WT/TPR/M/324  
7 January 2016  
(16-0125)  Page: 1/45  
Trade Policy Review Body 
4 and 6 November 2015   
 
  TRADE POLICY REVIEW 
SOUTHERN AFRICAN CUSTOMS UNION (SACU) 
MINUTES OF THE MEETING 
Chairperson: H.E. Mr Atanas Atanassov Paparizov (Bulgaria) 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE SPOKESPERSON OF THE SOUTHERN AFRICAN 
CUSTOMS UN ION ............................................................................................................. 4  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 8  
4  STATEMENTS BY MEMBERS ........................................................................................ 10  
5  REPLIES BY THE SPOKESPERSON OF THE SOUTHERN AFRICAN CUSTOMS 
UNION AND ADDITIONAL COMMENTS ............................................................................ 35  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 44  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by the Southern African Customs Union are reproduced in document 
WT/TPR/M/324/Add.1 and will be available online at http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/324 • SACU 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The fourth joint Trade Policy Review of the Southern African Customs Union (SACU) 
countries, i.e. Botswana, the Kingdom of Lesoth o, Namibia, South Africa, and the Kingdom of 
Swaziland was held on 4 and 6 November 2015 . The Chairperson H.E. Mr Atanas Atanassov 
Paparizov (Bulgaria) welcomed the five delegations of SACU headed by Ms. Ontlametse B. Ward of 
Botswana, Deputy Permanent Secretary; Mrs. Mapulumo Mosisili, Principal Secretary, Ministry of Trade and Industry of the Kingdom of Lesotho; Mr. Gabriel P. Sinimbo, Permanent Secretary of 
Namibia; Ms. Niki Kruger, Chief Director of Trade Negotiations from South Africa; Mr Jinno 
L. Nkhambule, Principal Secretary, Ministry of Commerce, Industry and Trade of the Kingdom of 
Swaziland; the rest of the delegations from Botswana, the Kingdom of Lesotho, Namibia, 
South Africa, and the Kingdom of Swaziland; H.E. Mr. Mothusi Bruce Rabasha Palai, Ambassador of 
Botswana; H.E. Mr. Nkopane Raseeng Monyane, Ambassador of Lesotho; H.E. Mrs. Sabine 
Böhlke-Möller, Ambassador of Namibia; and H.E. Mr. Xavier Karim, Ambassador of South Africa; 
other colleagues from the Missions in Geneva; H.E. Ms. Paulina M. Elago, the Executive Secretary 
of the SACU Secretariat; and the discussant, H.E. Mr. Alberto Pedro D'Alotto (Argentina). 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The reports by the SACU countries were contained in document 
WT/TPR/G/324 and that of the WT O Secretariat in WT/TPR/S/324. 
1.3.  Questions by the following delegations had been  submitted in writing before the deadline of 
5.30 pm on 21 October and had been transmitted to the SACU countries: Switzerland; the European Union; Canada; the United States; Australia; Brazil, New Zealand and Colombia. The 
following delegations submitted written questions after the deadline: Singapore; the Russian 
Federation; Mexico; China; Argentina; Japan; Ecuador; the Republic of Korea; Hong Kong, China; Thailand; and Chile. These questions had also been transmitted to the SACU countries. 
1.4.  Over the period under review, economic performance in the SACU countries had fluctuated 
with a downward trend in their consolidated (total) GDP growth rate. Their highest consolidated GDP growth of 3.4% had been recorded in 2011 and the lowest (-1.7%) in 2009; it had been 
around 2.5% per year since 2012. This performance had largely resulted from the global economic 
crisis and its impact on the mining and manufacturing sectors. Economic growth had been uneven within SACU but the overall (consolidated) performance largely reflected South Africa's, as the latter accounted for about 91% of the region's total GDP.  
1.5.  SACU countries sourced some 13% of their imports in the customs union, and supplied the 
union in the same range. As the main economy, South Africa also dominated regional trade, with over 95% of commercial flows within the customs union involving South Africa as a destination or 
source. Extra-SACU imports originated mainly from the EU, China, and the United States, which 
were also among SACU's main export markets. Overall, with the exception of South Africa, diversification remained an issue for SACU members as it was at the time of the previous Review 
in 2009. 
1.6.  SACU's common trade regime had remained broadly unchanged since the previous Review. 
Within SACU, customs-related measures, including the applied MFN tariff, excise duties, duty and 
tax concessions, customs valuation, rules of origin, and contingency trade remedies, had been 
harmonized. For the time being, in the absenc e of a regional body, the International Trade 
Administration Commission (ITAC) of South Africa was responsible for managing the SACU common external tariff (CET); it was also mandat ed to recommend all rebates, refunds, and 
drawbacks in SACU.  
1.7.  During the period under review, SACU members had made efforts to facilitate trade by 
further streamlining customs procedures and documentation. Nevertheless, their common external 
tariff (CET) remained complex, comprising ad valorem , specific, mixed, formula (variable) duties, 
and their combination, while their individual tariff binding commitments were at ad valorem  rates. 
The simple average applied rate of the CET was 8.3% in 2015, slightly up from 8.1% in 2009. Tariff rates continued to display high dispersion.  
1.8.  In addition to these challenges mostly rela ted to the common trade regime of the SACU 
countries, other elements of the harmonized regi me such as the antidumping regime, as well as WT/TPR/M/324 • SACU 
 
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  country-specific regimes were of interest to Me mbers. On investment, Members wanted to know 
more about the reforms implemented by each SAC U State since the previous Review and their 
likely impact. Regarding non-tariff barriers, issu es of interest to Members included import 
prohibitions, licensing and other import restrictions applied by most SACU States, for instance the 
use of import restrictions to promote local produc tion in Botswana, Lesotho and Swaziland, and the 
administration of tariff quotas by South Africa.  
1.9.  On SPS, Members were interested in the reforms implemented by South Africa and its 
compliance with the relevant WTO provisions. SACU States used incentives to promote 
diversification and investment, and the impact of such a strategy was of interest to Members. None of the SACU States was a party to the WTO Government Procurement Agreement and information on their plans to join the Agreement was appreciated, as this would further open their 
procurement regime to foreign participation and enhance transparency. Members were also 
interested in the enforcement of intellectual proper ty rights in the SACU region, specifically on the 
role that Customs played in this regard, and the current status of draft laws and regulations.  
1.10.  On sectoral policies, Members' knowledge would be improved by further information on the 
extent to which environmental aspects were taken into account in the fisheries, energy, mining, tourism and transportation sectors; state participation in the mining sector in Botswana and 
Namibia; the agricultural reform undertaken by Leso tho; and on the industrial policies applied by 
South Africa and Swaziland. 
1.11.  The Chairperson noted that as at the time of the last Review in 2009, the SACU economies 
continued to grapple with issues such as poverty eradication and income inequality; thus the need 
to accelerate structural reforms to improve the productivity and competitiveness and hence ensure 
inclusive growth. In this context, Members were interested to learn which policies were the SACU States planning in order to implement and attain the UN Development Goals and how the WTO 
Members could assist them in this endeavour. 
1.12.  The Chairperson was sure that these and many other themes would be touched upon in 
greater detail at the deliberations on the first and second day of the meeting.  
1.13.  He closed his introductory remarks by wish ing SACU members a very successful fourth 
Trade Policy Review. He looked forward to their active engagement in this TPR. 
1.14.  He informed that the podcast of the meeting could be accessed on the Members' website 
after the first day of the meeting. WT/TPR/M/324 • SACU 
 
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  2  OPENING STATEMENT BY THE SPOKESPERSON OF THE SOUTHERN AFRICAN CUSTOMS 
UNION (MS. NIKI KRUGER, SOUTH AFRICA) 
2.1.  I t  i s  a n  h o n o u r  a n d  p r i v i l e g e  f o r  m e  t o  d e l i ver this statement on behalf of the Southern 
African Customs Union (SACU) consisti ng of the following member States: 
 The Republic of Botswana; 
 The Kingdom of Lesotho; 
 The Republic of Namibia; 
 The Republic of South Africa; and 
 The Kingdom of Swaziland. 
2.2.  At the onset, I wish to welcome all present here this week for the fourth Trade Policy Review 
of the Southern African Customs Union member St ates. I further wish to thank the Chairperson, 
Ambassador Atanas Atanassov Paparizov for his Opening Remarks and I wish to recognize 
Ambassador Alberto Pedro D’Alotto for agreeing to  be the discussant for this fourth WTO Trade 
Policy Review of SACU.  
2.3.  I wish to also extend our gratitude to the WTO Secretariat for their assistance in preparing 
their report, as well as our member States and our own SACU Secretariat for their work in preparing the Government reports and coordination of inputs and responses to questions from 
WTO Members. I also wish to thank all WTO Members that shown an interest in this review and for 
the questions posed to us in advance. We have endeavoured to answer all of these as per the 
timeframes in the procedural guidelines. 
2.4.  SACU member States are now undertaking its four th Trade Policy Review, once again, as a 
Customs Union. We are of the view that the tran sparency exercise that the trade policy review 
promotes is of great value to all of us. We therefore re-affirm our commitment to submitting our trading regimes for review within the context of our obligations under the WTO. This commitment 
is consistent with the objectives of the Trade Policy Review Mechanism (TPRM) as provided for in 
Annex 3 of the Legal Texts of the WTO Agreements. 
2.5.  I wish to remind Members that the Southern African Customs Union dates back to 1910, 
making it the oldest Customs Union in the world. Following the attainment of independence by the 
British Overseas Territories in the mid-1960s, a new Agreement was signed on 11 December 1969 by the sovereign States of Botswana, Lesotho an d Swaziland (BLS), as well as South Africa.  
2.6.  However, the 1969 Agreement was a colonial construct with important elements missing, 
such as joint decision-making procedures, common policies, common institutions and institutional 
infrastructure. Around the time of the signing in 1994 of the Marrakesh Agreements, which heralded a new era of trade liberalization, some important political developments took place in 
Southern Africa with the achievement of independence of Namibia in 1990 and the attainment of 
democracy in South Africa in 1994.  
2.7.  To take advantage of these important global and regional developments, SACU member 
States took a decision in 1994 to renegotiate the 1969 SACU Agreement to better reflect the 
prevailing political and economic environment. The objective of the SACU member States was to 
have an international organisation with effective, transparent and democratic institutions, based on joint decision-making procedures, while also providing for a dispute settlement mechanism in 
the form of a Tribunal and the development of common policies.   
2.8.  In 2002, the process of renegotiating the new SACU Agreement was completed and the five 
SACU member States signed a new and comprehensive Agreement in Gaborone, Botswana. This 
Agreement entered into force on 15 July 2004 following its ratification by all SACU member States. 
I wish to note that the 2002 SACU Agreement was also successfully considered by the Committee on Regional Trade Agreements at its 53rd sitting in 2009. WT/TPR/M/324 • SACU 
 
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  2.9.  As most of you would be aware, the 2002 SACU Agreement forms the basis for a collective 
review of the five Member States’ trade policies.  SACU is a fully-fledged Customs Union, with a 
Common External Tariff and free movement of g oods amongst its Members. Four of its Members 
are also in a Common Monetary Area. The five SACU States are at different levels of economic 
development. Botswana and South Africa are classified as upper middle-income countries, while 
Namibia and Swaziland are considered as lower middle-income countries, and Lesotho is a least developed country. However, all SACU countries face common challenges relating to poverty, 
unequal income distribution and high unemployment rates.  
2.10.  The 2002 SACU Agreement is a comprehensive agreement when compared to the previous 
Agreement of 1969. The main features of this agreement can be summarised as follows: 
 Joint decision-making processes: the 2002 Agreement provides for clear decision-making 
processes whereby all SACU member States are involved, with decisions taken based on 
consensus. 
 The establishment of common institutions: th e Agreement establishes a number of common 
institutions with the SACU Council of Ministers being the highest decision-making body in 
SACU, supported by the SACU Commission, th e Technical Liaison Committees and the SACU 
Secretariat, a permanent institution based in Windhoek, Namibia, responsible for the day-to-
day administration of the agreement. The agre ement further provides for the establishment 
of a SACU Tariff Board, which will be responsi ble for setting and implementing tariff policy. 
The Tariff Board will be supported in its work by  National Bodies in member States. Finally, 
the agreement establishes an ad hoc Tribunal created to resolve all differences that might 
occur amongst member States. 
 Revenue-sharing formula: the Agreement make s provision for a revenue-sharing formula 
that provides for the equitable sharing of re venue derived from customs and excise duties, 
taking into account the different levels of economic development amongst SACU member 
States.  
 Trade relations with third parties: the Agreement further provides for the establishment of a 
Common Negotiating Mechanism. As a Customs Union, SACU will have to ensure the 
integrity of the Common External Tariff. As a result, the Council decided that SACU should enter all trade negotiations with third parties as a bloc.  
 Development of common policies: the Agreement recognizes that economic integration 
cannot proceed in the absence of common policies. The Agreement therefore calls for the 
development of common or harmonized policies, and increased cooperation in the areas of industrial development, agriculture and competition. 
2.11.  Since the implementation of the revised SACU Agreement in 2004, a number of initiatives 
have been embarked on to further deepen integration in the Customs Union and to strengthen the cooperation that exists among the five member States. To this effect, SACU has taken a decision 
to include a Summit of Heads of State and Government in its institutional arrangement. There 
have also been initiatives aimed at facilitating further integration, including the adoption of a new Vision and Mission for SACU, as well as a related 7-point priority work programme, which includes: (i) regional industrialisation; (ii) establishment of institutions; (iii) review of the revenue sharing 
arrangement; (iv) trade facilitation; (v) unified engagement in trade negotiations; (vi) trade in 
services; and (vii) strengthening th e capacity of the Secretariat.  
2.12.  This work programme is aimed at promoting development integration within the Customs 
Union, enhance economic development, diversification, industrialization and competitiveness of 
member States and promote the integration of member States into the global economy through enhanced trade and investment. We believe that if the region is to develop faster and take 
advantage of regional integration and globalis ation, member States need to address the 
constraints facing the supply side of their economies, including those related to inadequate regional infrastructural linkages. This requires restructuring in member States to be orientated to become more diversified economies and to significantly reduce member States’ over-dependence 
on primary commodities. This would also contribute to increases in the volume of intra-regional 
trade and SACU’s integration into the global economy. The key objective is thus diversification of WT/TPR/M/324 • SACU 
 
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  production particularly into higher value added products. There is also a need to invest in 
infrastructure development to promote inter-connectivity between economies. 
2.13.  There has been notable progress in all areas including on the negotiation and conclusion of 
some trade agreements. A number of trade facilitation initiatives have been launched and progress 
has been achieved in defining the parameters fo r the review of the revenue sharing arrangement. 
2.14.  With respect to trade negotiations specifically, I wish to indicate that SACU member States 
continue to undertake trade negotiations with third parties as a collective. This is a legal 
requirement given our common external tariff. SACU has therefore negotiated common tariff offers 
with third parties and has thus far signed Free Tr ade Agreements (FTAs) with the Southern African 
Development Community (SADC) and the European Free Trade Association (EFTA) and a Preferential Trade Agreement (PTA) with the me mber States of the Southern Common Market 
(MERCOSUR). The SADC and SACU-EFTA FTAs already entered into force, while the 
SACU-MERCOSUR PTA is yet to be implemented as ra tification on the part of MERCOSUR is still 
pending. In addition, we have signed a Trade, Investment and Development Cooperation 
Agreement with the United States aimed at facilitating increased trade between the two parties to 
the Agreement. 
2.15.  We are further also engaged in negotiations with India towards a PTA. As a collective, SACU 
is also involved in negotiations towards a Tripartite Free Trade Agreement between the Common 
Market of East and Southern Africa (COMESA), the Southern African Development Community (SADC), and the East African Community (EAC),  while negotiations towards a comprehensive 
Continental Free Trade Agreement involving all African Countries was launched in June 2015. 
Finally, SACU member States as part of the SACU EPA Group have recently finalized the Economic 
Partnership Negotiations with the European Union an d it is anticipated that the agreement will be 
signed and ratified by October 2016. Our guid ing principle in negotiating all these trade 
agreements has been adherence to the WTO provisions that apply in this regard. 
2.16.  Speaking of the WTO, it is important to observe as well that SACU member States are 
having common tariff bindings to a large extent. There are only a few exceptions to this, and SACU 
has, with the assistance of the WTO Secretariat,  embarked on an initiative to harmonize those 
bindings. SACU also applies common trade remedies and implements a common tariff setting mechanism. Further work to improve the institutional mechanisms and institutional infrastructure in SACU is ongoing. 
2.17.  Trade reforms have continued over the last few years. Despite the outbreak of the financial 
crisis in 2008, the simple average applied MFN tariff remained stable at around 8% since the last trade policy review in 2009 as attested by the latest WTO Secretariat report. It is noteworthy that 
SACU increased the percentage of duty-free tari ff lines from around 54% in 2009 to 56% in 2015. 
Despite our varied levels of development, the shares of SACU’s WTO agricultural products and WTO NAMA products attracting a zero tariff in 2015 are 40% and 58%, respectively. In light of this 
and other features of our trade regime, we do  not concur with the assertion made in the 
Secretariat report that the SACU Common External Tariff remains complex. 
2.18.  Although SACU’s trading partners have stayed mainly the same since 2010, the percentage 
of trade with Asia and Africa has increased substantially. 
2.19.  Deepening global economic interdependence has meant that SACU’s economic prospects 
and resilience to external shocks is often severely tested. This has been most evident during the recent economic crisis which has had a disproportionate impact on SACU given the relatively small 
size of our economies. The International Monetary  Fund projects the global economy to grow by 
3.1% in 2015 and increase moderately over the coming few years. For SACU, the average growth for the period 2012-2014 is recorded at around 2.3%. SACU countries have had to contend with 
the impact of deep declines in commodity prices, volatile exchange rate fluctuations and falling 
export demand that are attributable to the global trade slowdown.  
2.20.  Against this background, it is our view that  developing countries, including SACU member 
States must be able to use all legitimate, legal po licy space provided by WTO rules as necessary to 
protect their economies.  WT/TPR/M/324 • SACU 
 
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  2.21.  In our view, the recent crisis has served to underline the importance of our programmes to 
pursue and deepen industrial development, infrastructure development and economic integration in SACU, within our region and across the African continent.  
2.22.  I wish to thank Members of the WTO for the interest shown in SACU and specifically for the 
large number of questions received. Nine countries submitted questions in advance, while another 
eleven countries have submitted since the deadline. In total, we received over five hundred questions. We have sought to provide comprehe nsive answers to all of the questions received 
before the deadline. It should be noted that we received a number of questions in Spanish and we 
were not in a position to answer those without an official translation into English. We will endeavour to provide answers to these questions du ring this week and all the questions will be 
answered within the prescribed period of one mont h as provided for by the rules of procedure. We 
look forward to a fruitful exchange in this regard. 
2.23.  In conclusion, I would like to once again thank all delegations and the Secretariat for all 
your time and effort in participating in SACU’s fourth trade policy review, and for already making 
this exercise a success.  WT/TPR/M/324 • SACU 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  Thank you Chair, and allow me to welcome the Honourable Ms. Ontlametse B. Ward, Head of 
delegation of Botswana; Honourable Mrs. Mapulumo Mosisli, Principal Secretary Ministry Trade and Industry and Head of delegation of Lesotho; Honourable Ambassador of Lesotho, Mr. Nkopane 
Raseeng Monyane; Mr. Gabriel P. Sinimbo, Honourable Permanent Secretary and Head of 
delegation of Namibia; Mrs. Sabine Böhlke-Mölle r, Honourable Ambassador to the United Nations 
and other International Organizations in Geneva; Honourable Ms. Niki Kruger, Head of delegation 
and spokesperson for the SACU Countries; and Mr . Jinno L. Nkhambule, Principal Secretary, 
Ministry of Commerce, Industry and Trade and Head of delegation of Swaziland.  
3.2.  I would also like to welcome the other Members of the delegations that are here today with 
us. It is a great honour to have the opportunity to share insights of the oldest existing customs 
union in the world, the Southern African Customs Union (SACU).  
3.3.  In this sense, I would like to highlight the comprehensive reports prepared by the 
Governments of Botswana, Lesotho, Namibia, South Africa and Swaziland and by the WTO 
Secretariat for this meeting. Their effort for the work of this TPR must be emphasized, as this TPR 
encloses multiple Members, and therefore there are multiple sources of information to be taken into account. Both the Secretariat’s report and the SACU’s report, thanks to their 
comprehensiveness, will certainly assist us during the following days in our discussions.  
3.4.  I would like to draw your attention over certain aspects of these reports, which I considered 
as being the most important ones to be addressed briefly. 
3.5.  As you recall, the last review was made in 2009 and that was a year with a particular 
connotation as a global financial crisis happened during that time. Thus, it is understandable that 
in the global review that we are discussing today, the effects of this crisis are reflected with a downward trend in their consolidated (total) GDP growth rates. The detrimental impact of the 
economic crisis on almost all economic activities brought down the consolidated GDP growth as low 
as -1.7% in 2009. If seen disaggregated, two countries were more resilient to the crisis, as Lesotho and Namibia had GDP growths of 3.4-7.8% and 0.6-6% respectively for the period under 
review. 
3.6.  When observed collectively, the SACU economies grew the most in 2010 (3.4%), and in 2011 
(3.7%). These positive results were triggered mainly by the pickup of the mining activities throughout the region and also thanks to the revenues from the manufacture sector.  
3.7.  The discrepancy between the consolidated GDP and the disaggregated one relies mainly on 
the inequality amongst the SACU economies. With a total GDP of US$350 billion, South Africa’s economy ranked first in the region as it repres ented over 91% of the region’s total GDP (which 
adds up to US$380). In contrast, Lesotho accounted for only 0.6% of the total GDP with its 
US$2.1 billion in 2013. This macroeconomic inequality is reflected not only on the different levels of development or economic structures between the SACU members, but also on an Intra-country 
level. For example, one of the biggest challenges that still persist for SACU members is that they 
rank high on the income inequality worldwide. This situation has worrying social effects throughout the region, as for example the population living below the poverty line has ranged between 19.3% 
and -63% (Botswana in 2009 and Swaziland in 2010, respectively). We sincerely trust that SACU 
members will be up to the challenge of overcoming this situation with the policies reforms and 
programmes that will be discussed during these couple of days.  
3.8.  As it was noted in the previous report, SACU displays a trade deficit that still has to be 
corrected by all of its members, except for Botswana, which had a trade surplus during this review 
period. For example, in Namibia this is a challenging issue, as its trade deficit has increased in a yearly basis since 2010, rising from 3.8 in 2010 to 26.5 in 2014. If a trade deficit widens in one 
year by 52.3% (from N$17.2 billion in 2013 to N$26 .2 billion in 2014), the political willingness to 
address this issue must be accompanied by innovation. That is why we see with optimism that Namibia has implemented the Export Processing Zone Programme (EPZ), which we hope will 
succeed in attracting investments for export-ori ented manufacturing and value added activities.  WT/TPR/M/324 • SACU 
 
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  3.9.  But when we analyse the region as a whole, I cannot help but notice that its main source of 
the aggregate trade deficit is the decline of exports and a high demand for motor vehicles and machinery by South Africa. Even though this is a result of the development that South Africa is experiencing, it would be interesting to hear from all these countries what actions or plans are 
being taken to overcome this trade deficit experienced in the region. 
3.10.  South Africa’s views about these subjects, in particular, will be most relevant during this 
review, as it is involved in over 95% of the commercial flows within the customs union. As 
reported in the previous TPR, there are still opportunities for the region to enhance their 
intra-SACU trade as, in aggregate, approximat ely 13% of SACU’s imports where sourced by the 
region. For example, approximately 3% of South Africa’s import demands where covered by SACU 
countries, while Lesotho’s and Swaziland’s imports where covered in approximately 90% by their 
SACU partners. This is an opportunity to be addres sed, without overlooking the strong market that 
the region already has with EU countries, which are the leading investors in the region, and with the United States, China, and other Asian countries. 
3.11.  We are confident that SACU will also be able to increase their extra-SACU trade with these 
countries, as its members are implementing different types of programmes that will improve the business environment in general. For example, Lesotho’s Private sector competitiveness and 
Economic Diversification project or its Customs Modernization Programme, might ensure trade 
benefits in general. Also, Swaziland’s Investor Road Map and its National Development Strategy could effectively induce economic diversificatio n and growth. Overall, these programmes might 
help improve SACU members' ranking in the World Bank’s doing business report, to rise them back 
- or even better - to where they were in 2008 (compared to this year’s negative results).  
3.12.  Although no new trade agreements were signed or implemented during the last five years, 
since the last review report, SACU members are currently negotiating a Preferential Treatment 
Agreement with India, and they are participating in the negotiations on the Tripartite Free Trade 
Agreement between COMESA
1, the EAC2 and SADC3. Negotiations with the EU on a SADC-EU 
Economic Partnership Agreement (EPA) were comp leted last year during July, and some SACU 
countries maintain trade agreements and have launched bilateral trade negotiations (despite a 
consensus to negotiate this type of agreements as a group).  
3.13.  As reported by the Secretariat in 2009, applie d MFN customs tariff, excise duties, duty and 
tax concessions (rebates, refunds and drawbacks), customs valuation, rules of origin, and 
contingency trade remedies remain harmonized within SACU. But it is noteworthy to mention that 
in 2014, South Africa adopted a new customs valuation legislation that still derives from the WTO Agreement on Customs Valuation, where the customs value of imported goods is the transaction 
value based on the f.o.b. prices of imports. SACU’ s customs valuation regime is still largely based 
on South Africa's legislation, and in 2011, a "Regional Customs Policy Document" was adopted by the SACU Council of Ministers as a common strategic objectives plan to pursue the implementation 
of specific customs projects.  
3.14.  Members of the WTO have submitted interesting questions to the different SACU countries, 
on a variety of issues, and being so many, I would like to call your attention upon those that deal with SACU’s Common regime. Also, concerns about SACU’s efforts to bring its institutions into 
operation and to promote their full independence have been brought forward. Members’ questions 
about the SACU’s services liberalization seem mo st relevant as their economies remain dominated 
by their relatively large services sector (about 60% of their consolidated GDP). 
3.15.  I look forward to a very interesting exchange on these and other relevant issues that I am 
sure will enlighten us during these couple of days. I wish Members and the SACU delegations a very productive discussion.  
                                               
1 The Common Market for Ea stern and Southern Africa. 
2 The East African Community. 3 The Southern African Development Community. WT/TPR/M/324 • SACU 
 
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  4  STATEMENTS BY MEMBERS 
SWITZERLAND 4.1.  Switzerland appreciates the comprehensive info rmation provided by the SACU member States 
and the Secretariat on developments since the la st TPR. We note that the recent economic 
downturn has affected the SACU member States in varying degrees. In this context, Switzerland 
welcomes and encourages the SACU members to pursue their efforts to diversify their economies, with the aim of making them more competitive and resilient to changes in the international 
environment.  
4.2.  From a bilateral perspective, the EFTA-SACU free trade agreement - which entered into force 
in 2008 - provides the framework of our bilateral trade, in particular with regard to trade in goods. In 2014, Switzerland’s trade volume with SACU amounted to US$2.9 billion, with South Africa 
continuing to be our largest SACU partner.  
4.3.  With an accumulated stock of Swiss direct investments of US$2.2 billion and 
33’000 employees, Swiss companies have an important presence particularly in South Africa. We 
will, therefore, continue to follow with high interest developments regarding South Africa’s Bill on 
the Promotion and Protection of Investments, hoping that the new regime will provide a predictable environment and reassure the confidence of investors.  
4.4.  Let me thank the SACU delegation for the answer s provided to the questions submitted prior 
to this meeting. Among the issues covered by Switzerland’s questions, the measures aimed at deepening SACU’s common regime in the areas of tr ade in services and non-tariff measures are of 
particular interest to us.  
4.5.  We furthermore note the growing importance of preferential South-South trade agreements 
also for the SACU member States. In this regard , we will continue to follow and study the 
outcomes and effects of the negotiations on  the Tripartite Free Trade Agreement between 
COMESA, the EAC and SADC as well as the implicat ions of ongoing negotiations on an Economic 
Partnership Agreement between the EU and SADC.  
4.6.  Switzerland also appreciates the important role played by the SACU states in the WTO and in 
the multilateral trade negotiations. We count on them to contribute constructively to make the 
coming Ministerial Conference in Nairobi a success.  
4.7.  One way to do so would be the ratification by all SACU States of the amendment of the TRIPS 
Agreement on Public Health and the ratification of the Protocol of Amendment to insert the 
Agreement on Trade Facilitation into the WTO law book. These two amendments have been ratified 
by Botswana, which we commend for its action. The entry into force of these instruments will in our view be beneficial for each WTO Member and for the multilateral trading system as a whole. 
4.8.  I would like to conclude by saying that Switzerland is looking forward to further deepening 
our economic ties with the SACU member States  and by wishing the delegations of the SACU 
states a successful and useful Trade Policy Review. 
CANADA 
4.9.  To set our comments in context, Canada enjoys healthy bilateral merchandise trade with 
SACU members, which while fluctuating over the last five-years, stood at $2.3 billion in 2014, up 27% from the previous year. Our trading relationship is balanced, with $1.08 billion in exports and 
$1.2 billion in imports in 2014. 
4.10.  Although the Secretariat report underlined a lot of fluctuations in SACU countries’ economic 
performance since the last review in 2009, I note that SACU members are forecasted to register 
consolidated annual GDP growth of approximat ely 2.3% until 2017, despite the downturn in 
commodity prices. I am particularly pleased to see the higher consolidated GDP forecast for the Union’s much smaller members, which suggests they are managing to produce a respectable 
overall economic performance in the face of uncertain global economic conditions. Nevertheless, WT/TPR/M/324 • SACU 
 
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  these growth rates fall short of the 7% the World Bank estimates as being necessary to achieve 
substantial poverty reduction and sustainable social and economic development.   
4.11.  Canada commends the Members under review for their continued efforts at fully 
implementing the provisions of the 2002 Southern African Customs Union (SACU) Agreement. But, 
in line with the many countries that have raised it in their written questions, we look forward to 
seeing the completion of common policies and strategies, including fully bringing SACU institutions into operation.  
4.12.  A good indicator of the work to be done is the feedback we have received from Canadian 
companies operating in the region. They report that they continue to face disparate taxation, trade and business policies that make doing business difficult, and increased transaction costs that at times appear to run counter to the Union’s national development strategies. Allow me to highlight 
three areas where improvements could lead to bett er performance on the part of SACU members. 
4.13.  First, Canadian businesses operating within SACU contend with customs procedures that 
have not yet been fully harmonized, differences in regulatory and administrative procedures, and 
different documentation requirements. This is contrary to Article 23 of the 2002 SACU Agreement, 
which calls for appropriate measures, including customs cooperation, to ensure that the provisions of the agreement are applied effectively and harmoniously. In addition, the inconsistent application 
of Article 31, which permits member states to pr ovide preferential treatment of goods originating 
from non-SACU members, where the obligation pre-dates SACU, creates uncertainty, for example, regarding the treatment of goods entering duty fr ee from a third country that are then subject to 
duties when moved between SACU members.  
4.14.  I am taking good note from the Governments’ submission that SACU members are 
committed and moving towards ratification and implementation of the WTO Agreement on Trade Facilitation, and I congratulate Botswana on already submitting its instrument of acceptance to the 
WTO. Implementation of the TFA will help SACU Members to modernize and simplify customs 
procedures, reduce trade costs, achieve greater competitiveness, attract investment, improve export performance, create jobs and achieve further economic growth. 
4.15.  The second major concern I would highlight is the high rates of state participation in the 
economy and over-reliance on a limited number of sectors. In our view, this stifles competition and makes national economies more vulnerable to cyclical shocks. Canadian firms’ ability to contribute to private sector-led efforts to diversify the economies of member states is stymied by 
high-levels of government ownership of large pa rts of the economy and procurement legislations 
that provide price preferences to local companies. These arrangements promote inefficiencies in the market place and discourage investment.  
4.16.  Canada would like to re-emphasize that the establishment of the Tariff Board and fully 
functional national bodies, beyond South Africa, would improve trade flows.  
4.17.  In conclusion, Canada would like to wish the SACU delegation a very successful policy 
review. 
EUROPEAN
 UNION 
4.18.  It is somewhat of a challenge to make a statement that covers both the regional 
organisation – SACU – as well as its individual members. SACU is the oldest Custom Union in the 
world, yet the institutional set-up, the level of development and the geographical characteristics of 
each SACU member are quite different. 
4.19.  The reports show that generally speaking growth has not been sufficient in several of the 
SACU members reviewed. The reports also reveal that the cause of this lacklustre growth can be 
traced back to the financial crisis or to international developments, such as the evolution of commodity prices. Other factors seem to include – to name only a few - the energy supply (for 
example in South Africa or Lesotho) or the need to strengthen certain institutions (which seems 
quite important for Botswana and Lesotho).  WT/TPR/M/324 • SACU 
 
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  4.20.  One of the priorities of SACU member States is to diversify their economies, to broaden 
their export base, and to move up the value ch ain away from pure reliance on commodities. The 
EU has also noted their commitment to address major regional and social inequalities, poverty, health, education and the policy measures aimed at attracting investment.  
4.21.  We strongly support SACU and its members in these policy objectives and believe that this 
Trade Policy Review will contribute to shedding light on how to obtain them.  
4.22.  The EU is of the view that the Economic Partnership Agreement concluded in July 2014 
should help in this regard, not least because it includes a development chapter that can guide 
trade-related assistance in a number of key areas for trade and investment. From 2007 to 2013, cooperation with SACU members under the European Development Fund and the EU Budget amounted to about €1.4 billion. The European Investment Bank contributed with a roughly 
equivalent amount of €1.4 billion during that period. As a result, a number of key areas of national 
development strategies were supported. We hope to sign our bilateral agreement in 2016. During the negotiations, the EU-SACU relationship has proven to be strong. I would like to express my 
thanks to my colleagues of SACU for these achievements.  
4.23.  The EU is by far SACU’s biggest import partner and its second export partner. No less than 
28% of all SACU’ s imports originates from the EU and SACU ships 16% of all its exports to the 
EU. South African exports to the EU are diversified, but we recognize - as do the reports for this 
review - that the other SACU Members have a narrower export base and that diversification is a key objective.  
4.24.  We note that trade facilitation is an important area and we are keen to know where the 
individual SACU members stand in terms of notification of their category A commitments and how 
far has the process had gone towards the ratification of the Trade Facilitation Agreement.  
4.25.  In our advanced written questions, we have raised a number of issues. Let me group them 
into three categories.  
 Investment-related measures. Improving the business climate is a condition to attract more 
Foreign Direct Investment. It is not limited to investment laws and Bilateral Investment 
Treaties, even if those are indeed quite fund amental. Public procurement, local content 
requirements, the role of the institutions, the consultation of stakeholders, and the role of State Owned Enterprises in relevant markets are important as well. Naturally, investment is also dependant on infrastructure and a reliable and affordable energy supply. 
 Import licenses, import levies and export taxes. In a number of cases, the EU is of the view 
that there are disproportionate or burdensome requirements that constitute obstacles to trade. We would like to hear more about your reasoning for the appropriateness of these 
measures. 
 The functioning of SACU. The EU would be in terested to know more about the Members' 
views on the perspectives for SACU. For exam ple, we raised questions on competition 
enforcement at regional and national level, on  the link between the Common External Tariff 
and some applied tariffs, and on the prospects for a reform of the revenue sharing formula. 
4.26.  Addressing all these issues will keep us busy during the two days of the review. 
Nevertheless, in our view, discussing these matters could lead to decisions that would bring 
improvements to the business environment and investment climate in SACU. 
NORWAY 4.27.  The economic features of the Southern African Customs Union have remained quite stable 
since the last trade policy review in 2009. The economy contracted during the crisis in 2009, but 
has since then been growing, albeit at a slow er pace than before. The economic growth in 
Botswana, Namibia and Lesotho has been rather  good with growth rates above 3 %, while 
South Africa and Swaziland have seen more mo derate growth rates since 2009. The economic 
crisis in its main trading partner had, and still has, an impact on the region.  WT/TPR/M/324 • SACU 
 
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  4.28.  South Africa is – not surprisingly - the dominant economy in SACU. The South African 
economy underperformed during the review peri od, partly due to slowdown of household 
consumption. Unrest in the mining sector, a sect or not reformed during the review period, also 
negatively influenced the South African economy. 
4.29.  The economies of the four other SACU countries, Botswana, Namibia, Lesotho and 
Swaziland, are much less diversified than the Sout h African economy. We believe, as others have 
already mentioned, that increased diversification could strengthen economic growth in these 
countries.  
4.30.  On the World Bank’s “ease of doing business” ranking all of the SACU countries fell from 
2008 to 2015. This indicates that further efforts could be made to attract more FDI and enhance the economies’ growth potential. At the same time, we notice that most of the indicators actually 
improved during the said period. This tells us that it is only the relative competitiveness of the 
SACU countries that was reduced during the review period.  
4.31.  We note that Botswana, Namibia and Swaziland have fully enforced their national 
competition regimes during the review period, and commend them for that.  
4.32.  The Secretariat’s report states that intra-country socio-economic inequalities within SACU 
are among the highest in the world, and th at the SACU agreement does not provide for 
harmonization of macroeconomic policies. We would be interested in knowing more about the 
formula that determines how the customs and exci se revenues gathered in SACU are distributed 
among its members, and how the discussions on the possible review of the revenue-sharing formula are progressing. 
4.33.  A word on regional trade agreements: we note with interest the initiatives on intraregional 
trade that the different SACU members are engaged in. We encourage these regional moves as tools for economic diversification. 
4.34.  As a member of the European Free Trade Association (EFTA) Norway signed a Free Trade 
Agreement (FTA) with SACU in 2006. The FTA, which entered into force on 1 May 2008, takes account of the SACU countries’ diverse levels of development by allowing for special and 
differential treatment where appropriate, and by se tting out principles of economic co-operation 
and technical assistance. SACU and EFTA held a Joint Committee meeting in April this year, where the parties agreed to continue work in order to improve further the free trade agreement.   
4.35.  In 2014, Norwegian exports to SACU amounted to 906 million Norwegian kroner (NOK) a 
decrease by 34% compared to 2013. The most important products are seafood, machinery, 
medical instruments and oil. Norway’s imports fr om SACU amounted to 3.3 billion NOK in 2014, a 
decrease by 20% compared to 2013. The most im portant products are nickel, ores, aluminium, 
meat and edible fruit and nuts. We hope that the review of the EFTA-SACU FTA will help pave the 
way for an increase in our trade figures.  
4.36.  For Norway, assisting developing countries in reaping benefits from the possibilities offered 
by the multilateral trading system continues to be a high policy priority. Norway channels most of 
our Aid for Trade funding via international organi zations. Our key partners include the WTO, the 
Enhanced Integrated Framework (EIF), the World Bank Group, the International Trade Centre and 
UNIDO. We encourage developing WTO Members such as the SACU countries to engage with 
international organizations and partners in this  field to make good use of opportunities for 
technical assistance and capacity building. 
4.37.  In conclusion, Norway remains a committed de velopment and trading partner to SACU. We 
look forward to continued cooperation with the SACU countries, both bilaterally and within the 
multilateral WTO framework. We are especially looking forward to continue working constructively together to support and strengthen the role of the WTO, as we move towards the ministerial 
conference in Nairobi. WT/TPR/M/324 • SACU 
 
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  UNITED  STATES 
4.38.  As noted in the Secretariat’s report, SACU member countries have made important strides 
since the last trade policy review. Since the 2009 global economic crisis, at which time SACU as a whole registered negative growth, SACU member economies have managed to collectively grow at 
about 3% annually on average; albeit, unevenly among individual SACU members. At the same 
time, we recognize that the SACU member countries continue to face serious challenges that have 
kept them from achieving their full economic potential. As the Secretariat’s report notes, 
intra-country inequalities within SACU remain among the highest in the world, with high 
unemployment and poverty as common challenges. 
4.39.  Since the last trade policy review, the United States is pleased to continue a robust and 
vibrant trade and investment relationship with each of the SACU countries. Overall, two-way 
U.S.-SACU trade in goods grew by 40% to US $16 billion between 2009 and 2014. Each SACU 
member country has exported a variety of products to the United States under the African Growth and Opportunity Act (AGOA) and the U.S. Generalized System of Preferences (GSP). 
4.40.  AGOA remains the foundation of our economic engagement with Africa, and we are pleased 
that the Trade Preferences Extension Act of  2015 (TPEA) extended AGOA – including the 
third-country fabric provision – through 2025, the longest ever extension of AGOA. The TPEA also 
extended GSP through 2017, thus providing producers, exporters, and investors across 
sub-Saharan Africa the certainty of duty-free acce ss for a wide variety of products to the U.S. 
market under both AGOA and GSP. 
4.41.  South Africa has continued to be a significant beneficiary of AGOA. It is the largest non-oil 
exporter under AGOA, and exports a broad array of goods to the United States under AGOA and 
GSP, including motor vehicles and parts, metals and minerals, agricultural products, textiles, and chemicals to name a few. Lesotho is a leading exporter of apparel to the United States under 
AGOA. Botswana exports apparel under AGOA, and Namibia exports worked marble, granite, and 
wood products under GSP. Swaziland continues to export sugar and other products under GSP, but 
became ineligible for AGOA benefits in 2015 after failing to take certain necessary steps to protect 
core labour rights, over the course of several years. All told, over 98% of SACU exports to the 
United States in 2014 entered the U.S. market duty-free. 
4.42.  Additionally, since 2008, the U.S.-SACU Trade, Investment, and Development Cooperation 
Agreement (TIDCA) has provided a forum for consultative discussions, cooperative work, and 
possible agreements on a wide range of trade is sues, including customs and trade facilitation, 
technical barriers to trade, sanitary and phytosanitary measures, and trade and investment promotion. We look forward to working with SACU to address how to use the TIDCA as an effective 
vehicle to discuss the future of the U.S.-SACU trad e and investment relationship based on a more 
mature, permanent, and reciprocal relationship.   
4.43.  The United States has submitted some questions about policies and processes at both the 
SACU-wide level and in individual countries. I woul d like to highlight just a few with respect to 
South Africa, and then also draw your attention to additional issues of interest to the United States. 
4.44.  With respect to South Africa, I would like to draw your attention to three areas: 
 First, according to the Secretariat’s report, South Africa bases its animal health 
requirements on World Organization for Animal Health (OIE) guidelines and on risk assessments. In light of South Africa’s commitments under the WTO SPS Agreement, the 
United States remains extremely concerned regarding South Africa’s non-science based 
requirements that impact the import of poultry meat from countries affected by highly pathogenic avian influenza (HPAI); import requirements concerning Salmonella in poultry; 
import requirements for beef; and finally, im port requirements concerning animal health 
issues related to pork, including trichinae, pseudorabies, and porcine reproductive and respiratory syndrome. 
 Second, we remain concerned about policies that may ultimately have a chilling effect on 
foreign investment in South Africa. In particular, the provision contained within the Private WT/TPR/M/324 • SACU 
 
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  Security Industry Regulation Amendment to require at least 51% South African ownership 
and control of foreign-owned private security firms would negatively affect existing foreign investment in this sector. If signed into law, the bill’s local ownership requirement would create a disturbing precedent concerning firms in a broad range of sectors, and would likely 
discourage foreign firms, including U.S. firms, from considering new investments in South 
Africa. 
 Third, we note South Africa’s concern, as stated in SACU’s report, related to a provision 
contained within the Trade Preferences Extensio n Act of 2015 that requires an out-of-cycle 
review of South Africa’s eligibility to receive the duty-free benefits afforded under AGOA. We note that South Africa, like all AGOA-eligible countries, must meet certain eligibility criteria to take advantage of AGOA’s benefits, and we encourage South Africa to take the necessary 
steps to demonstrate that it is meeting those requirements. 
4.45.  With respect to SACU writ large, we are interested in hearing how plans for wider regional 
economic integration in Africa might affect SACU’s future, including the recently launched 
Tri-Partite FTA encompassing the Southern African Development Community, the East African 
Community, and the Common Market for Eastern and Southern Africa; as well as the African Union’s plans for a Continental FTA also announced earlier this year. 
4.46.  Finally, we applaud Botswana for playing a leadership role within SACU and ratifying the 
WTO Trade Facilitation Agreement (TFA) and noti fying the WTO of its category A commitments. 
The WTO TFA would set the stage for more efficient customs and border procedures and coordination and encourage regional integration among SACU member countries. The TFA is widely 
recognized as having broader development benefits in addition to promoting regional integration, 
private-sector investment, and supporting export promotion. We encourage Lesotho, Namibia, Swaziland, and South Africa to follow Botswana’s  lead to accept and implement the agreement as 
soon as possible. The United States stands ready to work with SACU member countries to ensure 
their timely implementation of the agreement.  
4.47.  In closing, the United States appreciates the opportunity to participate in this review of 
SACU’s trade policy, and we look forward to further discussions on trade matters with the 
delegation from the SACU countries. 
BRAZIL 4.48.  We are glad to announce on this occasion that on the 18th of last September, through 
Legislative Decree No. 200, Brazil ratified the Me rcosul-SACU Preferential Trade Agreement (PTA), 
signed by the State Parties of Mercosul in December 2008 and by the Member countries of SACU in April 2009. This opens the way for the entry into force of the Agreement and for producers and 
exporters on the two sides to finally become able to enjoy reciprocal preferences on a number of 
goods that are comprised in the Agreement.  
4.49.  Although SACU already ranks as the third destination of Brazilian exports in Africa, we are 
very optimistic that this agreement will be helpful to promote faster growth in our bilateral trade 
flows, for both agricultural and industrial goods.  The main exported products from Brazil to SACU 
countries are currently motor vehicles, electrical and mechanical machinery, beef, sugar, minerals, aluminium, fuels, tobacco and wood products. Main exports from SACU countries to Brazil include 
fuels, iron and steel, chemical products, cars, plastic products, gold, precious gems, aluminium, 
minerals and mechanical machinery. 
4.50.  Whenever it becomes feasible, Brazil is interested in working with our Mercosul partners and 
the SACU Members with a view to expanding an d deepening our preferential arrangement. 
4.51.  Brazil shares with SACU Member States a commitment to place job creation, social inclusion 
and sustainable development at the center of go vernmental priorities. In the area of trade, 
however, as both SACU and the Secretariat rightly acknowledge, the international economic 
environment has become more challenging for developing countries, owing to lower rates of growth in relevant importing markets and general uncertainty regarding the impact of exit policies 
from the crisis of the last decade, in both developing and industrialized countries. WT/TPR/M/324 • SACU 
 
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  4.52.  This reality brings about the risk of a backward movement in international economic 
cooperation, including - and maybe especially - in the WTO. The failure of the multilateral trading system to address issues of critical importance to developing countries, especially the reform of agricultural disciplines, is an opportunity lost time and again.  
4.53.  Here too we find convergence with SACU in the belief that the multilateral rules-based 
system shall continue to provide the framework for trade policies with a “net benefit” for development. We also concur with the need to assess the impact of the recent surge in plurilateral, 
regional and bilateral negotiations on the WTO system, while at the same time recognizing the 
contribution of these initiatives to the liberaliza tion of trade and investment around the globe.  
4.54.  On a more hopeful note, we were quite taken by the concept of “development integration” 
advanced by SACU in the report, where we can find  similarities with our own view, in the context 
of Mercosul, of a successful integration process, built on solid trade foundations but also covering 
issues such as the promotion of productive integration, physical infrastructure development and cooperation in social policy, environment, health and law enforcement, among other areas. 
4.55.  Finally, we would like to refer to the questions submitted by Brazil in writing, which reflect 
an interest in deepening our knowledge of SACU’s internal procedures, especially in the area of 
trade remedies, not only in terms of decision-mak ing, but also regarding the implementation of 
measures across its Member countries. We have also seen from the report that SACU is very active 
in trade negotiations with developing and developed countries, and we are of course interested in hearing about SACU’s priorities and approach toward s third partners, both within their region and 
elsewhere.  
4.56.  Strengthening relations with Africa, as a reflection of both historical links to the continent 
and a long-standing commitment to South-South cooperation, ranks high among Brazil’s foreign policy priorities. SACU’s TPR certainly offers some important elements and hints at interesting 
opportunities for our government’s consideration. We congratulate SACU on its excellent work and 
express our satisfaction for taking part in this dialogue. 
AUSTRALIA 
4.57.  Australia commends Botswana, Lesotho, Namibia, South Africa and Swaziland for their 
efforts in promoting intra-African trade which is making an important contribution to help Africa address its development priorities. 
4.58.  While SACU faces challenges, Australia knows from its own experience that the road to a 
stronger economy and increased prosperity lies in structural economic reform. Australia 
encourages members of SACU to support bilateral and multilateral trade liberalization as an important component of economic reform to help boost trade and contribute to economic growth. 
4.59.  Australia welcomes the efforts of SACU members towards Africa's economic integration 
efforts, in both the Tripartite FTA and Continental FTA negotiations. 
4.60.  We note that Australia and members of the SACU share strong interests in mining and 
mining related services. We would welcome opportunities to work together more closely in these 
areas of mutual interest. 
4.61.  Australia is looking forward to working with SACU members to deliver credible results as the 
WTO 10
th Ministerial Conference in Nairobi, Kenya – the 20th anniversary of the WTO and the first 
Ministerial Conference to be held in Africa. In particular, Australia will work closely with our Cairns 
Group partner South Africa to try and achieve outcomes on agriculture. Australia will work with SACU members towards a package of outcomes that supports all WTO Members' participation in 
the multilateral trading system, and recognizes and supports the importance of the development 
dimension of the WTO. 
4.62.  We praise Botswana for submitting its category A notification and ratifying the TFA. We 
encourage Lesotho, Namibia, South Africa, and Swaz iland to ratify the TFA as soon as possible and 
submit their category A notifications. WT/TPR/M/324 • SACU 
 
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  4.63.  For this review, Australia has submitted a numbe r of written questions relating to SACU's 
trade and investment regime. We look forwar d to SACU's response to these questions. 
NEW  ZEALAND 
4.64.  SACU members are all long-standing trading pa rtners for New Zealand. Both trade and 
investment flows between our economies are grow ing, as is New Zealand’s broader economic 
relationship with the African continent. Accordingly, New Zealand takes an interest in the trade and investment policies of the region.  
4.65.  Since the period of the last review, total trade between SACU and New Zealand has 
remained steady at around NZ$350 million. We are particularly pleased to note that the trading relationship is by no means one-sided. New Zealand has recently seen sizable investments from countries in Southern Africa in the retail sector, and we have also been chosen as a base for 
southern African businesses expanding further into the Asia-Pacific. This reflects the growing depth 
of the trade relationship and confidence that our engagement can, and will, deliver mutual benefit. 
4.66.  New Zealand is encouraged by the ongoing efforts for multilateral, regional, and bilateral 
trade integration in the SACU region. Our own experience with regional economic integration has 
been positive. We encourage SACU to continue in tegration efforts at all levels, and note that 
regional progress is not mutually exclusive to improved multilateral trade rules.  
4.67.  We note with concern, however, that each of the SACU members ease of doing business 
rankings have slid backwards since the previous review. New Zealand is in the process of working with Lesotho and Botswana to improve ease of doing business through projects to digitize the companies' registry processes in those countries. It is our hope that further efforts to harmonise 
elements of individual SACU policies (such as value added tax and rules of origin) might drive 
better ease of doing business results and increased trade flows. 
4.68.  One of SACU’s members, South Africa, is a fellow founding member of the Cairns Group. We 
are encouraged that the Secretariat report notes that agriculture is one of the least supported 
industries in terms of subsidies. We look forward to clarification about how SACU governments ensure that where a specific or mixed tariff is used the bound tariff rate is not exceeded.  
4.69.  New Zealand has been proud to work with all of the SACU members to improve access to 
agricultural and other trading opportunities, including last year co-hosting with South Africa a workshop on Food Safety Systems for Export, wi th participation from government and commercial 
representatives from all members of the Southern African Development Community.  
4.70.  New Zealand appreciates SACU’s continued commitment to the multilateral trading system 
and we welcome the positive steps that SACU members have taken in the time since the last TPR. 
COLOMBIA 
4.71.  During the period under review, the consolidated economy of the five countries of the 
Southern African Customs Union (SACU) showed a downward trend. The impact of the world 
economic crisis has been felt in almost all the member countries. As noted in the Secretariat 
report, this can be explained by the effects of the debt crisis in the European Union, SACU's main 
trading partner, and the economic uncertainty expe rienced by other industrialized countries that 
are important to the Union. 
4.72.  In terms of economic performance, inequalities between and within the countries are still an 
issue. Botswana and South Africa, and more recently Namibia, are classed as countries with an 
upper middle per capita income, while Swaziland remains a lower middle income country, and Lesotho, a least developed country (LDC). South Af rica's highly diversified economy contrasts with 
the narrow based ones of its regional counterparts:  diamonds and other minerals in Botswana and 
Namibia; textiles and clothing in Lesotho; and sugar in Swaziland. We would therefore encourage these countries to diversify their export products and markets. This considerable challenge is faced 
by a number of developing countries, but meeting it will, in the medium and long term, help to 
strengthen our economies with a view to containi ng, to a certain extent, the negative effects of 
economic crises. WT/TPR/M/324 • SACU 
 
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  4.73.  Regarding bilateral trade, South Africa is not only Colombia's main SACU partner, but its 
principal African trading and investment partner. In 2014, Colombia's exports (f.o.b.) to South Africa amounted to US$165 million and comprised mainly petroleum (73%) and ferronickel (20%). Imports amounted to US$41 million, with metallurgical goods accounting for the largest share 
(46%). Bilateral trade between the two countries amounted to 99.6% of all Colombia's trade with 
SACU in 2014. 
4.74.  From the reports, it is clear that SACU faces a number of challenges that to a certain extent 
affect trade. The customs tariff is complex. As noted in the Secretariat's document, it comprises ad 
valorem, specific, mixed and formula duties, and a combination thereof. The rates also display relatively high dispersion. A high level of protecti on continues to be applied in SACU countries to 
both agricultural and manufactured products, particularly in South Africa. 
4.75.  SACU has been an active participant in regional trade agreements. Negotiations with the 
European Union on an Economic Partnership Agreement were concluded in 2014. An agreement with India and a tripartite agreement with the Common Market for Eastern and Southern Africa, 
the East African Community and the Southern African Development Community are also being 
negotiated. The SACU countries currently have re gional trade agreements with members of the 
European Free Trade Association; a Trade, In vestment, and Development Cooperation Agreement 
with the United States; and a reciprocal trade agreement with the MERCOSUR countries, which is 
not yet in force. It should, however, be noted that  during the review period, SACU did not sign or 
bring into effect any new trade agreements. We hope that the establishment of clear and predictable disciplines through agreements with more trading partners will contribute to the 
economic and social development of all SACU members and help ensure their further integration 
into the WTO and the world economy. 
4.76.  Lastly, we would like to highlight and acknowle dge the efforts that have been made by each 
of the SACU members to fulfil their obligations  and improve the multilateral trading system. 
Botswana was the eighth WTO Member to ratify the Agreement on Trade Facilitation in June this year. Lesotho is an active WTO Member and participates in various negotiating groups such as the 
ACP, the African Group, the G 90 and the LDC group. Namibia has made the most of the technical 
assistance and training opportunities provided by the WTO; it has, for instance, participated in 230 activities since the last review. South Africa was an active participant in the Trade Facilitation Agreement negotiations and, according to its authorities, has begun the ratification process. 
Lastly, Swaziland, which, in spite of certain diff iculties, has succeeded in fulfilling a number of its 
WTO notification obligations  for the review period. 
4.77.  We encourage SACU to continue playing an active role in the WTO, particularly in the 
current negotiations. We wish it every success in its fourth trade policy review. 
SINGAPORE 4.78.  Since its last TPR in 2009, SACU has bounced back from the global financial crisis, 
collectively growing by more than 3% in the immediate years after. It is clear that trade was and 
remains a key engine for economic recovery and grow th, with SACU’s collective trade continuing to 
account for about 60% of its GDP.  
4.79.  We are heartened that SACU is continuing its effort to improve its trade environment. 
Individual SACU members have made headways in reforming their economies, including by 
implementing policies to: (i) improve the bu siness environment and investment climate; 
(ii) diversify exports; and (iii) improve trade facilitation. In particular, we commend Botswana for 
being the eighth Member to ratify the WTO TFA. We urge the other SACU members to ratify the 
TFA as soon as possible. SACU members form a critical part of the value chain in Africa, and the early entry into force of the TFA would present tangible benefits for SACU.  
4.80.  We note also that SACU is currently negotiating an FTA with India, and participating in the 
negotiations on the Tripartite FTA (T-FTA) between Common Market for Eastern and Southern African (COMESA), East African Community (EAC) and Southern African Development Community (SADC). Singapore, too, remains interested in strengthening trade linkages with SACU through an 
FTA. The bilateral trade account between Singapor e and SACU is on an upward trend, increasing 
7% to reach S$3 billion last year. Our very first trade promotion office (IE Singapore) in WT/TPR/M/324 • SACU 
 
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  Sub-Saharan Africa (SSA) was established in Johannesburg, South Africa in 2011. Singapore 
companies are already operating in SACU in sectors such as ICT, infrastructure, and logistics. There are also strong links between our officials through the 1800 SACU officials who were trained in fields such as economic development, trade promotion, and urban development through the 
Singapore Cooperation Programme.  
4.81.  We urge SACU to continue looking outwards and to leverage on trade to drive economic 
growth and development. The Secretariat’s report notes the increase in average MFN tariffs and 
complex tariff regime. The presence of tariff e scalation has also continued to provide higher 
effective protection for processed goods. We urge SACU to take timely and concrete steps to eliminate these barriers to trade.  
4.82.  Finally, Singapore looks forward to continued constructive cooperation with SACU members 
through the missions of Namibia, Botswana, South Africa, Lesotho and Swaziland in Geneva to 
strengthen the Multilateral Trading System and to deliver a successful Nairobi Ministerial Conference. We thank SACU for their timely responses to our questions and wish them every 
success in their fourth Trade Policy Review.  
RUSSIAN
 FEDERATION 
4.83.  The Russian delegation would like to welcome the fourth Trade Policy Review of the 
Southern African Customs Union. We have no doubt that the present TPR will be mutually 
informative and practically useful both for the SACU members and for the whole WTO Membership. We believe that the current TPR of the Southern African Customs Union (the oldest customs union 
in the world, which dates back to 1910) will become an excellent monitoring exercise enhancing 
the transparency and enabling us to emphasize th ose elements in the SACU’s trade regime we are 
interested in or concerned about. 
4.84.  We take note of the SACU members’ initiatives aimed at promotion of the integration into 
the global economy, enhancement of the economic development, diversification, industrialization 
and attraction of foreign direct investments. 
4.85.  Notwithstanding the existing economic and so cial challenges, the SACU members play an 
active and visible role in the WTO. We appreciate their commitment to the multilateral trading 
system. 
4.86.  On the bilateral track, SACU and the Russian Fe deration have enjoyed mutually benefiting 
trade and investment relationships, progressing well over the last ten years. The amount of our 
bilateral trade in 2014 totalled about US$1 billion, which represents an exceptional increase of 
89% over 2009. We note that the substantial shar e of the total bilateral trade has traditionally 
been conducted with South Africa, the biggest econ omy in SACU. Nevertheless, we believe that we 
have the potential to further enhance trade in goods and services and to increase the flow of 
investments with all SACU members. 
4.87.  Prior to this review Russia has submitted a number of questions regarding certain SPS 
measures drawing the special attention of SACU co untries to the improvement and development of 
agricultural production, taking into account the important role of the sector in achieving food security and rural development. We w ill consider the answers thoroughly. 
4.88.  In conclusion, we would like to thank the delegation of SACU, the Secretariat and of course, 
our esteemed discussant, for their hard work done so far. We wish Botswana, the Kingdom of 
Lesotho, Namibia, South Africa, and the Kingdom of Swaziland a successful trade policy review. 
MEXICO 
4.89.  SACU is the oldest existing customs union in the world. We would like to reiterate the 
concerns raised by Singapore, Colombia and other Members regarding the complexity and disparity of its tariff structure. The simple averag e applied Most Favoured Nation (MFN) tariff rate 
is in fact 8.3% ad valorem , as 0% duty is applied to around 57.5% of all tariff lines. There are, 
however, still a number of lines in which the applied tariff is more than 90%, and one in particular in which it is 624%. WT/TPR/M/324 • SACU 
 
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  4.90.  The Secretariat report notes that both Lesotho and Swaziland obtain over half of their 
government income from the taxes and duties of this customs union, while Namibia obtains 33% and Botswana 30%. It also notes that the services sector accounts for approximately 60% of the consolidated GDP of the various economies. It is, however, noticeable that despite such 
long-standing economic integration in the moneta ry ambit and the area of trade in goods, no 
provisions have yet been introduced with a view to integration in respect of trade in services, nor is there sufficient harmonization of non- tariff measures with respect to goods. 
4.91.  In any case, we agree that opening up trade in services may help to diversify these 
economies and make them less dependent on th e income obtained through trade in goods. 
Botswana 4.92.  We congratulate Botswana on being the first of  these countries to have notified Category A 
measures and to have ratified the Trade Facilitati on Agreement. We encourage the others to follow 
suit. 
4.93.  From 2008 to 2014, Botswana's GDP grew at an average annual rate of 4.5%, with growth 
peaking at an enviable high of 5.8% in 2008.  Although Botswana already has an economic 
competition law and authority, its economy remains highly dependent on the mining sector, which accounts for almost one fifth of its GDP and 63% of exports. In this respect, we note that it might 
be wise to diversify economic activities even further. In our delegation's view, this could be done 
by attracting more foreign direct investment, ab ove all in services, through harmonization of the 
legal framework in this area. 
Lesotho 
4.94.  Lesotho has the most vulnerable economy in the region. This is due to a number of factors, 
including its least developed country status and its landlocked nature. Despite showing a trade deficit in goods and services, it has made progress in terms of diversification, which we applaud. 
This progress is still, however, very minor, and our delegation therefore encourages Lesotho to 
continue strengthening its institutions, in particular the Department of Standards and Quality Assurance, and to move forward in harmonizing standards and conformity assessment procedures 
under the Standardization, Quality Accreditation and Metrology programme of the Southern African 
Development Community (SADC). 
Namibia 4.95.  We would like to take this opportunity to congratulate Namibia on having improved its legal 
framework in the area of information and communication technology, which is a notable 
achievement. We encourage the country to continue its efforts until it achieves its objective of universal telecommunications coverage, particularly with regard to the Internet. 
4.96.  Namibia also stands out for having one of the most developed financial systems in 
Africa - one in which the saving public has a high level of confidence. In spite of such enviable achievements, Namibia is not resting on its laurels, and has continued with its policy to strengthen 
the financial system, most notably by migrating to Basel II as a regulatory standard for capital 
adequacy in 2010 and by completing the Namclear Automated Clearing House Project in 2013. 
South Africa 4.97.  We note that South Africa ranks 43
rd in the World Bank's Doing Business 2015 index and 
that it stands out in a number of areas, particularly that of construction permits. 
Swaziland 4.98.  Our delegation congratulates Swaziland on approving its new telecommunications legislation 
and establishing an independent regulatory body in this area. 
4.99.  We thank Botswana, Lesotho, Namibia, South Africa and Swaziland for their replies to the 
questions posed by our delegation, and wi sh them every success in this review. WT/TPR/M/324 • SACU 
 
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  CHINA 
4.100.  Although the overall economic growth of SACU countries fluctuated due to the global 
economic crisis since last review, we are pleased to see that the growth rates of Botswana and Namibia rebounded sharply after weak performance in 2009 and have remained high since then. 
SACU countries boast rich natural resources and economic potentialities, and China encourages 
them to bring their potentialities to full play by further by further economic reform and liberalization. 
4.101.  In this regard, we appreciate the efforts of SACU countries to facilitate trade and 
investment by harmonizing the applied MFN customs tariff, excise duties, duty and tax concessions, customs valuation, rules of origin and contingency trade remedies, and further streamlining customs procedures and documentation within SACU. We believe that the common 
and harmonized economic and trade policies will co ntribute to their integration into the global 
trading system. China also welcomes the introduction of national competition regimes in Botswana, Namibia and Swaziland, as well as the measures taken by Lesotho to modernize its 
institutional framework and allow foreigners to hold a land title subject to certain conditions.  
4.102.  Since the last review, economic cooperation between the SACU and China has maintained 
a strong momentum in general. China is the largest and fastest-growing export destination of 
SACU, with our import from SACU reaching US$4 8.9 billion in 2013. The demand from China is 
playing an ever greater role in boosting the ex port of SACU countries, contributing to improving 
livelihood and reducing poverty. Though our bi lateral trade experienced a moderate decline of 
about 7% in 2014, China believes that the foundation for our economic cooperation remains 
sound.  
4.103.  In December this year, the Forum on China- Africa Cooperation (FOCAC) Summit will be 
held in South Africa and we wish it will inject new energy to our cooperation with Africa, including 
with SACU countries. China is willing to take this opportunity and make joint efforts with our 
African friends to expand our ties in trade, investment and industrial capacity cooperation. 
4.104.  While our economic cooperation with SACU is enjoying generally sound development, it is 
true that there are some concerns from our business communities, such as the complex common 
external tariff （CET), the highest ad valorem  rate (624%) applied to imported worn clothing and 
worn textile articles, the country-specific agricultural and industrial policies within SACU, and an 
increase of import tariff rates for certain steel products by South Africa recently. These concerns 
are included in our written questions, and China is looking forward to receiving answers from SACU. 
4.105.  Both China and SACU countries have long been strong supporters of the multilateral 
trading system and active participants in the Doha Development Agenda negotiations. As a developing member, China highly  commends SACU countries for their support to the DDA, and is 
looking forward to joining hands with SACU countries and other WTO members to contribute to a 
credible and meaningful outcome of the MC10, an d achieve a development-oriented and balanced 
successful conclusion of the DDA in the future.   
ARGENTINA 
4.106.  We are pleased to note that during most of the period under review (2009-2015), SACU's 
economy experienced annual GDP growth of around  3%, except in 2009, when GDP contracted by 
1.7%. After 2009, the growth rate picked up again, exceeding 3.4% in the following years and 
reaching 3.7% in 2011. 
4.107.  We are also pleased to learn that per capita  GDP grew significantl y during the review 
period, reaching US$5,830 in 2013. 
4.108.  These positive figures in terms of economic gr owth can be explained by the importance of 
the mining and manufacturing sectors in the member countries of the Customs Union. 
4.109.  We note that the services sector continues to be the largest sector in the economies of 
SACU member countries, accounting for around 60% of GDP during the period under review. WT/TPR/M/324 • SACU 
 
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  4.110.  Furthermore, we note the programmes being implemented in the region to overcome the 
trade deficit that has affected all the countries except for Botswana. This political will will almost certainly be reflected in SACU's aggregate figures in its next trade policy review. South Africa plays a significant role in the region, not only because of the volume of exports that it receives from its 
neighbours, but because some of its regulation s serve as a model for other countries in the 
Customs Union, in the area of customs valuation policy, for instance. Argentina welcomes the efforts made to update this legislation and to ensure a unified policy in this respect between 
SACU members. 
4.111.  In multilateral negotiations in various forums, including the G-20, South Africa and 
Argentina have, for many years, worked together and held common positions in favour of development. At the WTO, this close cooperation ha s been especially evident in the last 15 years 
of negotiations under the Doha Round, where joint proposals have been submitted with other 
Members on issues such as market access for industrial and agricultural products, and efforts have been made to ensure equal conditions in the general negotiation process. 
4.112.  South Africa, as the coordinator of NAMA-11, and Argentina hold similar positions in the 
Doha Round negotiations. Both countries consider policies aimed at diversifying and stepping up industrial production to be of vital importance, as they do the role that integration agreements 
between the Southern Common Market (MERCOSUR) and the Southern African Customs Union 
(SACU) can play in achieving this. 
4.113.  W e  i n v i t e  S A C U  t o  j o i n  u s  i n  m o v i n g  t h e  D o h a  n e g o t i a t i o n s  f o r w a r d  w i t h  a  v i e w  t o  
achieving a balanced outcome across the different areas under negotiation. As developing 
countries, we are responsible for ensuring that the Doha Round is indeed a development round 
and that it respects the established mandate without harming trade. 
4.114.  Lastly, while reiterating our appreciation of this renewed opportunity to exchange 
information and ideas concerning SACU's trade policy, we would like to stress the importance of 
this exercise in transparency from every point of view and to wish the authorities of the SACU 
countries every success in their trade policy review. 
JAPAN 
4.115.  Though we are located far apart from each other, for some years now Japan has been 
developing close cooperative relationships with the member countries of the SACU. The SACU is attracting world’s attention by its huge economic potential as a base for the development of Sub-
Saharan Africa. Thus, there is an enthusiasm in Japan in further-developing our relationships with 
Africa, especially with SACU region. 
4.116.  Japan has been promoting the cooperation with Africa through the TICAD process (Tokyo 
International Conference on African Development). Next year, we will have the TICAD VI meeting 
for the first time in Africa. We hope that TICAD VI  will contribute to further strengthening our tie, 
and to the development of the Continent. 
Macroeconomy 
4.117.  The Secretariat’s report mentioned that the SACU economy has shown signs of slowing 
down. While the economy had gradually recovered since 2010, it slowed down again in 2012. The main reason for the slowdown has been attributed to weak household consumption in South Africa 
resulting from anxiety of investors and the highly volatile nature of the Rand. 
4.118.  South Africa has several structural economic problems including huge economic gaps 
among its residents, frequent strikes, unstable el ectricity supply and so forth. These problems are 
likely to cause anxiety of investors regarding the country’s prospects. While Japan recognizes and 
positively evaluates the efforts that South Africa has been making to overcome such problems, we encourage South Africa to continue implementing appropriate policies, which we hope will lead to a 
more attractive business environment in South Africa. WT/TPR/M/324 • SACU 
 
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  WTO/EPAs/Regional integration 
4.119.  The SACU member countries are original members of the WTO, with which we have the 
pleasure of cooperating in maintaining and strengthening the multilateral trading system over many years. We would like to expect the contribution from the SACU member countries to finish 
the relevant internal procedures in a timely manner for an early entry into force of TF Agreement. 
4.120.  We commend the SACU for the continuous efforts it has made for the regional integration, 
increasing cooperation within the SACU and harmonizing various policies, especially those related 
to customs issues.   
4.121.  It is also noteworthy that the Southern African Development Community has concluded 
EPAs with the EU and Mercosur and the “Trade, Investment, and Development Cooperation Agreement (TIDCA),” with the United States.  
4.122.  Japan commends the SACU’s efforts for th e regional integration and further trade 
liberalization, but at the same time we should stress the importance of making these initiatives fully consistent with the WTO Agreement so that they complement and contribute to the 
multilateral trading system. 
Concerns 4.123.  Now I would like to make some comments on some specific issues on which we have 
concerns. 
4.124.  Firstly, we are concerned about a problem wi th the mandatory “Letter of Authorization” 
(so-called LoA) for electrical appliances. We recognize that the South African regulator requires industries to obtain a “Letter of Authorization” before import or sale of electrical appliances. Our 
concern is about the duration of the respective administrative periods to obtain the LoA. It is 
reported that the difference between the lengths of the respective administrative periods for 
imported electrical appliances and locally produced electrical appliances is not insignificant. Taking 
this opportunity, Japan requests South Africa to provide a concrete explanation concerning this 
matter. 
4.125.  We believe that fair and efficient management of the LoA system will lead to a more stable 
and attractive business environment, which will re sult in robust and sustainable economic growth. 
4.126.  Secondly, we have a concern about the Mineral and Petroleum Resources Development 
Act, especially in regard to the articles on “beneficiation.” We recognize that the South African government is proposing an amendment to the MIPRA Act to parliament. The bill may grant the 
Minister for Mineral Resources the authority to designate certain minerals and make them liable for 
export restrictions. We request that the South African government share its views in regard to the conformity of the MIPRA amendmen t bill with the GATT Article 11. 
4.127.  In conclusion, I would like to express our strong wish to continue cooperation between the 
SACU member countries and Japan. 
ECUADOR 
4.128.  It is very interesting for Ecuador to participate in this trade policy review, as the 
documents provided not only examine the proble ms experienced by SACU member countries, but 
also acknowledge their trade policy developments. 
4.129.  In this respect, we note the Secretariat's information on how economic performance has 
fluctuated in the five countries since 2009, with a downward trend in total GDP growth rates. This 
situation has largely resulted from the global economic crisis and its impact on the mining and manufacturing sectors. 
4.130.  We note the Secretariat's information on how 2009 was considered a negative year for 
SACU member countries, due to them recording th eir lowest economic growth, e.g. -7.8% in 
Botswana and -1.5% in South Africa. WT/TPR/M/324 • SACU 
 
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  4.131.  Relatively high inflation during the review period, due to currency depreciation, as well as 
high food and fuel prices, are problems that have not helped to improve the general situation in the five countries. 
4.132.  The Secretariat report notes that the customs tariff remains complex due to the various 
types of duty involved, which include ad valorem, specific and mixed tariffs, and a combination 
thereof. 
4.133.  Although the 2002 SACU Agreement calls for the harmonization of agricultural and 
industrial policies, this has not yet materialized, which means that sectoral policies remain 
country-specific. 
4.134.  In spite of the problems described, my delegati on wishes to acknowledge the progress that 
SACU has made in the area of harmonization; indeed, the applied MFN customs tariff, excise 
duties, duty and tax concessions, customs valuation and rules of origin are now harmonized. This 
demonstrates the efforts made by the Union's five member countries to facilitate trade and streamline customs procedures and documentation. 
4.135.  Ecuador also recognizes the efforts made during the review period by Botswana, Namibia 
and Swaziland to implement their own competition regime, thereby joining South Africa in having a national competition policy. We urge Lesotho to continue its efforts to join the other countries in 
this respect. 
4.136.  My country also notes that South Africa has the most technologically advanced and 
diversified economy in Africa, with a large services sector open to foreign investment. We also recognise that South Africa is the main investor in the other SACU countries and that it dominates 
regional trade, with over 95% of commercial fl ows within the Customs Union involving it as a 
destination or source. Regarding Botswana and Namibia, we would like to encourage their diversification efforts, as these countries depend, to a large extent, on the mining sector and, in 
particular, diamond exports. 
4.137.  In conclusion, we thank the SACU delegations for their replies to our questions on certain 
aspects of their trade policy. These replies will provide significant input for strengthening bilateral 
foreign trade relations. 
REPUBLIC
 OF KOREA 
Korea-SACU bilateral relations 4.138.  I am pleased to note that Korea and SACU countries have established and maintained close 
economic ties as the bilateral trade volume reached US$3.3 billion in 2014. Korea indeed hopes 
that its economic partnership with the SACU will continue to grow and develop in the future. 
General assessment of SACU’s achievements since 2009 
4.139.  Turning to economic trends within SACU, I wish to note that the economies of SACU 
countries are showing signs of collective recovery af ter the growth rate declined to -1.7% in 2009. 
Based on this economic upturn, since 2012, SACU’s annual GDP growth rate has stood at around 
2.5%. Specifically, we see that the recovery has re sulted mainly from a sharp pickup in the mining 
and manufacturing sectors. Given the global economic difficulties, these achievements are impressive. 
Points for further consideration 
4.140.  While reviewing the progress achieved by SACU during the review period, my delegation 
noted some areas in which considerations for further improvement might be necessary. I would like to take this opportunity to point out two items for consideration by my SACU colleagues.   
4.141.  First, it would be recommendable for SACU to expedite its technical evaluation process for 
imported products, in particular, in relation to electro-technical products. For companies in this field, the timing of introducing their new products into the market is very critical. In this regard, WT/TPR/M/324 • SACU 
 
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  we appreciate that the National Regulator for Compulsory Specifications (NRCS) of South Africa 
has recently introduced a fast-track review in order to speed up said process. We hope that this new system will operate in an efficient and business-friendly manner and will be a good model for other SACU countries. 
4.142.  Second, we would like to emphasize the importance of foreign investment for the 
development of the SACU region. SACU has a great deal of potential for development in the areas of infrastructure, information, communication and technology (ICT). Many foreign investors have 
shown interest in SACU and have contributed to its economic and social development. We believe 
that foreign investment will also play a crucial role in overcoming major challenges facing SACU including poverty, unemployment and inequality. In this vein, we hope that the protection of foreign investment will be enhanced in this region in a way that is consistent with international 
rules. 
Concluding remarks 4.143.  It is our hope that SACU will continue to actively participate in strengthening the WTO 
multilateral trading system. We also hope that the SACU countries will submit their Category A 
commitments of the Trade Facilitation Agreem ent (TFA) and acceptance of the instrument 
preferably by the MC-10.  
4.144.  With this, we would like to conclude by expressing our sincere appreciation to each 
delegation representing the SACU countries for the hard work and wish SACU every success in its TPR.  
HONG
 KONG,  CHINA 
General 
4.145.  Hong Kong, China enjoys cordial trade relations with SACU members. Our total 
merchandise trade amounted to US$2.4 billion in 2014. The average annual growth rate in 
bilateral trade between Hong Kong and SACU was 13% from 2010 to 2014. The bilateral trade 
increased by 36% in 2014. We look forward to further growth in our bilateral trade with all SACU members in future.   
Tariff  
4.146.  Regarding trade in goods, we note that the overall tariff structure remains rather complex 
with the existence of ad valorem  duties as well as non- ad valorem  d u t i e s  t h a t  h a v e  c o m e  i n  
different forms. As pointed out in the Secretariat report, the imposition of non- ad valorem  rates on 
some tariff lines also creates a risk of non-compliance by SACU members with their individual tariff 
bindings. We therefore encourage SACU to further simplify its tariff structure and follow the bounding commitments so as to provide greater certainty to traders. 
Trade facilitation 
4.147.  We note that during the review period, SAC U members have taken a number of steps to 
facilitate trade. For example, South Africa has embarked on a wide range of trade facilitation 
reforms including legislative changes and modernisation of customs procedures. Swaziland has 
modernised its customs procedures and gradually implemented an electronic data interchange system for customs at border posts. It has also  established a National Working Group on Trade 
Facilitation to coordinate work relating to trade facilitation in the WTO. We welcome these trade 
facilitating initiatives and encourage SACU members to continue their efforts in this regard.   
4.148.  We appreciate Botswana’s commitment to the timely implementation of the Trade 
Facilitation Agreement (TFA) by filing its Cate gory A notification and being one of the first 
Members to ratify the Agreement. We hope very soon other SACU members can also join our 
efforts to bring the TFA into force by MC10. We are pleased to note that South Africa is currently in 
the process of ratifying the TFA and we look forward to its acceptance of the Agreement in the 
near future.   WT/TPR/M/324 • SACU 
 
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  State-owned enterprises and privatization 
4.149.  We note that state-owned enterprises continue to play a significant role in SACU 
economies. We are pleased to note that SACU members have been making efforts to rationalize the participation of the Government in their economies. We encourage them to make further 
efforts to pursue their policies of privatisation, which will provide an environment conducive to 
private sector participation, reduce restrictions on foreign ownership, enhance competition and realise economic diversification. 
Services  
4.150.  Turning to services, we note that trade in services continues to be an important contributor 
to the economy of SACU. As a services-oriented economy, Hong Kong, China, firmly believes that services liberalisation would induce ec onomic growth of SACU members.   
4.151.  We are glad to see that SACU members have reviewed their legislations and introduced a 
number of regulatory and institutional changes to services sectors such as the financial services, telecommunication services and tourism for the sake of better governance.    
4.152.  We certainly recognize the challenges involved as well as the adjustments required, but 
the benefits from such reforms will pay off in the long run. In this regard, we would also encourage 
SACU members to pursue similar regulatory reform in the transport and logistics sector, as this 
sector has proven to provide essentia l infrastructural support for trade.  
Concluding remarks 4.153.  Finally, I look forward to receiving responses from SACU to our written questions. I wish 
SACU a very successful and fruitful trade policy review.   
THAILAND 
4.154.  In 2014, the trade value between Thailand and the Southern African Customs Union is 
approximately US$3.5 billion. There is a great potential for the expansion of trade in goods, 
services and investment between Thailand and the Southern African Customs Union. We hope that 
our trade relationship will continue to grow more substantially in the future. 
4.155.  In the past few years, we noted that the econ omic performance has fluctuated in the five 
countries of the Southern African Customs Union. In this respect, we believe that Thailand's Duty 
Free Quota Free (DFQF) scheme for LDCs coming into effect on 9 April 2015 which provides 
preferential market access to all the LDCs under th e list of the United Nations will help increasing 
trade value between Thailand and the LDC countries  in the Southern African Customs Union and, 
to the certain extent, alleviating the economic fluctuation.   
4.156.  With regard to the multilateral trading system, Thailand highly appreciates the Southern 
African Customs Union’s coordination with this organization. During the recent TRIPS Council, we 
noted that the delegation of Lesotho on behalf of the African Group co-sponsored the submission 
circulated in document IP/C/W/607 regarding non-violation and situation complaints. We look forward to cooperating with all Members including the Southern African Customs Union on this 
issue as well as other issues in order to achieve an acceptable and meaningful outcome for the 
MC10 in this December.   
4.157.  In this review, Thailand has submitted several questions to the Southern African Customs 
Union, covering the trade policies and strategies, the Green box support, the Ecotourism 
Certification System, the major infrastructure projects, the automotive industry, the investment in 
the service sector, the textile and garment sector  and the diamonds sector. We look forward to 
receiving the Southern African Customs Union’s response in due course. 
4.158.  In conclusion, Thailand would like to express our appreciation to the Southern African 
Customs Union delegations for the today presentation. We wish the Southern African Customs Union every success in the fourth trade policy review. WT/TPR/M/324 • SACU 
 
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  CHILE 
4.159.  Chile maintains diplomatic relations with the five countries of the Southern African 
Customs Union and can affirm that we are like-minded countries as regards multilateral issues, the promotion of democracy, the respect of human rights and trade liberalization. Like Chile, these 
five SACU countries face challenges such as economic diversification and the incorporation of value 
added in industry. 
4.160.  An example of the good political relationship we have with these countries is our history 
with South Africa. In the 1990s, the arrival of democracy in our countries meant that we both went 
through the process of becoming reintegrated in the international system and together we 
embraced principles such as multilateralism an d human rights. The process of transition and 
reconciliation served as a model for others and, since then, Chile and South Africa have been 
considered "like-minded" countries in the multilateral sphere. 
4.161.  I should emphasize that in recent years, Chile has tried to move its foreign policy closer to 
the African continent by taking the following steps: (a) obtaining accreditation before the 
African Union (2007); (b) participating in the South America-Africa Summit (ASA) since 2007; 
(c) opening an embassy in Ghana (2013) and, shortly, in Ethiopia; (d) organizing a visit by President Michelle Bachelet to South Africa, Mozambique and Angola in August 2014; (e) opening 
trade offices in Morocco and South Africa; (f) applying for observer country status in the Economic 
Community of West African States (ECOWAS) in March 2015; and (g) undertaking public-private trade missions to various African countries in June 2015. 
4.162.  Chile's cooperation is South-South and triangular, and preferably involves technical 
assistance and human capital training. As announced by President Bachelet during her State visit 
to South Africa, 30 Master's degree scholarships have for the first time been made available for African professionals wishing to specialize at Chilean universities. This scholarship programme, 
known as the "Republic of Chile - Nelson Mandel a Scholarship Programme", has been in effect 
since 2015. Three of its current students are South African. 
4.163.  In addition, Chile's strong desire to make a contribution to the objectives of the 
multilateral trading system and improve its trading links with the African countries most in need 
are also in evidence in the Chilean Law of 28 September 2013 eliminating tariffs for the 48 least developed countries. This unilateral, non-reciprocal tariff preference regime for LDCs provides for a 
zero rate on imports of goods originating in and coming from this group of countries. The regime is 
fully operational and in force; it may be interesting for Lesotho to export to Chile under this law 
and we encourage it to avail itself of this tariff preference. 
4.164.  Trade between Chile and the five SACU count ries amounted to US$303 million in 2014, the 
highest level reached in the last five years. 
4.165.  In relation to the present report, we are following with interest the efforts made by these 
five economies to achieve sustainable economic gr owth through the diversification of production. 
We recognise South Africa's good economic base , but encourage Botswana and Namibia to open 
up to new production structures in addition to diamonds and other minerals. Lesotho and Swaziland should do the same, so as not to depe nd so much on the textile and sugar industries, 
respectively. 
4.166.  The report notes that intra-country inequalitie s within SACU are among the highest in the 
world, which we find to be a matter of some concern. We hope that the level of State intervention in the economy is not as high. 
4.167.  We therefore feel that Botswana, through its Privatization Master Plan II, the main 
objectives of which are to identify services and public enterprises that are suitable for privatization during the period 2014-2019 and to enhance the rationalization of parastatal enterprises, is 
heading in the right direction. 
4.168.  We would also like SACU members to reduce th e tariff protection rate for agriculture and to 
refrain from increasing tariff protec tion for non-agricultural products. WT/TPR/M/324 • SACU 
 
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  4.169.  The report notes that at the end of 2014, South Africa (on behalf of SACU) maintained 
definitive anti-dumping measures on imports from 13 WTO Members. We hope that these measures will be reduced. 
4.170.  The modernizing reforms introduced by some of these countries, e.g. those of Lesotho in 
areas such as telecommunications, electricity and financial services, are positive. Furthermore, we 
hope that the reforms introduced by Namibia to  improve the competitiveness of agricultural 
industries and to promote the addition of value to products will help to improve the quality of life 
of its population. We encourage Namibia to maintain the high standard of its financial system. 
4.171.  The public-private sector relationship fostered by some of these countries is positive. 
One example in this respect is Swaziland, which, through its Public-Private Partnership (PPP) Policy launched by the Government in 2013, helps to increase private investment participation in the 
economy. The aim of the PPP Policy is to accelerate  the provision of physical infrastructure by 
using private sector resources and, by the same token, providing investment opportunities for the private sector. 
INDIA 
4.172.  Since its last review in 2009, SACU has achieved a major milestone with the completion of 
100 years of world’s oldest customs union in 2010. We congratulate SACU member States for this 
remarkable feat, which is a testimony of achieving growth, prosperity and development through 
regional integration and a collaborative process among developing countries. Notwithstanding different economic circumstances of its member States, SACU’s ability to forge partnerships to 
overcome their development challenges is commendable.  
4.173.  India’s relations with individual member States of the SACU have been close and cordial, 
rooted in our historical linkages. Today, our partnership with the African region is wide ranging encompassing almost all aspects of economic cooperation. India’s total trade (over US$12 billion 
last year) with the SACU member States has been on  an upward trajectory in the last five years. 
Apart from expanding trade, India’s partnership wi th SACU member States is animated by mutual 
investments and a range of development and capacity building projects. Indian companies have 
invested in the SACU region in diverse areas such as Information Technology, pharmaceuticals and 
automobiles. Similarly, a number of companies, especially from South Africa, have invested in the Indian market in different sectors. India is nego tiating a Preferential Trade Agreement with SACU 
to further deepen trade linkages.  
4.174.  Besides trade and investment ties, India is pr oud of its development partnership with the 
SACU region. India hosted the Third India-Africa Forum Summit in New Delhi last week with the participation of 54 African Union member States, and it was our privilege to welcome leaders from 
Botswana, the Kingdom of Lesotho, Namibia, South Africa and the Kingdom of Swaziland at the 
Summit. At the Summit, the Government has announced several initiatives to scale up our multi-faceted partnership with Africa. India remains committed to enhancing its economic and 
development partnership with partner countries in Africa to foster cooperation in wide ranging 
areas such as infrastructure development, trade, agriculture, clean energy, irrigation, enhancing manufacturing capacities together with building hum an capital through capacity building programs. 
4.175.  As noted in the Secretariat report, the economic performance of SACU member States has 
been uneven during the period under review. The economies in the SACU region have not been 
insulated from the global economic crisis and its impact particularly on the mining and manufacturing sectors. Economic base of the SACU  region has not changed significantly during the 
period under review, and as a result, the region’s socio-economic features have not changed much 
since 2009. The SACU economies remain dominated by their relatively large services sector. Diversification of economic base, job creation, and addressing income inequality thus remain a 
major challenge. While we note that the SACU Agreement stipulates harmonization of agricultural 
and industrial policies, this has not yet materialized. Except for custom related issues, sectoral policies remain country specific. Despite these challenges, SACU continues to take steps for greater policy coordination, strengthen its common institutions and enhancing transparency and 
predictability of its trading regime. We take note that SACU member States are committed to 
implementing the SACU’s seven-point work programme focusing on issues such as regional industrialization, infrastructure development, advancing trade facilitation initiatives, developing WT/TPR/M/324 • SACU 
 
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  common SACU institutions and strengthening unified engagement in trade negotiations with third 
parties. 
4.176.  At the member States' level, the National Development Plan and ‘Vision 2016’ document of 
Botswana lay out particular focus on employment cr eation and eradication of poverty. Lesotho, it 
its "2020 Document", identifies seven pillars of  development, and through national strategic 
development plan and policy frameworks, it is maki ng efforts to sustain positive trajectory in its 
growth and making agriculture, manufacturing, mining and tourism as growth engines of its 
economy. Namibia has registered an average growth rate of 5.2% in the last five years and, under 
its "Vision 2030" policy document, it has an aspiration to become an industrialized country by 2030. Similarly, Swaziland has laid out a roadmap under its "Vision 2020" document for economic reforms and development. Lastly, South Africa, which is the largest and most diversified economy 
within the Customs Union, has been paying particular focus on growing manufacturing sector and 
to place its economy on a new path of sustainable development. South Africa has launched a "New Growth Path" in 2010 focusing on job creation with particular focus on agriculture, mining, 
manufacturing and tourism sectors. We welcome these national initiatives by SACU member States 
to accelerate inclusive and sustainable economic growth.  
4.177.  My delegation commends the commitment of SACU member States to the multilateral 
trading system. SACU members have been in the forefront in articulating the centrality of 
development dimension and the needs and interests of developing countries in the ongoing work in the WTO as part of the Doha Development Agen da. We look forward to working with the SACU 
member States and other members in the run up to the Nairobi Ministerial. Finally, we would, in 
particular, like to acknowledge the active role being played by Ambassador Xavier Karim of South 
Africa and Ambassador Monyane of Lesotho, as c oordinator of the Africa Group, in the ongoing 
work in the WTO. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.178.  From the SACU and the Secretariat reports we can clearly see the attempts made at 
boosting economic activities in the southern African region, though the economic performance has 
fluctuated in the five countries with a generally downward trend of the total GDP growth since last 
view in 2009, mainly due to external factors such as global financial crisis and its impacts on the mining and manufacturing sectors. The socio-ec onomic features of the SACU countries, in 
consequence, have not changed significantly. 
4.179.  However, it is evident that substantial efforts and reforms have been made in the SACU 
countries and it is trade that remains crucial to their economic development. For example, the government of Botswana has been actively attempting to diversify their economic basis, though 
the country continues to rely heavily on the mining sector, in particular on diamond exports. 
Despite of the global economic crisis, the econ omic growth rate of Botswana averages 3.5% 
between 2008 to 2014 mainly due to the contributi on of continued growth and development in the 
non-mining sectors.  
4.180.  In Lesotho, we commend the attempts that  the Government makes efforts to boost 
economic growth by developing mining, electric ity and tourism sectors, though due to limited 
infrastructure, the country still faces significant challenges. We encourage the government of 
Lesotho continues to modernize its institutional and legal framework to enhance better business 
and investment environment for foreign investors. 
4.181.  The economic performance of Namibia under revi ew has been reflected positive in various 
forecasts. The government of Namibia has undertaken several significant steps to boost economy 
and enhance investment. We commend Namibia, in  particular, its trade reform “Vision 2030,” 
which highlights the importance of a change in production and export structure, and emphasize 
the contribution of small and medium size enterp rises. Namibia is also among the world’s growing 
tourist destinations, which makes a great contribution to its GDP and employment. 
4.182.  South Africa has the most advanced technology and diversified economy in Africa, which 
accounts for 91% of the SACU region’s GDP. As the largest economy, South Africa is also the main 
investor and dominates trade in the other SACU countries. Its service sector is generally open to 
foreign investment. Automobile and textile sectors are the main manufacturing industries and WT/TPR/M/324 • SACU 
 
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  absorb most of government incentives. On the bilateral front, South Africa is a very important 
trading partner for us. The two-way trade between South Africa and my Government is growing steadily. According to our customs statistics, bilateral trade last year (2014) amounted to almost US$20 billion.  
4.183.  South Africa is also the second largest trading partner of my Government in Africa. For us, 
it is definitely one of the key overseas markets that we shall be focusing on from now onwards. As to other bilateral cooperation, through the Taiwan ICDF, the International Cooperation and 
Development Fund, we have provided humanitarian assistance on the project of strengthening the 
management of HIV/AIDS in South Africa and Malawi since 2014, which is still under implementation. We also look forward to working with other SACU members in this area in the future. 
4.184.  As to Kingdom of Swaziland, sugar and sugar-based products make up almost 50% of 
merchandise exports. Agriculture provides the livel ihood for 80% of the population. As the country 
relies highly on importing food, fuels and services , the government seeks to ensure food security, 
increase productivity and diversify commercial ag ricultural products. We commend the efforts of 
the trade reforms such as the “Investor Road Ma p” and the “National Development Strategy.” We 
also encourage the government would continue the implementation to induce economic 
diversification and growth. 
4.185.  My Government attaches great importance to the bilateral relationship with Kingdom of 
Swaziland. To enhance and deepen our cooperatio n, high level official of both Governments 
regularly visited each other annually. H.E. Ingwenyama Mswati III just visited Taiwan to promote 
trade and investment in May this year and received a warm welcome by our people. And through 
Taiwan ICDF, our Government also has had a long and successfully history of providing technical assistance in the Kingdom of Swaziland, such as  MSMEs Re-lending Project, King’s Farm cow 
raising project and Seed Potato production Projec t. We look forward to strengthening the above 
mentioned cooperation in the future. All in all, we hope that SACU can be further integrated in the 
future and continue to make efforts to promote regional productive capacity and common wealth. 
ANGOLA 
4.186.  Since SACU's last review in 2009, the macroeconomic situation in the customs zone has 
not changed very much, despite the world crisis and its impact on the mining and manufacturing 
sectors. 
4.187.  Our delegation encourages SACU in its efforts to continue streamlining customs procedures 
and documentation in view of the trade flow between its members in the framework of the 
Agreement on Trade Facilitation. 
4.188.  SACU has signed trade agreements with a number of countries and regional organizations, 
most notably with SADC, EFTA and the MERCOSUR  States; it has concluded the TIDCA with the 
United States and EPAs with the European Union.  We welcome these agreements and believe that 
they can be beneficial to SACU, enabling it to integrate harmoniously into the world economy as 
part of a balanced multilateral trading system. 
4.189.  We support legislation that encourages investme nt with a view to diversifying the economy 
of SACU countries so as to promote exports and respond to social concerns at the customs area 
level. The private sector must therefore be supporte d so that it can make a significant contribution 
to the promotion of sustainable growth. 
4.190.  Lastly, our delegation urges the SACU countries to find the ways and means to implement 
the 2002 Agreement, which provides for the harmon ization of agricultural and industrial policies 
between the countries of the Customs Union. 
BENIN 
4.191.  The delegation of Benin commends the countries of the Union on their endeavours and 
achievements, and on the major economic, trade and social reforms implemented as a result. WT/TPR/M/324 • SACU 
 
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  4.192.  Important achievements have been made both at community level and by each of the 
Union's member countries, with a view to promot ing economic growth, competitiveness, income 
and job creation, and sustainable development. 
4.193.  Each of the countries recorded substantial GDP growth in the review period, e.g. between 
3.5% in 2008 and 5.8% in 2013 for Botswana; 6% in 2012 and 5.6% in 2013 for Lesotho; and 
5.2% between 2010 and 2014 for Namibia. 
4.194.  The economic, trade, budgetary and financial instruments used are both relevant and 
sustainable. 
4.195.  The policies and strategies devised and impl emented are showing encouraging results in 
agriculture, services (tourism, transport, ba nking, insurance, construction) and mining. 
4.196.  Regional integration is also progressing well. 
4.197.  The delegation of Benin applauds these achi evements and the significant contribution 
made by SACU countries to the work conducted as part of the Doha Round multilateral trade negotiations. We encourage them to continue along this path. 
4.198.  The delegation of Benin would like to take this opportunity to urge the technical and 
financial partners to continue providing assistance to SACU member countries so that they can complete their multisectoral reforms and promote sustainable economic, trade and social 
development. 
DEMOCRATIC
 REPUBLIC  OF THE CONGO 
4.199.  My country, the Democratic Republic of the Congo, is a member of the Southern African 
Development Community, the SADC. We are therefore enthusiastic about participating in this 
fourth trade policy review of the Southern African Customs Union, the SACU. 
4.200.  The Democratic Republic of the Congo would like to welcome, in French alphabetical order, 
the delegations of the SACU member countries: South Africa, Botswana, Lesotho, Namibia and 
Swaziland. 
4.201.  We thank SACU and the WTO Secretariat for their comprehensive reports, which have 
provided us with an overview of the situation under review. 
4.202.  SACU, like other integration communities and countries around the world, has not escaped 
the world economic and financial crisis, which has had a negative impact on all economies, severely reducing growth in the region. It is, however, encouraging to note that despite this 
general slump, two members, Botswana and Namibia, have been especially resilient, with rates 
that have remained high, while South Africa, with an already diversified economy, has maintained 
a steady course. 
4.203.  In relation to the comments made by Madame Krugger, spokesperson for SACU, we 
encourage the four members whose economies are commodity-dependent to diversify their export 
bases. For its part, the WTO Secretariat has, in its report, mentioned the lack of macroeconomic policy harmonization, since this is not something provided for in the SACU agreement. It would 
certainly be beneficial to resolve this issue by commissioning an appropriate feasibility study. 
Structural reforms are therefore very much needed, as Ms Krugger also stressed in her presentation. This would help to reduce the macroeconomic inequalities that persist between the members; such inequalities are also social in terms of household income. 
4.204.  We congratulate South Africa on its investments in the region, which can help to create 
jobs and reduce unemployment. We welcome SACU's  efforts to facilitate trade between members 
by streamlining customs procedures and document ation. We are happy to note that in their 
legislation to encourage investment, members are attentive to the social concerns of their 
Customs Union partners. WT/TPR/M/324 • SACU 
 
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  4.205.  Lastly, we commend initiatives such as the advancing of development integration within 
SACU. SACU's report indicates that this approach will make it possible to combine market integration, cross-border infrastructure development through among others, the Spatial Development Initiatives, and policy coordination to  advance regional industrial value-chains. The 
report also notes that this agenda has been pu rsued with a good degree of success in SACU and 
SADC. It underpins the approach that has been  agreed in the SADC-EAC-COMESA tripartite 
initiative signed in July 2015. 
4.206.  As we learnt during the presentation, SACU was founded in 1910. At over 100 years old, it 
is the oldest existing customs union. The Democratic Republic of the Congo congratulates it on its longevity and wishes each of its members equally long-lasting prosperity. We also wish all the delegations present a successful trade policy review. 
NIGERIA 
4.207.  As indicated by the Secretariat report, inequali ties between and within levels of economic 
development continue to exist among the SACU countries. While Namibia has joined Botswana and 
South Africa as upper middle-income countries, Swaziland is considered as lower middle income 
country and Lesotho an LDC. During the period under review, the GDP growth in SACU economies 
fluctuated. However, SACU economies collectively grew by 3.4% in 2010 and 3.7% in 2011, as a 
result of strong GDP growth rates of over 3%  in Botswana, Namibia, and Lesotho and 3% by 
South Africa and Swaziland. The recovery is mainly from a sharp pickup in mining activities throughout the region; the manufacturing sector in Botswana, Namibia, and Lesotho also played its part. As noted in the Secretariat report, regional economic integration has long been recognized 
as critical in promoting Africa's growth and development, particularly in promoting economies of 
scale, enabling competitiveness, promoting diversif ication and addressing supply side constraints, 
through market integration, infrastructure deve lopment, and industrial development. In this 
context, it would be interesting to hear how South Africa intends to discharge its responsibility in 
promoting growth and development, consid ering its leadership position in SACU. 
4.208.  Nigeria welcomes the initiative by SACU member States on the work to develop regional 
industrial development policy as well as Competition Policy and Unfair Trade Practices. Areas so far 
harmonized under the SACU Agreement are in general customs related, in particular, the tariff and trade remedies. The 2002 SACU Agreement, while recognizing the need for the Customs Union to be aligned with developments in international trade, is limited to the liberalization of trade in 
goods. The Agreement does not establish provisions for trade in services. However, 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. It woul d be interesting, if SACU States would tell us when 
they intend conclude the trade in services work programme. 
4.209.  The 2002 SACU Agreement provides for the establishment 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 12 April 2013, in Gaborone, 
Botswana. 
4.210.  As the oldest existing customs union in the world that functions mainly on the basis of the 
2002 SACU Agreement. The union involve members at different levels of development including 
LDC, poses many unique challenges in development of harmonized policies, physical infrastructure 
as well as relationship with other trading partners that balances the interests and capacities of SACU members. The complexity of the challenges cannot be over-estimated. Nigeria, therefore, 
acknowledges the efforts by SACU States to provide a new benchmark for regional integration 
among developing countries with a view to faci ng the challenges of globalisation together. 
4.211.  It is important to note that a major complexity that could manifest in the Doha Work 
Programme is in the NAMA negotiations. The inequalities between and within levels of economic 
development among the SACU countries has many features, including the higher commitments 
taken by South Africa in the Uruguay Round and the fact that one of its members is LDC. These features make the case for flexibilities for SACU members in the outcome of NAMA negotiations. WT/TPR/M/324 • SACU 
 
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  4.212.  At the bilateral level, Nigeria enjoys excellent trade and economic relations with SACU 
states. The bilateral relations between Nigeria and South Africa are strategically important to both countries. The value of bilateral trade between Nigeria and South Africa in particular, has continued with the sharp upward curve that we witnessed over recent years. Since the 
establishment of the Nigeria-South Africa Chamber of Commerce in 2009, we have also witnessed 
increased interaction between our respective business communities. South African companies have been successful in several sectors in Nigeria, including the hospitality, financial services, 
communications and energy sectors. 
4.213.  As Members of the WTO, SACU States has continued to play a leading role in the African 
Group and the ACP Group. In addition, the delegati on has also participated actively in the DDA 
negotiations. 
ZIMBABWE 
4.214.  Since the last review in 2009, the economies of the five SACU countries have negatively 
been impacted by the global economic crisis resulting in a downward trend in their consolidated 
GDP growth rates. Economic growth has, however, been non-uniform across SACU countries and 
inequalities within and between countries still exists. 
4.215.  South Africa remains the most technologically advanced and highly diversified economy 
within the SACU Region and Southern Africa. The SACU countries are, however, pursuing policies 
to address regional inequalities through such initiatives like the development integration strategy which is meant to address supply side constraints within the region.  
4.216.  It is interesting to note that some of the SACU member States have embarked on 
programmes to diversify their economies and re duce overdependence on exports of primary 
commodities. 
4.217.  At multilateral level, members of SACU have shown commitment to the success of the 
Multilateral Trading System and conclusion of th e DDA and are amongst active delegations in the 
WTO. We particularly appreciate the able leadership of the Lesotho delegation which has coordinated the Africa group for the past two years. 
4.218.  All SACU members and Zimbabwe are member s of SADC and signatories to the SADC 
Trade Protocol. Trade between Zimbabwe and SACU members is governed by the SADC Trade Protocol and some bilateral Trade Agreements. 
4.219.  Zimbabwe enjoys good bilateral economic  cooperation with SACU members and South 
Africa remains the country’s largest trading partner accounting for 60% of our imports and 40% of 
exports, resulting in a trade deficit in favour of South Africa. 
4.220.  Zimbabwe’s exports of pharmaceuticals to South Africa continue to be costly and 
non-competitive due to the country’s regulations th at restrict entry of these exports only through 
sea and air ports. This has become a major trade barrier to Zimbabwe’s pharmaceutical exports. We hope that South Africa will eliminate this and other non-tariff barriers. 
4.221.  Furthermore, we hope that South Africa will reverse its plans to introduce prohibitions and 
trade restrictions on some imports from Zimbabwe. 
4.222.  We also look forward to progress regarding establishment of a one stop border post at the 
border between Zimbabwe and South Africa, the busiest border post in Southern Africa, in order to 
facilitate trade. 
4.223.  Lastly, I would like to call upon donor Members and development partners to avail more 
funding to members of SACU to enable them addr ess supply-side constraints and promote regional 
and development integration. WT/TPR/M/324 • SACU 
 
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  MOZAMBIQUE 
4.224.  We congratulate all the members of SACU Orga nization for the progress made in reforming 
their trade policy regimes as well as within the common processes, recognizing the differences in terms of economic, social situation, and geographic location as some Members are land-locked 
countries. 
4.225.  The annual growth rate averages showed variations amongst the member countries during 
some sequential years, as well as the evolution of the individual Gross Domestic Product (GDP) 
resulting in fluctuations due to global economic trends. Even though, encouraging recoveries were 
observed somehow. 
4.226.  Notwithstanding these facts, we could see in all strong engagement and Government 
commitments based on the undertaken development and economic policies, and other relevant 
reforms. 
4.227.  From all of them, we especially refer to developments you have done aiming at structural 
transformations, job creation, improvement of en abling environments for investment attraction, 
strengthening of small and medium enterprises, and by so saying, all those which are driven to the 
poverty reduction and to the achievement of deve lopment in each of the SACU member countries. 
4.228.  All the initiatives undertaken by all members of SACU in the implementation of 
commitments under their Organization as well as under the Southern Africa Development 
Community (SADC) and the Continental initiatives as a whole are well commended. 
4.229.  On the bilateral side of view, Mozambique enjoys good relationships with SACU member 
countries.  
4.230.  We are all members of the SADC, within which various actions have progressively been 
undertaken aiming to facilitate and improve business environment, trade and other matters, assuming that, there is room for improvement. Some common actions aiming at trade facilitation 
have been being promoted even through the so called “one stop border posts” expected to 
contribute to reduce costs related to trade across borders as well as to other administrative procedures. 
4.231.  It is our hope that SACU will continuously achieve its long term objectives for 
development, based on the common Vision and Stra tegies on trade, and on the assumption that 
trade can lead to growth and development, which will  also contribute to the attainment of the post 
2015 Strategic Development Goals. 
4.232.  We recognize that challenges are enormous. Being so, we urge WTO and the WTO 
Members in condition to do so, to provide to these countries’ technical and other variety of assistance, in different areas, in view to more  progress and development. We thus include the 
provision of preferential treatment or arrangements. 
4.233.  Finally, we positively appreciate SACU’s commitment and efforts as well as its members 
protagonist actions in view of the economic development through trad e ,  a n d  w e  v e r y  m u c h  
encourage all the member countries to continue im proving their actions which at the end, will be 
of benefit for the economic growth not only for the SACU, intra SADC, but for the Continent as a whole, and for the multilateral trading system in general. WT/TPR/M/324 • SACU 
 
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  5  REPLIES BY THE SPOKESPERSON OF THE SOUTHERN AFRICAN CUSTOMS UNION AND 
ADDITIONAL COMMENTS 
5.1.  Let me start by expressing our gratitude and appreciation to you Chairperson, as well as the 
discussant and all Members for the interest shown in SACU member States’ Trade Policy Review 
during the last couple of weeks. The large num ber of questions received and the comments and 
interventions from the Members during the first session on Wednesday demonstrates the importance that we attach to the multilateral trading system and more specifically the invaluable 
role of the Trade Policy Review Mechanism of the WTO.  
5.2.  Allow me at the outset to express our regret for the delay in the submission of the written 
responses to the questions raised by the Members.  I am sure that you would appreciate that it 
takes a bit more time for coordination at a national and regional level if a review includes five 
countries instead of one. 
5.3.  Over the last couple of days, SACU member Stat es have worked tirelessly in an attempt to 
prepare responses to all the questions and comments received from Members. We have submitted 
written responses on most of the questions raised. We are ready to provide our input into the final 
session today and to address some of the pertin ent issues raised. The successful conclusion of 
events here today once again represents a major milestone for us.  
5.4.  I am pleased to deliver our responses to the comments and questions raised during this 
review covering a broad spectrum of trade, policy and institutional matters. In this respect, we wish to thank Members for their insights, encourag ement and advice. We will consider these as we 
go forward.  
5.5.  The Chairperson, discussant and Members highlighte d the impact of the global financial crisis 
and the impact it has had on us, individually an d collectively, as is evidenced by the lower GDP 
growth rates as reflected in our reports. Alth ough SACU economies have shown some signs of 
resilience, the recent slump in commodity pric es and lower demand has again brought SACU, 
which comprises of member States with different levels of economic development, back to growth rates of below 3%. It is therefore evident that th e SACU region is still overly dependent on export 
of commodities and raw materials, which amplifies further the need for SACU to implement 
measures to diversify our production and export base and add value to our raw materials. 
5.6.  The SACU Heads of State and Government have developed a Priority Work Programme whose 
overarching objective is regional industrialisation. The development of common and harmonised 
policies in the areas of industrial development, agriculture and competition policy, remain 
important objectives for us.  
5.7.  SACU has also restructured and simplified its tariff structure. We belief our tariff structure is 
straightforward, transparent and our tariffs contain no hidden components. It is published and 
available to anyone and updated regularly. The non- ad valorem  duties now comprises less than 
3% of the total SACU tariffs, mainly in the agricultural sector. The remaining non- ad valorem  
tariffs should be seen in the context of existing global distortions caused by the prevailing high 
levels of trade distorting support measures. 
5.8.  The issue of Institutional Development in SACU was also raised. It was observed that since 
the last review, progress has been limited in establishing the remaining institutions that are 
identified in the 2002 SACU Agreement. We acknowledge this shortcoming but wish to reiterate 
that we have introduced interim arrangements that fulfil the functions of these institutions while efforts are ongoing to fast-track the work towards the establishment of the remaining outstanding 
institutions.  
5.9.  In this regard, I am pleased to note that countries are at advanced stages of establishing 
their National Bodies as highlighted in the written response. In accordance with the 2002 SACU 
Agreement, the Council of Ministers, the Commission, Technical Liaison Committees and the 
Secretariat have been fully operationalized. In addition, provision has also been made in our structures for SACU Heads of State and Government to provide overall political and strategic direction to the Customs Union through the establishment of a SACU Summit.  WT/TPR/M/324 • SACU 
 
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  5.10.  I wish to acknowledge the observations about the growing importance of the services sector 
in SACU and SACU member States. We need to harness the developmental and other opportunities that are available in this sector and the role it can play in alleviating poverty, creating employment and improving social and economic welfare. Your observations resonate with the decision by the 
SACU Heads of State and Government to prioritize Trade in Services. We now need to define the 
scope of our common agenda on trade in services. Meanwhile, our members States are engaged individually in the services Negotiations that are taking place at the SADC, Tripartite and 
Continental levels, while some member States are also engaged in the services negotiations with 
the European Union under the umbrella of the Economic Partnership Agreement negotiations.  
5.11.  We noted that SACU member States have dropped their ranking on the "Ease of doing 
Business", but it should also be noted that the sample size was increased during the period under 
review. However, as some of the Members noted in their statements, SACU member States have 
also improved performances in some of the key indicators, and we are implementing specific measures to improve our performance as individual  members and as a collective. We do recognize 
in SACU the important role that trade facilitation plays and its contribution to improving the ease 
of doing business.  
5.12.  SACU has therefore embarked on a process of  harmonization of customs procedures, the 
improvement of customs cooperation, simplification  of documents and electronic data interchange 
initiatives, to further facilitate trade. Thus far, progress recorded include introduction of the Single 
Administrative Declaration (SAD) form that is now used as a common customs declaration in SACU.  
5.13.  With the advent of modernization of customs systems, processes and procedures, an 
electronic version is implemented respectively at the national level as part of automation of customs operation processes. Similarly, work is underway to harmonize procedures for import and 
export data exchange with the objective of st rengthening cooperation and improving electronic 
exchange of data between the member States. 
5.14.  SACU member States are currently involved in a number of trade agreements and 
negotiations with third parties. SACU aims to have trade agreements with third parties that 
strengthen and deepen integration within the Customs Union and assist its member States to integrate into the global economy through enhanced trade and investment. SACU welcomes the developments relating to the ratification by Brazil, of the SACU MERCOSUR Preferential Trade 
Agreement, the conclusion of the EPA negotiations with the European Union as well as the 
extension of AGOA by the United States of America. 
5.15.  It is also opportune for us therefore to re-emphasize our commitment to the ongoing Doha 
Development Round negotiations and our wish for a successful conclusion of the negotiations. 
5.16.  We firmly believe that the conclusion of the round should substantially improve market 
access conditions for all developing countries. It is our wish that the outcomes of the Doha 
negotiations will strengthen and support our efforts to further integrate our economies into the 
global trading system and thereby help us to achieve sustained economic growth and 
development.  
5.17.  We are looking forward to a successful Ministerial Council Conference in December 2015, 
which for the first time, will be held on African soil and in Kenya specifically. 
5.18.  Allow me at this juncture to invite SACU member States to respond to questions raised by 
Members that are specific to individual SACU countries.  
BOTSWANA 
5.19.  As we are taking the floor for the first time we wish to thank you, Chairperson, for the 
manner in which you have directed this process. We would also like to thank the discussant, 
H.E. Ambassador of Argentina, and all Members of the WTO for the interest shown in the Trade 
Policy Review of the SACU member States. WT/TPR/M/324 • SACU 
 
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  5.20.  Going into the substantive issues, Botswana would like to share light on some points related 
to our country. In particular, we would like to address some of the concerns and issues raised by Members on various structure and policy reforms. This is to address concerns associated with economic diversification, improvement of the business and investment environment, as well as 
boosting trade and economic activity. 
5.21.  We acknowledge the challenge we are facing as a country to diversify our economy. In this 
regard, we have come up with measures such as the Economic Diversification Drive which is a 
medium- to long-term strategy aimed at using Government's purchasing power to encourage both 
local production and consumption of goods and services as well as developing a global competitive private sector.  
5.22.  In recent years, our Doing Business rankings have declined. However, we are pleased that 
in the 2016 Doing Business Report we have moved up two places. We believe that this is the result 
of our efforts on implementing the doing business reforms roadmap and action plan, to its aim at 
addressing both administrative and regulato ry bottlenecks. The roadmap also addresses 
institutional and structural reforms. In addition, we are working on an investment facilitation law 
to address some inherence fragmentation in our investment related legislation. 
5.23.  Botswana has also instituted policies and programmes in planning creation, poverty 
eradication and income inequality. This includes industrial development policy, economic 
diversification strategy, entrepreneurship poli cy and citizen economic empowerment policy. 
5.24.  Let me indicate that written submission of all the issues raised by Members will be availed 
as part of SACU submission as our spokesperson said. Thank you. 
LESOTHO 
5.25.  Lesotho would like to thank the various Members for the specific questions directed to us. 
We endeavoured to respond to all questions in detail . However, if clarity is needed or more detail 
required we will be more than happy to provide for this within the specified time-period. 
5.26.  As the only LDC in SACU, Lesotho relies he avily on the SACU remittances to draft the 
development agenda. As a result, the downturn in the world economy had a negative impact on 
Lesotho even though it registered a quality grow th trade. However, the Lesotho Government is 
committed to create a favourable environment for trade as a mean to reduce poverty and unemployment. 
5.27.  Since our last Trade Policy Review, there ha d been notable improvements in Lesotho's 
business environment, some of which were mentioned in our country report such as improving 
financial services, tourism and the business in general. 
5.28.  Lesotho was able to increase its exports to South Africa and the region. This is a policy that 
the Government will pursue as a way to diversify the market for its products. Through aid for 
trade, especially the EIF project, Lesotho is addressing supply-side issues.  
5.29.  Lesotho is also in a process of improving its transparency obligations by improving our 
notification requirements. 
5.30.  To conclude my remarks, Lesotho places support for the DDA Agenda and expresses its 
desire for a successful conclusion of the Nairobi Ministerial. For a country like Lesotho, it is only through a multilateral trading system that social  and economic transformation can occur. With 
those few words I thank you. 
NAMIBIA 5.31.  In addition to the presentation by our SACU Chair by way of a closing statement that has 
just been delivered, Namibia would like to share mo re light in view of some of the observations 
that were made by the Members with regard to Namibia. WT/TPR/M/324 • SACU 
 
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  5.32.  There are some questions, particularly those related to fisheries that have not yet been 
responded to. We would like to reassure you and give Members comfort that these will be responded to in the coming days. 
5.33.  Many of the statements highlighted the high levels of inequalities in SACU as one of the 
highest in the world. Namibia is indeed a country where this phenomenon is a reality because of 
historical reasons. It should, however, be pointed out that Namibia's developing plans have underscored the objective to eradicate poverty and inequality, generate employment and develop 
the economy.  
5.34.  All our policies and interventions are aimed at addressing in one way or the other this 
national objectives. The decline of ease of do ing business since the last review has been 
underscored and is indeed a concern for the Namibian Government. This is an issue that has being 
addressed by a number of legislations that are currently under review to reform the business 
environment and climate. 
5.35.  Concerning trade facilitation, Namibia attaches great importance to the implementation of 
the Trade Facilitation Agreement and we are taking initiatives to notify Category A Commitments 
and ratify the TFA in the near future. 
5.36.  As the distinguished delegate of Australia has stated in the first session of our review, the 
growth is based on structural economic reforms that begin at home. We are happy to share that 
Namibia is well on this path. 
5.37.  We have achieved milestones in addressing our industrialization challenges by implementing 
the roadmap of the industrialization strategy framed by its nationals as the growth upon strategy. 
Namibia's industrialization policy has strategic areas of focus, namely supporting value addition, 
industrial upgrading and diversification for sustai ned growth, secured market access at home and 
abroad and improving the investment climate and conditions. 
5.38.  At the outset, we note the conversion of view s with most of the comments and observations 
made that reflect the initiatives that Namibia is taking to improve the well-being of our citizens, as well as the general trade environment. 
5.39.  Lastly, we wish to thank the Chairperson, th e discussant and the Members for the insightful 
engagement during this review. Thank you. 
SOUTH
 AFRICA 
5.40.  South Africa has received a number of specific questions and we attempted to provide 
written answers to all of them. Additional written answers will be provided to all the outstanding 
questions within the time-frame. 
5.41.  We would like to use this opportunity to address some of the issues raised. I want to bring 
to the attention of this meeting that South Africa continues to grapple with high levels of 
unemployment, income inequality and widespread poverty. The recent economic growth driven largely by credit fuel consumption and commodity exports has not being sustainable or inclusive.  
5.42.  While South Africa has made some progress in reducing poverty, poverty remains 
progressive. Millions of people remain unemployed and unemployment increased to 25.5% in the set quota of DCA and many weaken households live close to or under the poverty level. Measures are required to address our most present needs, particularly high levels of unemployment 
especially among the youth. 
5.43.  The South African Government has adopted an economic development strategy that aims to 
accelerate growth and generate sustainable decent jobs in order to reduce poverty and inequalities 
that characterize our economy and society. South Africa's broad development strategy is set up in 
a comprehensive national development plan an d youth growth plan which sets growth and 
employment targets for the country. We build on infrastructure such as on roads and rail to reduce 
the cost of doing business. A central complement of our strategy is the industrial policy action plan WT/TPR/M/324 • SACU 
 
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  which seeks to promote structural transformation  which has the highest employment and growth 
multipliers. Seen from this perspective, trade policy must support industrial development. 
5.44.  When it comes to trade facilitation agreement, South Africa acknowledges the important role 
that trade facilitation could play in promoting regional integration and the integration of the 
country in the rest of the continent into global value chains. 
5.45.  African countries, including South Africa, have ma de efforts in favour of trade facilitation 
across our various regional integration programmes boosting intra-Africa trade on achieving 
efficiency in customs and boarder procedures. The Trade Facilitation Agreement could boost 
intra-Africa trade provided that it is implemented in a manner that it supports regional integration in Africa and that adequate financial and technical support is provided. It is therefore important that resources are made available especially to African countries to facilitate its implementation so 
as to avoid countries taking legal obligation that would be challenging to fulfil. The Trade 
Facilitation Agreement requires ratification by the South African Parliament and this process is 
being undertaken. The full implementation of all aspects of the Bali package, including the Trade 
Facilitation Agreement, is critical in delivering on the Doha Development Agenda which is 
important in assuring that the multilateral trading system serves the interest of all the Members. 
5.46.  In the climate of investment, a number of questions were asked in relation to South Africa's 
approach to foreign direct investment and the pr omotion and protection investment bill. I would 
like to give you some statistics. The investment climate in South Africa has been raised as a cause for concern by a number of Members. It should be noted that the World Bank's report Doing 
Business 2014 ranked South Africa as the 43
rd easiest country to do business out of 189 countries. 
To start doing business, South Africa only requir es 19 days and five procedures and there is no 
minimum capital requirement. In addition, South Af rica ranks among the most open jurisdiction for 
FDI as measured by the OECD's Restrictiveness Index, and ranks 10th out of 144 countries in the 
strength of investment protection according to the Global Competitiveness Report for 2014 and 
2015. Investment prospects 2014-2016 indicated that investors are optimistic about the global outlook despite of the global economic downtu rn. The concerns raised about the investment 
climate are therefore not peculiar to South Africa. 
5.47.  The investment policy-making landscape is changing globally. Many developing and 
developed countries are either undertaken reviews or have reviewed their investment framework 
so as to provide an environment that facilitates investment or are ensuring that Governments are 
able to regulate the public interest. South Africa is part of this international discourse. Our 
approach follows a three-year review which shows that there is no direct correlation between the existence of a bilateral investment treaty and a country with the ability to attract investment. 
South Africa provides strong protection to inve stors in terms of the framework provided by the 
South African Constitution and other relevant legislation. 
5.48.  Foreign investors are treated in the same way as domestic investors based on the legal 
principle of non-discrimination, national treatmen t and equality before the law. Furthermore, they 
have equal rights and obligations under a range of flows that affect investment, namely the 
Companies act, the Competition Act, and the laws related to Intellectual Property Rights Protection. All investors have access to administrative justice and remedies as stated in the 
Constitution and as in the Promotion of Administrative Justice Act of 2000.  
5.49.  It is also important to recall that, as a Memb er of the WTO, South Africa implements all 
relevant disciplines and rules that provide multilateral guarantees to foreign investors by 
complementing the protection that investors are entitled to under this Constitution and the law of 
general application. South Africa recognizes that foreign direct investment can support economic growth and development. The promotion and protecti on investment bill ensures that South Africa 
will remain an open environment for foreign direct investment and will continue to provide 
effective production for investors. 
5.50.  South African ranks among the most open jurisdiction for FDI as indicated earlier. The 
promotion and protection investment bill aims to modernize South Africa's policy approach to 
foreign investment in view of both national and global development. It seeks to achieve a balance 
between the rights and obligations of all investors in South Africa to provide adequate and equal protection to foreign and domestic investors and to promote investment. WT/TPR/M/324 • SACU 
 
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  5.51.  Insofar as the Doha Development Agreement is concerned, South Africa remains committed 
to the multilateral negotiations under the Doha Development Round on the basis of an outcome that supports industrial, services and agricultural development and employment in our region. Thank you. 
SWAZILAND 
5.52.  My delegation would like to thank the Members for the interest shown and for the questions 
posed to my delegation. We have ma de every effort to answer them. 
5.53.  We are facing many economic challenges wi th the loss of important preferential tax 
concessions. We have and continue to take steps politically and strategically to address the challenges that have contributed in large part to this inflection. We thank Members again for their insightful inputs and we are encouraged by th e support SACU as a whole has received over the 
review. We pledge to continue to play a positive and constructive role in this Organization for the 
betterment of all our people, especially the marginalized and the indigenes. All efforts have been employed in Mbabane to deliberate and push to th e ratification of the TFA as well as the TRIPS 
Amendment in time for the Nairobi meeting. In so doing, we will reinforce our commitment despite 
huge capacity challenges to the favour of this Organization. Thank you.  
MS.
 NIKI  KRUGER,  SPOKESPERSON 
5.54.  We have addressed a substantial number of questions and comments raised by Members 
and have endeavoured to answer all the written qu estions in writing. Additional questions that 
were raised during the week will be answered within the stipulated timeframe allowed. As I indicated in my opening statement on Wednesday,  we were under the impression that the WTO 
Secretariat will be providing us with an official translation for the questions that we received in 
Spanish. We have been informed that this service is not provided anymore. We will be translating the questions in the coming weeks and will provide written responses to these questions within the 
timeframe.  
5.55.  On behalf of my colleagues from the SACU memb er States, I would like to offer appreciation 
to the distinguished Chairperson of the Trade Policy Review Body, who has ably steered this review 
to conclusion. Furthermore, our sincere thanks to our distinguished discussant for his contribution 
and to the WTO Members for their interest shown. 
5.56.  We also thank the WTO Secretariat for undertaking its detailed analysis and for compiling a 
comprehensive report on SACU. Chairperson, we wish to express our appreciation for the 
expression of support and encouragement received from the WTO Members. 
DISCUSSANT 5.57.  First, I would like to thank Ms. Niki Kruger, Head of delegation and Spokesperson for the 
SACU countries, for the comprehensive statement delivered last Wednesday about SACU countries 
and their joint efforts to thrive both on their economies and socially.  
5.58.  I would also like to thank Members for their active engagement in SACU’s fourth Trade 
Policy review, over these days. Their interest in and commitment to trade with SACU countries 
were reflected not only by the significant number of statements made during the opening session, but also by their written questions to SACU.  
5.59.  I would like to highlight that many Members welcomed the fact that, despite the economic 
and financial challenges over the period under re view, the SACU countries remained resilient and 
were able to aggregately maintain positive GDP growth rates, except in 2009. Members nonetheless encouraged SACU to make efforts to fu rther diversify their economies with the view to 
increasing their exports and being less vulnerable to external shocks, including future fluctuations 
of the global financial situation.  
5.60.  Members also noted SACU’s efforts to improve its business climate and enhance its 
competitiveness, and encouraged SACU countries to continue advancing on the same path.  WT/TPR/M/324 • SACU 
 
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  5.61.  Even though concerns regarding the structure of the common external tariff were expressed 
by Members, SACU's efforts to simplify and uni fy customs procedures where welcomed. A number 
of Members looked forward to the category A no tifications of the Trade Facilitation Agreement 
(TFA) by the SACU countries (except Botswana), and they encouraged those SACU members that 
had not ratified this agreement to do so. On this line, some Members saw the ratification of the 
TFA as an opportunity for the SACU countries to further harmonize the region’s customs procedures and documentation requirements. Also, we witnessed how Members encouraged SACU 
to harmonize the competition policies of its members since this is a key mechanism for the smooth 
functioning of a customs union and should help  SACU to fully implement its 2002 Agreement. 
5.62.  With pleasure I heard during these meetings a strong recognition of the positive role that 
SACU plays in the WTO and for the multilateral trading system. Members nonetheless noted that 
there is room for improvement, including increasing the intra-SACU trade flows. I can only wish 
that this becomes a reality soon enough and that its positive effects are reflected on the well-being 
of the majority of SACU’s population.  
5.63.  Finally, I would like to congratulate again the delegations of Botswana, Lesotho, Namibia, 
South Africa and Swaziland, and also the Secretariat, for all the great work that was done for this thought-provoking TPR of SACU. 
MADAGASCAR 
5.64.  I am pleased to note that despite a difficult economic climate, SACU member countries have 
continued to initiate reforms with a view to harmonizing macroeconomic policies and sectoral approaches and, above all, improving their pe rformance in the business environment. The 
consolidated GDP growth rate of the member countries has stood at an average of 2.5% since 
2012. 
5.65.  My delegation is delighted to see the good performance of the Customs Union as a whole, 
with South Africa leading the way in terms of intra-regional investment and trade. 
5.66.  In a world in which value chains are constantly evolving, particularly as a result of "mega 
agreements", the member countries should find ways and means to diversify their markets and 
above all their supplier countries. The question of e fficiency in terms of carbon footprints or food 
miles together with regional integration choices that go beyond the Customs Union, mean that it is time for these countries with varying performance levels to diversify their supplier bases and explore options in the many neighbouring SADC member countries. 
5.67.  We welcome the signing of the tripartite free trade agreement between SADC, COMESA and 
the EAC, which establishes a tripartite free trad e area that will help streamline the economic 
integration process in the southern and eastern regions of Africa. 
5.68.  As one of SACU's neighbouring countries, Madagascar is reassured to see all these 
sustainable trade promotion measures being initiated at the customs union level. 
5.69.  As a SADC member country, this review has help ed us to appreciate the central role that 
trade plays in each of the member countries' economies and collectively at the customs union 
level. The efforts described in the reports have led to considerable progress in combatting the illegal trafficking of banned species, in promoting local production and consequently employment generation, and in fostering competition, investment and the protection of intellectual property 
rights. Each country has shown its determination to implement an effective sectoral policy, and the 
importance of services in these economies gives rise to a certain amount of hope for the future of agriculture, mining, energy and industry, given the role of services in the sustainable development 
of these various sectors. 
5.70.  South Africa is one of Madagascar's main trading partners and is the leading investor 
outside the mining sector. 
5.71.  Madagascar will continue to strengthen its ties with SACU countries and, in view of all these 
measures, is seriously considering the country's further integration into regional value chains. WT/TPR/M/324 • SACU 
 
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  5.72.  Lastly, I would like to commend the transparency shown in this review. The information 
provided has been both detailed and varied. 
PAKISTAN 5.73.  At the outset, our sincere apologies for having missed the first day of the TPR. We also 
apologize for not having submitted written questions before. 
5.74.  We acknowledge what has been stated in the Secretariat and countries reports. We went 
into each and every detail and we were encouraged to see exactly how and what steps have been 
taken by the Union in order to integrate to the global value chains.  
5.75.  Taking this opportunity, we recognize the historical ties that Pakistan enjoys with South 
Africa amongst others and the boom of exchange we have had in the last three years with a positive trade balance. However, we wish to raise a concern at this stage because of the recent 
investigation undertaken by ITAC on the imposition of provisional antidumping duty and cement 
from Pakistan and we are fully confident that what ever steps are taken, they will be transparent 
and in line with the WTO commitments. 
5.76.  We reiterate our thanks, Madam Kruger, for your closing remarks and the bunch of 
questions that were posed, you very formally resp onded with positive remarks and I am sure that 
the questions that we will be sending in writing to you will also invite your kind attention. 
5.77.  Having said that, we reiterate again our apologies for the late joining of this TPR which we 
found interesting after hearing the views of the discussant and yourself. I congratulate you for a successful TPR and do look forward to having opportunities to meeting again. 
UNITED
 STATES 
5.78.  I wanted to take this opportunity on behalf of my delegation to thank the SACU delegations 
for all of their hard work in ensuring that we had a very detailed report and a comprehensive review of the trade policy regime for this importan t regional group. We know how much work goes 
into a joint review and I just wanted to commend the SACU delegations because I know how many 
late hours they spent to put all this together. We also appreciate the contributions of the discussant in guiding us forward. 
5.79.  Let me begin by commending Dr Kruger for her detailed presentation and her 
responsiveness to the issues that were raised by Members. We sincerely appreciated the updates on your regional and global integration efforts and we do look forward to further examination and exploration of those innovative moves that you have made through this RTA transparency 
mechanism in this House. Regional integration is an incredibly important topic that we have been 
looking at here, and the region, in particular, is something instructive for all of us. 
5.80.  We also appreciated the focus that you added to your presentation on improving the 
business and investment climate and this was echo ed by a number of individual delegation's 
presentations. We found that to be very encouraging and useful. 
5.81.  Our thanks also go out to all the delegations which provided update on the Trade Facilitation 
Agreement and the process towards that. It gets nicely with the doing business and the business 
climate improvement efforts that you have been ma king. Obviously, we were incredibly supportive 
to that and would look forward to any other opportunities that might be available for us to further advance that. 
5.82.  Results and efforts to movement towards ratification of the TRIPS is something that we also 
support and we acknowledge the responses that were made to that reflect. 
5.83.  We thank the South African delegation for the detailed report on its investment policy. That 
is something we have asked for and we appreciate  the detailed responses that we have received. 
5.84.  We have provided written questions in adva nce and thank you for your acknowledgement. 
Some of those due remain outstanding but responses will be provided at a larger stage so we just WT/TPR/M/324 • SACU 
 
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  want to reiterate our interest in seeing those. We also provided a few follow-up questions this 
morning. Thanks again for all your e fforts to put all of this together. 
5.85.  In conclusion, thanks again to Dr Kruger and to the entire team and congratulations on a 
successful TPR. 
CANADA 
5.86.  I would like to just join previous speakers in thanking the parties for their engagement as 
well to you, Mr Chairperson, and the discussant, the Secretariat and others for facilitating this 
formal exchange and congratulate the parties on a successful TPR. 
5.87.  Canada has also submitted questions and we have received prompt responses in writing and 
I would like to extend our appreciation for thos e responses. We just have one quick follow-up 
question for South Africa requiring further information about the process and timeline we might 
expect to see regarding notifications of its Category  A for the TFA. We receiv ed a response which is 
quite helpful and we learned South Africa's process for the TFA. We were just wondering if South Africa might be able to provide any sort of indicative date of when it might notify its Category A 
commitments and an estimated timeline will be appreciated from our perspective. 
MS.
 NIKI  KRUGER,  SPOKESPERSON 
5.88.  We have noted the additional questions and we will respond to those in writing. WT/TPR/M/324 • SACU 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  This fourth joint Trade Policy Review of the Southern African Customs Union (SACU) countries 
has allowed us to better understand their trade and related policies and practices in their 
socio‑economic context. We are grateful for the active participation of the delegations headed 
respectively by Ms. Ontlametse B. Ward of Botswana, Deputy Permanent Secretary; 
Mrs. Mapulumo Mosisili, Principal Secretary, Kingdom of Lesotho; Mr. Gabriel P. Sinimbo, 
Permanent Secretary, Namibia; Ms. Niki Kruger, Chief Director of Trade Negotiations, South Africa; 
Mr Jinno L. Nkhambule, Principal Secretary, Kingdo m of Swaziland; and the rest of the delegations 
from Botswana, the Kingdom of Lesotho, Namibia, South Africa, and the Kingdom of Swaziland. Let me also extend my gratitude to H.E. Mr. Mothusi Bruce Rabasha Palai, Ambassador of 
Botswana; H.E. Mr. Nkopane Raseeng Monyane, Ambassador of Lesotho; 
H.E. Mrs. Sabine Böhlke-Möller, Ambassador of Namibia; and H.E. Mr. Xavier Karim, Ambassador of South Africa; and colleagues from the Missions at Geneva. 
6.2.   On behalf of all delegations, I would also like to thank the discussant, 
H.E. Mr. Alberto Pedro D'Alotto, Ambassador and Permanent Representative of Argentina to the 
WTO, and Members of the TPRB for contributing to our fruitful exchange of views, as well as the 
SACU Secretariat for its assistance to its Members during this Review process. 
6.3.  The five countries, i.e. Botswana, Lesotho, Namibia, South Africa, and Swaziland, were 
praised for their commitment to the multilateral trading system, and their active participation in the WTO. Botswana was particularly applauded by  Members for having ratified the Amendment of 
the TRIPS Agreement on Public Health, as well as  the Trade Facilitation Agreement (TFA), and for 
its timely notification of its category A commitments to the WTO. Members encouraged Lesotho, Namibia, South Africa, and Swaziland to follow suit.  
6.4.  M e m b e r s  t o o k  n o t e  o f  S A C U  s t a t e s '  r e g i o n a l  trade agreements (RTAs), especially in the 
framework of SADC and the EPA with the EU, an d some Members enquired about their actual 
implementation, as well as their concrete benefits for the SACU economies. The five countries were 
also encouraged to ensure that their RTAs are consistent with WTO provisions, and to comply with 
their notification obligations, particularly in the areas of SPS, TBT, and import licensing for the benefit of transparency and predictability. 
6.5.  Members noted that SACU's common trade regi me has remained broadly unchanged since 
2009; and that the areas so far harmonized are in general customs related, including tariffs, other 
border taxes, and trade remedies. They then invited SACU States to elaborate on current regional initiatives in the non-harmonized areas, and sought further information about the full 
implementation of the 2002 SACU Agreement and about the operationalization of all 
SACU institutions. 
6.6.  Some Members raised concerns regarding the declining Government revenue in some 
SACU countries, particularly those for which the Common Revenue Pool is very important. They 
requested further clarifications on SACU's plan to review its revenue sharing mechanism with the view to adjusting for important variations and volatility in the shares accruing to each State.  
6.7.  Noting that the SACU Common External Tariff (CET) is composed of ad valorem  and 
non-ad valorem  rates, while SACU States have individually bound their tariffs at ad valorem  rates 
only, Members enquired about their plans to ensure full compliance with their WTO commitments. Concerns were also expressed about the complexity of the SACU CET with high rates on selected 
products and about administration by South Africa of tariff quotas on a list of agricultural products. 
Some Members also raised questions on the relatively large number of anti-dumping measures taken by SACU during the review period.  
6.8.  A number of Members questioned the consistency of some import requirements imposed by 
South Africa on animal products with the WTO SPS Agreement. South Africa was also encouraged to expedite its technical evaluation process on imported electro-technical products, with the view of limiting administrative delays. 
6.9.  The recent global economic crisis has negatively affected the economic performance of 
SACU countries in various degrees. Apart from South Africa, which has a large industrial base and WT/TPR/M/324 • SACU 
 
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  serves as trade hub in the region, the SACU econom ies are narrow-based and highly vulnerable to 
external shocks. In this regard, Members encouraged them to further improve their business environment, by addressing issues such as unre liable energy supply in South Africa and Lesotho. 
Such reforms are expected to create an environment conducive to increased investments in 
sectors other than mining and to economic diversif ication. SACU States are also urged to address 
the high level of inequalities within and between their economies. 
6.10.  Members encouraged SACU States to sustainably exploit their large mineral resource 
endowment, and sought clarification about the mining policies implemented by each of the 
countries, in particular the administration of mi ning permits, assessment of their environmental 
dimensions, and about foreign participation.  
6.11.  Members appreciated the responses provided by the SACU States to most questions 
submitted during this meeting, and look forward to replies to outstanding questions within one 
month.  
6.12.  In conclusion, this Review has contributed to  deepening our understanding of the regional, 
as well as national elements of the trade regimes of Botswana, Lesotho, Namibia, South Africa, 
and Swaziland. The substantial number of advance written questions and of interventions indicates 
the importance Members attach to SACU states' trade policies and practices. Members urged the 
five countries to pursue their trade liberalization reforms, to improve the implementation of their 
multilateral commitments on goods and services and their business environment with a view to enhancing transparency and predictability, and a ttracting investment. I invite all Members to 
support SACU States in their efforts to reform their trade regime and to address their supply-side 
constraints. 
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