumstances?   Page 18, Para 2.53 
2.53The agreement covers trade in non-agricultural products, including fish and other sea 
products, and processed agricultural products. In  addition, the individual EFTA States and SACU 
concluded bilateral agreements on basic agricultural products, which form part of the free trade 
area package. Since the entry into force of the agreement, EFTA States grant the SACU members 
duty-free entry for all non-agricultural goods. The SACU States are to dismantle their tariffs progressively over a period not exceeding nine year s; 76.8% of their tariff lines were duty-free in 
2015. 
 Answer 2 SACU shares a common external tariff and th erefore any imports into the customs union 
are subjected to similar tariff treatment across SACU Member countries. The TDCA 
between South Africa and the EU was signed prior to the review of the SACU Agreement 
2002 which introduced the Common Negotiating Mechanism. Thus, whilst all imports 
from the EU are subjected to the above SACU  common eternal tariff, BLNS did not have 
access to benefits conferred by the TDCA. BLNS however ha ve access into the EU under 
its GSP schemes, including as covered under the EU market access regulation. Thus, the 
market access regulation referred to in the qu estion is rather an EU initiative affecting 
only exports to the EU from BLNS, until such time that the recently concluded Economic 
Partnership Agreement between SACU and the EU enters into force.   
Annex 4-South Africa 
Page 295, Para 2.15 2.15. On 1 November 2013, the authorities publ ished, for public comment, the Promotion and 
Protection of Investment Bill. 
 Question 15 
Except for those introduced at the end of this section, are there any contents of encouraging foreign investment in this bill? If so, please provide details.  Page 331, Para 3.17 3.17. Import control is also maintained under, inter alia, the Meat Safety Act (Act No. 40 of 2000), 
the Fertilizers, Farm Feeds, Agricultural Reme dies, and Stock Remedies Act (Act No. 36 of 1947), 
the Agricultural Pests Act (No. 36 of 1983), and as sociated regulations. The import control regime 
is implemented for various purposes, including: protection of public morals, compliance with 
domestic regulations and relevant international conventions, and protection of public health. 
Controlled imports include live plants and animals and products thereof; drugs and narcotics.  
Answer Q15 
There is no language or section in the draf t bill that makes specific reference to the 
issue of promotion. It is however understood that the protection that is contained will 
provide the necessary assurance to current  investors which will encourage them to 
increase their investments in the Repub lic. Such protection will further promote 
confidence among potential or new invest ors that may want to establish business 
operations in the Republic.  
 
Question 16 
What is the legal basis for the South Africa Government to regulate the import of TCM products? 
Are there any restrictive import policies, and what is their legal basis?  
Page 331, Para 4.54 WT/TPR/M/324/Add.1 
 
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  4.54. The Department of Minerals and Energy ha s embarked on a 2015-20 Strategic Plan aimed at 
promoting energy security through reliable, clea n, and affordable sources, universal access to 
energy sources, and transformation  of the energy sector, as well as developing a national coal 
policy with regulations that will include a strategy to secure coal supply and which will have been 
aligned with the Mining Beneficiation Action Plan by July 2016. 
 Answer 16 
Amendments to the Medicines and Related Substances Act 101 of 1965 provide for the 
regulation of complementary and alternative medicines (CAMs) by the Medicines Control 
Council (MCC). Among others  
 all existing and new CAMs must be subm itted to the MCC for safety, quality and 
efficacy assessment and registration; 
 all category D medicines must be appr opriately labelled and any product not 
registered with the MCC must carry a la bel declaring: "This medicine has not 
been evaluated by the Medicines Control Coun cil. This medicine is not intended to 
diagnose, treat, cure or  prevent any disease"; 
 all CAM products that contain banned subs tances which are potentially dangerous 
to public health must be withdrawn; 
 all CAMs manufacturers and wh olesalers must be licensed . 
  
Question 17 
Please introduce the specific policy ideas and institutional design of the 2015-2020 Strategic Plan.  
 
Answer 17 
The Department of Energy (DoE) was established in May 2009 – the outcome was the split of the Department of Minerals and En ergy into the Department of Energy and 
Department of Mineral Resources. 
The Department of Energy's aim is to formul ate energy policies, regulatory frameworks 
and legislation, and oversee their implementa tion to ensure energy security, promotion 
of environmentally friendly en ergy carriers and access to affordable and reliable energy 
for all South Africans. 
Its mission is to regulate and transform the sector for the provision of secure, 
sustainable and affordable energy. 
 
The DoE indicated that the approved organisational structure consists of the following seven branches: 
 Energy Policy, Planning & Clean Energy: Ensure evidence- based 
planning, policy setting and invest ment decisions in the energy 
sector to improve ener gy security, through supply and demand side 
options, and increase competition through regulation. 
 Petroleum and Petroleum Regulati ons: Manage the regulation of 
petroleum and petroleum products to ensure optimum and orderly functioning of the petroleum indu stry to achieve government's 
developmental goals. 
 Energy Programmes and Projec ts: Manage, co- ordinate and 
monitor programmes and projects focused on access to energy; 
 Nuclear Energy: Manage the South African nuclear energy industry 
and control nuclear material in te rms of international obligations, 
nuclear legislation and policies to ensure the safe and peaceful use 
of nuclear energy. 
 Corporate Services: To provide corporate support to the DOE. 
 Governance and Compliance: To ensure good corporate governance and compliance by  the DOE and its SOEs; and 
 Financial Management Services: To provide financial management, 
accounting and supply chain manage ment services to the DOE. 
 
Page 331, Para 4.60 
4.60 Under the Mineral and Petroleum Resources Development Act (MPRDA) (Act No. 28 of 2002, as amended), foreigners and nationals may apply for a prospecting right, mining permit, reconnaissance permit, 
 WT/TPR/M/324/Add.1 
 
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  Question 18 
Are there different requirements for domestic and foreign investors in getting the above right and 
permits? If so, please provide details.  
Answer 18 
The requirements applicable to domestic  and foreign investors are the same. In 
addition, Minister of Minerals and Energy ma y facilitate assistance to any historically 
disadvantaged person to conduct pr ospecting or mining operations. 
 Page 337, Para 4.97 4.97 The APDP has four key elements: (a) tariff measures, i.e. stable import tariffs set at 25% for 
completely built up vehicles (CBVs) and 20% for components used by vehicle assemblers; (b) a 
local assembly allowance (LAA); (c) production incentives (PI); and (d) an Automotive Investment Scheme (AIS). The LAA allows vehicle manufacturers with a plant volume of at least 50,000 units 
per annum to import a percentage of their componen ts duty-free. The PI consists in an allowance 
for duty-free imports of vehicles or components , calculated as a percentage of manufacturing 
value addition (MVA) in South Africa's supply chain. The AIS provides for a non-taxable cash grant 
of 25% of the value of qualifying investment in productive assets by component manufactures and 
tooling companies. An additional a non-taxable cash grant of 5 to 10% may be made available for projects that meet a list of economic benefit criteria.  
Question 19 
Please explain the basis for setting the above-mentioned respective subsidy standard in car 
manufacturing industry.  
 
Answer 19 The process of designing a specific suppo rt mechanism involves the following key 
activities, amongst others; 
1. Global assessment and evaluation of the in dustry including comparative analysis of 
related issues, 
2. Local economic assessment of the in dustry and related variables,  
3. Setting a vision, objectives and direction for the local industry, 
4. Alignment of the vision to a set of le vers based on resource availability. 
Following on this inclusive process (inc ludes consultation with key industry 
stakeholders such as the private sector an d labour), a specific support program is 
designed and implemented.  
South Africa 
Page 38, Para 3.7 3.7 To reach this vision, the NDP sets long-ter m targets for investment, growth and employment 
creation, and provides a holistic plan for reaching these targets, drawing on other policies and 
programmes. 
 Question 25 
Please provide details of investment targets in NDP.  Answer 25 
The Medium-Term Strategic Framework targets include increasing investment rate to 
25% of GDP.  Page 40, Para 5.1 
5.1 After ten years of preparations and negoti ations, the EPA between the SADC EPA Group and 
the EU was "initialled" in Pretoria, South Africa , on 15 July 2014. The initialling of the Agreement 
signals that the negotiations are concluded. The timing is significant because it pre-empted the 
1 October 2014 deadline imposed by the EU afte r which Botswana, Namibia and Swaziland would 
have lost preferential access to the EU market for their exports of beef, fish, sugar on which their economies depend heavily. The EU has assured us all that the act of initialing ensures that the 
current market access will continue until the agreement enters into force. 
 Question 26 
What are the countries included in the SADC EPA Group? Why are negotiations conducted in the 
name of SADC instead of SACU in EPA and African Tripartite FTA (TFTA) talks?  WT/TPR/M/324/Add.1 
 
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  Answer 26 
The countries of the SADC EPA group ar e the 5 SACU member states (Botswana, 
Lesotho, Namibia, South Africa and Swaz iland), and Angola and Mozambique.  
"The SADC EPA Group" (initially known as the "SADC-minus" group) is merely the name 
of this group of 7 countries. SACU negotiates  as a single entity here, while Angola and 
Mozambique negotiate in their own right. Each entity (i.e. 3) made and received 
individual tariff offers.  
The regional community SADC, comprising 15  member states, was divided across 3 EPA 
groupings: the SADC EPA (containing 7 SADC member states), East Africa EPA (where Tanzania resorts), and the ESA EPA (East and Southern Africa – containing the 
remaining 7 SADC member states, together  with some COMESA member states).  
In the Tripartite the negotiations are not co nducted in the name of SADC. South Africa 
participates there as part of SACU. Because SACU is a customs union, of necessity it has 
to negotiate as one entity in order to maintain the integrity of its common external 
tariff.  
SADC does not negotiate as one entity in the Tripartite, because it is not a customs 
union and because 9 of its members are al so members of COMESA and/or the East 
African Community (EAC). The Tripartite FTA is not an agreement among the 3 regional 
economic communities, but among the 26 countries of the 3 communities. The 2 
customs unions in this group, namely SACU  and the EAC, each negotiate as single 
entities for the reason explained above.  
 
Page 40, Para 5.3 5.3. In terms of the process and timeframe for en try into force, the Agreement has been subjected 
to a legal vetting process. Thereafter, the Agreement will be presented to Cabinet and, if 
approved, submitted to the South African Parliament for ratification. Once ratified, the Agreement may be signed, and it will enter into force once all Parties have concluded their own respective 
national approval processes. 
  Part III. Other Questions 
 
Question 28 
Please introduce relevant policies on foreign-invested enterprises' exploitation of oil and gas 
resources in South Africa. Please introduce the oil import and export management and 
administration system of South Africa.  
Answer 28 
POLICY FRAMEWORK The South African offshore oil and gas indust ry is governed by the White Paper on the 
Energy Policy of the Republic of South Africa  and the Energy Security Master Plan for 
Liquid Fuels. The policy document aims to, among other objectives, improve social 
equity by addressing the energy requirements of the poor; enhance the effi ciency and competitiveness of the South 
African economy providing low-cost and high qu ality energy inputs to industrial, mining 
and other sectors; and accomplish this wi thin the constraints of environmental 
sustainability. The Master Plan focuses on developing supply chain solutions to South 
Africa's liquid fuels supply challenges, management of liquid fuels demand and 
emergency response tactics. It thus promot es local refining and calls for a policy of 
limited imports be re-endorsed, and that an independent energy planning coordinator be 
considered. 
 
REGULATORY FRAMEWORK The following Acts govern the offshore oil and gas industry in South Africa: 
• Petroleum Products Act 2003, No.120 of 1977 
• Petroleum Products Amendment Act, No. 2 of 2005 • Gas Act 2001, No. 48 of 2001 
• Gas Regulator Levies Act, 2002, No. 75 of 2002 
• Petroleum Pipelines Act, 2003, No.60 of 2003 • Petroleum Pipelines Levies Act, 2004, No. 28 of 2004 • National Energy Act, 2008, No.34 of 2008 
• Central Energy Fund Act, Act No.38 of 1977 WT/TPR/M/324/Add.1 
 
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  • Central Energy Fund Amendment Act, Act No.48 of 1994 
• Electricity Regulation Act • National Nuclear Regulatory Act • Nuclear Energy Act 
• National Energy Regulator Act No. 40 of 2004 
• National Energy Act No. 34 of 2008 • National Ports Act No. 12 of 2005 
• Mineral and Petroleum Resources Development Act, No. 28 of 2002. 
 INSTITUTIONAL GOVERNANCE The industry's interests are administered by  the Department of Mineral Resources and 
the Department of Energy. PASA, a subsidiary  of Central Energy Fund (Pty) Ltd, is 
responsible for promoting, licensing, monitori ng and data archiving of South Africa's 
petroleum exploration and production industry and is the designated agency in terms of 
the Mineral and Petroleum Resources Development Act, No. 28 of 2002. 
The National Energy Regulator of South Africa (established in 2005) is the body 
responsible for 
regulating policy over the entire South African energy industry and is responsible for 
implementing South Africa's energy plan.  Natural gas from Mozambique is import ed through the 535-mile Sasol Petroleum 
International Gas pipeline and transported to Sasol's Secunda synfuels plant. Sasol, the 
South African government, and the govern ment of Mozambique own the pipeline 
through a joint venture. The pipeline has a peak capacity of 524 million cubic feet per 
day of natural gas and was part of a $1.2-billio n natural gas project started in 2004. It is 
designed eventually to be able to transpor t double its current capacity. The governments 
of South Africa and Mozambique, along with SacOil Holdings, a South Africa-based oil 
and gas company, are studying the possibility of constructing a $6 billion natural gas 
pipeline, running from Mozambique's northe astern province Cabo Delgado to South 
Africa. There have been several signif icant gas discoveries in Mozambique's 
northeastern Rovuma Basin over the past few years.  
 
South Africa consumes the second-largest amo unt of petroleum in Africa, behind Egypt. 
The petroleum consumed in South Africa comes mostly from its domestic refineries that 
import crude oil and its CTL and GTL plants. South Africa imports crude oil mostly from 
OPEC countries in the Middle East and West Africa. In 2014, South Africa imported 425,000 bbl/d of crude oil, according to South African 
Revenue Service, as published by GTIS. South Africa imports crude oil mostly from OPEC 
countries, namely Saudi Arabia (38%),  Nigeria (31%), and Angola (12%) WT/TPR/M/324/Add.1 
 
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  HONG KONG, CHINA 
 Intellectual Property Rights 
(WT/TPR/S/324: Page 319 para 3.116) 
South Africa has not yet concluded its accession to the Madrid Protocol.  Question 1 
Is there a timetable for South Africa to accede to the Madrid Protocol? What are the factors holding up the accession procedures?  Answer1 
South Africa is still in the process of developing its IP policy. 
 (WT/TPR/S/324: Page 319 para 3.118; Table 3.7) 
Coverage of the Copyright Act includes literary works, musical works, artistic works, cinematograph films, sound recordings, broadcasts, programme-carrying signals, published editions and computer programs. 
Exclusions and limitations of the Copyright Act include: Copyright shall not be infringed by any fair 
dealing for the purposes of research, private study and use, criticism or review, reporting current events, or judicial proceedings provided that the source is mentioned as well as the name of the 
author. 
 
Question 2 
In South Africa, does the Copyright Act provide for a copyright exception for the purpose of 
commenting on current events? Or is it subsumed under other exceptions (e.g. criticism or 
review)?  
Answer 2 
There is no explicit exception for commenting on current events. Depending on the nature of the comments it may be subsumed, e.g., under criticism or review or reporting current events. The Copyright Amendment Bill suggests a general fair use provisions for 
purposes such as comment (among other purposes). 
 Question 3 
It seems that South Africa is currently using the "fair dealing" model. Is there a plan to move to "fair use"? What are the considerations for moving or not? If yes, is there a timetable for implementation? 
 
Answer3  
Yes, SA currently uses the fair dealin g model and the Copyright Amendment Bill 
proposes to move towards "fair use". The drafti ng of the fair use provision in the Bill will 
most likely be subjected to chan ges following public comments.  
 Question 4 
Does the Copyright Act cover streaming and communications by other electronic modes? 
 Answer 4 
Not expressly.  
 Question 5 
Does the Copyright Act provide for a copyright exception for parody, satire, etc.? If yes, what is 
the coverage? If not, is there a timetable for the in troduction of such an exception? If not, why? 
 Answer 5 
No, not yet. Such activities may currently fa ll under "criticism and review". Having said 
this, the Copyright Amendment Bill - in Section12A(4) - proposes to allow the 
permission-free use of copyrighted material for such purposes. Again, the wording is 
likely to be subjected to chan ges following public comments. 
 Question 6 
Does the Copyright Act provide for a copyright exce ption for user-generated content? If yes, what 
is the coverage? If not, is there a timetable for the introduction of such an exception? If not, why? WT/TPR/M/324/Add.1 
 
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  Answer 6 
No. Inclusion of material in user generate d content may, however, be subsumed under 
other exceptions (e.g., criticism or review).  A new fair use exception pursuant to the 
Amendment Bill may also cover such uses.  
 
Under the Registration of Copyright in Cinematogr aphic Films Act, registration of copyright in 
cinematograph films is on a voluntary basis. 
 
Question 7 
Could South Africa advise the considerations for introducing a voluntary registration regime regarding the Registration of Copyright in Cinematographic Films Act? 
 
Answer 7 The legislation eminates in large part fr om requests brought forward by the film 
industry submiting that such a system woul d assist them in providing the evidence 
needed in court proceedings to enforce th eir Copyright in cinematograph films more 
effectively since Copyright is generally not su bject to registration. Please note, however, 
that registration of cinematograph films is  NOT required for Copyright to come into 
existence WT/TPR/M/324/Add.1 
 
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  JAPAN 
 5 INTERNATIONAL ARRANGEMENTS AND TRADE NEGOTIATIONS 5.1 The Economic Partnership Agreement (EPA)  
 
Question 1 
Page 39 and 40, Paragraph 5.1-5.3  
It is widely recognized that ensuring the effectiveness of the SADC Free Trade Area (SADC FTA) is 
a crucial task for South Africa to establish its position as the regional hub of production and logistics in Southern Africa. On the other hand, in some SADC countries and regarding some products, tariff reduction based on the SADC FTA has not been effectively implemented yet. Please 
express the view of South African government on such a challenge concerning the SADC FTA 
implementation and possible concrete measures  to improve such shortcomings promptly. 
 
Answer 2 
South Africa strives to maintain the integrit y of the SADC Protocol on Trade as a rules-
based system for regional trade. South Africa  continues to work with the member states 
concerned (mainly Zimbabwe, and to a lesser  extent Malawi and Tanzania), both in 
SADC fora and bilaterally, to resolve the outstanding implementation issues. South 
Africa is concerned about the negative impa ct that non-compliance could have on the 
success of the current drive for regional indu strial development and building of regional 
value chains, and also on investor confidence  across the region. All of these are critical 
underpinnings for successful economic  development in the region.  
The assertion above that South Africa aims to  "establish its position as the regional hub 
for production and logistics" is unfounded speculation. South Africa has consistently 
been advocating the need for regional indust rial development and diversification of the 
manufacturing base over recent years. The country fully supports the prioritization of 
industrial development, the recently adopte d SADC Industrialization Strategy, and the 
on-going work to develop an ac tion plan in this regard.  
 Question 2 
Page 39 and 40, Paragraph 5.1-5.3   It is widely acknowledged that a One Stop Bo rder Post (OSBP) among South Africa and its 
neighbouring countries is a salient initiative to expand regional trade. At the moment, it is 
understood that the Government of South Africa is preparing for the establishment of the Border Management Agency. In this context, please indicate the schedule and the timing of the 
establishment of a Border Management Agency. In addition, please specify the name of the 
Department which is in charge of trade faci litation measures including OSBP before the 
establishment of the Border Management Agency.  
Answer 2 
The Border Management Agency (BMA) Bill wa s published in the Government Gazette for 
public comments, which were subsequent ly collated for cabinet's approval and 
submission to Parliament. This process is  still ongoing. The OSBP and the BMA are 
facilitated by the Departments of National  Treasury and Home Affairs respectively 
 
Report by the Secretariat (WT/TPR/S/324) 
 ANNEX 4 SOUTH AFRICA 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures Directly Affecting Imports 
3.1.3 Standards and Other Technical Requirements  
Question 3 
Page 302, Paragraph 3.28  
It is reported that the gap between imported electric products and locally produced electric 
products is not negligible in terms of the duration of respective administrative periods to obtain the 
Letter of Authority. Please specify the average du ration of period from the application to the 
issuance of the Letter of Authority in the case of  imported electric products and in the case of 
locally produced electric products, respectively. 
 WT/TPR/M/324/Add.1 
 
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  Answer 3 
S e c t i o n  1 4  o f  t h e  N R C S  A c t ,  N o  5  o f  2 0 0 8 ,  s t a t e s  t h a t  n o  p e r s o n  m a y  i m p o r t ,  s e l l  o r  supply a commodity, product or service to wh ich a compulsory specification applies, 
except in accordance with the specification. The objective is to protect the South African 
consumer against unsafe products. 
Processing of LoAs requires detailed attentio n especially on imports as the products are 
imported as finished goods, the complexity of the test reports coupled with incorrect 
and misrepresented information has necessita ted NRCS to become more rigorous in 
assessing the applications before approval is granted. The maximum turnaround time for issuance of Letters of Authority for both locally 
produced and imported products is 120 days. 
 
Question 4 
Page 302, Paragraph 3.28 
It is considered that the spot check in the product retail market is effective to verify the actual 
compliance to regulations to achieve the fair market competition. Does the South African government have any plan to implement such periodical spot checks in the near future?  
 
Answer 4 Periodical spot checks/inspections at retail outlets form part of the NRCS market surveillance and enforcement strategy which in cludes: inspection at source and retailer, 
sampling, sanctions, confiscation and destruction.  
Inspection at source is still considered the most effective method of market surveillance 
as it identifies non-compliant products prio r to it been placed on the market, thus 
reducing the risk to the safety of the South African consumer. 
Periodical spot checks/inspections at retail outlets form part of the NRCS market surveillance and enforcement strategy which in cludes: inspection at source and retailer, 
sampling, sanctions, confiscation and destruction.  
Inspection at source is still considered the most effective method of market surveillance 
as it identifies non-compliant products prio r to it been placed on the market, thus 
reducing the risk to the safety of the South African consumer. 
 
Question 5 
Page 302, Paragraph 3.28  
With regard to the initial registration of agrochemicals, it takes a long period of time for registering 
newly developed agrochemicals because of the long-lasting review process. It prevents South African farmers from using high quality agrochemicals to deal with harmful insects. How does your 
government see this situation? 
 Answer 5 Registration of agrochemicals takes about 14 months from the date of submission. This 
timeframe is in line with othe r countries for newly develope d agrochemicals. We are of 
the view that the 14 months period is reason able to allow South African farmers to have 
access to new products.  
 
Question 6 
Page 302, Paragraph 3.28)  
In the process of applying for initial registration of agrochemicals, especially the preparation of 
"summary of toxicity report" which is required to  be submitted for the review process takes long 
time. Could you specify the legal basis for requiring the submission of the report? We would be grateful if you could accept the original data  of exporting countries instead of the summary. 
 
Answer 6 South Africa relies on scientific data to support  registration. Original toxicological data is 
accepted to support the registration. Summary toxicity reports from the regulatory 
authorities and independent toxicologist(s) en able us to register the products to be 
registered quicker.  
 
Question 7 
Page 302, Paragraph 3.28  Please explain the measures of any for shortening or simplifying the review period and process by 
the NRCS in the near future.  WT/TPR/M/324/Add.1 
 
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  Answer 7 
This maximum turnaround time was recently  reduced by the Minister as an interim 
measure, from 120 working days (effect ively 6 months) to 120 calendar days 
(effectively 4 months). 
The NRCS is in the process of developing a risk-based approach to LoAs. The aim is to 
maximise its resource utilisation by calculating the risk of an application. The risk-based 
approach will be used to determine risk le vels based on product, company and country 
of origin. 
The target date for rolling out the risk ba sed approach is mid-2016 as it would be 
contained in regulations.  
3.3 Measures Affecting Production and Trade 
3.3.1 Incentives  
Question 8 
Page 311, Paragraph3.77 
In the article 6 of revised BBBEE (Act No.46 of 2013), the new paragraph "(e) determining criteria 
for the awarding of incentives, grants and inve stment schemes in support of broad-based black 
economic empowerment" which was added to the Ar ticle 10 of (Act 53 of 2003) seems unrelated 
to the rule pertaining to government procurement (previous Article 10 (1) (b) of Act 53 of 2003) which was regarded as part of the exception permitted under the paragraph 8 (a) in GATT Article 
3. Rather, the revision appears to pertain to general rules of investment. Please explain the 
consistency of this revision with WTO rules on national treatment (Article 2 of WTO TRIMS).  
Answer 8 
Section 6 of the Broad Based Black Econom ic Empowerment Act 2013 amends Section 10 
of the Broad Based Black Economic Empowe rment Act 2003 by providing that "every 
organ of state or public entity must take in to account and as far as possible, apply any 
relevant code of good practice in terms of this act in… "(e) determining criteria for the 
awarding of incentives, grants and investme nt schemes in support of broad-based black 
economic empowerment". Reference to investme nt schemes in paragraph (e) is made in 
the context of Government's procurement policy process and not in the context of 
establishment of business operation. The inve stment scheme referred to in paragraph 
(e) would therefore qualify as subsidy in terms of paragraph 8 (b) of GATT Article 3 
which allows for "payment of subsidies excl usively to domestic producers, including 
payments to domestic producers derived from the proceeds of internal taxes or charges 
applied consistently with the provisions of this Article and subsidies effected through 
governmental purchases of domestic products ". The investment scheme in question is 
therefore not a trade related investment measure but a procurement measure which 
falls under the exception in Article 8 (b) of GATT Article 3.  
3.3.4 Public Procurement 
 Question 9 
Page 318, Paragraph 3.110)  Several cases have been reported where proposed programs were dismissed without substantial reasons. Japan is concerned about the operation of NIP. In order to ensure transparency, we 
request a mechanism to enable NIP obligators to request for disclosure of the rejection reasons 
and appeal against the correspondence and guidan ce from the NIPP Secretariat when necessary. 
Please explain the view of the government regard ing the possibility and necessity of developing 
such a mechanism to ensure transparency. 
 
Answer 9 The South African Constitution provides for fair administrative action and allows 
affected parties to approach the High Court in South Africa where they are of the view 
that the administrative process was not fair.  
Question 10 
Page 318, Paragraph 3.110 
Please disclose the method for penalty calculation method with specific numerical information in case the NIP obligation has not been fulfilled beca use the guideline does not provide such method. 
 WT/TPR/M/324/Add.1 
 
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  Answer 10  
There is the industrial participation secr etariat (IPS) that is charged with the 
responsibility of administering the programme.  The powers and functions of the IPS are 
set out as follows: 
a) Monitor all relevant procurement transactions in South Africa that do attract NIP 
obligation; b) Assist, guide and advise obligors in the fulfilment of their NIP obligations; 
c) Conclude NIP contracts to secure strict compliance; 
d) Evaluate NIP business concepts prior to  submission to the ICC for adjudication; 
e) Submit recommendations regarding NIP busi ness plans to the Industrial Participation 
Control Committee (IPCC) for approval; 
f) Administer and audit the pe rformance of all NIP projects; 
g) Prepare status/performance reports for th e IPCC for the allocation of credits; and 
h) Assist the IPCC with its functions and wh ere possible disseminate all decisions of the 
latter to all relevant parties. 
 In addition to a response provided above,  it has to be noted that the powers and 
functions of the IPCC are to: 
(a) Provide strategic guidance and propos e amendments to NIP guidelines, where 
necessary; (b) With the assistance of the Industrial Part icipation Secretariat (I PS), ensure that all 
relevant government 
departments and SOCs are aware and enforce their obligations related to NIP; (c) Adjudicate on recommendations made by  the IPS regarding NIP business proposals; 
(d) Evaluate the performance reports, as supplied by the IPS, and award credits or 
invoke penalties where it is justified; (e) Ensure that all relevant NIP agreements  are monitored and audited by the IPS on a 
regular basis; and 
(f) Report regularly to the Director-General , the Minister and the Portfolio Committee on 
Trade and Industry.  
Question 11 
Page 318, Paragraph 3.110 
The Department of Trade and Industry provides NIP reports 2003 – 2008 but has not provided NIP 
reports since 2009 on its website. We request to provide NIP reports from 2009 to the latest one. 
 Answer 11 
 
Question 12 
Page 318, Paragraph 3.110 On the web site of the Department of Trade and Industry, it explicitly says that the NIP contract 
will be signed approximately four weeks after the program approval. However, in fact, it has been 
reported that suppliers are first forced to sign th e NIP contract at the stage of public procurement 
tenders, then discuss and negotiate the content of the program for approval, sometimes for as 
l o n g  a s  s e v e r a l  y e a r s .  I s  t h e  g o v e r nm e n t  a w a r e  o f  s u c h  i n v e r t e d  p r oc e s s  o f  N I P ?  I f  s o ,  p l e a s e  
explain the rationale. The government of Japan requests a proper implementation of the NIP 
process cohere the signing of NIP contracts sh ould take place only after agreement on the 
program content is reached, and that approval pe riod of the program content shall be expedited, 
observing the standard of approximately four weeks.  Answer 12 
 
Question 13 
Page 318, Paragraph 3.110 
NIP is the obligation on the import of goods and services for public procurement above a certain 
amount. Please explain the specific laws and regulations stipulating the legal grounds of the NIP obligation. 
 
Answer 13 NIP forms part of the four-tier system of pu blic procurement levers approved by Cabinet 
in December 2012. 
 WT/TPR/M/324/Add.1 
 
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  4 TRADE POLICIES BY SECTOR 
 Question 14 
Page 324 
Please express the views of your government on  the background and policy reasoning of raising 
import tariffs on some steel products . 
 
Answer 14 
South Africa has made binding commitments on its tariffs. However, where there is 
policy space between the applied and the bound ra te, South Africa is entitled to use that 
policy space through a process of investigatio ns. The outcomes of these investigations 
are made public through reports that are pub lished on the ITAC website. Report No: 505 
provide the details of the investigat ion covering some steel products.  
 South Africa has made binding commitments  on its tariffs. However, where there is 
policy space between the applied and the bound ra te, South Africa is entitled to use that 
policy space through a process of investigatio ns. The outcomes of these investigations 
are made public through reports that are pub lished on the ITAC website. Report No: 505 
provide the details of the investigat ion covering some steel products.  
 Question 15 
Page 324 
In terms of additional steel products under consideration for raising tariffs, kindly share the list of 
products as well as the envisaged process and schedule for consideration and implementation.  
 
Answer 1 5  
The list of steel products currently under cons ideration includes flat-rolled products of 
iron or non-alloy steel, semi-finished products  of iron or non- alloy steel, cold rolled 
products of iron or non-alloy steel, angles, shapes and sections of iron or non-alloy 
steel, bars and rods. The normal process for tariff investigations takes 6 months and the 
investigations are conducted within the relevant legislative framework. 
The list of steel products currently under cons ideration includes flat-rolled products of 
iron or non-alloy steel, semi-finished products  of iron or non- alloy steel, cold rolled 
products of iron or non-alloy steel, angles, shapes and sections of iron or non-alloy 
steel, bars and rods. The normal process for tariff investigations takes 6 months and the 
investigations are conducted within the relevant legislative framework. 
 Question 16 
Page 324 If import tariffs of high-quality steel products which are not produced locally are raised, while other steel products falling under the same HS code, there is little effect of protecting the domestic steel industry in this light, but there are consid erable effects in terms of eradicating the global 
competitiveness of the downstream industry such as motor vehicles. Kindly indicate how your 
government is going to keep these cases to the minimum.  
Answer 16 
The rationale for amending tariffs on steel incl uding the high quality steel is contained in 
report No: 505, which is published on the ITAC website. 
 
4.2 Mining and Energy 4.2.1 Mining 4.2.1.1 Overview 
 
Question 17 
Page 331, Paragraph4.60 
Is the draft amendment bill of the Mineral an d Petroleum Resources Development Act (MPRDA) 
under deliberation consistent with WTO rules particularly the Article 11.1 of GATT?  
Answer 17 
In our opinion, the MPRDA is in keeping with GATT article 11.1.   WT/TPR/M/324/Add.1 
 
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  4.3 Manufacturing 
4.3.1 Key Subsectors 4.3.1.1 Automotive Industry Question 18 
Page 336 and 337, Paragraph 4.96 and 4.97)  Please reveal the policy objective and background to launch the review process of the APDP in 2014. Please implicate the major changes to the current APDP as well as the time schedule of 
publication and implementa tion of those changes. 
 Answer 18 The APDP was announced in September 20 08 for implementation by January 2013. 
During 2008/ 2009 the world economy was hit by a financial crisis whose impact is still 
felt today and therefore it became necessary to evaluate whether the APDP's objectives 
would still be achieved under the prevailing economic enviro nment with a view to make 
amendments where appropriate such that th e most optimal economic benefits would 
still be realized. The outcomes of this review will be published during November 2015 for 
implementation thereafter. 
 Question 19 
Page 336 and 337, Paragraph 4.96 and 4.97  
It is observed that the condition of assembling over 50,000 CBU units to enjoy the benefit of VAA 
(Volume Assembly Allowance) stands as an entry hurdle for potential new investors to assemble CBUs (completely built units), who would contribute to the expansion of the automotive industry in 
South Africa. Please explain the rationale to set such a condition despite such an observation. 
 Answer 19 
The idea behind setting a minimum volume th reshold was to steer the industry towards 
high volume production leading to provid ing better economies of scale for component 
suppliers.  
 
Question 20 
Page 336 and 337, Paragraph 4.96 and 4.97 
The current APDP will be valid up to 2020. Does the South Africa government intend to keep 
supporting the automotive industry by policy ince ntives to the similar degree as it is, and what 
kinds of policy incentives are envisaged? Plea se also explain the policy planning process and 
schedule of the post-2020 policy framework. 
 
Answer 20 The South African government intends to sustain an environment that supports the 
existence and growth of automotive production into the future through a variety of 
policy measures that will be developed at appropriate times. The publication of the 
outcomes of the recent APDP review should  provide a sense of direction and timelines 
for the development of a post 2020 policy framework. 
 
Question 21 
Page 336 and 337, Paragraph 4.96 and 4.97  
 
Does the South African government have any intention/plan to develop a master plan of the national automotive industry in South Africa, to set the vision and the growth scenario which will guide all the relevant stakeholders and policy planning process? 
 
Answer 21  
Please refer to the response to question 20 above. 
The South African government will continue to  work with key stakeh olders and partners 
in sustaining and growing the automotive indu stry as it is an important contributor to 
the local economy regarding investment , exports, employ ment and general 
development. 
 Question 22 
Page 336 and 337, Paragraph 4.96 and 4.97 WT/TPR/M/324/Add.1 
 
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  The APDP incentive earned by a car manufacturer, namely the Production Rebate Credit 
Certificate, is resalable to any other companies including pure importers of CBU (completely built unit). Please explain the rationale to allow the resa le of the APDP incentive to importers of CBU, 
which seems to contradict the intended policy objective to stimulate production in South Africa. 
 
Answer 22  
The APDP and its predecessor also sought to encourage competition in the market for 
the benefit of consumers. Thus those who ea rn the benefit will realize the value through 
selling the certificates, and thus share it with  importers otherwise they might fully lose 
that value if they have no duties to off- set with the earned rebate certificates.  
 
Question 23 
Page 336 and 337, Paragraph 4.96 and 4.97 
While the APDP incentive is applicable to offset the import duty of CBUs by 100% of PRCC value, 
which has a secondary effect to reduce the ad valorem tax on CBUs, it is applicable to offset the 
import duty of components only by 80%. This could imply that the CBUs import is more rational and encouraged implicitly rather than the components import for local assembly. Please explain 
the rationale of the applicable percentage of the APDP incentive for offsetting import duty in the 
case of CBUs import and in the case of components import.  Answer 23 
P R C C s  e a r n e d  o n  C B U s  o f f s e t  i m p o r t  d u t y  o n  C B U s  b y  1 0 0 % .  P R C C s  e a r n e d  o n  
Components offset import duty on Components by 100% but offset import duties on 
CBUs by 80%. WT/TPR/M/324/Add.1 
 
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  KOREA, REPUBLIC OF 
 PART I: Questions Regarding the Secretariat Report 
Page 25 (Para 3.25) 
 All tariff bindings are ad valorem, including lines to which specific, mixed, or formula duties apply. Therefore, the imposition of non-ad valorem duti es, including specific, mixed, and formula does 
not ensure compliance by the countries with their binding commitments (Table 3.5). Tariff quotas 
were included in the commitments made by South Africa and apply to imports of selected agricultural products.  
Question 1 
Tariff bindings by all SACU members are at ad valorem rates. The imposition of non-ad valorem 
rates on some tariff lines creates a risk of non- compliance by SACU Members with their individual 
tariff bindings, and the use of formula duties based on reference prices does not ensure conformity 
with obligations under the WTO Agreement on Customs Valuation.  
What measures does SACU intend to take to  ensure its tariff regime is WTO compliant? 
 Answer 1 In consideration of applications for increase in the duty where the bound rate is an ad 
valorem duty whilst the applied rate is a formula or specific duty, the Commission 
calculates the ad valorem equivalent of the pr oposed applied duty to ensure that it does 
not exceed the ad valorem bound rate. 
 
Page 317 (Para 3.107)  
In evaluating a tender, out of 100 points, governme nt agencies must allocate 90 to the reference 
price submitted by the tenderer. This is in line with what procurement seeks to achieve, namely 
getting best value for money. The 10 remaining points are allocated in respect of previously disadvantaged persons in accordance with th e Black Economic Empowerment (BEE) programme 
depending on ownership, management, and employment goals. Where the contract is below a 
prescribed threshold value (currently 1 million rand ), the preference system operates on the basis 
of 80/20 split. The award of preference points is  tied to a supplier's certified broad-based black 
economic empowerment (BBBEE) status in accordance with the Broad-Based Black Economic 
Empowerment Act. The higher the BBBEE rating of a supplier, the higher the number of preference 
points awarded. The regulations to the PPPFA give  guidance on how to calculate the points for 
price and categories of preference. The regulation s then require the tender to be awarded to the 
bidder that scores the highest number of points. Exemption from provisions of the PPPFA might be 
justified on grounds of public or national security interests..    Question 2 
For investors with plans to invest in South Africa, regulations on ownership and possible restriction from participation in the Government Procurement market as a result of the "Broad-Based Black Economic Empowerment (BBBEE)" policy have been identified as sources of major concern. 
 
In particular, it has been pointed out that BBBEE regulations are quite complex and are difficult to understand. 
 
Taking this into account, could South Africa clarify whether foreign companies are subject to more stringent restriction on ownership?  
Answer 2 
All investors, namely domestic  and foreign based, are treated equally. In addition, the 
South African government has mechanisms in  place to assist potential investors in 
addressing the difficulties in m eeting the requirement in BBBEE. 
 In addition, could South Africa clarify whether co mpanies which have received foreign investment 
will be denied access to the public procurement market? 
 See response provided above. WT/TPR/M/324/Add.1 
 
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  SINGAPORE 
 Page 12 (Para 2.6) 
 
Question 1 
We understand from the WTO Secretariat report that SACU member states decided in 2012 to 
make trade in services a priority area in the Union's work programme. Could SACU elaborate on 
the elements for trade in services in the work programme?  
 Answer 1 The issue of trade in services is treated as priority area in SACU work programme. 
However, in order to avoid a duplication of  efforts, SACU Member States decided to 
negotiate service under the SADC Trade in  Services Protocol and work programme . 
 
Question 2 
Annex 4, Page 296 (Para 2.18) 
 We understand that South Africa has terminated some Bilateral Investment Treaties, following a 
review in 2010. What is South Africa's policy towards negotiating new BITs?   Answer 3 
The decision to terminate early generation BITs was itself informed by an extensive 
three-year review of South Africa's BITs  that concluded in early 2010. The review 
revealed several important conclusions. First,  South Africa had entered these treaties in 
the immediate post-apartheid period to provid e confidence to foreig n investors at a time 
when democratic South Africa's economic po licy was untested and before the adoption 
of the new Constitution in 1996 that was to provide safeguards to protect private 
property and investment. It al so noted that since the mid-90s , South Africa has steadily 
built up a robust legal framework protecti ng all investment, domestic and foreign. 
 Second, the review demonstrated that early ge neration BITs were deeply flawed in that 
provisions were poorly drafted, ambiguous and,  in some cases, may be in conflict with 
existing national legislation in South Afric a. Further, the early BITs did not establish a 
balance between protection of investor rights  and the right of government to regulate. 
This state of affairs imposes unacceptably hi gh risk to governments as they seek to 
regulate in public interest.   
The review also revealed profound inconsis tencies in the outcomes of international 
arbitration as they relate to investment disp utes. Of particular concern is the risk that 
three arbitrators reach decisions that overtu rn national policies and measures that are 
arrived at through legitimate and fully democrat ic processes at a national level. In short, 
BITs may be unconstitutional in South Africa. 
 Third, the review observed the empirical analysis on the relationship between BITs and 
investment flows and found there was no clea r evidence that BITs lead to investment 
inflows. Indeed, South Africa's own experi ence shows we continue to receive large 
investments from countries with whom we ha ve no BIT (USA, Japan and India) and little 
or no investment from count ries we do (Austria).  
Finally, the review observed that major countries around the world had abandoned their early generation treaties in favour of u pdated and modern forms of protection for 
investment and investors.  
 
In short, the review showed that BITs had se rved their purpose at the time of transition 
in the mid-1990s and were no longer necessary as South Africa has developed a robust 
regime for the protection of investment. Furthe r, risks of early generation BITs outweigh 
the benefits as shortcomings in the tr eaties themselves are compounded by 
inconsistencies in intern ational arbitration.  
 
In this light, one dimension of modernising the investment protection regime involves 
terminating existing BITs, and South Africa ha s initiated the process in consultation with 
partners. 
  WT/TPR/M/324/Add.1 
 
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  The second leg of modernising South Africa's investment regime involves work towards 
establishing a new Protection of Investment Bi ll. In this respect, the policy guidance is 
clear. The Bill seeks to ensure that South Af rica remains open to foreign investment and 
should not impose new obligations on inve stors. It strikes an appropriate balance 
between the rights and obligations of inve stors and of Government, particularly in 
respect of the Government's right to regulate in the public interest. Further, provisions ordinarily found in BITs should be accommo dated in the Bill and brought in line with 
South Africa's Constitution and our existing legal framework. 
 Question 4 
Annex 4, Page 295 (Para 2.16) 
We note that under the dispute resolution section of the Promotion and Protection of Investment Bill, the Government may consent to international arbitration, subject to the exhaustion of domestic remedies. How would the exhaustion of domestic remedies be established?  
 
Answer 4 Local remedies would be deemed to have b een exhausted when an investor has taken 
his case up to the highest court in the Republic  that have jurisdiction over the investor's 
dispute. If an investor is still dissatisfied  with the outcome of such process then an 
investor can then approach his home State wi th a view to instituting a state to state 
arbitration process against the South African government .  
 
Question 5 
Annex 4, Page 339 (Para 4.117) 
 1. We note that South Africa's Financial Sector Regulation Bill (FSRB), due to be adopted in 
2015, seeks to establish a new regulatory oversight system in South Africa. How would 
these changes affect foreign investors in South Africa's financial services sector?  
 Answer 5  The Africa's Financial Sector Regulation Bill (henceforth the bill) is intended to protect 
consumers and make the financial system sa fer. The Bill includes recommendation to 
improve its legal enforcement and clarifies the role of regulators. Under the "twin 
peaks" model, regulation of the financial sect or will be split into prudential and market 
conduct. The former will be the responsibilit y of the South African Reserve Bank while 
the later will fall under a new financial sector  conduct authority that will replace that 
will replace the Financial Services Board. 
 
Question 6 
Annex 4, Page 342 (Para 4.147 to Para 4.149) 
 
2. We note that South Africa is looking to provide a clear framework for investors in maritime 
services. Could South Africa elaborate on the policies put in place to facilitate greater 
investment in maritime services, including port operations?  
 
Answer 6 The Department of Transport has in place the National Commercial Ports Policy (NCPP), 
among others, with the view to facilitate greater investment in maritime services, 
particularly port operations. The objectives of the NCPP include, but are not limited to, 
encouraging fair competition based on transp arent rules applied consistently across the 
transport and port system; ensuring safe affordable, effective and efficient port 
services; facilitating and enhancing the expans ion of international trade and tourism in 
general, and export in particular; an d ensuring proactive communication and 
consultation with port stakeholders ea rly on in the port planning stages.  
 WT/TPR/M/324/Add.1 
 
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  ANNEX 5 
SWAZILAND – TPR RESPONSES TO QUESTIONS RECEIVED AFTER THE DEADLINE 
THE RUSSIAN FEDERATION 
 
QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/324 ANNEX 5 - 
SWAZILAND) 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1.6 Sanitary and phytosanitary requirements (SPS) 
3.60. p 387  Swaziland is a member of the Convention on Biological Diversity and a party to the Cartagena 
Protocol on Biosafety, which entered into force for the country in April 2006. The Biosafety Act 
2012 was passed into law by Swaziland's Parliament and received royal assent in December 2012. The draft regulations of the Biosafety Act are curr ently awaiting approval. Imports of genetically 
modified organisms (GMOs) require an import permit issued by the Swaziland Environmental 
Authority.  
Question 
Please provide more detailed information on the re gulatory principles of the issuance of import 
permits for GMOs and approved activities for each type of GMOs. How many import permits have been issued? Please indicate an internet website or any other available sources where the Sanitary 
and phytosanitary requirements of Swaziland could be found? 
 Response 
The Cartagena Protocol on Biosafety as we ll as the Biosafety Act, 2012 adopts the 
"Precautionary Principle", which actually em braces the benefits that could be brought 
by GMOs, but ensures that safety to human he alth and the environment is maintained at 
all time. 
In issuing import GMO permits, there has to  b e  a  " P r i o r  I n f o r m e d  C o n s e n t "  f r o m  t h e  
Competent Authority of the country of export to the Competent Authority of the importing country. Upon receiving the PIC, along with the import application, the 
importing country will conduct a risk assessmen t of that particular GMO and then issue 
an import permit or alternativel y decline permission to import. 
The Competent Authority (SEA) has been issu ing monthly permits for the importation of 
yellow maize by millers which include: 
 
1. Swaziland Milling 
2. Arrow Feeds 
3. Crane Feeds 
4. Ngwane Mills 
5. National Maize Corporation (sometimes also imports white maize) 
These permits have been categorized as import for "Food, Feed & processing", and the 
maize has to be milled upon arrival. There has been only a single application for the importation of Cotton Seed by the 
Swaziland Cotton Board, and they were granted a permit in September 2014.  
In summary, The Swaziland Environment Author ity is currently only issuing permits for 
the importation of yellow maize, on monthly basis, to local grain millers who use the 
yellow maize as "Food, Feed or for Processing" (FFPs). 
The Draft Regulations outlines a clear application procedure for GMO activities in the country, as well as all the components of the Biosafety Act, 2012.  
 
_______________ 
 
 WT/TPR/M/324/Add.1 
 
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  FOLLOW-UP QUESTIONS BY SWITZERLAND AND THE UNITED STATES 
SWITZERLAND 
 Report by the secretariat 
 
P. 65 of the SACU answers, regarding Para 3.120 of the Secretariat's Report: South Africa answered that the process of developing its IP policy is ongoing.  
 
Question 1  
Could the South African authorities specify where this process currently stands and what will be the next steps? 
 
Answer 1 South Africa answered that its IP once impl emented will take due consideration of all its 
international commitments rela ted to intellect ual property. 
 Could the South African authorities specify how and at what stage of its internal legislative 
procedure this compliance will be assessed?  
P. 66 of the SACU answers, regarding Para 3.121 of the Secretariat's Report: South Africa answered that the procedure which can lead to the grant of a compulsory licence will be addressed in the development of the IP policy. 
 
Question 2 
Could the South African authorities specify the procedures under the patent act which is currently  
in force according to the initial questions by Switzerland? Fore easy reference you find hereunder 
these questions: Could the South African authorities specify the procedure which can lead to the grant of a 
compulsory licence?  
 Answers 2 Section 55 of the Patents Act provides that where the working of a patent (hereinafter 
referred to as a dependent pa tent) without infringement of a prior patent is dependent 
upon the obtaining of a licence under that pr ior patent, the proprietor of the dependent 
patent may, if agreement cannot be reached as to such licence with the proprietor of the 
prior patent, apply to the commissioner for a licence under the prior patent, and the 
commissioner may grant such a licence on such conditions as he may impose, but 
including a condition that such licence shall be used only for the purpose of permitting 
the dependent patent to be worked and for no other purpose. 
 Under section 56(1) of the Patents Act, any interested person who can show that the rights in a patent are being abused may apply to a commissioner in the prescribed 
manner for a compulsory licence. 
 Please explain how this procedure and the steps required to be taken by an applicant for a 
compulsory licence are consistent with article 31 TRIPS? 
 The applicant in terms of section 55 must sh ow that reasonable efforts have been made 
to obtain the consent of the right holder be fore the application can be granted. Section 
55 further states that the commissione r shall grant not a licence unless— 
 (a) the invention claimed in the dependent patent involves an important technical 
advance of considerable economic significance in relation to the invention claimed in the 
prior patent; (b) the proprietor of the dependent patent gr anted the proprietor of the prior patent on 
reasonable terms a cross-licence to use the invention claimed in the dependent patent; 
and (c) the use authorised in respect of the prio r patent is not assignable except with the 
assignment of the dependent patent. 
 WT/TPR/M/324/Add.1 
 
- 128 - 
 
  (a) the patented invention is not being worked  in the Republic on a commercial scale or 
to an adequate extent, after the expiry of peri od of four years subsequent to the date of 
the application for the patent or three year s subsequent to the date on which that 
patent was sealed, whichever period last ex pires, and there is in the opinion of the 
commissioner no satisfactoryreason for such non-working; 
 (c) the demand for the patented article in th e Republic is not being met to an adequate 
extent and on reasonable terms; 
 (d) by reason of the refusal of the patentee to grant a licence or licences upon reasonable terms, the trade or industry or ag riculture of the Republic or the trade of any 
person or class of persons trading in the Re public, or the establishment of any new trade 
or industry in the Republic, is being prejudic ed, and it is in the public interest that a 
licence or licences sh ould be granted; or 
 
(e) the demand in the Republic for the patent ed article is being met by importation and 
the price charged by the patentee, his licen see or agent for the patented article is 
excessive in relation to the price charged therefor in countries where the patented 
article is manufactured by or under licence  from the patentee or his predecessor or 
successor in title.  
Article 31(b) TRIPS requires that the proposed user has made efforts to obtain authorization from 
the right holder on reasonable commercial terms and conditions and that such efforts have not been successful within a reasonable period of time. 
How is this implemented in practice and assessed on a case-by-case basis? 
 South Africa to date has never issued a co mpulsory license. Where the demand has not 
been met for patented medicines, the govern ment has tended to negotiate with patent 
holders through the National Department of Health.  WT/TPR/M/324/Add.1 
 
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  UNITED STATES 
 (Follow-up Question for South Africa)  
Intellectual Property Rights 
 -South Africa's replies to several IPR related question s note that it is still developing its IP policy.  
 
Question 1 
When does South Africa expect to release a draf t of its IP policy? What is the timeline for 
completion? Will there be opportunities for public input in the process before the policy is adopted? 
 
Answer 1 South Africa is still developing its IP Policy so it is difficult to indicate how long it will 
take. There will be an opportunity for the public to make input. 
 (Follow-up Question for Namibia) 
 
Namibia indicated that it would provide response to many questions "at a later stage". We remain interested in responses to our original questions.  
Question 1 
Will Namibia submit the complete set of answers wi thin the timeline established by the WTO? If 
not, when? 
 
Answer 1 Please refer to the document with the additional questions. 
 
(Follow-up Question for Swaziland)  On page 54 of the responses, Swaziland notes that  the Copyright and Neighbouring Rights Bill has 
been Presented to the Portfolio Committee of the House of Assembly in Parliament.  
 Question 1 
Is a copy of the Bill that has been presented to  the House of Assembly in Parliament publicly 
available? If so, where?   
Answer1 
The Bill is publicly available in the Governme nt Gazette from the Go vernment Printer and 
not in soft copies. Furthermore, a soft copy can be provided on request.  
 
_______________ WT/TPR/M/324/Add.1 
 
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  RESPONSES TO THE SPANISH QUESTIONS 
ARGENTINA  
 Points 4.3 to 4.61 of Annex 3 of the Secretariat's report WT/TPR/S/324: 
 
Question 1 
What are the greatest challenges identified when selling your fishery products on foreign markets? 
 
Answer 1 Some of the main obstacles would relates to the importing country regulations with 
regards to their domestic SPS regulations, however, Namibia would be able to comply 
with such regulations. Another issue is St andards set that would relates to technical 
barriers to trade (TBT's) by the importing coun try to be used as a protectionist measure 
for local products in the local market. 
 
Question 2 
Could you provide further details pertaining to the tendering process followed for the granting of 
licences? 
 Answer 2 Namibia does not have a bidding system to  grant licenses, however, our fisheries 
management system are based on the granting  of harvesting/fishing rights, setting of 
Total Allowable Catch (TAC's) and the allocati on of quotas as outlined in the Marine 
Resources Act, 27 of 2000. 
 
Question 3 
Please explain how permits are granted between Namibian nationals and foreigners? 
 
Answer 3 Namibia does not have a distribution syst em of licenses between Namibian nationals 
and foreigners, however we have rights based fishing system that are based on the 
granting of harvesting/fishing rights. Sect ion 33 of the Marine Resources Act, clearly 
states procedures, when the public may apply for fishing rights for commercial purposes. 
 
Question 4 
Could you provide more details with regard to measures taken to protect the marine environment 
and systems for monitoring foreign vessels?  
 Answer 4 Measures adopted to protect the marine enviro nment includes fishing effort restrictions, 
spatial and temporal closures such as for the hake fishery the month of October is closed 
for hake fishing and in addition there are di fferent depth restrictio ns for catching hake 
fish by hake wet-fish trawlers and hake fr eezer trawlers. In addition no fishing is 
allowed within the 200 metre depth contour by long lining and trawling. The Ministry 
has also declared ''The Namibian Islands'' a Marine Protected Area (MPA) that lies off 
the coast between Meob Bay in the North and Chamais Bay in the South which is 400 
km's long and 30 km's wide, it consist of a ll of the country's islands, and surrounding 
sea areas, up to the high water mark along the country's coast.  The control systems in place for foreign vessel s in Namibian Waters, is that no foreign 
vessels can be licensed to fish in Namibi an Waters, unless the licensee holds a valid 
right for that resource, and if a quota has been allocated, holds a quota for that resource. 
 
Question 5 
Which have been the most frequent irregularities with which you have had to deal? 
 
 WT/TPR/M/324/Add.1 
 
- 131 - 
 
  Answer 5 
Any transgression by a holder of a right sha ll be dealt with, within the confines of the 
fisheries law. WT/TPR/M/324/Add.1 
 
- 132 - 
 
  CHILE 
 Trade agreements and arrangements  
Question 1 
What is SACU's trade expansion strategy for the next 5 to 10 years? 
 
Answer 1 
SACU does not have a trade expansion strate gy for the next 5 to 10 years. However, 
SACU's trade relations with third parties are governed by Article 31 of the SACU Agreement 2002. 
 
Question 2 
Does SACU have a methodology to assess possible or future trading partners? 
 
Answer 2 SACU undertakes trade analysis for trading partners requesting to negotiate a trade 
arrangement for consideration and decisi on by the SACU Council of Ministers. 
 Question 3 
Were joint feasibility studies carried out with trad ing partners with whom agreements were signed 
to determine the benefits of signing such a trade agreement? 
 Answer 3 
No. As in response to question 2 above, SA CU undertake its own trade analysis on the 
feasibility of negotiating trade agreements . 
 
Question 4 
Does the SACU carry out surveys to assess the trade relations with each partner? If yes, how 
often?  
Answer 4 
SACU annually assesses the trade flows fo r trade agreements that are in force. 
 
Question 5 
Which body is responsible for carrying out the asse ssment and / or processing this information? 
 
Answer 5 
The SACU Secretariat with inputs  received from Member States. 
 WT/TPR/M/324/Add.1 
 
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  COLOMBIA 
 
Not only is South Africa the main partner of Colombia in SACU, but also the main trade partner 
and investor in Colombia from the African continent. In general, in terms of commitments in the 
WTO, the panorama of the SACU does not pres ent significant changes since 2009, excluding 
institutional trends identified within a Customs Union, especially regarding what will be the 
implementation of policies and decisions in tariff matters, after the reforms of 2013 of the 2002 
Treaty. 
 
There remains a persistence of strong protection, both from South Africa and from the other 
countries of the SACU, some sectors including agricultural products and manufacturing, through 
mechanisms such as the application of specific, mixed or variable tariffs (resulting from the 
application of certain formulas). 
 
The report by the Secretariat (WT/TPR/324-01) in its summary states that: 
 9. The simple average applied MFN tariff (SACU CET) rate is 8.3% in 2015, slightly up from 8.1% 
in 2009. The tariff remains complex, still comprising ad valorem, specific, mixed, formula 
(variable) duties, and their combination; non-ad valorem duties represent about 3.8% (up from 3.2% in 2009) of total tariff lines. Tariff rates display relatively high dispersion from zero to 624% (an ad valorem equivalent). The modal rate (the most frequently applied) is zero and applies to 
about 57.5% of all tariff lines on, inter alia, live animals, products of animal origin, ores, fertilizers, 
cork, pulp of wood, silk, some minerals (e.g. nickel, lead, and zinc), and other base metals. The highest ad valorem rate (96%) applies to 14 tariff lines, including mainly dairy products; and the 
highest ad valorem equivalent (624%) applies to worn clothing and worn textile articles. 
10. Agriculture (WTO definition) remains the most tariff-protected sector (9.9% on average, slightly down from 10.1% in 2009), while tariff protection for non-agricultural goods is 8% 
(slightly up from 7.8% in 2009). Under ISIC (revision 2), manufacturing is the most 
tariff-protected sector (8.7%, slightly up from 8.5% in 2009), followed by agriculture (3.5%, slightly down from 3.7% in 2009), and mining and quarrying (0.1%, down from 0.8% in 2009). The presence of tariff escalation indicates high er effective protection for processed products. 
 
Question 1 
What is the relationship of agriculture and industrial policies laid down by the SACU agreement in 
2002 with the policy implemented during the period 2009-2015 in tariff matters, especially with 
regard to the persistence of certain treatments of exception - application of mixed specific or 
variable duties in certain sectors and products? 
 
Answer 1 The articles relating to agriculture and industrial policies have not been fully 
implemented. Tariff setting was therefore no t based on SACU wide policies during the 
period 2009-2015 . 
 El informe de la Secretaria (WT/TPR/S/324-01) plantea: 
 
1.9 The core mandate of all the central banks in SACU is price stability, which implicitly contributes to coordinated monetary policies within the region. There is no formal consultation framework in 
place between monetary authorities; however, th ey meet from time to time at SADC level. 
1.10 The SACU agreement does not provide for the harmonization of members' fiscal policies. However the revenue-sharing arrangement has import ant fiscal implications for BLNS countries, as 
payments in this respect account for over half of total government income in Lesotho and 
Swaziland, while the corresponding figures for Namibia, Botswana, and South Africa are on 
average in the order of 33%, 30%, and 3%, respectively.   
Question 2 
There is a common monetary area between the four countries of the SACU (Lesotho, Namibia, 
South Africa and Swaziland). What difficulties does SACU encounter to advance the harmonization 
of fiscal and investment policies?  WT/TPR/M/324/Add.1 
 
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  Answer 2 
The harmonization of fiscal and investment policies falls outside the scope of the SACU 
Agreement.  
2 RÉGIMEN COMÚN 
2.2 Unión Aduanera del África Meridional (SACU) 2.2.1 Estructura institucional 
 
2.7 The 2002 SACU Agreement provides for the esta blishment of certain designated institutions 
essential for the implementation of the Customs Union: the Council of Ministers; the Customs Union Commission; the Secretariat; the Tariff Board; the Technical Liaison Committees; and the 
ad hoc Tribunal. The SACU Agreement was amended during the review period to institutionalize 
the SACU Summit, through a decision of the Council of Ministers. The amendments were signed by the heads of state and government of SACU on the 12 April 2013, in Gaborone, Botswana. 
 
Question 3 
Will these institutions be formed by government  officials or will they be independent from 
government? 
 Answer 3 With the exception of the Tariff Board, Tr ibunal and the Secretariat, all the other 
institutions comprise of government offi cials of the five SACU Member States. 
 El Informe de la Secretaria (WT/TPR/S/324-02) Botswana plantea:  
 
2 RÉGIMEN DE COMERCIO E INVERSIÓN 2.1 Marco institucional y jurídico 
 
2.5. Botswana's legal system consists of Roman-Dutch and customary law; the latter is administered by the customary courts. Botswana's legislation may take one of three forms: acts of parliament, delegated or subsidiary legislation, an d autonomic legislation. Acts of parliament are 
the principal source of law in Botswana; they must be consistent with the Constitution, the 
supreme law of the country.
5 Acts are initiated through a bill drafted in the National Assembly at 
the request of the relevant ministry; thereafter  the draft is submitted for discussion and if 
necessary amended. Once approved by the National  Assembly, bills are presented to the President 
for assent, which he or she may withhold. If sanctioned it becomes an Act, but it needs to be gazetted to have the force of law.
6  
2.6. Subsidiary or delegated legislation is issued  under the direction of subordinate bodies under 
specific powers delegated to them by Parliament. Subsidiary legislation is usually in the form of proclamations, regulations and orders. Autonomic legislation is issued by an autonomous, specialized body that has been given the power to create laws to regulate itself, for instance, the 
Law Society of Botswana. 
 
Question 4 
In Botswana, subsidiary or delegated legislation and the autonomous legislation must be 
compatible with the laws of the Parliament or be at the same level of hierarchy? 
 
Answer 4 
Yes, it must be compatible with the laws  of Parliament, principle legislation takes 
precedence over  subsidiary or delegated legislat ion where there is inconsistency 
between the two, the principal legislation shall prevail. 
 
                                               
5 Constitution of Botswana Chapter 01:01, sections 87(7) and 86. 
6 Constitution of Botswana Chapter 01:01, section 87(5). WT/TPR/M/324/Add.1 
 
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  El Informe de la Secretaria (WT/TPR/S/324-03) Lesotho plantea:  
 2 RÉGIMEN DE COMERCIO E INVERSIÓN 2.1 Marco general 
 
2.1. There has been no major change in the legal and institutional framework for the formulation of Lesotho's trade and investment policy since its last Review in 2009. The framework is based on 
the Constitution of 1993
7, the SACU Agreement and several laws and regulations, which are in part 
shaped at the SACU level.  
Question 5 
What relation exists between the SACU agreement and the Constitution of Lesotho of 1993? Is the 
Constitution first? 
 
Answer 5 
The constitution of Lesotho is the supreme la w of Lesotho. All national policies will in 
effect be based on the constitution. On this regard any multilateral agreement 
negotiated on behalf of the people of Lesoth o, will have to be based on the constitution. 
 El Informe de la Secretaria (WT/TPR/S/324-04) Namibia plantea:   
2 RÉGIMEN DE COMERCIO E INVERSIÓN 
2.1 Marco general  
2.1 Namibia gained independence from South Africa in 1990, thus becoming one of Africa's 
youngest republics. The President, who is the he ad of state and the commander-in-chief of the 
army, is elected every five years. Under the Constitution the President is limited to serving 
two five-year terms. In November 2014, a new President was elected in Africa's first electronic 
ballot, in which voters made their choice using e-voting machines at the 4,000 polling stations 
across Namibia. The President assumed office in March 2015.
8 Following a constitutional 
amendment in 2014, Namibia also has a Vice-President for the first time. The President chooses a 
member of the National Assemb ly to become Vice-President. 
2.2 Following the 2014 constitutional amendments, the National Assembly has increased in size 
and now consists of 96 elected members and 8 non-voting members appointed by the President 
(up from 72 members and 6 non-voting members). National Assembly MPs are elected every 
five years through a system based on proportional representation. Non-voting members are appointed by the President for their special expe rtise, status, skill or experience. The second 
chamber of Parliament, the National Council, is ma de up of representatives from the 13 regions, 
elected in separate elections on the basis of "first past the post" in each regional constituency.  
Question 6  
Why does the National Assembly of Namibia have members appointed by the President? 
 Answer 6 
 1. The doctrine of separation of powers dictat es that the same person should not be a 
member of both the legislature and the exec utive. Simply put, the executive should 
not make laws and the legislature should not execute laws. The doctrine means that 
specific functions, duties and responsibilitie s are allocated to distinctive branches of 
government with a defined means of competence and jurisdiction. 
2. In the Namibian context this implies the separation of three main branches of 
government, namely, Legislativ e, Executive and Judiciary
9. Within the constitutional 
framework each has the following competencies: 
   Legislative authority – makes, amends and repeal rules of law. 
   (b) Executive authority – ex ecute and enforce rules of law. 
   (c) Judicial authority –determines what th e law is and how it should be applied in the 
disputes. 
                                               
7 The Constitution of Lesotho was adopted on 2 April 1993, and has been amended five times since 
(1996, 1997, 1998, 2001 and 2004). 
8 In March 2015, the outgoing President was awarded the US$5 million Mo Ibrahim prize for African 
leadership. The award is given to an elected leader who go verns well, raises living st andards and leaves office.  
9 Article 1(6) of the Namibian Constitution.  WT/TPR/M/324/Add.1 
 
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  3. According to a strict interpretation of th e separation of powers, none of the three 
branches of government may exercise the power of the other in order to safeguard 
liberties and guard against tyranny. 
4. Modern constitutionalism leaves room for a legitimate variation and allows for a 
departure which accepts that the formal di stinction between the three powers is a 
compulsory minimum for a democratic consti tutional order, as long as there are 
functional separations. Provided that the ov erlap, does not lead to actual, potential 
or demonstrable abuse of power, which cann ot be curbed by the existing rules for 
checks and balances. 
5. This variation to the classical applicatio n and implementation of the doctrine of 
separation of powers is justified on ground s of expediency. It was also held that an 
overlap makes the executive more dire ctly answerable to the legislature.10' 
CONSTITUTIONAL CONSTRAINS ON THE EXERCISE OF EXECUTIVE POWER IN NAMIBIA  
6.   Article 32 (1) of the Namibian Constitu tion subjects the exercise of the of the  
Presidents' executive function s to the overriding objectives of the Constitution as 
the supreme law of the country
11,   and the laws of Namibia. 
7. The constitution also empowers Parliament  to subject the President to impeachment 
and have him removed from  Office, as President. 
In terms of Article 25 and 18 of the Co nstitution, executive powers are also 
subjected to judicial review, where the  same contravenes any fundamental rights 
and freedoms or if such amounts to  an administrative injustice. 
8. The Constitution impose similar checks and balances on Parliament as court is 
granted authority in terms of Article 25 (1)(a) to declare an Act of Parliament , 
which is inconsistent with the Bill of Righ ts, invalid or to refe r such Act back to 
Parliament to correct a partic ular piece of legislation. 
9. The fact the President appoints members to and from the national Assembly should 
therefore be understood,  as a measure to enhance expediency in governance, the 
Executive implements the very laws passed by  the Legislature, who is more qualified 
to implement such laws then the one who have been part of its process of formation, who understands the objectives and the misc hiefs the laws are directed at, then the 
one who shall be held responsible for its implementation
12. The fact the eight 
members appointed are non-voting members,  does not eat away at our democracy, 
but simply enrich the legislative proce ss with their expertise and experience. 
 
 
El Informe de la Secretaria (WT/TPR/S/324-05 (Sudáfrica) plantea:  
 
4.90 South Africa's New Growth Path (NGP) and the Industrial Policy Action Plan (IPAP) are the 
main policy actions with significant focus on the manufacturing sector. Administrated by the DTI, IPAP is at the core of South Africa's industrial policy. It is implemented on three-year basis. The 
current IPAP covers the period from 2014 to 2017. It places greater emphasis (increased incentive 
packages) on competitiveness of manufacturing ex ports, especially for industries with high 
expansion potential. South Africa maintains an extensive list of incentive schemes in the 
manufacturing sector (Table A3.2). 
                                               
10 Certification of the Constitution of the Republic of South Africa, 1996 (CCT 23/96) [1996] ZACC 26; 
1996 (4) SA 744 (CC); 1996 (10) BCLR 1253 (CC) (6 September 1996), it was argued that an overlap between the executive and legislature resulted in the final Constitution not complying with Schedule 4 of the Constitutional Principle VI, which requires Act 108 of 1996  (the Constitution) to comply with the doctrine of 
separation of personnel. The Court stated as follows: 
‘… the separation of powers doctrine is not fixed or ri gid constitutional doctrine; it is given expression in 
many different forms and made subject to checks and balanc es of many kinds’. In the First Certification case it 
was argued that an overlap between the executive and legislature resulted in the final Constitution not complying with Schedule 4 of the Constitutional Princi ple VI, which requires Act 108 of 1996 (the Constitution) 
to comply with the doctrine of separation of personnel. The Court stated as follows  
‘… the separation of powers doctrine is not fixed or ri gid constitutional doctrine; it is given expression in 
many different forms and made subject to checks and balanc es of many kinds’. It was also held that an overlap 
made the executive more directly answerable to th e legislature’. 
11 Article 1(6) of the Namibian Constitution. 
12 Article 40 WT/TPR/M/324/Add.1 
 
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  3.70.The IDZ regime in South Africa offers the following incentives: 
 Tax incentives: Investors in the zone are permitted to import inputs and equipment 
  duty-free and exempted from value added tax (VAT). In addition, no VAT is payable 
  on electricity and water. 
 Provision of reliable infrastructure and utilities: water, electricity, roads, sewerage, 
  and telecommunication. 
 Streamlined administration and less bureaucracy for investors. 
 
Question 7  
What are the achievements by South Africa in th e implementation of this policy? Which are the 
sectors and investment projects prioritised in these areas? 
 
 El Informe de la Secretaria (WT/TPR/S/324-05 (Sudáfrica) plantea:  
 
2.5. According to the authorities, consultations were undertaken to review the evolution of South 
Africa's tariff structure and its trade effects sinc e 1994. In light of this, a Trade Policy and Strategy 
Framework (TPSF) was adopted in 2010 and revised in 2012. It specifies trade-related measures 
that can contribute to the Government's broad ec onomic development objectives outlined in the 
NGP and the NDP, with a view to diversifying  the economic base, as well as producing and 
exporting high-value-added products.  
2.6 The Framework recommends a "strategic tariff policy" approach, whereby tariff policy is 
decided primarily on a sector-by-sector basis, and dictated by specific sectoral strategies. For instance, it recommends that tariffs on inputs be reduced or removed to lower production costs for 
labour-creating manufactures. Furthermore, tariffs on goods produced by South Africa's strategic 
industries (from an employment or value-addition perspective), may be raised to ensure long-term sustainability and job creation "in the context of domestic production capabilities/potentialities and 
the degree of trade and production distortions on these products at the global level".
13 
 Answer 7 In line with the sector priorities as articulate d in the Industrial Policy Action Plan (IPAP) 
and the New Growth Path(NGP), the SEZs in South Africa aim: 
To promote the acquisition and developmen t of targeted industrial capabilities 
within the framework of the IPAP, New Growth Path and the New Development 
Plan, 
To promote beneficiation and value additi on to the country's minerals and other 
natural resources,  
To develop world-class infrastructure requ ired to support the development of the 
targeted industrial activities, To attract relevant foreign an d domestic direct investment, 
To accelerate exports and economic growth  and the creation of much needed jobs, 
To contribute to balanced  regional development. 
Our success since the inception of the IDZ programme - From 2002 to 2015, a total of 59 
investors are on site and operational in th e IDZs with more than R5.2 billion private 
investments leveraging8500 direct jobs an d approximately 43 thousand jobs created 
through backward and forward linkages. 50 investors (including eight new expansions in Coega) with an investment value of more  than R15.9 billion have signed agreements 
to locate in the designated zones and are expe cted to create more than 4 000 direct jobs 
and ninety-one pipeline investors are at di fferent stages of negotiation with the 
designated zones; 68% are at advanced-stage  negotiation. Our zones have successfully 
attracted diverse sectors ranging from automotive, agro-processing, chemicals, 
renewable energy, aquaculture and horticultu re, ICT, steel and general manufacturing.  
 
Question 8  
What sectors would eventually increase tariffs? What are the main features of the program of tariff 
reform which intends to achieve an industrial modernization in the Republic of South Africa. 
 
                                               
13 Online information. Viewed at: 
http://www.itac.org.za/upload/Trade%20Policy%20and%20Strategy%20Framework.pdf. WT/TPR/M/324/Add.1 
 
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  Answer 8 
In line with the sector priorities as articulate d in the Industrial Policy Action Plan (IPAP) 
and the New Growth Path (NGP), the SEZs in South Africa aim: 
To promote the acquisition and developmen t of targeted industrial capabilities 
within the framework of the IPAP, New Growth Path and the New Development 
Plan, To promote beneficiation and value additi on to the country's minerals and other 
natural resources,  
To develop world-class infrastructure requ ired to support the development of the 
targeted industrial activities, To attract relevant foreign an d domestic direct investment, 
To accelerate exports and economic growth  and the creation of much needed jobs, 
To contribute to balanced  regional development. 
Our success since the inception of the IDZ programme - From 2002 to 2015, a total of 59 
investors are on site and operational in th e IDZs with more than R5.2 billion private 
investments leveraging8500 direct jobs an d approximately 43 thousand jobs created 
through backward and forward linkages. 50 investors (including eight new expansions 
in Coega) with an investment value of more  than R15.9 billion have signed agreements 
to locate in the designated zones and are expe cted to create more than 4 000 direct jobs 
and ninety-one pipeline investors are at di fferent stages of negotiation with the 
designated zones; 68% are at advanced-stage  negotiation. Our zones have successfully 
attracted diverse sectors ranging from automotive, agro-processing, chemicals, 
renewable energy, aquaculture and horticultu re, ICT, steel and general manufacturing. 
 
El Informe de la Secretaria (WT/TPR/S/324-05 (Sudáfrica) plantea:  
 3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
3.1 Medidas que afectan directamente a las importaciones 
3.1.4 Prescripciones sanitarias y fitosanitarias 3.1.4.1 Marco jurídico e institucional 3.33. South Africa's SPS regime pursues the objectives of enhancing and strengthening its ability 
to satisfy its obligations under the WTO SPS Agreement; providing adequate protection against 
risks threatening human, animal and plant life an d health; and enhancing its competitiveness to 
fully benefit from market access opportunities. A comprehensive strategy was rolled out in 2014, 
with a view to providing an overarching framework that aims to support those objectives. 
 
Question 9  
How will South Africa comply with the SPS agreemen t? Will it be incorporated into the domestic 
law? 
 
Answer 9 
All the relevant South African laws and re gulations are in full compliance with the 
SPS Agreement. The SPS Agreement and the other agreements of the Uruguay Round have been ratified by the South African Parliament. Under the South African legal 
system, it is not necessary to incorporate the SPS Agreement into South African 
legislation in order to comply with the provisions of such agreement. 
 
El Informe de la Secretaria (WT/TPR/S/324-05 (Sudáfrica) plantea:  
 4.14. Agriculture also remains central to several other development plans in South Africa.  
4.15. Tariff protection of agriculture, hunting, forestry, and fishing (ISIC Rev.2, 1) stood at 3.7%, 
down from 5.5% in 2002, with tariffs ranging from zero to 44%. Both ad valorem and specific tariffs (and a combination of both) are applied to agriculture and agro-food products; however, 
most tariff lines 95.7% bear ad valorem duties. Variable (formula) duties are still levied on 
cornflour, preserved tomatoes, cherries, and two kinds of tobacco (Main Report, Section 3.1).  
1.1.  Tariff quotas apply to agricultural products, including animal products, potatoes, vegetables, 
fruit, cereals, coffee, tea, oil seeds, sugar, food  preparations, wine and spirits, vinegar, tobacco, 
and cotton (Section 3.1). The TDCA preferential agreements concluded with EFTA include preferential tariff quotas covering cheese products (Table 4.2). 
 WT/TPR/M/324/Add.1 
 
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  Question 10 
Will South Africa have flexibility of this policy in the future? 
 Answer 10 
A preferential cheese quota is provided under the TDCA agreement with the EU. The 
EFTA agreement does not have a cheese quota. The quota under the TDCA is in addition to the WTO market access quotas. "Additional flexibility" would be dependent on various 
policy considerations and it is not possible to  respond to this question in isolation. 
 
Question 11  
There is a common monetary area between the four countries of the SACU (Lesotho, Namibia, 
South Africa and Swaziland). What difficulties does SACU encounter to advance the harmonization 
of fiscal and investment policies? (See Q2)  
Answer 11 
The harmonization of fiscal and investment policies falls outside the scope of the SACU 
Agreement. 
 
El Informe de la Secretaria (WT/TPR/S/324-06 Swazilandia plantea:   2 RÉGIMEN DE COMERCIO E INVERSIÓN 
2.1 Marco general 
2.1.Swaziland is an absolute monarchy, where a mo dern and a traditional state co-exist. The King 
is head of state and holds executive, legislative an d judicial powers, but no longer rules by decree. 
The modern state, based on the Constitution of 2006, consists of a democratic parliamentary 
system with separation of powers between the ex ecutive, legislature (bicameral) and judiciary. 
The Constitution does not recognize political part ies. Election of the members of the House of 
Assembly is done through a non-party traditional system (Tinkhundla). The King directly appoints 
10 of the 65 representatives to the House and 20 of the 31 members of the Senate.
14  
Question  12.  
What relation is there between the separation of  powers in Swaziland and the appointment of 20 
of the 31 members of the Senate by the King? 
 
Answer 12 
The Executive;  
The primary function of the Ex ecutive arm of government is to execute the decisions of 
the judiciary, to implement the laws made by the Legislature and see to the overall 
administration of the country. Furthermore, it is the Executive's role to defend the 
Constitution of the country. The Executive au thority of Swaziland vests in the King as 
the Head of State. The King may exercise th e executive authority either directly or 
through the Cabinet or a Minister. In His ca pacity as the Head of State the King has 
authority to sign and assent to Bills, su mmon and dissolve Parliament, receive foreign 
envoys, reprieve or commute sentences, declare State of emergency, confer honours, 
establish any commission or vu sela and order a referendum. 
The Executive arm consists of the Cabinet and civil servants. The Cabinet is made up of 
the The Prime Minister, the Deputy Prim e Minister and 18 Ministers. They are 
responsible for policy making, administra tion and executing the functions of 
government. The Prime Minister is the Chai rman of the Cabinet and the leader of 
Government in business. He is appointed by  the King with the recommendation of the 
Kings Advisory Council (Liqoqo) from the House of Assembly. The King appoints 
Ministers from both chambers of Parliament  and on the recommendation of the Prime 
Minister. At least half of the Ministers ar e appointed among the elected members of the 
House.  
The LegislatureThe main function of the Legisl ature is to make laws for the peace, order 
and good governance of Swaziland. The power of the King and Parliament to make laws 
is exercised through bills. A bill may be intr oduced into either chamber for debate or 
passage into law except for a money bill, whic h must only be introduced in the House of 
Assembly before it proceeds to the Senate. The Parliament of Swaziland is a bicameral 
chamber consisting of the Senate and the House of Assembly. Section 94 (1) of the 
                                               
14 African Development Bank (2013).  WT/TPR/M/324/Add.1 
 
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  Constitution states that the Senate shall co nsist of not more than thirty one members. 
Currently, the Senate consist thirty (30) me mbers. Ten (10) Senato rs, at least half of 
whom must be female, are elected by members of the House of Assembly so as to represent a cross-section of Swazi society. Tw enty (20) Senators, at least eight of whom 
must be female are appointed by the King acti ng in His discretion after consultation with 
such bodies as He may deem appropriate.  
In terms of section 95 (1) of the Constitution  the House of Assembly shall consist of a 
maximum of seventy six members. The House currently consists of sixty-six members, 
fifty-five of whom were elected from tink hundla areas serving as constituencies and 
ten members were nominated by the King, as  provided for by the Constitution. The 
sixty-sixth member is the Speaker of th e House who was elected from outside the 
House as sanctioned by section 102 of the Constitution. 
The Judiciary 
The main function of the Judiciary is to adju dicate and to interpret Acts of Parliament 
and the common law. Additionally the Judici ary has the power to issue out orders or 
directions as may be necessary to ensure  law, peace and order is maintained. The 
Judiciary is independent and subject only to  the Constitution. The country's judiciary 
comprises of the Courts of general jurisd iction, the Supreme Court, High Court and 
Magistrate Courts and other specialized cour ts, such as Swazi or Customary Courts. In 
addition there is the Industrial Court and the Industrial Court of Appeal which are 
specialist tribunals whose jurisdiction is conf ined to Labour disputes. The judges of the 
superior courts (Supreme and High Courts) and the specialist tribunals are appointed by 
the King on the advice of the Judicial Service Commission ("JSC") and Magistrates are 
appointed by the JSC. Officers (President) of the Swazi Courts which administer Swazi 
law and custom are appointed by the King  independently of th e Judicial Service 
Commission. 
 
NOTE: Each of these organs is  independent from other arms. 
The Electoral System 
Swaziland practices a Tinkhundla–based electoral system of government. The 
Tinkhundla system is a democratic participat ory system which emphasizes devolution of 
power from central government to Tinkhund la (constituencies) areas and individual 
merit as a basis for election or appointment to public office. 
 WT/TPR/M/324/Add.1 
 
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  COLOMBIA 
 (ADDITIONAL QUESTIONS)  
Intellectual property: 
 With regard to number 3.4 which states that, "T he Companies and Intellectual Property Authority 
was established in 2011 as an autonomous entity with the aim, among other things, of improving 
the business environment , reducing the time n eeded to start a business and protecting and 
effectively managing intellectual property rights."  
Question 1 
Does this entity manage both patent rights and copyright and related rights?  
 
Answer 1 Yes. One of the functions of the Companie s and Intellectual Property Authority is 
registration of Companies, Co-operatives an d Intellectual Property Rights: trademarks, 
patents, designs and copyright and maintenance thereof . 
 Question 2 
Document WTTPRS324-01 
With reference to paragraph 2.4.4 stating that "The agreement also covers cooperation in other 
trade-related matters, such as the protection of intellectual property rights."  Does the agreement with the European Union contain a chapter on intellectual property rights? 
 
Answer 2 
The Agreement with the EU covers cooperation on intellectual property  rights but it has 
not been signed yet. It may therefore be in appropriate to confirm the provisions of the 
Agreement at this stage.  Question 3 
With regard to cooperation on intellectual property rights, which issues are addressed?  
Answer 3 
Cooperation covers myriad of issues  including geographical indication. 
 Question 4 
Document WTTPRS324-02 Under number 3.125: "The Act on Copyright and Related Rights (chapter 68:02) requires that all sound and audiovisual recordings made availabl e to the public for commercial purposes in 
Botswana carry a safety device or hologram, which costs 0.30 Pula and which the duly accredited 
owner of the recording or importer can buy from  the Gaborone and Francistown copyright offices 
(the accreditation cost is 40 Pula). The Copyright Office may only issue an accreditation certificate to an importer who has valid permission from th e copyright holder to import these works into 
Botswana". There are several questions:  
What is the reach of this safety device or hologram? What is the purpose of this requirement? What statistics are available from the time of entry into force of this law, which make it possible to 
prove the effectiveness of this requirement? Why is this measure only imposed on musical or 
audio-visual works?  
Answer 4 
The purpose of the security device/hologra m serves to authenticate sound and audio-
visual works. It is meant to curb piracy in that any sound or audio-visual work availed to 
the market without a security device is deemed  to be pirated. This is required on this 
category of works mainly because they are mo re prone piracy and that in most countries 
where similar practices exist the device is applied to sound and audio-visual works.  
 
Since the entry into force of this law, about 2 365 380 holograms have been sold. The 
office occasionally conducts raids to confis cate works that do not bear the hologram. 
Sound and audio-visual works that do not bear the hologram are confiscated. The 
estimated value of confiscated works is US$ 65 814.00 
 WT/TPR/M/324/Add.1 
 
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  ECUADOR  
 WTO Secretariat Report    
1. In accordance with page 4, paragraph 6 of the Summary:  
  "[...] The SACU countries have regional trade agre ements with the members of the European Free 
Trade Association (EFTA) and have signed a re ciprocal trade agreement with the MERCOSUR 
countries, which is not yet in force." [...]   Question 1 
Could the Southern African Customs Union (SACU) explain in greater detail what the reciprocal trade agreement with the MERCOSUR countries consists of?   
Answer 1 
The agreement is a Preferential Trade Agreem ent (PTA) and covers trade in goods - both 
agricultural and industrial - based on agreed  tariff preferences and rules of origin that 
were agreed by both parties for the importation of negotiated products.  
 Mercosur offered SACU 1 051 product lines while SACU offered 1 064 product lines. The reduction in tariffs or margin of prefer ences for all products by both SACU and 
MERCOSUR ranges from 10 % to 100 %.  
The SACU-MERCOSUR PTA is currently in the final stages of ratification.  
Question 2 
On page 12, paragraph 2.3 pertaining to the general review of the SACU Common System, the 
following is mentioned:  
 
"Article 31 of the SACU Agreement allows Member St ates to maintain existing preferential trade 
arrangements; therefore some SACU members are individually party to other preferential trade 
arrangements. " 
 
Could the SACU indicate whether the individual negotiation of trade agreements has been detrimental to trade flows within the customs area? Was there triangulation?  
 
Answer 2 There is no detrimental impact on trade fl ows because intra-SACU trade has increased 
by an average of 12.5% over the last 5 years. 
Question 3 
 On page 20, paragraph 3.6 pertaining to Customs procedures and customs evaluation, it is stated 
that:  
 
"In December 2011, during its 25th meeting, the Council of Ministers of the SACU approved a 
"Regional Customs Policy document ". This policy develops and applies some common strategic 
objectives, which are to facilitate legitimate trade; protect the fiscal interests of the Member States 
of the Customs Union by optimizing revenue and providing accurate business data; and protecting 
the societies of Member States. The policy docu ment continues to guide the SACU countries in 
their efforts to implement their various customs projects.  
 Could SACU explain whether, on the basis of fac ilitating legitimate trade as per the "Regional 
Customs Policy document", programmes or strategies  have been incorporated to comply with the 
Trade Facilitation Agreement?   Answer 3 
The policy focuses on Customs Legislation;  Risk Management; Trade Partnerships; 
Standard Operating Procedures (SOPs); and Customs IT connectivity. The main 
developments include work towards conclu sion and implementation of the SACU 
Preferred Trader Programme (a step toward s Authorised Economic Operator (AEO), 
conclusion of the draft SACU Regional Cu stoms Risk Management Strategy, and IT 
connectivity between SACU Member States  (encompassing electronic data and WT/TPR/M/324/Add.1 
 
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  information sharing mechanisms) and legislat ive reforms to incorporate international 
best practices. These developments cove r largely Article 7 of the WTO TFA.  
 4. On page 31, paragraph 3.29 on excise duties, reference is made to the following:  
  
"The excise duties are aligned within the framework of the SACU. Specific excise duties are applied 
to prepared foodstuffs, alcoholic beverages and spirits, tobacco, mineral products and products 
from the chemical or allied industries; and ad va lorem duties are applied to perfumes and certain 
electronic devices (Table A3.2). Excise duties calculated [according to] a specific formula are 
applied to motor vehicles and their components. " 
 
Question 4 
Could the SACU, in this regard, explain wh at the formula is and the aim thereof?  
 
Answer 4 
A policy decision undertaken in SACU takes in to account differences in Member States 
economic developments in line with the SACU Agreement, 2002. These relate to 
amongst others the establishment of th e development component of the revenue 
sharing formula which aims to compensate the least developed economies. Further, 
there is infant industry pr otection which applies most ly to the least developed 
economies. 
 
Question 5 
On page 32, paragraph 3.35 on concessions and exemptions from duties and taxes, it is 
mentioned that:  
 
"The only discounts not applied by all the SACU Member states are those for wheat (SA 1011) and 
dairy products (SA 04), which are only granted by Botswana, Lesotho, Namibia and Swaziland. The 
Motor Industry Development Programme (MIDP) was stopped in 2012 and replaced by the 
Automotive Production and Development Programme (APDP). " 
 
Could the SACU provide greater detail on the Automotive Production and Development 
Programme?  
 
Answer 5 
The APDP and its predecessor also sought to encourage competition in the market for the benefit of consumers. Thus those who ea rn the benefit will realize the value through 
selling the certificates, and thus share it with  importers otherwise they might fully lose 
that value if they have no duties to o ff-set with the earned rebate certificates.  
  
ANNEX 1 - BOTSWANA  
 6. On page 85, paragraph 3.52 on sanitary and phytosanitary requirements, reference is made to 
the following:  
 "The Ministry of Agriculture is the national enquiry point and the authority responsible for notifications on sanitary and phytosanitary issues. During the period under review, Botswana did 
not notify the adoption of any SPS measure, and was not actively involved in the WTO SPS 
Committee either. According to the authorities, this is due to capacity constraints in Botswana in this area. However, the country recognizes the im portance of protecting human, animal or plant 
life or health, which explains its extensive legislation. It is important to properly enforce these laws 
and to follow practices which improve the health conditions of Botswana so that it can achieve food security, one of its main objectives, and take full advantage of the opportunities generated by international trade, especially for an exporter of meat products. In this regard, one of the greatest 
achievements of Botswana since the previous review is that in 2013 the OIE declared that certain 
areas were free of FMD".  
Question 6 
Due to the limited trade that Ecuador has with Botswana, it is not possible to demonstrate the 
clarity of procedures and phytosanitary implications that could arise with this country through 
trade exchange experiences; however, from readin g the documents it can be seen that the NPPO WT/TPR/M/324/Add.1 
 
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  of Botswana has not updated its framework and procedures in accordance with new international 
regulations. Could Botswana explain whether there is a plan or programme to update these in accordance with international regulations?   
Answer 6 
No.  
 
ANNEX 2 - LESOTHO   7. On page 188, paragraph 3.53, reference is made to the following:  
  
"Lesotho has at least four entities that deal with sanitary and phytosanitary issues: According to the authorities, their powers may overlap in ma ny cases and could therefore give rise to the 
duplication of work carried out. The four main institutions are: a) the Ministry of Agriculture and 
Food Security, which is responsible for controlling  the import and export of plants and plant and 
animal materials, as well as cross border diseases 40; b) the Ministry of Forestry, responsible for 
forest and wildlife products; c) the Ministry of Health, responsible for inspections; and d) the 
Ministry of Trade and Industry, responsible for developing standards and food testing laboratories.   Question 7 
Could Lesotho consider reorganizing the activities, functions and responsibilities of each entity, and thus have a specific organization dedicated to SPS control and regulation?   
Answer 7 
Lesotho has at least four entities dealing wi th SPS issues. According to the authorities, 
their functions overlap in many instances thus  resulting in the duplication of work. The 
main four institutions are: (a) the Ministry of Agriculture and Food Security (MAFS), 
which is responsible for controlling the import s and exports of plants, plant material and 
animals, as well as transboundary diseases
15; (b) the Ministry of Forestry, responsible 
for forest and wildlife products; (c) the Mini stry of Health, responsible for inspection 
activities; and (d) the MTI, responsible fo r the development of standards and food 
testing laboratories.  Lesotho has no legislation dealing specifica lly with SPS matters and its institutional 
framework is not clearly defined. Notwiths tanding, during the period 2008-15 Lesotho 
took some steps towards developing SPS le gislation by issuing various policy papers. 
 
Lesotho prohibits the export of certain drugs and chemicals, and may prohibit the export 
of munitions or any good that could be conver ted into or used to manufacture munitions. 
 Clarification: 
In 2014, the Ministry of Agriculture drafted a phytosanitary policy and a sanitary policy, 
and the Ministry of Trade and Industry (MTI ) drafted a food safety  policy and a quality 
policy. These policy papers sought in particular  to identify the direction to move forward 
and clarify the functions of the different instit utions involved in the policy making of SPS 
measures.   
In 2014, the Ministry of Health also completed the draft of a food safety bill which is 
aimed at improving the food safety situation in the country and at establishing a food 
authority. This bill if enacted will compleme nt the Public Health Order 12 of 1970. Some 
work has also been undertaken to develop fo od standards with the establishment of the 
Committee for food products. However, the pu blication of any final outcome by this 
Committee will have to wait the implementation of the Standards Bureau.  
According to Internal Security Arms & Ammu nition Act No 17 of 1966, Lesotho prohibits 
the export of certain drugs and chemicals, an d may prohibit the export of munitions or 
any good that could be converted into  or used to manufacture munitions. 
                                               
 
 WT/TPR/M/324/Add.1 
 
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  To make provision in the interests of public  safety and public order for regulating and 
controlling firearms, imitation firearms an d other weapons and ammunition, and for 
related purposes. The phytosanitary policies of Swaziland (p. 1, point 3.61) and Lesotho (page 34, point 3.50) are 
not yet completely aligned or are being developed.  
  
ANNEX 4 - SOUTH AFRICA  
 8. On page 327, paragraph 2.18 on the Investment regime, reference is made to the following:    
"Following a Study carried out in 2010, South Africa notified the following countries that it would 
be ending its bilateral investment treaties with them: the Belgo-Luxembourg Economic Union, Spain, the Netherlands, the United Kingdom, Fr ance, Germany, Denmark, Switzerland, Austria, 
Italy and Greece. Sweden and Finland were also notified of South Africa's intention to end its 
bilateral investment treaties with these countries once they expire ". 
 
Question 8 
Could South Africa explain in greater detail what  the reasons were for the decision to end the 
bilateral investment treaties? Have new alternatives been considered to lay down rules in this regard at bilateral level?  
 
Answer 8 The decision to terminate early generation BITs was itself informed by an extensive 
three-year review of South Africa's BITs  that concluded in early 2010. The review 
revealed several important conclusions. First,  South Africa had entered these treaties in 
the immediate post-apartheid period to provid e confidence to foreig n investors at a time 
when democratic South Africa's economic po licy was untested and before the adoption 
of the new Constitution in 1996 that was to provide safeguards to protect private 
property and investment. It al so noted that since the mid-90s , South Africa has steadily 
built up a robust legal framework protecti ng all investment, domestic and foreign. 
 
Second, the review demonstrated that early ge neration BITs were deeply flawed in that 
provisions were poorly drafted, ambiguous and,  in some cases, may be in conflict with 
existing national legislation in South Afric a. Further, the early BITs did not establish a 
balance between protection of investor rights  and the right of government to regulate. 
This state of affairs imposes unacceptably hi gh risk to governments as they seek to 
regulate in public interest.  
 The review also revealed profound inconsis tencies in the outcomes of international 
arbitration as they relate to investment disp utes. Of particular concern is the risk that 
three arbitrators reach decisions that overtu rn national policies and measures that are 
arrived at through legitimate and fully democrat ic processes at a national level. In short, 
BITs may be unconstitutional in South Africa. 
 
Third, the review observed the empirical analysis on the relationship between BITs and investment flows and found there was no clea r evidence that BITs lead to investment 
inflows. Indeed, South Africa's own experi ence shows we continue to receive large 
investments from countries with whom we ha ve no BIT (USA, Japan and India) and little 
or no investment from count ries we do (Austria).  
Finally, the review observed that major countries around the world had abandoned their 
early generation treaties in favour of u pdated and modern forms of protection for 
investment and investors.   
In short, the review showed that BITs had se rved their purpose at the time of transition 
in the mid-1990s and were no longer necessary as South Africa has developed a robust regime for the protection of investment. Furthe r, risks of early generation BITs outweigh 
the benefits as shortcomings in the tr eaties themselves are compounded by 
inconsistencies in intern ational arbitration.  
 WT/TPR/M/324/Add.1 
 
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  In this light, one dimension of modernising the investment protection regime involves 
terminating existing BITs, and South Africa ha s initiated the process in consultation with 
partners.   
The second leg of modernising South Africa's investment regime involves work towards 
establishing a new Protection of Investment Bi ll. In this respect, the policy guidance is 
clear. The Bill seeks to ensure that South Af rica remains open to foreign investment and 
should not impose new obligations on inve stors. It strikes an appropriate balance 
between the rights and obligations of inve stors and of Government, particularly in 
respect of the Government's right to regulate in the public interest. Further, provisions ordinarily found in BITs should be accommo dated in the Bill and brought in line with 
South Africa's Constitution and our existing legal framework. 
 9. On page 330, paragraph 3.10 on trade policies and practices according to measures, reference 
is made to the following:  
 "All imports entering South Africa are subject to the SACU's Common External Tariff (CET). SACU's excise duties apply to wine, spirits, beer and other fermented drinks, tobacco and fuel, 
among other products (Main Report, Section 3.3). Levies are charged on certain agricultural 
products (Section 4) and there is also an environmental levy on certain products. There is also a 
fuel levy and the Road Accident Fund (RAF) levy. " 
 
Question 9 
Could South Africa explain what the environmenta l levies are and on which products they are 
applied?  
 
Answer 9 The environmental levies that are currently in  place in terms of the Customs and Excise 
Act are: 
 Incandescent globe tax 
 Motor vehicle emissions tax 
 Plastic bag levy  
Imports are also subject to these levies.  
There is also an electricity generation levy which is classified as an environmental levy. 
This applies only to domest ically produced electricity.   
 
10. On page 345, paragraph 3.77 concerning measures affecting production and trade, it is stated that:  
"Incentives are mainly granted within the framewor k of the Plan for micro, small, and medium-size 
enterprises (SMME) and the Industrial Development Financial Assistance Plan (IDFA). The programmes included in the SMME Plan mainly contribute towards the implementation of the Broad-based Black Economic Empowerment Act. This Act seeks to address the lack of participation 
of historically disadvantaged communities in the economy ". 
 
Question 10 
Could South Africa provide further detail on the plans and incentives for SMMEs and industrial 
development?   Answer 10 
South Africa is in the process of reviewing our incentive programs and will notify these 
to the WTO in due course.  
11. On page 4, paragraph 3.81 pertaining to the Competition Policy, the following is stated:  
 "The Law is widely applied throughout the economy, including the public sector; however, the 
Competition Commission has the right to exempt companies from applying the Competition Law. 
Waivers are granted by the Commission if agreement or practice contribute to achieving the following objectives: promoting exports; assisting SMEs and historically disadvantaged persons to 
become competitive; halting the deterioration of an industry; or protecting the stability of any 
industry indicated by the minist er responsible for this industry ". 
  WT/TPR/M/324/Add.1 
 
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  Question 11 
Could South Africa explain what the parameters are that are used to measure the competition 
exemption objectives?   
Answer 11 
Competition Commission  
Firms may apply to the Commission to be gr anted exemption if such a firm aims to 
participate in prohibited practices as set out by Chapter 2 of the Act (Restrictive practices and Abuse of Dominance). Fi rms may be granted exemption by the 
Commission if the prohibited practices which th ey intend on engaging in, contributes to 
the following objectives: 
 
The maintenance and promotion of exports; 
The promotion of the ability of small firm s controlled or owned by historically 
disadvantaged persons to  become competitive; 
The improvement of productive capacity whic h is necessary to stop the decline of an 
industry; and 
 
The improvement of an economic industry de signated by the Minister, after consulting 
the Minister responsible for the industry 
 
The Competition Commission must give noti ce in the Government Gazette of South 
Africa of:  
Any application it has received for exemption;  
Must allow interested parties to make written representations as to why the 
exemption should not be granted; 
 
Must also give notice before exemptio ns are granted, refused or revoked. 
Notices in the Government Gazette are public ally available for interested parties to 
access, with the motivations for the exemptio ns included in the published notices. In 
addition, the Commission has over the year s expanded on the detail of exemptions 
which it has granted in its Annual Reports an d also publishes information on exemptions 
in its Quarterly Newsletter. Before granti ng an exemption, the Commission contacts 
market participants (industry players)  and government agencies during the 
investigation phase. All interested parties are able to provide information that will assist 
the Commission in making its decision. 
 
 12. On page 324, paragraph 3.119 pertaining to Intellectual Property Rights, the following is stated:  
 
"The main legislative developments recorded in th e period under review was the approval by the 
President of the Act on the Amendment of the In tellectual Property Act of 2013 (Act No. 28 of 
2013), which was published in the Official Gazette on 10 December 2013. It amends the 
Performers ' Protection Act of 1967 (Act No. 11 of 1967), the Copyright Act of 1978 (Act No. 98 of 
1978), the Trademarks Act of 1993 (Act No. 194 of  1993) and the Industrial Designs Act of 1993 
(Act No. 195 of 1993), with the aim of establishing effective protection mechanisms for indigenous 
knowledge as a form of intellectual property in South Africa ". 
 
Question 12 
Could South Africa explain the content and exte nt of the mechanisms for the protection of 
indigenous knowledge?   
Answer 12 
South Africa is still in the process of deve loping its IP policy and once finalized the 
implementation thereof will be addressed.  
Question 13 
The following comprehensive texts of the Namibia Review are requested: 
 WT/TPR/M/324/Add.1 
 
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  Law no. 36 of 1947 on fertilizers, feed and chemic al products in the agricultural and livestock 
industries (Provides for the registration of fe rtilizers, feed and chemical products for the 
agricultural and livestock industries, sterilisatio n plants and pest control, among other things); 
 
The Medicines and Related Substances Control Act - Act No. 101 of 1965 (provides for the 
registration of medicines for human and veterinary use.)   
The documents referred to in ANNEX 4 - SOUTH AFRICA Page - 339 - (Doc. WT/TPR/S/324 · South 
Africa) Table 3.4 "List of applicable sanitary and phytosanitary laws ";  
 Animal Health Law; and  
 Law on the Safety of meat and meat products 
 
Answer 13 Kindly see attachment for the required Law. WT/TPR/M/324/Add.1 
 
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  MEXICO 
 Report by the Secretariat 
 
Question 1 
 
WT/TPR/S/324 • Southern African Customs Union; Report by the Secretariat; Summary; 
 
Paragraph 13 (page 5) In addition to the tariff and tax concessions (discounts, refunds and rebates) laid down in the SACU Agreement, specific national discounts for wheat and dairy 
products are given in Botswana, Lesotho, Namibia and Swaziland (BLNS). During the review 
period, the Automotive Production and Development Programme replaced the Motor Industry Development Programme and the Clothing and Textiles Competitiveness Improvement Programme 
was suspended. National legislation provides for th e granting of investment incentives to diversify 
the economy and exports in the BLNS countries, as  well as promoting exports and responding to 
social concerns in South Africa.  
 
What is the SACU's current aim in terms of sectors and foreign trade outside the customs union?   Answer 1 
Foreign Trade outside the Customs Union is governed through Free Trade Agreements 
t h a t  S A C U  m a y  w i s h  t o  n e g o t i a t e .  S A C U  c o untries negotiate these as a block. Sectors 
covered mainly Trade in Goods, with cooper ation in other areas such as Services and 
Investment. Currently, SACU has ongoing negotiations with India, the COMESA-EAC-
SADC Tripartite Countries and the Contin ental Free Trade Area Countries. SACU has 
concluded EPA negotiations with the European Union, Free Trade Agreements with EFTA 
and SADC and a Preferential Trade Agreement with Mercosur. SACU also has a Trade and 
Development Cooperation Agreement with the US.  Question 2 
WT/TPR/S/324 • Southern African Customs Union; Report by the Secretariat; Summary; 
 
Paragraph 15 (page 6) During the review period, Botswana, Namibia and Swaziland fully applied 
its national competition system. With the exception of Lesotho, all the SACU countries now have a national competition policy. However, a regional competition system still has to be adopted.  
 
What steps are planned for the region to adopt such a regional competition system?   Answer 2 
The 2002 SACU Agreement calls for cooperat ion by Member States on competition 
policies in terms of the enforcement of co mpetition laws and regulations in Member 
States. The Agreement does not provide for th e adoption or development of a regional 
competition system. 
 Question 3 
WT/TPR/S/324 • Southern African Customs Union; Report by the Secretariat; 2 Common System. 
2.1 Overview. 
 
2.5. (page 12) SACU Agreement of 2002 requires Member States to develop common policies and 
strategies for industrial development (Article 38), to cooperate in the development of agricultural 
policies (Article 39), to assist in the implementation of laws and regulations on competition (Article 
40) and to develop policies and instruments to combat unfair trade practices between Member 
States (Article 41). According to the Authorities, the Agreement also calls for the alignment of technical rules and regulations applied to products (Article 28).  
 
In this regard, how do you envisage regulating the telecommunications market?   Answer 3 
The scope of the SACU Agreement is limited to trade in goods only, hence the technical 
rules and regulations referred to in Article 28 apply to goods .  
 WT/TPR/M/324/Add.1 
 
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  Question 4 
WT/TPR/S/324 • Southern African Customs Union; Report by the Secretariat; 2 Common System. 
2.1 Overview. 
 
2.6. (page 12) The SACU Member states have started drafting a regional industrial development policy as well as the Annexes to the Agreement regarding the competition policy and unfair trade 
practices. So far, the areas aligned under the SACU Agreement generally relate to customs: mainly 
tariffs and trade remedies. The non-tariff measures have not been aligned. Although the SACU Agreement of 2002 recognises the need for the customs union to reflect the development of international trade, the provision is limited to liberalising the trade in goods. The Agreement does 
not contain provisions on the trade in services. However, the SACU Member states decided in 2012 
to make the trade in services a priority interest area in the Union 's work programme. Work in this 
area is still in an early phase.  
 
Could you explain how and when the next step of the Union ' s work programme in terms of the 
trade in services will be implemented?  
 Answer 4 
The region has not yet agreed on a fixed pr ogramme and timeframe, this will be guided 
by the preliminary assessment on the scope and need for developing a legal framework . 
 
Question 5 
WT/TPR/S/324 • Southern African Customs Union; Report by the Secretariat; 2 Common System; 
2.2 Southern African Customs Union (SACU).  
 2.2.2 (page 14) Common revenue fund and distribution formula. 2.19. Under the current formula for the distribution of revenue, South Africa re ceives approximately 45% of all customs revenue 
and excise duties and the other four countries receive the remaining 55%. Approximately 80% of 
the revenue received by South Africa from the SACU come from excise duties and approximately 85% of the revenue received by the four other SACU countries come from the customs 
component, which leaves Botswana, Lesotho, Namibia and Swaziland in a vulnerable situation with 
regard to fluctuations in the customs component of their share of the common revenue.   
Can the vulnerability of Botswana, Lesotho, Namibia and Swaziland change in the short to medium 
term so that their economies can gradually be st rengthened through increased revenue collection? 
 Answer 5 
The vulnerabilities will remain in the short to medium term due to sluggish global 
economic performance which will have a nega tive impact on the Common Revenue Pool. 
However, Member States have individual ly started to put in place buffers and 
contingency funds in order to cushion against the effect of the decline. 
 Question 6 
WT/TPR/S/324 • Southern African Customs Union; Report by the Secretariat; 3 Trade policies and 
practices, according to measures 3.4 Duties and other taxes. 3.4.6 Concessions and exemptions 
from duties and taxes.  
 
3.35. (page 32) The only discounts not applied by all the SACU Member states are those for wheat 
(SA 1011) and dairy products (SA 04), which are only granted by Botswana, Lesotho, Namibia and 
Swaziland. The Motor Industry Development Programme (MIDP) was stopped in 2012 and replaced 
by the Automotive Production and Development Programme (APDP). Could you indicate the main differences between these two programmes and the improvements and benefits of the latter?  
 
Answer 6 The APDP and its predecessor also sought to encourage competition in the market for the benefit of consumers. Thus those who ea rn the benefit will realize the value through 
selling the certificates, and thus share it with  importers otherwise they might fully lose 
that value if they have no duties to o ff-set with the earned rebate certificates. 
 WT/TPR/M/324/Add.1 
 
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  Report from the Southern African Customs Union (SACU) 
 
Question 7 
WT/TPR/G/324¸ Report of the Southern African Customs Union (SACU); Lesotho; 3 results of the 
main sectors; 3.3 Service sector 
 3.3. The agricultural sector is expected to gr ow by an average of 2.4% between 2014/2015 and 
2017/2018, as the authorities address problems in the sector, such as the fragmentation and 
limited size of land, seeds and fertilizers, irrigation, erosion, the marketing of products, storage and transport, as well as the need to implement reforms that encourage farmers in Lesotho to move from subsistence farming to commercial farming.  
 
Could you mention which reforms could encourage farmers in Lesotho to move from subsistence farming to commercial farming?  
 
Answer 7 Partial Credit Guarantee Scheme 
  In order to encourage commercial farming in Lesotho, the government through Lesotho National Development Corporation (LNDC) in troduced Partial Credit Guarantee Scheme. 
The scheme covers a number of sectors and agri culture is one of them. It is through this 
scheme that the government attempts to a ddress issues relating to inaccessibility of 
funds for investment.  
1. Intensive Crop Production (ICP): 
 
It is the programme that was introduced  in 2012/13. In this programme the 
government procures seeds and fertilizers and sells them to farmers, majority of whom 
are subsistence farmers, at subsidized prices. The subsidy is meant to encourage commercial farming.  
2. Land Act of 2010 (amendment in 2012) 
 
Gives right of land ownership to Lesoth o nationals who are 18 years and above 
irrespective of gender. Foreign investors ma y also own land on which investment is 
going to take place. This makes it easy for those who have ability and are willing to 
invest in agriculture to do so withou t fear of being deprived of land.  
 
Question 8 
WT/TPR/G/324¸ Report of the Southern African Customs Union (SACU); Lesotho; 3 results of the main sectors; 3.3 Service sector 
 
4.4. (page 17) In 2013 Lesotho drew up a Cons umer Protection Policy to improve consumer 
welfare through the empowerment and protection  of the consumer and promoting effective 
competition and the safe participation of the cons umer in markets. Since the last review of the 
trade policies, Parliament has adopted the following laws to promote investment and business activity: Industrial Licensing Act (2014), the Leso tho Standards Institute (2014) and the Land Act 
(2010).  
 In this regard, do these policies specifically consider the telecommunications and broadcasting market?  
 
Answer 8  That is correct, Lesotho Communications Auth ority, the Regulator, regulates its own 
specific sector to ensure that there is no anti-competitive be haviour by businesses 
operating in that sector.  
Question 9 
WT/TPR/G/324¸ Report of the Southern African Customs Union (SACU); Lesotho; 6 AID FOR 
TRADE; E. Trade agreements between the EU and SADC.  WT/TPR/M/324/Add.1 
 
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  e. (page 20) Lesotho has allocated a budget of 2,600 million Euro to effectively implement its 
commitments under the SADC Trade Protocol and the Economic Partnership Agreements (EPAs) 
between the EU and SADC). However, in Annex 2, it is stated that Lesotho does not have a law on competition, nor does it have institutions responsible for this field. In this regard, is it envisaged 
that the mandate to regulate and monitor the economic competition of the telecommunications 
market be given to its Communications Authority?   
Answer 9 
Yes, Lesotho Communications Authority is mandated to regulate and monitor the 
economic competition of the tele-communications market.  
 
Question 10 
WT/TPR/G/324¸ Report from the Southern African Customs Union (SACU); Namibia. 2 New trade 
reforms; 2.1 Industrial policy;  
 
2.1. (page 30) Namibia finalized its strategic framework for the implementation of its industrial policy at the end of 2013 and has built into it th e results of the conference on national growth 
(Growth at Home), which must be understood within the context of its industrial policy. The 
framework is aligned with Vision 2030 and the cu rrent Fourth National Development Plan, and 
provides a roadmap for the implementation of the industrial policy, which was approved by 
Cabinet.  
Could we have specific information about the features of the roadmap for the implementation of 
Namibia 's industrial policy?  
 
Answer 10 Key Features of Growth at Home 
Growth at Home is Namibia's execution strate gy for industrialisation. It is rooted in 
Namibia's Industrial Policy, Vision 2030 an d the Fourth National Development Plan. 
Some of the central tenets of Growth at Home  include: local value addition; targeted and 
phased approach; promotion of regional valu e chains and bilateral cooperation; infant 
industry protection, including safeguarding  of policy space; export promotion and 
continuous reform of the business environm ent including investment attraction. These 
are elaborated upon below.  
 
Local value addition  Promotion of local value addition is perhap s the most important feature of Growth at 
Home. Namibia is well endowed with numerous raw materials and this presents a 
tremendous opportunity for value addition, job creation, accelerated economic growth 
and reduction in inequalities. Growth at Ho me therefore says, wh atever raw materials 
Namibia has, whether minerals; agricultural  commodities or any other commodity, local 
value addition should take place before it is  exported. This is because the export of raw 
materials equates to the export of job opport unities. Value addition will be achieved by 
strengthening the local and national value ch ains, and even regional value chains by 
creating more and efficient back and forw ard linkages to our raw materials. The key 
point is to make the most of available natu ral resources and to add as much as possible 
value to raw materials before they are ex ported. Central to value addition is the 
manufacturing sector.  
 Targeted and phased approach  In line with Namibia's industrial policy, Grow th at Home advocates a targeted approach 
towards industrialization. In the first ph ase of Growth at Home, sectors in which 
Namibia already has some sort of comparativ e advantage will be targeted. These include 
in particular mining and mineral beneficiatio n; agriculture and agro-processing and fish 
and fish processing. Other sectors that will  be targeted during the initial phase of 
Growth at Home will include: chemical indu stries linked to locally available minerals; 
steel manufacturing and components of auto motive industries. It is envisaged that 
Growth at Home will be rolled out in four ph ases of 5 year each, stretching to 2030 and 
beyond. The first phase of Growth at Home  will cover the period  2015 to 2020 and the 
remaining phases will kick in at five interv als. As earlier mentioned phase one will focus 
on sectors where Namibia has already a comp arative advantage and will be called laying 
a strong foundation. During phase two emphasize will shift increasing towards 
becoming a regional player, while phases  3 and 4 will position Namibia towards WT/TPR/M/324/Add.1 
 
- 153 - 
 
  becoming a player at global level in sele cted areas of specialization and expertise. 
Project pipelines will be identified and studie d under each phase of Growth at Home to 
determine which sectors will be  promoted in each of the stages of Growth at Home. 
 
Regional value chains, African appr oach and bilateral cooperation  
Growth at Home acknowledges the importance of regional economic integration and the 
opportunities linked to it. Therefore, a strong feature of Growth at Home will be to latch 
on to and promote the development of regional  value chains as much as possible. Value 
chain analysis, research and our own compar ative advantage at any point in time will 
determine where in the regional value chai n Namibian products will be pitched. For 
example, in the initial phase of Growth at Ho me pitching of the regional value chain for 
the automotive industry may be confined to  accessories and spare parts, whereas at a 
later stage may move to steel and machines. Pitching of value chain entry will not only 
be confined to merchandise trade but also to  trade in service, where Namibia will from 
time to time have a competitive advantage,  for example in the logistics value chain. 
Consideration will also be given to the deve lopment of value chains in the context of 
special initiatives with countries deemed  sympathetic to Nami bia's developmental 
aspirations. These include but are not limited  to South-South Cooperation with countries 
such as India, Brazil, and Cuba; on th e African continent with our immediate 
neighbouring countries such as South Afri ca, Angola, Botswana, Zambia and Zimbabwe; 
and further afield with global player s such as China, and South Korea.  
 
Infant industry protection and safeguarding of policy space  
As advocated by our Industrial Policy, Growth  at Home will also promote infant industry 
promotion where deemed feasib le. In this regard, all available instruments, including 
tariff protection, quantitative restrictions, incentives and other appropriate supportive 
measures will be deployed to nurture infant industries. Related to industry protection 
will be the safeguarding of policy space for Na mibia in an increasingly globalized world. 
As was shown with the Economic Partnership Agreements, policy space is important and must be protected as much as possible. Therefore despite embracing regionalism and 
openness, a key aspect of Growth at Home will remain protection of policy space as 
allowed by the Constitution of the Republic  of Namibia and International Agreement.  
 Continuous reform to promote competitiveness  
Industrialization is not an end in itself. Count ries that are on top of the value chain and 
competitiveness today maybe at the bottom tomorrow. Often it is not because such countries are not good at what they ar e doing, but because other countries are 
becoming better at what they are doing. Therefore, a central tenet of Growth at Home 
will be continuous business reforms to ensure  that Namibia remains ahead of the curve 
in terms of competitiveness. Some of thes e reforms will include skills development, 
process reviews, review of incentives, labor market reforms and others.  
 
Increased value added export  Vision 2030 and Namibia's Industrial Policy stipulates that by the year 2030 the export 
value of value added products should account  for 70% of total export values. As of 
2013, value added exports account for 40% of to tal exports. The idea is to ramp up the 
portion of valued added exports to 50% duri ng the first phase of Growth at Home to 
reach 70% by the end of 2030. In subseque nt phases contribution of value added 
exports should increase by 10 percent over ev ery ten year interval to reach 70% by the 
year 2035.   
Question 11 
WT/TPR/G/324¸ Report of the Southern African Customs Union (SACU); Lesotho; 4 REGIONAL 
AND BILATERAL AGREEMENTS; 4.3. Free Trade Agreement between the EU and SADC. 
 
4.12. (page 36) The Agreement came into force on the 1st of May 2008. When the Agreement 
entered into force, the European Free Trade A ssociation (EFTA) granted SACU Member states 
duty-free access for all products, while progressively reducing its tariffs until 2014 on almost all 
industrial products.   As part of the SACU-EFTA free trade agreement, were there negotiations on a chapter on the 
technical barriers to trade? If yes, what measures are included in this chapter? WT/TPR/M/324/Add.1 
 
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  Answer 11 
Please refer to Article 13 of the SACU-EFTA Agreement available on http://www.sacu.int/docs/agreemen ts/2014/sacu_fta _agreement.pdf. 
 
Question 12 
WT/TPR/G/324¸ Report of the Southern African Customs Union (SACU); Swaziland; 3 ECONOMIC 
DEVELOPMENT AND REFORM INITIATIVES; 3.3 Industri al and agricultural development as catalyst 
for economic growth 
 3.12. (page 52) Work continues on the development of an industrial policy in Swaziland pursuing 
strategic policy objectives aimed at establishing a framework for carrying out specific interventions 
and policy measures to overcome many of the underlying difficulties and negative trends that the 
country is facing. This initiative will also assist the country in advancing on a path of sustainable social and economic development.  
 
Could you indicate the main guidelines of the industrial policy and also its priorities?  
 
Answer 12 
The National Industrial Development Polic y has been approved(17 November 2015) by 
Cabinet is for the period 2015 – 2022 which is aligned to the National Development Strategy (NDS) towards the attainment of  Vision 2022 in terms of key macro and 
sectoral strategies. The NDS identifies indu strialization as key for economic growth 
through diversification and maximization of value addition on agricultural and mining 
products as well as the liberalization of servic es to ensure that there is clear promotion 
of strong backward and forward linkages. The vision of the Industrial Development 
Policy is to achieve structural change in Sw aziland's growth path through value addition 
and diversification for a globally competitive industrial base by 2022. The objective of 
the Industrial Development Policy is to en hance manufacturing and services sectors 
contribution to GDP to over 50% and increa se manufactured exports by 5%; to promote 
diversification and increase employment in th e manufacturing sector by 5% per year; to 
promote the utilization and beneficiation of lo cal and regional raw materials by 50% and 
to increase the participation of Sma ll Medium and Micro Enterprises in the 
manufacturing sector by 10%. The effectiven ess of the Industrial Development Policy is 
guided by the principles for industrializat ion such as a conducive environment in the 
form of a stable macroeconomic framework an d regulatory environment, infrastructure 
development, human resour ce/skills development, in formation technology and 
communication, innovation and an inclusiv e sustainable environment for industrial 
development. 
 The National Industrial Development Policy pr ioritizes value addition and beneficiation 
of primary products (resource based-industri alization) in comparative and competitive 
advantage sectors such as agriculture – agro processing, mining and mineral 
beneficiation, pharmaceuticals and other econ omic sectors that determine key areas for 
the development of value chains such as th e services sectors (financial, transport, 
communication, education, construction, energy, business, health). Therefore, 
industrialization acts as the catalyst fo r transformation and strengthening inter-
industrial links which promotes technologica l upgrading and innovation thus creating 
quality employment. 
 The National Industrial Development Policy is also aligned to the industrialization 
regional integration agenda by the Southern  African Development Community (SADC) to 
enable the implementation of the SADC Indu strial Policy and the SADC industrialization 
Strategy and Roadmap 2015 – 2063 which identi fies the necessity for the structural 
transformation of the SADC region through industrialization, modernization, upgrading 
and a deeper regional integration. Regional  integration agenda for industrialization 
promotes cross-border regional  value chains and promote intra-trade creating a regional 
economic environment which is competitive at global value chains. 
 
Moreover, the National Industrial Developmen t Policy is guided by the Southern African 
Customs Union Agreement 2002, Part Eight "Common Policies" Article 38 - Industrial 
Development Policy which recognises the impo rtance of industrial development in the 
Customs Union as being key for economic de velopment as well as the development of WT/TPR/M/324/Add.1 
 
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  common policies and strategies in regard to  industrial development. Therefore, the 
National Industrial Development Policy inco rporates the following identified eight 
sectors for cross-border collabo ration and value addition for the SACU regional industrial 
development: 
 
1) Textiles, clothing and apparel; 2) Agro-processing (Agriculture) 
3) Mineral beneficiation and processing including mining and quarrying (Mining)  
4) Leather and leather products (Agriculture) 5) Automotive; 6) Energy, including renewable/ alternative energy (Services) 
7) Arts and crafts; and 
8) Support Services (Information and Comm unication Technology; Financial; Skills 
 development; Infrastruc ture, Transport and logistics; and Engineering). 
 
 Annex 1 Botswana 
 Question 13  
WT/TPR/S/324 • Annex 1 Botswana; 2 TRADE AND INVESTMENT RULES; 2.4 Investment rules; 
 
2.21. (page 70) We understand that Botswana does not have one single law which specifically relates to foreign investment, but that investment is rather regulated by a variety of laws. Broad-
based restrictions on investments, reserves, licensing requirements and incentives are governed 
by various policies and legal instruments.  
 
Does Botswana intend to draft legislation in the short term to increase legal certainty for foreign 
investors?   Answer 13 
The development of Botswana's investment facilit ation law is still at its initial stage. The 
Government is working in partnership with UN CTAD to identify way in which investment 
laws could be consolidated or streamlined. 
 
Question 14  
WT/TPR/S/324 • Annex 1 Botswana; 3 TRADE POLICIES AND PRACTICES ACCORDING TO 
MEASURES; 3.1 Measures which directly affect imports; 3.1.1 Customs procedures and 
requirements; 3.1.5 Prohibitions, restrictions and import licences;  
3.36. (page 82) In general, a permit is required to import industrial products from outside the 
SACU, with the exception of goods from Malawi an d Zimbabwe. The Ministry of Trade and Industry 
of Botswana issues these permits, among other th ings, to promote the development of a specific 
sector. The sectors are chosen according to Botswana 's industrial development priorities and the 
SADC 's Industrial Strategy.  
 
How long in advance is it possible to identify Botswana's industrial development priorities and the Industrial Strategy of the SADC?  
 
Answer 14  Currently, the government is offering the following incentives for companies operating 
within the SEZ. However, plans are at an  advanced stage to improve the incentive 
structure of the SEz. 
 No foreign exchange controls 
 Remittances and full repatriation of profits and dividends allowed 
 15 % for Manufacturing, Financial services  companies & companies registered in 
the Innovation Hub (22% Corporate tax for other sectors)  
 Low personal income tax, maximum 25%  
 12% Value Added Tax 
 Possible tax holidays for a period of 5 – 10 years through the Development 
Approval Order dispensation 
 Duty-free import of machinery and equipment for manufacturing purposes 
 200% deductible Tax Allowance for Training costs WT/TPR/M/324/Add.1 
 
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   IFSC certified companies are exempted  from Withholding Tax on interest, 
dividends, management fees and royalt ies paid to non-resident director. 
 IFSC companies are also exempted from VAT and Capital gains tax. 
 
Question 15  
WT/TPR/S/324 • Annex 1 Botswana; 3 TRADE POLICIES AND PRACTICES ACCORDING TO 
MEASURES; 3.3 Measures which directly affect production and trade; 3.3.2 Customs procedures 
and requirements; 3.3.2 Competition Policy and price controls  
3.92. (page 94) The Ministry of Trade oversees the application of Botswana 's Competition Policy. 
In accordance with the Competition Act, a Competition Authority was established to apply the 
Competition Policy and to enforce the law. This Authority is responsible for preventing anti-
competitive practices in the economy, even in ar eas where there are other regulatory authorities, 
such as the Civil Aviation Authority, the Communications Regulatory Authority of Botswana, the Regulatory Authority for Non-Bank Financial Institutions (in charge of the non-bank financial 
institutions) and the Bank of Botswana (financial institutions). These institutions have memoranda 
of understanding with the Competition Authority and the Law makes provision for the establishment of a consultation mechanism between the Authority and the regulatory authorities of 
the sectors. The Authority has the final word on any competition-related matter which may arise in 
sectors under the jurisdiction of their own regulatory authority. The Competition Commission 
which was established in 2010 is the governing and decision-making body of the Competition 
Authority.  
 
In this regard, the communications regulator in effect does not have a mandate to protect and encourage economic competition in the telecommunications sector? 
 
Answer 15 Competition Act mandate the Competition Au thority (CA) and sector regulators to 
establish a mechanism through which they can establish regular contact. The CA has 
s i g n e d  M o U s  w i t h  s e c t o r  r e g u l a t o r s  w h i c h provide for the establishment of Joint 
Working Committees made of representatives from the Authority and the regulators. The JWCs meet regularly to assess the effectivene ss of the MoUs in facilitating cooperation 
between the MoU Partners and also to identify  opportunities for joint initiatives aimed at 
addressing anti-competitive  behaviour in the sectors including telecommunication. 
 
Annex 2 Lesotho 
 
Question 16 
WT/TPR/S/324 • Annex 2 Lesotho; 2 TRADE AND INVESTMENT RULES; 2.2 Trade agreements and 
arrangements; 2.2.1 WTO 
 
2.7 (page 169) Lesotho has trouble applying the WTO Agreements in areas such as technical 
barriers to trade, sanitary and phytosanitary measures and intellectual property. As an LDC, Lesotho enjoys special and differential treatment, particularly in the application of the WTO 
Agreements. For example, the implementation of certain provisions of the Trade Related 
Intellectual Property Aspects Agreement (TRIPS) can be postponed to 2021 (section 3.3.5.2). Lesotho is not a party to the plurilateral agreemen ts on Government Procurement, Trade in Civil 
Aircraft or Information Technology; neither was Lesotho involved in the negotiations on financial 
services and basic telecommunications that took place after the Uruguay Round. No amendments 
have been made to its schedules annexed to the GATT (1994).   
What are the main difficulties encountered in applying the WTO Agreement? Have the pending 
notifications mentioned in this paragraph been presented to the WTO?   
Answer 16 
The TBT and SPS measures demand a backing of  a strong quality infrastructure, to build 
a similar quality infrastructure in Lesotho there is a need for financial support which 
Lesotho had already requested from donor countries. 
The Lesotho Standards Institution Act has been published and Lesotho is currently 
working on creating such a Body.  WT/TPR/M/324/Add.1 
 
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  Lesotho is also a beneficiary of a trade relate d facility aimed at assisting the country to 
establish rudimentary facilities and services in  this regard. It is envisaged that by 2016 
most aspects of the TBT and SPS agreement will have been met.  
Question 17 
WT/TPR/S/324 • Annex 2 Lesotho; 3 TRADE POLICIES AND PRACTICES ACCORDING TO 
MEASURES; 3.1 Measures which directly affect imports; 3.1.8 Standards and other technical 
regulations; 3.1.8.1 Standards and technical regulations  3.44 (page 187) The Quality Assurance and Standa rds section of the Ministry of Trade and 
Industry is the TBT enquiry point for the WTO. In addition, the section is responsible for all 
matters relating to quality, standardization and conformity assessment infrastructure, for example the establishment of the Lesotho Bureau of Stan dards. The authorities indicated that in 2014, a 
new TBT enquiry point was established and launched in February of 2015.  
Why was the WTO not notified of the new TBT enquiry point?   
Answer 17 
Indeed Lesotho established the TBT enquiry point and launched in February 2015. The enquiry point will be upgraded to use the E- Ping (Inquiry point communication facility) 
promoted by UNDESA. When this system is running as envisaged the WTO will be 
notified accordingly.  
  
Annex 3 Namibia 
 
Question 18 
WT/TPR/S/324 • Annex 3 Namibia; 3 TRADE POLICIES AND PRACTICES ACCORDING TO 
MEASURES; 3.4 Measures which directly affect prod uction and trade; 3.4.2 Competition Policy and 
price controls 
 
3.88 (page 257) Namibia 's Competition Act was promulgated in 2003 and came into force in 2008. 
The Competition Commission (NaCC) was established under this Act. The Competition Act prohibits 
restrictive trade practices, including agreements between companies to fix prices, agreed collusive 
tendering, the setting of minimum resale prices or limiting production. The Act also addresses both 
horizontal and vertical agreements between co mpanies and prohibits the abuse of a dominant 
position by an entity or group of entities.  
 
In this regard, please confirm whether the CRAN has a mandate which focuses on regulating 
economic competition in the field of telecommunications; likewise, who acts (and looks into) 
possible cases of anti-competitive practices?   
Answer 18 
CRAN is Governed by the Communications Act of 2009.  
CRAN's main role or function is thus  the licensing of Telecommunications and 
Broadcasting services providers, Spectrum allocation, ensuring quality of services 
compliance and consumer protection. The other function of CRAN is to make sure that 
there is a level playing field for all licens ees and an environment is created for new 
investors or licensees to enter the market. CR AN's thus controls and approves all tariffs 
and rates licensees want to charge for their services. All rates/tariffs or offerings by licensees are gazetted after a rule making process whereby competitors and consumers 
can give input before CRAN approves new se rvices and rates. CRAN thus keeps an eye 
on possible anti-competitive behaviours. Also  note that CRAN every 3 years is doing a 
market structure study and here they may and have declared some licensees as 
dominant players. For now MTC and Teleco m Namibia are declared dominant. Being a 
dominate player puts additional license co mpliance responsibilities on these licensees – 
like sharing of infrastructu re and roll-out obligations. 
 
CRAN is also responsible for approving merg ers and acquisitions. For that they have a 
MoU in place with the NaCC to share views on  such transactions before it's approved. 
Here for example CRAN did have serious conc erns on the takeover of Leo by Telecom WT/TPR/M/324/Add.1 
 
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  Namibia and CRAN did make conditions for th e transaction to be approved but that was 
all turned over by a court case.  Annex 4 South Africa 
 Question 19 
WT/TPR/S/324 • Annex 4 South Africa; 3 TRADE POLICIES AND PRACTICES ACCORDING TO 
MEASURES; 3.1 Measures which directly affect imports; 3.1.3 Standards and other technical 
requirements  
3.24 (page 334) South Africa has notified the WTO of about 100 technical regulations since 2009. 
These regulations encompass products associated with protecting the environment, human health, food standards and product safety. In the same period, some WTO member s raised two specific 
trade concerns regarding: i) South Africa 's Liquor Act of 1989 (concern raised by the United States 
in 2011); and ii) South Africa 's requirements regarding the labelling and advertising of pre-
packaged foodstuffs (concern raised by the EU and New Zealand in 2014).  
What is the status of the specific trade concern raised in 2014 on ''the requirements regarding the 
labelling and advertising of pre-packaged foodstuffs? '' 
 
Answer 19 
South Africa provided responses to the spec ific trade concerns raised during the TBT 
Committee meetings were it was discusse d. Please see documents G/TBT/M/54 
paragraph 121 to 124, G/TBT/M/55 paragr aph 270, G/TBT/M/56 paragraphs 217 and 
218 and G/TBT/M/64 paragraph 2.50. Since thes e STCs were not repeated in following 
meetings of the TBT Committee, South Africa  assumes that these have been resolved. 
 
Question 20 
WT/TPR/S/324 • Annex 4 South Africa; 3 TRADE POLICIES AND PRACTICES ACCORDING TO 
MEASURES; 3.1 Measures which directly affect imports; 3.1.3 Standards and other technical 
requirements  
3.30 (page 337) If no SAS is available, the South African Bureau of Standards can be requested to 
develop or adopt one. In this case, the NRCS may develop or amend a mandatory specification to include the administrative requirements of the re gulations. The process often involves extensive 
consultation with all identified stakeholders at all stages. 
 
The draft is published beforehand in the Official Gazette, so that the public can comment before notification to the WTO. Is the same deadline of  not less than two months given for WTO members 
to submit their comments? 
 Answer 20 
Decisions and recommendations of the TB T Committee are communicated to the South 
African Technical infrastructure and the re gulatory government departments. Thus a 
draft technical regulation or conformity asse ssment procedures notified provides as far 
as possible a minimum period of 60 days to WTO members to submit comments and 
regulators also consider requests for an extension of a comment period favourably. 
 Question 21 
WT/TPR/S/324 • Annex 4 South Africa; 3 TRADE POLICIES AND PRACTICES ACCORDING TO 
MEASURES; 3.1 Measures which directly affect imports; 3.1.3 Standards and other technical 
requirements; 3.1.4 Sanitary and phytosanitary requirements; 3.1.4.1 Legal and institutional 
framework; 3.1.4.4 Marking, labelling and packaging  3.54 (page 342) Marking, labelling and packaging ac tivities are governed by various laws, mainly 
the Standards Act for Agricultural Products, the Liquor Act, the Merchandise Marks Act, the 
Amendment to the Copyright Act (No 38 of 1997) and the Explosives Act.   
Are the Standards Act for Agricultural Products, the Liquor Act, the Merchandise Marks Act, the 
Amendment to the Copyright Act and the Explosives Act based on the relevant international standards? 
 
 WT/TPR/M/324/Add.1 
 
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  Answer 21 
South African legislation is not based on international standards, but appropriate 
international standards are adopted by the SABS as South African National Standards 
and where possible are technical regulation s and conformity assessment procedures 
based on the appropriate adopted national standards that incorporated international 
standards as required in TBT Agreement Article 2.4. 
 
Question 22 
WT/TPR/S/324 • Annex 4 South Africa; 4 TRADE POLICIES ACCORDING TO SECTOR; 3.1 Measures 
which directly affect imports; 4.4 Services; 4.4.1 Telecommunications 
 
3.106 (page 373) The Department of Communications (DoC) is responsible, among other things, for policies and legislation related to informatio n technology and communications (ICT), providing 
reliable and affordable ICT infrastructure, overse eing state agencies in the ICT industry and 
meeting South Africa 's international obligations in terms of ICT. The Independent Communications 
Authority of South Africa (ICASA), which is the regulatory body, protects the consumer 's interests 
and monitors competition in the sector.  
 
In this regard, what is ICASA ' s mandate in terms of economic competition and the importance 
thereof? 
 
Answer 22 ICASA's mandate is spelled out in the Electronic Communications Act 2005 (ECA). One of 
the stated objectives of the ECA is to promot e competition in the ICT sector and a s such 
is a very important issue.    
Annex 5 Swaziland 
 
Question 23 
WT/TPR/S/324 • Annex 5 Swaziland; 3 TRADE POLICIES AND PRACTICES ACCORDING TO 
MEASURES; 3.3 Measures which directly affect prod uction and trade; 3.3.2 Competition Policy and 
price controls; 3.3.2.1 Competition Policy 
 3.86 (page 433) Matters relating to competition can be addressed at sector level. For example, the Swaziland Communications Commission may, in accordance with the law, impose interconnection 
and access obligations on telecommunications licensees who have a dominant position.37 The 
Swaziland Communications Commission 's Law no 10 of 2013 stipulates that the Communications 
Commission will ensure that all communication services are provided in a way that best promotes 
economic and social development. The Competition Act of 2007 can be applied to all sectors of the 
economy, but under the Communications Commission 's Law of 2013, the newly established 
Communications Commission has the power to manage certain aspects of the Competition Act of 
2007 and various aspects of the Fair Trade Act of 2 001, if they relate to the sectors regulated by 
the Communications Commission. The Competition Commission intends to sign memoranda of 
understanding with the various sectoral regulators; although the process has started, none have 
been signed so far.   
In this regard, which aspects of economic competition are regulated by the Communications 
Commission? In case of possible anti-competitive practices in the telecommunications sector, does the Communications Commission have the power to investigate and sanction the liable parties? 
 
Answer 23 The Swaziland Communication Commission Act:  
1 .  R e q u i r e s  S C C O M  t o  a c t  i n  a n  o b j e c t ive, transparent, proportionate and non-
discriminatory manner (Section 5) and to  promote the development of innovative, 
secure, modern and competitive communicati ons infrastructure and the delivery of 
related services (section 6(d), as well as  to ensuring freedom of provision of 
communications services and to ensure that those services are not limited, except when 
strictly necessary (section 6(e)). 
 WT/TPR/M/324/Add.1 
 
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  2. SCCOM must further ensure a wide range and variety of communications services 
(section 6(f)), that are provided in a manner that will best promote economic and social 
development (section 6 (g)), while ensuri ng non-discrimination and equality of 
treatment in all matters within the SCCOM's remit (section 6(h)). 
 
3. SCCOM is further enjoined to administer the aspects of the Competition Act, 2007 as 
they relate to sectors regulate d by it (section 6(k). This was designed to ensure that 
SCCOM, rather than the Competition Commiss ion would have primary jurisdiction over 
competition-related issues in the complex telecommuni cations sector. 
 4. SCCOM is expressly required to ensure  fair competition in all communications 
services, products, operations and activiti es which it regulates (section 7(s) and 
determine issues concerning co mpetition, and discriminatory  practices (section 7 (t)). 
 
The Communications Commission Act therefore empowers and indeed requires, SCCOM 
to take measure to ensure fair competitio n to the local market through a deliberate, 
consultative and transparent process. Th erefore SCCOM power to investigate and 
sanction parties liable for non-competitive pr actices and well as for non-compliance with 
the Act.  
__________