WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/222/Add.1 
7 December 2009 
 (09-6200) 
Trade Policy Review Body 
4 and 6 November 2009 Original: English/ 
 anglais/  inglés 
 
  
TRADE POLICY REVIEW 
SOUTHERN AFRICAN CUSTOMS UNION (SACU) 
Record of the Meeting
 
Addendum  
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
  This document contains the advance writte n questions, and replies provided by the 
Southern African Customs Union.
1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 
4 et 6 novembre 2009 
 
EXAMEN DES POLITIQUES COMMERCIALES 
UNION DOUANIÈRE D'AFRIQUE AUSTRALE (SACU) 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. Istvan Major (Hongrie) 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par l'Union douanière d'Afrique australe.1 
__________________________________________________________________________________  Órgano de Examen de las Políticas Comerciales 4 y 6 de noviembre de 2009  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
UNIÓN ADUANERA DEL ÁFRICA MERIDIONAL (SACU) 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Istvan Major (Hungría) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por la  Unión Aduanera del África Meridional.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/222/Add.1 
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  REPLIES PROVIDED BY THE  
SOUTHERN AFRICAN CUSTOMS UNION (SACU) 
RESPONSES TO QUESTIONS FROM AUSTRALIA Botswana I. THE ECONOMIC ENVIRONMENT 
(1) R
ECENT ECONOMIC DEVELOPMENTS  
7. We note that Botswana does not have a comp etition law to regulate anti-competitive conduct. 
Australia views competition policy as an important means of promoting the efficient use of economic 
resources and protects the interests of consumers. 
• Would Botswana be able to advise what steps it is taking to develop a competition 
framework? 
Response: Botswana adopted the Competition Policy in July  2005 (National Competition Policy for Botswana, 
2005). Currently, the Government is working towa rds the enactment of the Competition Act. The 
Competition Bill, 2009 is in place and is being prepar ed to be tabled in the Parliament session of 
November 2009.  
South Africa III. TRADE POLICIES AND PRACTICES BY MEASURE 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(iii) Competition policy and price controls 
We note that in 2008 South Africa introduced th e Competition Amendment Bill into Parliament which 
aims to address the complex monopolies that exist in various sectors of the economy. 
• Could South Africa advise how the Compe tition Amendment Bill is addressing the monopolies 
in both the banking and te lecommunications sector? 
Response:  
The Amendment Act introduced a provision on comp lex monopoly conduct which is intended to 
combat uncompetitive outcomes arising from multi-firm conduct in highly concentrated markets. The necessity for this provision arose from concerns that  the Competition Act targeted specific violations 
and was unable to address uncompetitive outcomes which did not present an immediate infringement 
of the Act. The dti cited the fertiliser, banking, bread, milling and telecommunications industries as 
being typical of the structures the provisions aimed to address. 
In the Amendment Act, complex monopoly conduct s ubsists within the market for any particular good 
or services if: 
a. at least 75% of the goods or services in that mark et are supplied to, or by, five or fewer firms; 
b. any two or more of the firms contemplated in  paragraph (a) conduct their respective business 
affairs in parallel conscious manner or co-ord inated manner, without agreement between or 
among themselves;  and  WT/TPR/M/222/Add.1 
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  c. the conduct contemplated in paragraph (b) has the effect of substantially preventing or 
lessening competition in that market, unless a firm engaging in the conduct can prove that any technological, efficiency or other pro-competitive ga in resulting from it outweighs that effect.    
IV. TRADE POLICIES BY SECTOR 
(4)
  M INING , ENERGY , AND WATER  
(i) Mining 
226. The Secretariat's report highlights that the Mineral and Petroleum Resources Development Act 
(MPRDA) (Act No. 28 of 2002) stipulates that both foreigners and nationals have the right to apply for a prospecting right, mining permit, reconnaissance permit, exploration right, and/or mining right 
as long as they comply with the requirements set out in the law – however the Act empowers the 
Minister to give preference to applications from historically disadvantage peoples when considering 
applications received on the same date.  
• Could South Africa advise how this has worked in practice?  
Response:  
When the Minister of Mineral Resources receives mo re than one application for a right or permit in 
respect of the same mineral and land on the same da te she gives preference to applications from 
historically disadvantaged persons. Different dates ar e dealt with in order of receipt. The Department 
of Mineral Resources (DMR) facilitates assistance to  any historically disadvantaged persons to 
conduct prospecting or mining. If the applications are both from historically disadvantaged persons 
the minister gives preference to the women led company. 
(5)  S
ERVICES  
(i) Overview 
Australia notes South Africa is a net services im porter and that more efficient services delivery is a 
government priority. The Secretariat's report hi ghlights state intervention remains significant, 
rendering the supply of key services inefficient and costly.   
• Considering the importance of services to an economy's development, what reforms is 
South Africa considering to lower state intervention into services sectors, particularly telecommunications and financial services?  
Response:  To be precise, the Secretariat Report states that: "More efficient services delivery is a government 
priority". The South African government privatized 30% of Telkom, the then monopoly telecommunications operator, in 1997, and followed th is up with a public listing of  36,4% of Telkom 
shares in 2003. Apart from specialized developm ent banks and institutions, there is no state 
intervention in financial services. 
255. Australia notes the monopoly public switched telecommunications services (PSTN) was also 
scheduled to end in 20 03, but South Africa retained its market access limitations on cross-border 
supply by maintaining the prohibition on bypass.   
• Is South Africa considering removal of th e market access limitation on cross-border supply?  WT/TPR/M/222/Add.1 
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  Response: 
It is not clear what is being referred to by claims of such retention. If it is in connection with SA's 
initial services offer, then this issu e will be best resolved by dealin g with it in the negotiations. We do 
not consider the TPR to be a negotiating forum. 
256. Australia notes market access limitations apply to the insurance sector and that 
insurers/re-insurers need to be incorp orated as a public company in South Africa and registered with 
the supervisory authority to carry on insurance business in South Africa. 
• Would South Africa be able to advise whether it is considering the allowance of branching for 
foreign insurance firms? 
Response:  
No, currently no such allowance is envisaged. 
RESPONSES TO QUESTIONS FROM BRAZIL To all SACU members:  
Does SACU have a regional strategy concern ing Aid for Trade? Do you have a common 
infrastructure plan?  
Response: 
SACU is currently engaged in the development of a framework for coope ration in the area of 
Aid-for-Trade. The framework will, inter alia  provide a coordinated regional strategy towards 
Aid-for-Trade. SACU is currently in the initial stag es of developing a regional strategy and preparing 
common infrastructure plan for Aid-for-Trade.  SA CU is currently being assisted by the African 
Development Bank (AfDB) and the United Nations  Development Programme (UNDP) in this work. 
Botswana:  
Could you please briefly describe the main lines of Botswana's Trade Policy wh ich is to be published 
in 2009?  
Response: 
Botswana's draft Trade Policy is expected to be  finalized in 2009 and is subject to approval in 
accordance with the decisions to be taken by Parlia ment. The Trade Policy will play an important role 
in pursuing diversification of the economy thr ough expanding trade. The following are the main 
provisions of Botswana's Trade Policy: 
− Botswana will continue using tariffs  as a tool for industrial development; 
− external tariffs will be maintained in the context of the SACU CET; 
− continue phased liberalization process and rest ructuring and simplification of the tariff 
structure will be pursued; 
− emphasis will be on reducing tariffs on input material for industrial development;   
− where WTO commitments permits, export taxes and levies will be maintained to inter alia , 
encourage value-addition; WT/TPR/M/222/Add.1 
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  − gradual elimination of non-tariff barriers wh ich distort trade and the avoidance of the 
introduction of new trade-distorting NTBs will be pursued; 
− establishment and strengthening of trade institu tions such as the National Body for tariff 
administration, particularly in regards to trade remedies; 
− maintain participation in the SACU and SADC regional integration road maps; the decisions 
of which will play a key role in Botswana's trade direction; 
− private sector capacity building programmes in  areas such as adhering to standards and 
regulations to foster export a nd increase in productive capacity; 
− simple and flexible rules of origin.  
Could you please provide further information on the impact of the adoption of the Privatisation 
Master Plan in 2005? Since its adoption, how many enterprises were subject to privatization? 
Response: 
Since adoption of the Privatisation Master Plan  (PMP) in 2005, 5 state owned enterprises were 
identified as candidates for privatisation. However th e privatization process has been slow to take off 
due to legal and logistical issues. 
Namibia:  
The Government report mentions th at agricultural products face bot h tariff and non tariff measures. 
Does Namibia receive any specific aid targeting to help the country to overcome such measures?  
Response: 
Agricultural products face both tariff and non tariff  measures. Apart from the tariffs, the non tariff 
measures relate to standards and measures that ar e more stringent than international standards. 
Namibia does not currently receive any specific ai d targeted towards overcoming these challenges, 
except the livestock traceability system under the MCA. Namibia has to a large extent taken a 
bilateral consultation approach in resolving these ch allenges. It has been observed that these bilateral 
consultations tend to take a long time to conclude.  
Related to this, Namibia undertoo k a national needs assessment on trade-related assistance in the 
context of its engagement in the multilateral trad ing system. During this process, Namibia identified 
key areas where assistance is required. 
RESPONSES TO QUESTIONS FROM CANADA 
REPORT BY THE MEMBERS OF THE SACU (WT/TPR/G/222)
 
Report by South Africa  
Part III. Related Policy Developments: (4 ) Trade Policy and Strategy Framework; 
paragraph 17, page 32: 
The Secretariat Report notes that South Africa aims to adopt a "strategic tariff policy approach" to 
ensure the South African economy is not overly depe ndent on the export of commodities over the long  WT/TPR/M/222/Add.1 
 Page 7 
 
 
  term.  It further noted that tariffs on "upstream input industries" could be  reduced or eliminated, 
while tariffs on "downstream industries" may be retained.   
1. Could the SACU delegation please further el aborate on this policy approach, including which 
"upstream input industries" are being considered  for tariff reduction or elimination in the 
near term?   
Response:  
The tariff structure is informed by the industrial policy imperatives and dete rmined on a case by case 
basis based on evidence. The upstream input indust ries that have been re viewed are aluminium, 
textiles, capital equipment and chemicals.   
REPORT BY THE SECRETARIAT (WT/TPR/S/222)  
Summary Observations: (2) Institutional Framework; paragraph 7, page vii: 
The Summary Observations of the Secretariat's Report states that "SACU countries are generally 
having difficulties in meeting WTO notification obli gations, particularly in agriculture; numerous 
notifications remain outstanding." In particular, Canada notes that Lesotho, Namibia and Swaziland 
have issued no TBT and SPS notifications, with the exception of Swaziland, which recently 
(July 2009) issued an SPS notification. 
2. Could Lesotho, Namibia and Swaziland please clarify the measures or steps they are putting 
in place to overcome these diffic ulties so as to facilitate no tification of draft trade-related 
measures at an early appropriate stage when  amendments can still be introduced and 
comments taken into account pursuant to WTO TBT & SPS Agreements and Recommended 
transparency procedures (G/TBT/1/Rev.9 & G/SPS/7/Rev.3)? 
Response from Lesotho:   
The Kingdom of Lesotho has indeed experien ced difficulties in meeting WTO notification 
obligations.  The main challenge has been lack  of awareness on WTO TBT and SPS Agreements 
which has contributed slow progress on policy formula tion.  It has been difficult to organize ourselves 
nationally.  In the case of TBT, the Ministry of Trade and Industry, Cooperatives and Marketing 
hosted secretariat to the National WTO Steering Co mmittee which coordinated implementation of the 
WTO issues in the country.  The Ministry has engaged over the last 2 years on a massive awareness campaign targeting different stakeholders sectors.  A positive response is now being realized.  The 
National WTO TBT notification authority has now been identified. 
On SPS, the Ministry of Trade and Industry, Coope ratives and Marketing has engaged the leadership 
in the Ministries of Agriculture and Food Security, Ministry of Health and Social Welfare and other 
stakeholders to make them aware of their r esponsibilities with regard to the WTO SPS issues. 
Response from Namibia: 
Namibia has established a national committee on SPS and Food Safety. This committee is composed 
of public and private institutions dealing with anim al health, plant health and food safety regulations 
and related matters. The committee has three tec hnical sub-committees each dealing with animal 
health, plant health and food safety. One of the ai ms of the committee is to  provide a national forum 
for addressing SPS and Food Safety matters and to enhance Namibi a's implementation of the WTO 
SPS Agreement and notification.  WT/TPR/M/222/Add.1 
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  On TBT, Namibia has established the Namibia Stan dard Institution (NSI). The NSI will enhance our 
capacity to meet Namibia TBT notification. SACU is part of the larger SADC. As such SACU is part 
of the SADC regional integration efforts. 
Response from Swaziland: 
Swaziland has designated the Directorate of Malkerns  Research Station (MRS) under the Ministry of 
Agriculture as the National enquiry point for all phytosanitary notifications, the Directorate of 
Veterinary Services under the Ministry of Agricu lture as the National enquiry point for Sanitary 
notifications and the Standards Quality Assura nce and Measures (SQAM) under the Ministry of 
Commerce, Industry and Trade to handle TBT notifications. 
Summary Observations: (3) Trade Policy In struments; paragraph 10, page viii: 
The Secretariat Report notes that South Africa con tinues to set the MFN Common External Tariff 
(CET) in consultation with the other SACU partners, but suggests that in some cases the structure of 
the CET has not adequately reflected the need s of the other SACU member countries.   
3. Are there any plans to amend the consultative process within SACU regarding the structuring 
of the Southern African Customs Union CET in the future?    
Response: Article 11 of the 2002 SACU Agreement provides for the establishment of a SACU Tariff Board 
made of experts drawn from all Member States. It will be an independent institution, making 
recommendations to the SACU Council, which is the highest decision-making body in SACU, on the 
level and changes of customs duties, counterva iling and safeguard duties on goods imported from 
outside the customs union.  
Summary Observations: (3) Trade Policy In struments; paragraph 11, page viii: 
The Secretariat Report notes that the Southern African Customs Union's applied MFN CET on 
agricultural goods increased from 9.6% to 10.1% over 2002-09.   
4. Could SACU please outline which agricultu ral sectors experienced tariff changes that 
contributed to this increase and to what extent ta riffs in these sectors are expected to continue 
to increase in the future? 
Response:  
In terms of our data the average applied tariff fo r agriculture in RSA in 2004 was 9.3% and in 2009 is 
9%.  
Part II. The Common Regime: (2) Southern African Customs Union (SACU); (vi) Common 
monetary area (CMA): paragraph 40, page 10:  
SADC has been considering the possibility of having a regional currency and with SACU having its 
own Common Monetary Area. 
5. Do they plan on being a part of this initiative?  
6. What will be the base currency?  WT/TPR/M/222/Add.1 
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  Response: 
SACU does not have a Common Monetary Area. A CMA exists between Lesotho, Namibia, 
Swaziland and South Africa, while Botswana is not a member of the CMA. It is worth noting 
however, that the Pula is pegged to a basket of currencies, including the Rand. 
SADC aims to have a regional currency by 2016 in line with the Regional Indicative Strategic 
Development Plan (RISDP). Notwithstanding the f act that SACU members are a part of SADC, 
discussions on how SACU members (and SADC as a whole) will determine th is envisioned regional 
currency has not yet taken place. SACU is therefore not yet in a position to respond to specifics of the 
process, including on its participation and the base currency.  
Part II. The Common Regime: (3) Trade Agreements and Arrangem ents: (iii) Southern African 
Development Community (SADC): paragraph 51, page 12: 
A free trade agreement between SACU/SADC and COME SA is estimated to result in market access 
gains of approximately $800 million, and is re garded as key to regional integration.  
7. What is SACU's position on this issue?  
Response: 
It should be noted that this is an initiative to cr eate a free trade area involving all Member States of 
SADC, the EAC and COMESA. All SACU Member States are also Member States of SADC. As such, they are participating in all the activities of  SADC and therefore stand to benefit from this 
initiative. SACU Member States th erefore support the initiative to establish a tripartite Free Trade 
Agreement between SADC, the EAC and COMESA, belie ving that it will significantly contribute to 
regional integration within the region.  
Annex 1. Botswana
 
Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(v) Standards and other technical requirements; (a ) Technical barriers to trade: paragraph 85, 
page 85: 
Canada notes that Botswana has established a na tional enquiry point and national notification 
authority under the TBT Agreement, a commendable achievement.  In reviewing Botswana's 
notifications, the low level of TBT notifications i ssued by Botswana gives evidence of Botswana's 
difficulties in this area.  
8. Could Botswana please explain plans/processes foreseen to enhance its compliance with the 
WTO TBT notification obligations? 
Response: 
The Botswana Bureau of Standa rds acts as the national enquiry  point for WTO TBT on matters 
relating to Standards and other technical requireme nts. For notification, the Bureau of Standards 
prepares the relevant notification documentation. The information is then provided to the Ministry of 
Trade and Industry which is responsible for notifyi ng the WTO. The Ministry of Trade and Industry 
has had several challenges in coordinating the process of notifications as required. Efforts are being 
made to ensure that there is compliance with th e notification commitments. The capacity to notify is 
moderate and therefore requires implementation of capacity building initiatives.  WT/TPR/M/222/Add.1 
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  Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(v) Standards and other technical requirements; (a ) Technical barriers to trade: paragraph 89, 
page 86: 
The Secretariat Report Annex on Botswana notes that  under Article 28 of the 2002 SACU Agreement, 
"Botswana and other members have agreed to strive  to harmonize product standards and technical 
regulations (Main Report, Chapter II(2)(v))." As the Secretariat Report on SACU points out, SACU 
countries do not have a common policy on these issues (Secretariat Report – South Africa Customs 
Union, III. Trade policies and practices by measu re, (5) Standards and technical regulations, 
paragraph 120).  
9. Could Botswana please provide some specific examp les of concrete steps that it has taken to 
ensure that its product standards and technical regulations are harmonized with those of 
other SACU countries? 
Response: 
The work on harmonisation of standards in the re gion is being undertaken mainly at the level of 
SADC, which includes all SACU countries. Thus the harmonisation of technical regulations and 
product standards is done through arrangements w ithin the SADC Cooperation on Standardisation 
(SADCSTAN). All conflicting national standards ar e withdrawn and no longer used and harmonised 
standards take precedence.  
Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(v) Standards and other technical requirement s; (b) Sanitary and phytosanitary (SPS) 
measures: paragraph 91, page 87: 
Canada applauds efforts by Botswana to strengthe n its operational capacity in the SPS area, and 
notes that Botswana has established a national enquiry point and national notification authority 
under the SPS Agreement. However, Botswana has  issued only a few SPS notifications.   
10. Could Botswana please elaborate on systems/methods it is putting in place to overcome past 
challenges with compliance to WTO SPS trans parency obligations, in particular notification 
of a draft measure when comments can still be taken into account? 
Response: 
Draft measures are always gazetted for the public to  comment before adoption and implementation by 
Government. 
Part III. Trade Policies and Practices by Measur e: (2) Measures Directly Affecting Imports; 
(vii) Local-content requirements: paragraph 111, page 90:  
11. Could Botswana please provide additional in formation regarding the "Buy Botswana" 
campaign? 
Response: 
The Buy Botswana Campaign is no longer in existence.  
Part IV. Trade Policies by Sector: (3) Mining; paragraph 183, page 106:  
Canada notes that one of the Ministry of Minerals, Energy, and Water Resources'  main objectives is 
the creation of employment and training opportunities.   WT/TPR/M/222/Add.1 
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  12. Could Botswana please explain how it sees the Ministry fulfilling this objective?  
Response: 
The Ministry of Minerals, Energy and Water Resources (MMEWR) creates employment by licensing 
mining companies to operate in Botswana. Th ese companies employ and train their personnel. 
13. Is the Ministry planning to develop a decentralization policy, i.e., a plan to open any regional 
offices, including in rural areas, in the coming months? 
Response: 
The Ministry has already decentralised its servic es with some departments maintaining regional 
offices, including in rural areas.  The decision to set up a regional office is mainly driven by the 
customer base. 
Part IV. Trade Policies by Sector: (3) Mining; paragraph 184, page 106:  
14. Could Botswana please advise whether it intends to promote more exploration activity and 
the measures it is taking to attempt to di versify mining activities in its territory? 
Response: 
Botswana continues to promote mineral investment in the country by promoting exploration in areas 
which have not been adequately prospected.  G overnment conducts baseline exploration and avails 
the information to potential investors for free. On e of the major undertakings by Government which 
has significantly improved the data level of the count ry is the aeromagnetic survey which has covered 
more than 80% of the country.   
Initiatives to support diversification in the mining activities include the recently established Diamond 
Trading Company which will pursue downstream ac tivities such as manufacturing of jewellery as a 
part of the beneficiation strategy. ABN Amro wa s recently licensed by the Bank of Botswana to 
provide financial services in the diamond busine ss for clients outside Botswana. Further, the 
Government is exploring opportunities for furt her processing the salt and soda ash resources, 
including the establishment of a local glass work s. A coal washing plant is currently under 
construction to take advantage of the larg e quantities of coal deposits in Botswana 
(WT/TPR/S/222/BWA) .   
Part IV. Trade Policies by Sector: (3) Mining; paragraph 185, page 107:  
15. Are contracts between mining firms and the state required to be made public?  
Response: 
Botswana's mining code provides for the Governme nt to keep information/records from operating 
companies confidential and such records shall not be divulged without a the consent of the licence 
holder. 
16. Is there a legislative basis, e.g., Access to In formation Act or equivalent, which enables 
interested persons to access copies of contracts? 
Response: 
There is no specific legislation for access to informati on, but provision is made in various Acts. The 
Mining and Minerals Act provides for access to information (Section 86). WT/TPR/M/222/Add.1 
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  17. Are contracts required to be approved by Botswana's Parliament?  
Response: 
Mining contracts as per the current law (since 1999)  are not taken through the Botswana Parliament, 
but are managed at Ministry level.  
Part IV. Trade Policies by Sector: (3) Mining; (i) Diamonds; paragraph 187, page 107:  
Canada notes that Botswana is a shareholder in De bswana, part of the family of companies of De 
Beers S.A.  
18. What policies does the government have in place to deal with any conflict of issue concerns 
which may arise due to its ownership stake? 
Response: 
All companies in which Government has a shareholding are managed independently and Government 
only participates at Board level. There are separat e entities within MMEWR with the responsibility of 
ensuring enforcement of legislation and Investment.  The fundamental basis of the Botswana mining 
code is that obligations to be fulfilled by any mining licence holder are provided upfront and there is 
very little room for discretionary powers. 
19. Could Botswana please advise whether the Ministry of Minerals, Energy and Water 
Resources is a member of the Board of Direct ors of Debswana?  If not, are there other 
government Ministry(ies) or entity(ies) that hold(s) a Board seat(s)? 
Response: 
Members of the Board of Directors of the Minera l Policy Committee are the following: the Permanent 
Secretary to the President, Attorney General, Gove rnor of Bank of Botswana, Permanent Secretary in 
the Ministry of Minerals Energy and Water Resources, and Permanent Secretary in the Ministry of 
Finance and Development Planning. 
20. How does Botswana ensure that government long- term investment objectives are taken into 
account by Debswana's management?  
Response: 
Debswana Diamond Company is an independent comp any. Government, like all other investors in 
any company and projects, ensures its interests are protected through effective participation at Board 
level also by drawing up contracts which will ensu re that Botswana benefits from the resource. 
Part IV. Trade Policies by Sector: (3) Mining; (i) Diamonds; paragraph 189, page 107:  
21. Does Botswana plan to introduce a competition law and, if so, on what timetable?  
Response: 
Botswana adopted the Competition Policy in July  2005 (National Competition Policy for Botswana, 
2005). Currently, the Government is working towa rds the enactment of the Competition Act. The 
Competition Bill, 2009 is in place and is being prepar ed to be tabled in the Parliament session of 
November 2009.  WT/TPR/M/222/Add.1 
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  22. Has Botswana developed its own "benefication" strategy that acknowledges the De Beers 
strategy and also includes other minerals? 
Response: 
Botswana's policy towards mineral beneficiation is  that all activities which will encourage linkages 
with the rest of the economy to expand value add ition activities should be pursued as far as possible 
where feasible. On that note Botswana has a dedicated team which is facilitating diamond 
downstream activities or beneficiation, in th e areas of diamond cutting and polishing, diamond 
trading, jewellery manufacturing and other diamond support services. With regards to other minerals 
such as soda ash and copper nickel investors are being encouraged to explore further downstream 
activities. 
Part IV. Trade Policies by Sector: (6) Services;  (ii) Telecommunications and postal services; 
(a) Telecommunications: paragraph 235, page 116: 
The Secretariat Report notes that Botswana plans  to consolidate the legal framework for 
telecommunications, broadcasting, postal services, computer technologies, and all other ICT sub-sectors (Communications Authority Bill).    
23. Could Botswana please provide an update on the anticipated timeline for this legislative 
project? 
Response: 
The process of consolidating the legal framework  for telecommunications, broadcasting, postal 
services, computer technologies and the remaining ICT sectors is currently ongoing. It is anticipated 
that this process will be completed in 2010,  after going through the necessary Parliamentary 
procedure. 
Part IV. Trade Policies by Sector: (6) Services;  (ii) Telecommunications and postal services; 
(a) Telecommunications: paragraph 237, page 116:  
The Secretariat Report notes that in 2007, Botswa na introduced a new licensing framework providing 
for service-neutral and technology-neutral public telecommunications operator (PTO) licences, and 
value added network services (VANS) licences.   
24. Could Botswana please provide further in formation on what services are considered 
value-added network services (VANS) as well as on the licensing requirements for such 
VANS?   
Response: 
VANS Services: 
The operation of Value-Added Netw ork Services (VANS) is permitted through licences issued by the 
Botswana Telecommunication Authority (BTA).  VANS Licences are required for the following 
services: 
(i) Public telecommunications systems of any d escription, including VoIP, fixed wireless 
networks, but not a Mobile Cellular Network, a wireline international link or a switched 
international gateway or appara tus for a broadcasting service. WT/TPR/M/222/Add.1 
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  (ii) Public telecommunications services of any descr iption delivered over any form of network, 
other than Publicly Available Tele phone Services or broadcasting services. 
VANS Licensing Requirements: 
The licensees are allowed to operate telecommunica tions systems, or further telecommunications 
services as proposed in their business plans, with the explicit written approval of the BTA. This 
category of licence is fully liberalised.  
Licensees are required to indicate to the BTA, in their business plans, the exact nature of their 
business and to notify the BTA of any new types of  services they intended to provide. The BTA 
would raise any objection it might have if the propo sed service provider did not appear financially or 
technically capable or for any other reasons that the BTA may have in terms of the power derived 
under the Act.  
VANS with Special Conditions (e.g. Fixed Wireless Access): 
The opportunity is created for specialist network ope rators to enter the mark et for the provision of 
VANS using various technologies and subject to any necessary spectrum allocations and planning 
consents.  The existing VANS would also be entitled  to apply for such spectrum. The geographical 
areas concerned would be defined by the licensee in  their business plans in lin e with any guidance that 
may be provided by the BTA. Such service providers  may be licensed on a regional or national basis. 
At the moment, the license for Fixed Wireless Access is issued on tendering process. 
Further Licensing Requirements: 
Period: 15 years from date of issue, extendable. 
Fees: Initial Licence fee of P 11 000 and annual licence fee of P 3 300. 
Primary Obligations: None. 
Tariffs: Not regulated. 
Number of operators: No restriction. 
Inter-connection and Access: Framework set out in greater detail; Negotiations encouraged, but BTA 
has reserve powers to step in.   
Radio licences: VANS Licensees must have separate license in required frequency bands. 
Numbering: VANS Licensees must comply with Numbering Plan and Rules. 
Anti-competitive Practices: Controlled. 
Consumer Protection: VANS Licences include  provisions for consumer protection. 
Enforcement: Licences provide for fines and revocation.  
Annex 2. Lesotho  
Part IV. Trade Policies by Sector: (3) Mining, Water, and Energy; (i) Mining; paragraph 146, 
page 179:  
Canada notes the decline in employment by Lesotho workers in South African mining.  
25. Has Lesotho provided support for training for alternative livelihoods or the provision of 
micro-financing to support the development of small businesses as alternatives to mine 
employment? 
Response: 
The Mineworkers Development Agency (MDA) in Lesotho is the main agency providing support 
towards the creation of alternative livelihoods for mineworkers retrenched from South Africa.  The  WT/TPR/M/222/Add.1 
 Page 15 
 
 
  agency was established under the auspices of the Na tional Union of Mineworkers in South Africa to; 
advise retrenched mineworkers on avai lable resources and to assist in creating local job opportunities.  
It became an independent NGO in 1995.  The ag ency's core business is to support sustainable 
livelihoods through skills and l eadership development, business development services, advocacy and 
facilitation of access to microfinance.  This includ es development of skills in areas such as sewing, 
knitting, stone cutting and metal work.  Beneficiar ies are encouraged to work in cooperatives or 
associations and MDA plays a critical role in advisi ng them on how to start small businesses and also 
works with commercial banks under the rural finance scheme to help access financial to support these 
businesses.  Activities are carried out in collaborati on with other agencies such as BEDCO, Ministry 
of Gender, Ministry of Health, MTICM and the S MME support network in Lesotho.  It should be 
noted that the organization's strategic plan was review ed in 1998 and the decision was made to extend 
support to other members of the community (be yond ex-mineworkers) in need of alternative 
employment opportunities.  This was done to addr ess the perception of 'exclusiveness' and to better 
integrate ex-mineworkers benefiting from its pr ograms within their local communities.  Going 
forward the organization is looking to incorporat e food security issues in its programming from 2012 
onwards by assisting people to gr ow food for local consumption.  While MDA is not actively engaged 
on issues relating to HIV/AIDS it collaborates with v illage support groups and the Ministry of Health 
to get support for those benefitting under its programs.  The organization has organized 
2000 beneficiaries in the past five years and is currently assisting 911 entrepreneurs to improve and 
create jobs for themselves and to employ indivi duals within their commun ities.  Currently, women 
constitute 68% of beneficiaries under MDA training activities.   
In addition, the Ministry of Labour and Employment keeps an inventory of available skills in the 
country and ensures  that companies that start work  in the country uses them before looking outside 
the country. They also work together with Mi neworkers Development Agency (MDA) to provide 
training for alternative livelihoods. 
Part IV. Trade Policies by Sector: (3) Mining, Water, and Energy; (i) Mining; paragraph 147, 
page 179:  
26. Is mining for products other than diamonds carried  out by small scale miners only? If 'yes', 
does Lesotho have strategies and policies in place to support this part of the sector and are they publicly available? 
Response: 
No;  dimension stone and clay are mined at medium scale as well. For small scale miners, a division 
in the Prime Minister Office has put in place support for them and they publicise it.   
Part IV. Trade Policies by Sector: (3) Mining, Water, and Energy; (i) Mining; paragraph 148, 
page 179:  
27. Could Lesotho please advise what are the duties of the Mining Board, especially with respect 
to those of the Commissioner of Mines and Geology? 
Response: The Commissioner advises the Board on technical  matters regarding mining applications.  
The Board investigates, negotiates or consults in all mineral right concessions and advices the 
Minister appropriately. WT/TPR/M/222/Add.1 
Page 16  
 
  28. Which of the members identified in footnote 13 4 is the current Chair of the Mining Board? 
How is this person selected and what is the length of the Chair's term? 
Response: 
Principal Secretary of the Ministry of Natural Res ources is chairman of the Mining Board.  The Mines 
and Minerals Act No. 37 of 2005 stipulates that the Principal Secretary be the chairman, therefore the 
Principal Secretary will always be a chairman.   
Part IV. Trade Policies by Sector: (3) Mining, Water, and Energy; (i) Mining; paragraph 149, 
page 179:  
29. Are any mining contracts negotiated between  the government and mining companies made 
publicly available and, if so, where? 
Response: Yes.  They are registered with the Registrar of  Deeds, where they can be accessed upon request. 
Part IV. Trade Policies by Sector: (5) Services;  (ii) Telecommunications and postal services; 
paragraph 185, page 188: 
The Secretariat Report notes that network opera tors contend that the Lesotho Communications 
Authority (LCA) is not mandated to approve int erconnection rates on the basis of the Lesotho 
Telecommunications Authority (LTA) Act of 2000,  and that the issue should be addressed through an 
arbitrator or under a new legislative framework currently being developed. 
30. Could Lesotho please provide an update on the steps currently underway to address this 
issue? 
Response: 
After due consideration, it has been decided that di sputed matters related to interconnection to be put 
on hold until the legislative review process by Ministry  is complete and such issues can be dealt with 
under the new legislation which will hopefully clearly stipulate all interconnection issues. 
Part IV. Trade Policies by Sector: (5) Services;  (ii) Telecommunications and postal services; 
paragraph 186, page 188:   
The Secretariat Report notes that the Lesotho Communications Authority plans to set up a new 
licensing regime in order to encourage compe tition in the provision of internet service.  
31. Could Lesotho please provide further inform ation on its planned new licensing regime, 
including anticipated timelines for implementation? 
Response: 
The new system is already in place where an Internet  Service Provider can be authorised to have its 
international gateway in competiti on to the two network operators.  WT/TPR/M/222/Add.1 
 Page 17 
 
 
  Annex 3. Namibia  
Part IV. Trade Policies by Sector: (4) Mining and Energy; (i) Mining; paragraph 179, page 249:  
Canada notes the significant level of government rev enue, foreign exchange earn ings and employment 
generated by Namibia's mining sector. 
32. Could Namibia please indicate if it is seeking to attract more investment in its mining sector 
and, if so, what steps it is taking to meet that goal? 
Response: 
Namibia plans to attract more investments into the mining sector. Therefore Namibia is increasingly 
issuing more exploration licences and we contin ue to promote Namibia's mineral potential at 
international fora. Namibia's Minerals Act is currently under review to make it conducive for 
investment. 
Part IV. Trade Policies by Sector: (4) Mining and Energy; (i) Mining; paragraph 180, page 250:  
Canada understands that Namibia plans to institute a land reform process which may affect access to, 
and use of, land by the mining industry.   
33. Could Namibia please indicate the status of this process? 
Response: The only significant decline was in copper, where a major copper mine temporary closed during this 
period. For other commodities, decline was ma inly attributed due to market conditions. 
Part IV. Trade Policies by Sector: (4) Mining and Energy; (i) Mining; Table IV.4, page 250:  
34. Could Namibia please explain why the output of a number of commodities has declined 
during the period 2003-2007?  
Response: The only significant decline was in copper, where a major copper mine temporary closed during this 
period. For other commodities, decline was ma inly attributed due to market conditions. 
Part IV. Trade Policies by Sector: (4) Mining and Energy; (i) Mining; paragraph 184, page 251:  
Canada notes that Namibia is a 50% shareholder (along with De Beers) in Namibia Diamond 
Corporation (Pty) (NAMDEB) as well as in the Namibia Diamond Trading Company (NDTC). 
35. What policies does the government have in place to deal with any conflict of issue concerns 
which may arise due to its ownership stake? 
Response: 
Namibia's diamond industry is strategically important  to the country's economy – contributing for up 
to 40% of all export earnings and up to 10% of GDP.  It is for that reason that the Namibian 
Government has an equity stake in Namdeb and NDTC. WT/TPR/M/222/Add.1 
Page 18  
 
  In 1994 De Beers invited the Government of Namibi a to take up an equity stake in Namdeb, which 
was formerly De Beers' wholly owned subsidia ry (Consolidated Diamond Mines).  The NDTC was 
established in 2007.  Under the Agreement betwee n De Beers and the Government of Namibia, 
provision is made to resolve disputes arising between the parties.   
36. Could Namibia please advise whether the Ministry of Mines and Energy is a member of the 
Board of Directors of NAMDEB and NDTC?  If not, are there other government Ministry(ies) 
or entity(ies) which hold(s) a Board seat(s)? 
Response: 
Government and De Beers are both equally repr esented on the Boards of Namdeb and NDTC.  
Namdeb and NDTC management report to their resp ective Boards.  The Government representatives 
on those Boards report to Cabinet which pr esides over Government Policy and objectives. 
37. How does Namibia ensure that government long- term investment objectives are taken into 
account by NAMDEB and NDTC's management?  
Response: 
Namdeb and NDTC management report to their resp ective Boards.  The Government representatives 
on those Boards report to Cabinet which pr esides over Government Policy and objectives. 
Part IV. Trade Policies by Sector: (4) Mining and Energy; (i) Mining; paragraph 189, page 252:  
38. Did Namibia amends its Minerals Act in 2008 with the assistance of any international experts 
and, if 'yes', could Namibia please advise the organisation(s) involved? 
Response: 
No. 
39. Besides royalty and equity issues, what ot her significant areas were amended, if any?  
Response: 
None. 
40. Does the legislation apply to all investors or does the government negotiate contracts with 
mining firms on a case-by-case basis? 
Response: The legislation applies to all investors. 
41. Are all firms required to pay taxes under this la w or other legislation and, if 'yes', could 
Namibia please advise the nature of the taxes and levels applied? 
Response: 
Yes, all mining firms need to pay between 2% and 5% royalty. Normal Corporate Tax is also 
applicable to mining companies: diamond mining companies the tax is 55%;  for non-diamond mining 
companies the tax is 37.5% of the Net Profit.  WT/TPR/M/222/Add.1 
 Page 19 
 
 
  42. If contracts are negotiated, are they publicly available and, if so, where?  
Response: 
All contracts negotiations between Government a nd company except licensing conditions are strictly 
confidential. 
Part IV. Trade Policies by Sector: (6) S ervices; (i) Telecommunications and post: 
paragraph 214, page 258: 
The Secretariat Report states that the Namibian Gov ernment's basic policy outline for the sector was 
set out in Namibia Vision 2030, and further elaborated in the draft Telecommunications Policy for Namibia and the Communications Bill.  
43. Could Namibia please provide an update on th e progress of the Communications Bill?  
Response: The Bill has been passed by Parliament and is now pending promulgation. 
Annex 4. South Africa
 
Part II. Trade and Investment Regimes: (1) General; page 289: We understand that South Africa's Department of  Trade and Industry is undertaking a review of 
South Africa's investment regime and in partic ular its investment treaty program.  
44. Could South Africa please provide an update on th e status of this review, in particular when 
the review is scheduled to conclude and when the results will be made available? 
Response:  
RSA Bilateral Investment Treaties ar e being reviewed in consultations  with all stakeholders and once 
complete they will be tabled for decision by the executive. 
Part III. Trade Policies and Practices by Measu re: (2) Measures directly affecting imports; 
(ii) Import prohibitions, controls, and licensi ng: Table III.3 "Tariff Quotas 2007", page 301:  
The Secretariat Report notes in Table III.3 "Tar iff quotas 2007" that a number of agricultural 
products have higher in-quota tar iffs than out-of-quota tariffs. 
45. Could South Africa please elaborate as to why the in-quota tar iffs are higher than 
out-of-quota tariffs for a number of agricultural products? 
Response:  
South Africa's in-quota tariffs are linked to the WTO bound rates for all products. As a result of 
unilateral liberalisation of applied rates following  the Uruguay Round, the in-quota tariffs for certain 
products are higher than the out-of-quota tariffs. 
46. Could South Africa please elaborate on why it continues to maintain a tariff quota regime 
especially since many of the tariff quotas have not  been used since the out-of-quota tariff for 
these products have been less than the in-quota tariff rate? WT/TPR/M/222/Add.1 
Page 20  
 
  Response:  
The tariff quota regime was implemented as part of South Africa's commitments under the Uruguay 
Round. South Africa is not in a position to cha nge these commitments before an agreement on 
modalities is reached under the current Doha negotiations.  
47. Has South Africa considered simplifying their tariff regime by going into a tariff only system?  
Response:   
South Africa has a preference for a tariff only regime and made this clear in the Doha negotiations. A 
tariff only regime will reduce the administrative bur den on Government and improve transparency of 
the tariff regime. Unfortunately, many WTO member s opposed this approach and seem to have a 
preference for continued intervention in the form of a quota regime.  
III. Trade Policies and Practices by Measure: (2) Measures directly affecting imports; 
(iv) Standards and other technical requirements; (a ) Standardization, testing, and certification: 
paragraph 78, page 303: 
According to the Secretariat Report, "The SABS ha s the power to set, issue, amend, and withdraw 
standards. SABS also furnishes reports and issues cer tificates in connection with examinations, tests, 
analyses, calibrations, and any other assessments."   
48. Could South Africa please explain how th e functions of standards development and 
conformity assessment are functionally separat ed in the SABS, in accordance with good 
governance practices?  
Response:   
The conformity assessment services of the SABS are ring fenced from the standards development 
responsibilities. See also response to question 52 below. 
III. Trade Policies and Practices by Measure: (2) Measures directly affecting imports; 
(iv) Standards and other technical requirements; (a ) Standardization, testing, and certification: 
paragraph 83, page 304: 
According to the report "The development of tech nical regulations, and inspection and enforcement 
are the responsibility of different government departm ents depending on subject of the regulation. 
Various institutions are responsible for setting t echnical regulations, including the South African 
Bureau of Standards (SABS); the South African Na tional Accreditation System (SANAS); the National 
Metrology Institute of South Africa (NMISA), wh ich is responsible for the maintenance, traceability, 
and dissemination of national measurement st andards; and a wide range of accredited bodies 
including laboratories, and verification, certification, and inspection bodies."   
Canada notes that no clear indication is given w ithin the Standardization,  testing, and certification 
section of the Report with respect to South Afri ca's transparency activities. It is Canada's 
understanding that the South African TBT Enquiry Point resides in SABS.  
49. Could South Africa please specify how the authorities (e.g. WTO TBT Enquiry 
Point/Notification Authority) monitor the creation or modification of TBT technical 
regulations/conformity assessment procedures fr om the various institutions in order to 
determine those to notify to the WTO?   WT/TPR/M/222/Add.1 
 Page 21 
 
 
  Response:   
The conformity assessment services of the SABS are ring fenced from the standards development 
responsibilities. See also response to question 14 below. 
50. Also, could South Africa please further expla in the processes, including interdepartmental 
collaboration, for the preparation of the no tification once a determination is made?   
Response:   
As stated in the response to the question above, the Department of Trade and Industry compiled a 
guideline document that contains the decisions and recommendations of the TBT Committee with 
regard to the notification obligations and circulat ed this to the various regulatory and conformity 
assessment institutions to assist them to prepare a notification. Furthermore, the TBT Enquiry Point 
provides assistance to such institutions to prep are a notification and examples of previous 
notifications by South Africa and other WTO Members are also made available to assist with preparations of notifications. Collaborations are also taking place on a regular basis between the WTO 
TBT Enquiry Point, Notification Authority, which is  the Department of Trade and Industry, and the 
regulatory Departments/Institutions. 
The Secretariat Report notes that "National departm ents use a consultation process when technical 
regulations are developed but there is no consistent national approach." 
51. Does South Africa have plans to develop a cons istent national approach for the development 
of technical regulations in order to rectify the overlap between government departments and 
the fragmented nature of the laws governing th e development of technical regulations, as 
identified in the report? 
Response:  
The Department of Trade and Industry (the dti)  policy paper, "Modernising the South African 
Technical Infrastructure" of June 2004 identified several key objectives that included the provision of clear mandates for the administration of techni cal regulations. During the first phase of the 
modernisation process the dti embarked on a programme  of legislative reform that was completed in 
2008 and resulted in the promulgation of the following four Acts: 
¾ the Standards Act, Act 8 of 2008; 
¾ the National Measurement Unit and Measurement Standards Act, Act 18 of 2006;  
¾ the Accreditation for Conformity Assessment, Calibration and Good Laboratory Practice Act, 
2006 Act No. 19 of 2006; and   
¾ the National Regulator for Compulsory Specifications Act, Act 5 of 2008.  
The new legislation has created the necessary en abling environment for the respective technical 
institutions to fulfil their mandates. All three legs  of the South African technical infrastructure now 
have their own legislation with their own boards.  Additionally, the regulatory function of the 
South African Bureau of Standards, which was sp lit of into a separate public entity, namely the 
National Regulator for Compulsory Specifications, also has its own legislation and board.  The 
mandates of the NRCS is to address market failu res through technical regulations in line with the 
provisions of the WTO Agreement on Technical Barriers to Trade in order to protect the public and the environment and by providing standards and ac creditation to regulators as policy tools. The SABS WT/TPR/M/222/Add.1 
Page 22  
 
  supports industrial development a nd national priorities through the de velopment and maintenance of 
sector specific South African National Standards and the National Metrology Institute of South Africa  
provides traceability of measurement done in industry and by accrediting service providers that provide testing, certification and verification services to industry that needs to proof compliance with 
regulations and standards.   
The Department of Trade and Industry finalised a technical regulatory framework that will bring 
legislators together to rectify possible overlaps and regulatory gaps between  government departments 
and the fragmented nature of the laws governin g the development of technical regulations. 
III. Trade Policies and Practices by Measure: (2) Measures directly affecting imports; 
(iv) Standards and other technical requirements; (a ) Standardization, testing, and certification: 
paragraph 84, page 305: 
The Secretariat Report states that, "An imported commod ity that is subject to a technical regulation 
would be deemed to comply if it has been certifi ed by a person or organization recognized by the 
Minister of Trade and Industry by notice in the Gazette."  
52. Could South Africa please elaborate on the specific  criteria that are used by the Minister of 
Trade and Industry to determine the compliance to technical regulations of imported commodities? 
III. Trade Policies and Practices by Measure:  (2) Measures directly affecting imports;  
(iv) Standards and other technical requirements;  (a) Sanitary and phytosanitary regulations: 
paragraph 87, page 306: 
It appears that South Africa has an established legislative framework for oversight of its SPS 
regulations. However, the Secretariat Report notes in its Summary Observations (page vii, 
paragraph 7) that SACU countries are generally  having difficulties in meeting WTO notification 
obligations.  
53. Could South Africa please elaborate on the systems/ methods it is putting in  place to surmount 
challenges with compliance to WTO SPS trans parency obligations, in particular notification 
of draft measures when comments c an still be taken into account? 
Response:  
The Minister does not determine specific criteria to determine the compliance to technical regulations 
of imported commodities. The Minister however es tablished the National Regulator for Compulsory 
Specifications who administer compulsory specifi cations which applies to imported and locally 
manufactured goods. The Regulator determines specific criteria to determine the compliance to 
compulsory specifications. 
Part IV. Trade Policies by Sector: (2) Agricu lture; Policy objectives and administration: 
paragraph 197, page 337: 
The WTO Secretariat report notes South Africa's low fill ratios for quota on certain agricultural 
products such as egg and milk.  
54. Could South Africa please elaborate as to the reasons behind the low fill rates on these 
products?  WT/TPR/M/222/Add.1 
 Page 23 
 
 
  Response:   
South Africa is in the process of evaluating its  WTO SPS notification procedures to align it better 
with the WTO SPS transparency obligations. 
Part IV. Trade Policies by Sector: (4) Mining , Energy and Water; (i) Mining; paragraph 223, 
page 343:  
Canada understands that the Department of Mines a nd Energy has been split into two departments.  
55. Could South Africa please confirm if our understanding is correct?  
Response:  Yes;  Department of Mineral Res ources and Department of Energy. 
56. Could South Africa please advise as to why the introduction of the Minerals and Petroleum 
Royalty Act (Act No. 28 of 2008) has been postponed? 
Response:   
The postponement was necessitated in order to prov ide relief to the industry due to the economic 
downturn. 
57. When is South Africa planning to introduce the Act given the economic downturn in the 
industry?  
Response:   
The Minerals and Petroleum Royalty Act, which was initially scheduled to be implemented on 
1 May 2009 and will come into effective from 1 March 2010. 
Part IV. Trade Policies by Sector: (4) Mining , Energy and Water; (i) Mining; paragraph 226, 
page 343:  
58. What effect(s) has the Mineral and Petroleu m Resources Development Act (MPRDA) had on 
new exploration and mining investment? 
Response:  
The Minerals Act primarily focused on surface reha bilitation and the primary emphasis of mining was 
economic gain. With regard to environmental management mining companies therefore complied 
with the absolute minimum requirements and followed a re-active approach to rehabilitation. In terms 
of the MPRDA before the approval of the E nvironmental Management Programme (EMP) the 
company has to itemise and determine the quantum  of financial provision for rehabilitation of 
environmental damage.  
After the development of aforementioned strate gy the subsequent step will be the actual 
implementation which will result into Rehabilitation, remediation, monitoring as well as research and 
development on the matter, to ensure sustainable solutions to the problem. 
59. Is the Department of Mineral Resources able to  maintain its stated turn-around times for a 
prospecting right and for a mining right? If 'no', how often is the Department delayed, how 
long is the average delay and what a re the main reasons for any delay? WT/TPR/M/222/Add.1 
Page 24  
 
  Response:   
In most cases the stipulated time frames in the MPRDA are met, however in certain instances there 
are delays which are mainly attributed to the applicant not meeting the said procedures.  
Part IV. Trade Policies by Sector: (4) Mining , Energy and Water; (i) Mining; paragraph 227, 
page 344:  
Canada understands that South Africa held the Secret ariat for the African Mining Partnership (AMP) 
and that the AMP was officially di ssolved in early 2009 by the Afri can Union Ministers Responsible 
for Mineral Resource Development. 
60. What role does South Africa envisage in terms of its involvement in the transition of the AMP 
Secretariat to the African Union Commission (AU), the body we understand will assume the Secretariat function? 
Response:   
The Commission of Trade and Industry of AU, working together with Ghana, South Africa and 
Ethiopia, were mandated at the AMP Mid Term Re view meeting to develop a draft transitional 
document for discussion and adoption at the 2010 AMP Plenary. It is envisaged that the serving AMP 
Executive Committee will form part of Specialised  Technical Committee (STC) within the framework 
on mining of the Conference of Ministers Re sponsible for Mineral Resources Development 
(CAMRMRD). 
61. Does South Africa foresee any loss of focus on mining issues within the AU, given the 
dissolution of the AMP?  
Response:   
The co-opting of the current AMP Executive Co mmittee into the STC on mining within the 
framework of the CAMRMRD will ensure among other things, alignment of current AMP Projects to the African Mining Vision and its implementation st rategy. In this way the STC will work towards 
maintaining the AMP mandate of helping meeting Nepad's objectives through mining. 
Part IV. Trade Policies by Sector: (4) Mi ning, Energy and Water; (i) Mining; Coal; 
paragraph 229, page 344:  
62. How is South Africa addressing the issue of  environmental impacts, particularly for 
abandoned coal mine sites?  
Response:   
To address the problems relating to derelict and ownerless mines, the Department of Mineral 
Resources has developed the national strategy for th e management of derelict and ownerless mines in 
South Africa.  
Part IV. Trade Policies by Sector: (4) Mining , Energy and Water; (i) Mining; Diamonds and 
precious metals; paragraph 232, page 345:  
63. Does South Africa foresee an in crease in the percentage of diamonds being locally 
processed?  WT/TPR/M/222/Add.1 
 Page 25 
 
 
  Response:   
Yes.  The Department of Mineral Resources (DMR) is currently assessing the prospect of a new 
business model for the State Diamond Trader (SDT ), which will allow the Trader to continue 
implementing its core mandate of promoting equ itable access to and beneficiation of diamond 
resources, as well as addressing distortions in the diamond industry and correcting historical market 
failures to develop and grow South Afri ca's diamond cutting and polishing industry. 
Part IV. Trade Policies by Sector: (6) Services;  (iii) Communications: paragraph 276, page 356: 
The Secretariat Report states that telecommunicati ons growth has been hampered by regulatory 
constraints restricting competition, especially the state semi-monopoly on fixed wire services, and the 
resulting high charges and inadequate services that penalize consumers, including businesses.   
64. How does South Africa plan to address the issue of regulatory constraints that hamper 
telecommunications growth? 
Response:   
In terms of its mandate, ICASA is fully empow ered to develop and enforce regulations on 
telecommunications matters that have either been  prescribed in the Telecommunications Act, are 
technical in nature, or are matters of procedure and form.  In terms of competition issues in the 
telecommunications sector, the South African Competition Commission and ICASA signed a Memorandum of Understanding in 2002 whereby they  have co-jurisdiction on competition issues. 
High charges in the telecommunications sector are th e subject of an investigation currently underway 
by the Competition Commission. 
Part IV. Trade Policies by Sector: (6) Services;  (iii) Communications: paragraph 280, page 358: 
The Secretariat Report notes that it is not clear how the access to the network is regulated in 
South Africa.  
65. Could South Africa please provide further info rmation on its measures related to access to 
and use of telecommunications networks?  
Response: 
ICASA has broad enforcement powers, in terms of  the Telecommunications Act (103 of 1996).  In 
summary, ICASA has the powers to enforce its decisions through sections 96, 100 and 101 of the Telecommunications Act. Section 100 of the Telecommunications Act deals with offences by 
licensees and section 101 deals with offences by persons (who are not licensees).  ICASA can investigate and adjudicate any alleged failure by one of its licensees to comply with a provision of the 
Telecommunications Act, its licence or any other ag reement entered into in terms of the Act (e.g. 
interconnection, facilities leasing). 
ICASA also has the powers in terms of this provisi on to enforce any decision it makes on a complaint 
from a customer or end-user against a licensee.   Th e Authority may, after investigation, if it finds a 
licensee guilty: direct the licensee to de sist from the action; direct them to pay a prescribed fine; direct 
them to take remedial steps; if the licensee has re peatedly been found guilty of the failure, revoke the 
licence.   
In terms of section 96 of the Telecommunications Ac t, ICASA has the power to make regulations on 
various issues that have either been prescribed in the Act, are technical matters, or are matters of WT/TPR/M/222/Add.1 
Page 26  
 
  procedure or form.  These regulations in turn provid e the Authority the scope to act to enforce certain 
provisions of the Act (eg in terms of s43 on Interc onnection, the Authority's enforcement powers with 
respect to interconnection matters are described). 
In addition, SA has adopted the Telecomm unications Reference Paper of the GATS. 
Annex 5. Swaziland
 
Part IV. Trade Policies by Sector: (3) Mini ng, Quarrying, and Energy; (i) Mining and 
quarrying; paragraph 164, page 447: 
66. Has the entire area of Swaziland been geologi cally mapped in order to identify and document 
the location of minerals?  
Response:   
Yes, Swaziland is covered in Geol ogical maps at the scales of 1:250  000 (1 map sheet), 1:50 000 
(3 map sheets) and 1:25 000 (4 map sheets) coveri ng the Southern extension of Barberton, Green 
Stone Belt (BGB) in Swaziland. 
Part IV. Trade Policies by Sector: (3) Mini ng, Quarrying, and Energy; (i) Mining and 
quarrying: paragraph 165, page 448: 
67. What terms and conditions make up the negotiating process between the Minerals 
Management Board (MMB) and a company?  
Response:   
The Minerals Management Board (MMB) advises  His Majesty The King and Ingwenyama on the 
overall management of minerals a nd making of grants, leases or othe r dispositions c onferring mineral 
rights or interest in respect of minerals, or mineral oil in Swaziland. The MMB negotiates with 
applicants and advises His Majesty The King and Ingwenyama, who grants the minerals rights. 
Part IV. Trade Policies by Sector: (3) Mini ng, Quarrying, and Energy; (i) Mining and 
quarrying: paragraph 166, page 448: 
68. Is Swaziland utilizing the expertise of inter national institutions/exp erts experienced in 
drafting mining and related legislation using an  international benchmark of best practices 
approach in its mining legislation review? 
Response:   
Yes. Swaziland (Ministry of Natural Resources and Energy) secured technical advisory services from 
the Commonwealth Secretariats Ec onomic Legal Section (ELS) of its  special advisory division to 
assist the mining legislation drafting committee. 
69. Does Swaziland expect the MMB will still be  engaged in the process outlined in 
paragraph 165 after the mining legislation review concludes? 
Response:  
The MMB is expected to continue being in office and executing its mandate even after the conclusion 
of the Mines and Mineral Bill 2009.   WT/TPR/M/222/Add.1 
 Page 27 
 
 
  Part IV. Trade Policies by Sector: (5) Services;  (ii) Telecommunications and postal services: 
paragraph 201, page 455: 
The Secretariat Report notes that in 2008 the mobile market was opened to competition.  
70. Could Swaziland please elaborate on the process and the licensing requirements for a new 
company to enter the mobile telecoms market? 
Response:   
An application is sent to the Board of Direct ors of the Post and Telecommunications, National 
Licensing Authority for consideration and approval.  
RESPONSES TO QUESTIONS FROM CHILE 
INITIAL QUESTIONS 
(2) C USTOMS PROCEDURES AND EVALUATION  
The Secretariat points out in this connection that SACU members adopted a number of initiatives in 
order to promote harmonization and facilitate trade.  However, it states that these customs 
procedures have not yet been harmonized and some  differences remain in the regulations and 
administrative procedures in the member countries of  the Customs Union.  What kinds of measures 
were adopted during the period under review to facilita te trade?  Is there any initiative to continue 
implementing this type of measures in order to harmonize customs operations?  If so, what are the 
priority measures to be implemented? 
Response: 
The key trade facilitation instruments in SACU incl ude the application of similar legislation with 
regard to customs and excise duti es; promoting Customs cooperation; and the use of common customs 
documentation, including the adoption of a uniform  SACU Single Administrative Document (SAD) 
form as a customs declaration document for a ll SACU trade and adoption of uniform Customs 
Procedure Codes to be used in conjunction with the SAD form.  
Efforts to promote the key tenets of trade facilita tion within SACU during the review period included 
the development and implementation of programm es for the key customs initiatives on Capacity 
Building, a Single Administrative Document; Joint Border Controls, Capacity Building Electronic 
Data Interchange and the establishment of One St op border posts. In addition support instruments to 
facilitate trade, including Annexes on Mutual Administrative Assistance and on Procedures to 
Facilitate the Issuance of Supplier Declarations, were  developed. Efforts to develop modern customs 
administrations in SACU also continued with a comprehensive Customs Reform and Development 
Programme adopted with implem entation commencing in 2009.  
(3) T ARIFFS AND OTHER CHARGES  
According to the Secretariat Report, the tariff structure has been somewhat simplified, since 
compound duties are no longer applied.  The report goes on to say that between 2002 and 2009, the 
percentage of tariff lines bearing ad valorem rates increased from 75% to 96.8%.  Does the SACU 
intend to continue this tariff simplification process in the near future in order to achieve 100% of 
tariff lines bearing ad valorem applied rates?  If so, what would be the time period for achieving that 
target? WT/TPR/M/222/Add.1 
Page 28  
 
  Response: 
There is no decision to further converting the remaining complex to ad valorem  tariff. 
SECOND GROUP OF QUESTIONS 
REPORT BY THE KINGDOM OF SWAZILAND 
II. ECONOMIC REFORM PROGRAMME 
(4) E
XPANDING THE EXPORT BASE THROUGH ECONOMIC DIVERSIFICATION  
Paragraph 22 states that a draft Agriculture Divers ification Strategy has been developed.  Could 
Swaziland please provide further deta ils regarding this draft strategy? 
Response:   
The Strategy seeks to address supply side constraints in the Agricultural Sector and also highlight 
advocates for the diversification of farming of tr aditional crops such as sugar cane and maize but to 
venture in areas such as cassava, baby vegetables and many more. 
RESPONSES TO QUESTIONS FROM CHINA 
REPORT BY THE SECRETARIAT 
I.  ECONOMIC ENVIRONMENT 
(3)  T RADE AND INVESTMENT PERFORMANCE  
10. Inflows of foreign direct investment (FD I) into SACU remain low on a global scale, 
notwithstanding their sustained growth trend. 
Question 1 What policies will SACU countries adopt to attract more inflows of FDI? Response from Lesotho: 
The SACU Agreement does not cover investment. As such Members deal with the issue individually. 
The GoL remains committed to providing foreign inv estors with the freedom to invest in non-reserved 
areas of activities while benefitting from national treatm ent. In addition to spec ific sectoral incentives, 
Lesotho's broad policies to attract more FDI inflows include
1: 
 Ease administrative costs associated  with doing business in Lesotho.   Establishment of an 
investment promotion centre in LNDC and a One Stop Business Facilitation Centre within 
MTICM.  The investment promotion centre acts as a one-stop centre to assist foreign 
investors during the pre- and post-investment period by offering services such as registration 
of a company, acquisition of a manufacturing li cense, concessions, connection to utilities etc.  
The OBFC facilitates the licensing process, and the issuance of residence and work permits, 
import and export visas etc.  GoL is committed to  using the OSBFC as a platform for reforms 
to put in place efficient mechanisms that facilita te the issuance of investor residence and work 
permits within a reasonable time frame. 
                                                      
1 Ref: Lesotho Investment Policy Document.  WT/TPR/M/222/Add.1 
 Page 29 
 
 
   Foreign exchange regulations .  No foreign exchange controls are placed on foreign firms 
operating within Lesotho and foreign investor s have access to bank administered foreign 
currency accounts.  
 Taxation .  Foreign investors in Lesotho are liable to capital gains tax on all business assets 
and are only taxed on Lesotho sourced capital gain s.  Capital gains are treated as ordinary 
income and are thus subject to income tax at the standard progressive rates of 25% or 35% in 
the case of individuals, and a flat rate of 25% in  the case of companies.  VAT also applies and 
there is an import VAT credit facility that provi des for an input tax credit when an investor 
has imported or locally sourced raw materials a nd capital goods.  A tax rate of 10% applies to 
enterprises that promote industrial scientific, e ducation or other development gains within 
Lesotho.  Also in determining the taxable inco me of a foreign investor, a deduction of 125% 
of the expenditure granted on the training or tertiary education of a citizen of Lesotho 
employed by the foreign subsidiary is allowed.  However, this is subject to approval by the 
Commissioner of Income Tax. Lesotho maintains double taxation agreements with South Africa, Germany, Mauritius and the United Kingdom. 
 Linking small and large scale enterprises .  Foreign investors will benefit from planned 
capacity building and risk management pr ograms for small businesses under BEDCO as it 
will enable large enterp rises to reduce labour costs associat ed with subcontracting to small 
enterprises.  In the long run, program will help  reduce import of some raw materials and thus 
reduce the cost of storage for enterprises involved. 
 Labour and employment conditions.   Lesotho has proactively developed its labour policy to 
focus on sustaining a competitive advantage over al ternative locations for FDI in the textile 
and garment industry.  Labour in Lesotho has a relatively high educational level and low cost 
which makes it easier to train and retain.  Ther e is continuous commitment to market-driven 
training opportunities to increase overall labour productivity. This balance between 
productivity and labour costs is expected to have a positive impact on the production 
capabilities of the country and will be benefi cial for investors based in Lesotho. 
 Environmental management.   All significant investment projects in Lesotho are required to 
submit an environmental impact assessment to the Environment Authority which is responsible for setting and enforcing environmenta l standards.  The Authority also provides 
clear information to investors on their envir onmental responsibilities and the machinery to 
ensure their obligations can be dealt w ith in a prompt and professional manner. 
Response from Botswana: 
The 2002 SACU Agreement covers goods only and does not provide for discussion on investment 
issues. The responsibility to address investment is sues rests with the individual members states.  
Botswana is currently finalizing her investment st rategy which will address both domestic and foreign 
investment issues. The initiatives geared towards attracting investme nt are currently undertaken by 
different Ministries and institutions hence the need  for a national investment policy which will guide 
the process. 
(4)  O UTLOOK  
12. In particular, work on coherent policy formul ation in the areas of agriculture, industrial 
development, competition and unfair trade practices is still at an early stage. WT/TPR/M/222/Add.1 
Page 30  
 
  Question 2 
Could SACU countries please indicate whether it has a time schedule for policy harmonization 
concerning competition and unfair trade practices? 
Response: 
SACU is currently developing Annexes on Unfair Trade Practices and on a Cooperation Mechanism 
on Competition Policy. Once completed, these will fo rm annexes to the 2002 SACU Agreement in 
terms of Article 42 of the Agreement.  
The process of developing these Annexes is at an adva nced Stage.  However, this is linked to the 
capacity of Member States to develop and implement these Annexes, which require that all Member States should have competition legislation in place.  Currently, SACU Member States are at varying 
stages of developing policy and legislation.  
II.  THE COMMON REGIME 
(3)  T
RADE AGREEMENTS AND ARRANGEMENTS  
(i)  Participation in the WTO 
45. SACU countries have multiple, and sometimes vari ed, interests in the WTO, including on issues 
specifically related to the on-going DDA negotiations. 
Question 3 Could SACU countries please elaborate on what efforts have been made to coordinate their interests, 
especially when they are varied? 
Response: 
The highest decision making body within SACU is the Council of Ministers, which is the supreme 
body responsible for the overall implementation of policies of SACU. In 2006, Council directed that 
SACU should enter all trade negotia tions, multilateral and bilateral, as a unit. This was done in order 
to ensure the integrity of the Common External Ta riff of SACU. In order to give effect to this 
directive, Council further decided on the principle fo r Member States to meet prior to any negotiations 
to develop common negotiating positions. In th e development of the common positions, Member 
States take into account the varying interests that may exist amongst Member States, which are often 
linked to the varying levels of economic development within SACU. 
In addition, Article 31 of the 2002 SACU Agreem ent provides for a common negotiating mechanism, 
which, once established, will further assist in stre amlining and coordinating the varying interests of 
Member States. 
(iv)  Relations with the European Communities 
(vi)  Free-trade agreement between SACU and EFTA 
(vii)  Preferential-trade agreement between SACU and MERCOSUR Question 4 It would be helpful to know how SACU countri es define the relationship between multilateral trade 
liberalization and regional trade agreements.  WT/TPR/M/222/Add.1 
 Page 31 
 
 
  Response: 
SACU remains committed to the multilateral process a nd views it as an important tool for the stated 
objective of integrating SACU Member States into the global economy. SACU Member States have been active participants in the Doha Developmen t Round negotiations and support calls for the speedy 
conclusion of the talks. SACU Member States also support the objectives for the negotiations as 
expressed by developing countries, especially that the outcome should be pro-poor and 
pro-development.  
SACU subscribes to the view that regional trade agreements are complementary to multilateral trade 
liberalisation initiatives. As such, they should supp ort the multilateral processes underway to free up 
world trade. Whereas regional trade agreements ar e aimed at strengthening regional synergies, 
building on comparative and competitive advantages, multilateral trade liberalization efforts should be 
aimed at providing meaningful ma rket access for developing countries, while also guarding against 
the potential negative impacts of trade distorting support measures on the economies of developing countries. SACU countries therefore remain committ ed to the multilateral process, while at the same 
time they will continue to explore opportunities for strengthening trade relations with important 
trading partners, specifically South-South trad e relationships. In negotiating regional trade 
agreements, the guiding principles are based on the WTO GATT provisions. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(4)  C
ONTINGENCY TRADE REMEDIES  
95. As a result of their SACU membership , all SACU members must apply anti-dumping, 
countervailing or safeguard measures imposed by South Africa, through  investigations conducted by 
the International Trade Administration (ITAC) of South Africa on behalf of all SACU countries. 
Question 5 Could SACU countries please explain the rationale for this practice? Response: 
The SACU Agreement provides for the establishmen t of, amongst others, specialized, independent 
and dedicated National Bodies in each of the Member  States (or the designation of institutions) which 
shall be entrusted with receiving requests for tariff changes and other related SACU issues.  
While the BLNS countries are in the process of establishing National Bodies, and the Tariff Board 
establishment also in the process, the Council of Ministers appointed ITAC to conduct, amongst others, trade remedy investigations on behalf of all the Members of SACU, with opportunity for other 
SACU Members to provide comments and input into the investigation process. 
(5)  S
TANDARDS AND TECHNICAL REGULATIONS  
120. According to Articles 28 and 33 of the 2002 SA CU Agreement, there should be harmonization of 
technical regulations and product standards, and sanitary and phyto sanitary measures. However, 
SACU countries do not have a common policy on these issues. 
Question 6 
Given that goods are expected to flow freely with in SACU, does SACU envisage harmonization of 
technical regulations and standards and SPS measures in the future?  WT/TPR/M/222/Add.1 
Page 32  
 
  Response: 
SACU has initiated work in defining an approach for SACU to give effect to the provisions of 
Article 28 on Technical Barriers to Trade. However, this work is still in its infancy and cooperation 
proposals on technical regulations and products st andards are still being considered by technical 
experts.   
In the area of sanitary and phytosanitary measu res, the 2002 Agreement recognises Member States' 
right to apply SPS measures in accord ance with their national laws and international standards. There 
is no requirement for harmonization of these measures. However, a system of notification, consultation and monitoring of these measures is in place under the auspices of the Agricultural 
Liaison Committee established in terms of Article 12.  In addition, SACU Member States are all 
WTO Members and they participate in the work of the WTO Committee on SPS.  
RESPONSES TO THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, 
KINMEN AND MATSU 
WTO SECRETARIAT REPORT (WT/TPR/S/222)
 
ANNEX 1: BOTSWANA (WT/TPR/S/222/BWA)  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(vii) Local-content requirements  
(Page 90, paragraph 111)  
As the Report indicates, local-content requirem ents are an important element in Botswana's 
government procurement policy.  
It would be appreciated if more detailed informat ion on this aspect of Botswana's government 
procurement policy could please be provided? 
Response: 
Government procurement policy is used to promot e participation of companies based in Botswana. 
ANNEX 4: SOUTH AFRICA (WT/TPR/S/222/ZAF)  
II.  TRADE AND INVESTMENT REGIMES 
(1)  G ENERAL  
(Page 289, paragraphs 25 and 26)  
Based on the Broad Based Black Economic Empowerment  Act of 2003, South Africa's policy of black 
economic empowerment (BEE) aims to realize the count ry's full economic potential.  The BEE Act is a 
sector-wide generic scorecard, which measures corp orations' empowerment progress in four areas.  
It seems to us that the legislation is centred on government procurement, which is an exception to the 
principle of National Treatment. However, a closer  look at the scorecards suggests that it favours 
local over foreign producers and exporters, a finding  that has raised our cause for concern.   WT/TPR/M/222/Add.1 
 Page 33 
 
 
  It would appear that BEE companies, while biddi ng on public tenders and eager for good ratings on 
the scorecard, prefer other BEE companies to forei gn ones when it comes to procurement or 
partnerships. This practice tends to lead to a "chain of compliance" effect, with chains of companies 
rather than single companies working to win governme nt procurement projects. The first link in the 
supply chain is obviously not covered by WTO rul es, as in the above-mentioned exception to National 
Treatment, while the dow nstream links are covered. 
Examples of two specific elements of the scorecard are as follows:  Ownership
 sets out compliance targets of a 25% + 1 share of voting rights and 25% of economic 
interest, which refers to company ownership, and to black people. These targets would most likely be 
deemed in breach of the GATS market access rules, Article XVI. 
Under the preferential procurement  policy, companies are expected  to apply BEE criteria when 
procuring from other companies, i.e. 70% of tota l procurement is to be based on BEE criteria.  
The resulting "chain of compliance" effect is likely to lead to restricti ons on importe d goods and 
services, favouring local content production, whic h would be inconsistent with the National 
Treatment principle of the GATT. 
It would be appreciated if this probable violation of the National Treatment principle could please be 
investigated as soon as possible. Could an explanation and ⁄or details of how South Africa plans to 
bring its policies and legislation into line with WTO rules and principles kindly be provided? 
Response: 
In our view the envisaged "chain of compliance" ef fect would neither lead to restrictions on imported 
goods and services nor favour local cont ent production. In addition, South Africa is not a signatory to 
the Plurilateral Agreement on Gove rnment Procurement. In terms of Article III:8(a) of GATT, 
procurement by government and its agencies not  intended for commercial resale lies outside the 
purview of national treatment. It should be born e in mind that most international multinational 
companies that have a presence in South Africa ar e active partners in joint ventures with BEE 
companies. 
III.   TRADE POLICIES AND PRACTICES BY MEASURE  
(4)  M EASURES AFFECTING PRODUCTION AND TRADE  
(ii) State trading, state-owned enterprises, and privatization   
(Page 320, paragraph 141)  The Report states that, according to the aut horities, the commercialization and/or partial 
privatization of some SOEs was virtually put  on hold during the review period because the 
programme had been relatively unsuccessful.  During 2001-2008, only one SOE was sold. 
Our questions are as follows:  
(i) Is there any privatization plan for 2009?  
Response:  
From 2004 government shifted its role from prepari ng SOE for privatization to providing oversight 
management to SOE to ensure that they are sust ainable businesses that provide economic benefit to 
the country.  WT/TPR/M/222/Add.1 
Page 34  
 
  (ii) Is there any limit on foreign investment in the privatized SOEs? 
Response:  
There is no privatization plan for 2009. There are no limits tot foreign ownership in principle, but on a 
case by case basis such limitations maybe imposed (such as in the defence industry). 
RESPONSES TO QUESTIONS FROM COLOMBIA 1. What is the basic scheme for the development of  SACU's economic integration process?  What 
are the characteristics and structure of the SACU  Common External Tariff?  What treatment is 
applied to agricultural products? 
Response: 
The SACU Agreement establishes a custom union w ith a Common External Tariff, providing for free 
movement of goods grown, produced or manuf actured in the Common Customs Area amongst SACU 
Member States. In addition, Member States do not  impose any duties on goods which were imported 
from outside the Common Customs Area should they  be traded within the Common Customs Area, 
unless otherwise provided for in the SACU Agreement.  
In order achieve these objectives, the Agreement also makes provision for the establishment of 
common institutions and mechanisms and the development of common and harmonization of 
common policies and procedures.  
Following the Uruguay Round, the SACU tariff struct ure has undergone significant liberalisation. The 
average applied rate declined from approximately  24% in 1990 to 8% in 2008. Complex duties that 
comprised 25% of all tariffs, now comprise onl y 3%, and the proportion of duty-free lines is 53% 
compared to 45% in 1990. The remaining duties vary from low to moderate depending on the 
sensitivity of the sector. The structure of the SACU tariff is determined by developmental industrial 
policy imperatives. 
2. What are the main features of the tariff ref orm programme which South Africa proposes to 
implement in order to moderni ze its industrial production sector? 
Response:  
The tariff reform programme aims to facilitate diversification beyond our current reliance on 
traditional commodities and non-tradeable services . This requires the promotion of increased 
value-addition per capita characterized particularly by movement into non-traditional tradeable goods 
are competitive in both export markets and the domestic economy. 
South Africa has undertaken a major review of its tariffs and has made the following announcements: 
On 12 June 2009 and 10 July 2009 respectively, th rough official announcements in the Government 
Gazette, the duties, previously in the 5% to 10% interval, on a variety of yarns and lace, for the 
manufacture of clothing, covering 35 tariff lines, have been reduced to free of duty.  
On 24 July 2009, the duty on aluminium bars, rods , and wire, covering 10 tariff lines previously at 
5%, has been removed, while the duty on semi-fabricat ed aluminium profiles, plates, sheets, strip, and 
foil (11 tariff lines), has been reduced from 10% to 3. 8% and will be further reduced in steps to free of 
duty by 2012.  WT/TPR/M/222/Add.1 
 Page 35 
 
 
  On 14 August 2009, via an announcement in the Go vernment Gazette, the duties, previously at 15%, 
on a range of product categories such as organic a nd inorganic chemicals, certain primary plastic 
polymers, and semi-manufactures such as plates, sh eets, film, foil, and strip of plastics have been 
reduced to zero (66 tariff lines) for certain polymer s and basic chemicals such as solvents and to a 
lower level of 10% (75 tariff lines) for organic ch emicals and semi-manufactures. The duty on certain 
organic surface-active agents and primary plastic pol ymers of ethylene, propylene, styrene, vinyl 
chloride, and vinyl acetate, covering 8 tariff lines previously in the range 15% to 20%, has been 
reduced to 3.8% and 7.6% and will be further reduced in steps to free of duty by 2012.  
Also on 14 August and also through publication in  the Government Gazette, the duties on the 
following products covering 30 tariff lines and prev iously ranging between 5% and 20% have been 
reduced to zero.  
In total 235 tariff lines have been reduced to zero.  
3. What are the characteristics of export incenti ve policies within SACU?  What have Namibia and 
South Africa achieved in implementing their in centive schemes in designat ed export processing 
or industrial development zones? 
Response from Namibia: Foreign direct investment linked to designated e xport processing zones has resulted in market and 
product diversification, value addition to raw materials and transfer of technology. 
Response from South Africa: 
IDZs are considered amongst the most dynamic and effective tools South Africa has to attract FDI. 
During the last few years a number of significant foreign investments were made in these zones. 
Response from Swaziland: 
Swaziland has import rebate scheme under the tex tiles and clothing sector, agricultural rebates, 
industrial rebates and also the Textiles and Clot hing Development Programme also under the Textiles 
and Clothing Sector. It further operates an Export Guarantee Scheme for SMMEs. 
4. In view of the common monetary area with S outh Africa within the Customs Union, what 
difficulties is SACU encountering in its progress towards harmonization of fiscal and investment 
policies? 
Response from Namibia: 
Exchange controls in the CMA are still legislat ed by laws (and their amendments) from the 1930s; 
these do not fully account for today's legislative needs regarding harmonisation/alignment also 
according to international best practices. 
Due to limited fiscal space, fiscal and investment  policies can seldom meet the real needs of the 
productive sectors to become competitive a nd be aligned to th ose offered in SA. 
Within the SADC harmonisation process, fiscal and investment policies need to be 
aligned/harmonised too. Here e.g., tax incentives ar e to be phased out. However, fiscal space does not 
allow for substitution measures through e.g. su bsidies, which are generally acceptable under 
SACU/SADC agreements. WT/TPR/M/222/Add.1 
Page 36  
 
  Response from South Africa: 
The SACU agreement does not provide for harmonization of fiscal and investment policies.  
Response from Swaziland: 
Currently, Swaziland is in the process of finalizing it s Investment Policy and will be ready to facilitate 
fully in the harmonization process. 
5. What are the policies within SACU for moderniz ing the services sector, in particular financial, 
energy, transport and telecommunications services?  Are there plans to open up to private 
operators in areas such as energy and mining in countries where these are key components of the 
economic structure (chiefly South Africa, Namibia and Botswana)? 
Response from Namibia: 
The supply and pricing of petroleum products in  the sub-region (Botswana Lesotho, Namibia, 
South Africa and Swaziland) is co-coordinated by th e Interstate Oil Committee (IOC). The main role 
of this committee is to ensure, through joint proc urement, the availability of petroleum products 
within the SACU region. In recent years the IOC has reached common agreement amongst its 
members on issues related to cross-border trade in petroleum products. In particular, this committee 
ensures, through joint procurement, the availability of petroleum products within the SACU region. It 
has also managed to have the specifications and po licies within region to be harmonized as a way to 
which cross border trade in southern Afri ca in petroleum products can be improved. 
Policies: 
• security of supply:
  ensure security of supply of petroleum products relating to the 
procurement of and trade in crude oil and refined petroleum products;  
• availability of petroleum products and fair-price regulation:   ensure availability of petroleum 
products, and fair-price regulation by facilitati ng an efficient supply and distribution of 
petroleum products to and within the Member States; 
• proper control of petroleum products:   ensure proper control of petroleum products at the 
borders. 
With regard to opening up for private operators in  the energy sector Namibia has started with the 
process of the Energy Regulatory Framework review in order to harmonize its national Energy policy 
frameworks. However at this point in time, an IPP framework has been developed by the ECB to 
guide the National Utility Company (NamPower) in the process for inviting private sector for the 
implementation of some power projects.  
Response from South Africa:  
SACU already has a modern services sector. Th e economy is a relatively open economy to foreign 
investment and multinational companies are active in all sectors.  
Response from Swaziland: 
Swaziland has various Acts in the different sector s that inform operations within that sector.  WT/TPR/M/222/Add.1 
 Page 37 
 
 
  6. Are import controls maintained within SACU on petroleum, petroleum products and other 
mineral fuels?  Is the surcharge on imports of petroleum and bituminous oils still in effect? 
Response from Namibia: 
Yes, import controls are still being maintained in  the SACU region although imports of petrol and 
diesel are tariff free. The surcharge of petroleum products: of N$0.12 per litre of petrol and 
N$0.10 per litre of diesel is still in force; and an ex cise duty of N$0.04 per litr e being collected at the 
refinery gate goes into the SACU pool and is still applicable on all imports from RSA. 
Response from South Africa:  
There is import control in RSA on petroleum products to ensure sufficient supply. There is no 
surcharge on imports of petroleum or bituminous oils in RSA. 
Response from Swaziland:  
There are no import controls in place on petrol eum, petroleum products and mineral fuels. 
RESPONSES TO QUESTIONS FROM THE EUROPEAN COMMUNITY 
A. Reports by Members of the Southern African Customs Union  
Report by Botswana  
Question 1:  
Page 8, Paragraph 9 Botswana states that it is "in the process of establis hing a National Body (a s per Article 7 of 2002 
SACU Agreement), which will be responsible for international trade administration". 
Could Botswana explain how this National Bo dy will work with the SACU Secretariat? 
Response: 
Once the National Body is requested to investigate an allegation of dum ping or a related matter, it will 
inform the SACU Secretariat, which will accordingl y inform the National Bodies of the other SACU 
countries. The National Body of the particular count ry where the investigation is to be undertaken 
would then commence the investigations. The Na tional Bodies of the other SACU countries would 
then support the process, being interested parties.  The National Body will make recommendations to 
the SACU Tariff Board. The Tariff Board would re view the recommendations of the National Body 
and advice Council accordingly. The SACU Secretariat will play a facilitating role to the work of the 
Tariff Board, acting as its Secretariat. 
Question 2:  
Page 8, Paragraph 10 Botswana states that it "will continue negotia ting favourable market access for her goods and 
services as well as developing Policies and St rategies to support her trade agenda". 
How will this be compatible with the management  of SACU Common External Tariff and other 
common policies under SACU? WT/TPR/M/222/Add.1 
Page 38  
 
  Response: 
The position taken by Botswana will be in the context of SACU negotiations. 
Report by the Kingdom of Lesotho  
Question 3:  
Page 8, Paragraph 10 
How does Lesotho see its LDC status compatible  with the management of the SACU Common 
External Tariff?  
Response: 
Lesotho requires further clarification before sh e will be able to respond to this question. 
Question 4:  
Page 17, Paragraph 18 
The government of Lesotho stresses the continued im portance of the textile and clothing sector for 
Lesotho's economic growth.  
If the tariffs of the Trade and Development Cooperation Agreement (TDC A) between the EC and 
South Africa were aligned with those negotiate d between the BLNS countries and the EC in the 
interim EPA, would that be detrimental to  Lesotho's textile exports to the EC? 
Response: 
Negotiations are still on-going, therefore the outcome  of the negotiations is yet to be finalised.   
Question 5:  
Page 17, Paragraph 18 If the TDCA rules of origin (on textile), negotia ted between the EC and South Africa, were aligned 
with those negotiated between the BLNS countries and  the EC in the interim EPA, would that be 
detrimental to Lesotho's textile exports to the EC? 
Response: 
Negotiations are still on-going, therefore the outcome  of the negotiations is yet to be finalised.   
Question 6:
 
Page 20, Paragraph 43 
How does Lesotho asses the compa tibility of the SADC FTA commitments with its LDC status? 
Response: 
Lesotho requires further clarification before sh e will be able to respond to this question.  WT/TPR/M/222/Add.1 
 Page 39 
 
 
  Report by Namibia  
Question 7:  
Page 25, Paragraph 21 Namibia is currently enjoying duty-free and quota free p references for all its ex ports to the EU. These 
preferences, which are conditional  upon Namibia's signature of the EPA, are very important for 
Namibia's development, notably in the area of b eef, fish and grapes. In this context, is Namibia 
considering signing the EPA in the near future? 
Response: 
Namibia is looking forward to the continuation of  the negotiations of the EPA Agreement with the 
mutually accepted purpose of resolving the outstanding negotiating issues.  
B. WTO Secretariat's Report
 
SUMMARY OBSERVATIONS Page vii, Paragraph 1  
Namibia has recently been reclassified as "upper middle-income country".  
Response: 
While Namibia takes cognisance of the reclassifi cation by UN, the observation is that, this 
reclassification does not take cognisance of the real socio-economic realities that prevail in Namibia, 
especially taking into consideration the fact Na mibia is one of the countries with the highest 
Gini-coefficient in the world.  
Page vii, Paragraph 8  
In addition to Swaziland, Namibia is also a member of COMESA. 
Response: Namibia is no longer a member of COMESA since 2005. 
Question 8:
 
Page viii, Paragraph 13 It is stated that "the use of formula duties based  on reference prices does not ensure conformity with 
obligations under the WTO Agreement on Customs Valuation." 
Could the members of SACU indicate their practices in relation to "reference prices"? Could an 
explanation of the term "reference price"  be provided in this context? 
Response:   
South African Customs Union does not use reference pr icing as an indication of value. It is however 
used as an indication of risk to identify possible under declaration of customs value. WT/TPR/M/222/Add.1 
Page 40  
 
  II.  THE COMMON REGIME 
(2)  S
OUTHERN AFRICAN CUSTOMS UNION  
(ii)  Institutional structure 
Question 9:  
Page 7, Paragraphs 30-31 
Could SACU members indicate the envisaged tim eframe for the SACU Tariff Board to become 
operational?  
Response: 
SACU has started the process of establishing the SA CU Tariff Board. The SACU Tariff Board is not 
functional as yet, although it is expected that it will be in operation within the next two to three years.   
(iii)  Common revenue pool and sharing formula Question 10:
 
Page 7, Paragraph 32 
Could SACU members indicate which statistics on intra-SACU trade are used to calculate the 
customs component of the revenue-sharing fo rmula? Are these official harmonised data on 
intra-SACU trade flows, and if so , are these publicly available? 
Response: 
Member States are required to submit actual intra-SACU Imports and exports for the most recent 
financial year for which such data is available. Th e data is then scrutinised  by a committee composed 
of trade data experts from all Member States. The da ta is reconciled by chapter and month to ensure 
one country's reported imports correspond to anot her's reported exports. Th e reconciled data is 
published in the SACU Annual Report, wh ich is available on the SACU website. 
Question 11:  
Page 7, Paragraph 32 
Could SACU members inform whether a review of the current revenue-sharing formula is being 
considered, and if so, whether any specific proposal has been put forward?  
Response: 
Any review of the revenue-sharing fo rmula would have to be undertaken in line with the provisions of 
the SACU Agreement. At this stage, no official proposal has been tabled at the SACU Council of 
Minister to review the current revenue-sharing formula. The current formula therefore is still 
applicable for sharing revenue amongst SACU Member States. 
Question 12a:  
Page 8, Box II.1 In Box II.1 an example is given with the 2002  SACU Agreement revenue-sharing formula applied to 
1998/99 trade data.  WT/TPR/M/222/Add.1 
 Page 41 
 
 
  a) Could more recent trade statistics be provided so  that the calculation could be updated to 
illustrate the current situation? 
Response: 
Table 1 presents Intra-SACU Import Statistics for the Purposes of Revenue Sharing. 
Table 1 
Intra-SACU import statistics 
(Rand millions) 
Intra-SACU 
imports 2002/03 for 
2005/06 shares 2003/04 for 
2006/07 shares 2004/05 for 
2007/08 shares 2005/06 for 
2008/09 shares 2006/07 for 
2009/10 shares 
Botswana 17,164.74  16,520.23  19,083.36  16,878.56  18,233.29  
Lesotho 8,072.62  7,927.53  8,358.23  8,483.02  9,638.15  
Namibia 13,943.12  16,586.73  13,542.51  15,336.44  17,367.65  
South Africa 7,045.30  13,099.43  10,266.18  13,423.75  13,597.67  
Swaziland 12,453.17  10,937.45  15,162.34  10,667.22  10,195.12  
Question 12b:  
b) Could SACU members provide data on how  the use of the 2002 SACU Agreement 
revenue-sharing formula has impacted the respective shares of revenue of Botswana, Lesotho, 
and Swaziland over the years si nce it has been in use? 
Response: 
Table 2 presents an overview of trends in Member States revenue shares. 
Table 2 
Trends in revenue shares 
Revenue shares 2005/06 2006/07 2007/08 2008/09 2009/10 
 (% share of CRP) 
Botswana 16.00  16.39  19.13  17.82  17.63  
Lesotho 7.92  8.22 8.78 9.22 9.46 
Namibia 12.89  15.93  13.81  16.00  16.52  
South Africa 52.02  48.67  47.75  45.65  46.41  
Swaziland 11.16  10.79  10.54  11.31  9.98 
(3)  T RADE AGREEMENTS AND ARRANGEMENTS  
Question 13:  
Could SACU members elaborate on their genera l approach to addressing social and labour issues 
within trade agreements? 
Response:  
SACU has not included any references to social or labour issues in the trade agreements it has signed 
as a Customs Union with third parties. WT/TPR/M/222/Add.1 
Page 42  
 
  (vi)  Preferential trade agreement between SACU and MERCOSUR 
Page 14, Paragraph 69 
The report notes that MERCOSUR and SACU conc luded a preferential trade agreement in 2008.  
Question 14:
 
Page 13, Paragraph 58  
We would like to invite Botswana, Lesotho, and Swaziland (BLS) to outline how they intend to 
implement the commitments undertaken in the in terim EPA. Specifically, could BLS comment on the 
following points: 
a) What is BLS assessment of their administra tive capacity to implement the interim EPA 
and in particular benefit from the duty-free- quota-free market access the EC has offered 
to all products under this agreement? 
Response: 
The modalities for implementing the IEPA by the BLS are still being negotiated by SADC EPA States 
and the European Commission. The implementation of the IEPA BLS requires resolution of the 
outstanding concerns expressed by some SADC EPA Members States. 
b) What type of assistance does BLS expect to require in this regard? 
Response from Botswana: 
SACU countries have the capacity to implement the IEPA. The assistance required would be to 
resolve the outstanding concerns. 
The EPA is not limited to trade but extends to incl ude development support. The following are areas 
where Botswana will require assistance: 
− human and institutional capacity-notification; 
− tariff administration; 
− trade facilitation; 
− specialist training in standards and technical regulations (SPS and TBT); local conformity 
assessment services (certification, testing, calibration and inspection) is required to make the 
MRA meaningful; development of policy; 
− rules of origin; 
− initiatives which support implementation of the N ES, particularly in the priority export 
sectors (collaboration and support in productio n, promotion and distribution efforts). 
c) Will the implementation of these commitment s require an adaptation of the SACU Trade 
Protocol? 
Response: 
It is not clear what "the SACU Trade Protocol is".  WT/TPR/M/222/Add.1 
 Page 43 
 
 
  Question 15:  
Could SACU members describe the main elements of  this agreement? What is the coverage in terms 
of tariff lines and imports value?  
Response:  
The agreement between MERCOSUR and SACU is a Preferential Trade Agreement (PTA) aimed at 
promoting trade between the two sides on a selected  number of products. It contains approximately 
1100 tariff lines on both sides for which preferences will be granted. Margins of preference range 
from 10, 25, 50 to 100% and will come into eff ect immediately upon implementation of the 
agreement. 
Under the PTA, SACU is granting preferences on  a number of product lines, including fish and 
fisheries products; prepared and preserved fruits and vegetables; certain clothing and textiles lines; as 
well as a number of other industrial and manufactured  products.  Specific preferences were offered to 
Paraguay and Uruguay for boneless beef, durum wheat, so ya beans and soya bean oil, sunflower oil, 
as well as some clothing tariff lines.  
MERCOSUR is offering preferences on a wide variety of  products of export interest to SACU.  These 
include live animals, fish and fisheries products, chemical products, as well as a variety of 
manufactured products, including electronic equipment. 
In addition to the preferences offered, the PTA also  includes provisions on rules of origin, safeguard 
measures, technical barriers to trade, sanitary a nd phytosanitary measures, dispute settlement and the 
administration of the agreement. It also incl udes an annex on mutual administrative assistance. 
Question 16:  
Could SACU members enumerate the products t hat have been excluded from the agreement?  
Response: 
The agreement includes a selected number of ta riff lines for which margins of preferences were 
offered. These were outlined in th e response to question 15. All the other products not included in the 
lists for which preferences were exchanged are au tomatically excluded from the agreement and will 
be traded under MFN conditions. 
Question 17:  
Could SACU members confirm whether this agreemen t has already been impl emented, and therefore, 
the related preferential treatment is applied? 
Response:  
The agreement is still subject to ratification pr ocedures on both sides and has therefore not been 
implemented at this stage. As a result, no preferential treatment is applied at the moment on trade in 
products included in the agreement. 
Question 18:  
Could SACU members indicate when th is agreement will be notified to WTO? WT/TPR/M/222/Add.1 
Page 44  
 
  Response: 
A decision on notification will be taken in li ne with SACU and MERCOSUR Member States' 
commitments under the WTO Agreements and once the PTA has been ratified by all parties. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(1)  I
NTRODUCTION  
Question 19:  
Page 16, Paragraph 72  The WTO Secretariat Report states that both th e Motor Industry Development Programme and the 
Textile and Clothing Industry Development Progra mme are incentive schemes contingent on export 
performance, which are available throughout SACU, but not utilised by all of the member countries.  
Could SACU members explain the export perfor mance component of these incentive schemes, and 
whether a review is envisaged in the short-run? 
Response: 
A review of both the MIDP and TCIDP was initiat ed in order to assess its impact and recommend 
options to deal with identified gaps. 
(2)  C USTOMS PROCEDURES AND VALUATION  
(i)  Customs clearance and valuation 
Question 20:  
Page 16, Paragraph 75 and 77   
The WTO Secretariat Report) indicates that custom s procedures have not yet been harmonised within 
SACU and that customs controls are maintained b ecause of the differences in  internal tax regimes 
(i.e. VAT and sales taxes) and in import control measures.  
Could SACU members confirm and explain the presen t tasks of border controls within the customs 
union, notably in relation to Article 31(4) of th e 2002 SACU Agreement, as well as to other areas 
such as SPS and technical standards (Articles 28 and 30 of the SACU Agreement)?  
Response:  
One of the key objectives of the Customs Union is to facilitate the cross-border movement of goods 
between the territories of Member States (Article 2) . In order to achieve this Article 18 of the 2002 
SACU Agreement provides for the free moveme nt, within the Common Customs Area, of 
domestically grown, produced or manufactured goods. This free movement relates specifically to the 
elimination of customs duties and quantitative restrict ions on trade between Member States and is the 
practice across the Customs union.  The Agreement,  however, provides for trade restriction measures 
being applied on the grou nds of health, environment, intellect ual property rights, national security, 
exhaustible natural resources, as well as economic, social, cultural or other reasons decided by 
Council. Border controls therefore play a role in administering protection measures when required. In addition border controls are applied for purposes of levying domestic taxes (e.g. VAT or GST) and for 
purposes of collecting trade data.   
In respect of Article 31(4) when goods imported by a Party from outside the Common Customs Area 
under a preferential agreement are exported to anot her Party, the normal import duty applicable to  WT/TPR/M/222/Add.1 
 Page 45 
 
 
  such goods when imported into the rest of the Common Customs Area is charged. Any difference 
between the normal duty and the duty originally charged on such goods is paid into the Common 
Revenue Pool. Border controls in respect of this Article would be to ensure that re-exported goods 
that were initially imported under a preferential a rrangement pay the normal duty if re-exported to 
SACU Countries. This practice flows from the fact  that Member States were allowed to maintain 
preferential trade and related arrangements pre-dati ng the entry into force of the 2002 Agreement. In 
practice this has only occurred in respect of the SA -EU TDCA and some bilateral agreements between 
some SACU Member States and other Southern Afri can countries. With regard to the TDCA Member 
States have given concurrence to SA, and imports un der the TDCA, are in free circulation within the 
Customs Union. With regard to the bilateral with  other Southern African countries, the need for 
controls has been eliminated by virtue  of coming into force of the SADC FTA. 
(3) T ARIFFS AND OTHER CHARGES  
(i)  MFN applied tariffs 
Question 22:  
Page 17, Paragraph 82 
The WTO Secretariat Report states that South Afri ca continues to set the applied MFN Common 
External Tariff (CET) in consultation with its SACU partners. The Report submitted by South Africa 
(page 32, paragraph 17) further provides that, pur suant the National Industrial Policy Framework, 
SA "fundamental approach is that tariff policy shoul d be decided primarily on a sector by sector 
basis, dictated by the needs and imperatives of sector strategies".  
a) Could South Africa elaborate more on the consu ltation procedure with other SACU countries 
for decision regarding the applied MFN tariffs? 
Response:  
In the event that the International Trade Admini stration Commission (ITAC) initiates an investigation 
for the amendment of a customs duty, a notice will be published in the Govern ment Gazette notifying 
all interested parties of the initiation of the inv estigation. The notice will set out the name of the 
applicant, the type of application, a summary of th e stated reasons for the application, the name and 
contact details of the investigating official a nd the timeframe in which to submit comments on the 
investigation to ITAC. The published notice is also se nd to the SACU Secretariat that circulate it to all 
Member States. ITAC further sends the notice to specific contact persons in the Governments of 
Botswana, Lesotho, Namibia and Swaziland (the BLNS).  Any interested party, including those in the 
BLNS, can submit comments to ITAC and all the comments received must be considered before a 
final recommendation is made by ITAC to the Minister of Trade and Industry or to the SACU Tariff 
Board once it is established. In terms of ITAC's Tari ff Investigation Regulations  any interested party, 
including those in the BLNS, can also request to  make oral representations to the Commission. 
b) How does this process ensure that the views of other members are taken into account? 
Response:  
As set out in paragraph a) above, all interested pa rties are given an opportunity to comment during an 
investigation on whether to amend a customs duty. Th e administrative justice regime in South Africa 
is very strict and the law requires decisions of administrative bodies like ITAC to be lawful, 
reasonable and procedurally fair. ITAC is therefore required by law to give all interested parties an 
opportunity to comment, consider all information submitted to it and to make decisions that are 
rationally connected to the information before it. WT/TPR/M/222/Add.1 
Page 46  
 
  Question 23:
 
Page 17, Paragraph 82 Could SACU members advise how the ongoing review by South Africa of its tariff policy (e.g. recent 
amendments on textile inputs and clothi ng products) is affecting the CET?  
Response: 
As stated, SACU has a common external tariff and therefore any changes are applicable to all the 
Member States. 
Question 24:
 
Page 22, Paragraph 52 According to the WTO Secretariat Report SACU members have undertaken "s ingle tariff-phase-down 
commitments" in terms of the SADC Protocol on Tr ade, which entered into force on 20 January 2000.  
Could SACU members clarify whether this entails  common SACU-wide tariff commitments vis-à-vis 
SADC countries? And if not, how are differential comm itments affecting the functioning of the CET? 
Response:  
In terms of the SADC Protocol on Trade, SACU has made a single combined tariff phase-down offer 
to non-SACU SADC Member States that are signatori es to the Protocol. This implies that all SACU 
Member States implement the same tariff commitments vis-à-vis  SADC countries. 
(ii)  MFN bound tariffs 
Question 25:
 
Page 23, Table III.5 Please explain whether the MFN app lied rates as specified in Table III.5 on page 23 of the WTO 
Secretariat Report are correct, and if so, how they can be reconciled with the obligation under 
Article 2 of the GATT given that the bound rates fo r the respective tariff lines appear to be lower than 
the applied rates? 
Response: 
The applied rates as specified in Table III.5 are correct. It should be recognised that, by their very na ture, all formula duties, if not capped by the ad valorem  
bound rate for a particular tariff line, can exceed the latter rate from time to time due to exchange rate 
fluctuations and from country to country due to di fferent free-on-board import prices. This is a known 
fact and would apply to all jurisdictions using such  and similar duties. In theory, the duties can be 
infinitely high. However, the likely occurrence of  duties exceeding the bound rates is low and their 
significance has diminished over time due to relative  price differentials. Most formula duties were 
introduced prior to the 1990s and would now not exceed the bound rates. The small number of 
formula and specific duties that were introduced towa rd the end of the 1990s during the "tariffication" 
process, such as those applicable to livers and footwear and to sweetened water mentioned in 
table III.5, could still exceed the bound rate as indica ted, even if it is not clear which free-on-board  WT/TPR/M/222/Add.1 
 Page 47 
 
 
  price was used to calculate the ad valorem  equivalent duty of 40.8% (liv ers) and 31.9% (footwear) or 
if a mere average import price was used to determ ine the difference between the import price (net of 
the otherwise payable ad valorem  duties) and the reference price and then to calculate the ad valorem  
equivalent duty by expressing the difference as a percentage of the free-on board import price. 
(iii)  Tariff preferences 
Question 26:  
Page 24, Paragraph 90 
The WTO Secretariat report states that "…when  goods imported from outside SACU under a 
preferential agreement are exported to  another member state (not party to the agreement) the normal 
import duty is charged. The exporting state is res ponsible for ensuring that normal duty is paid on 
goods initially imported under a preferential arrang ement if re-exported to another SACU country." 
a) Could the SACU members confirm that the above description of how they manage their 
existing bilateral trade agreements, e.g. with Zimbabwe or Malawi, is correct? 
Response: 
The information provided in the WTO Secretariat's re port is accurate and reflects the process followed 
by SACU. 
b) If so, in which way, if at all, an EPA with th e EC including some but not all SACU members 
would need to be dealt with differently? 
Response: 
The procedure stated in the WTO Secretariat's Report is applied to all bilate ral Agreements to which 
SACU Members are party. 
c) Could SACU countries elaborate on the procedu re that should be followed by the exporting 
state in individual SACU countries?  
Response: 
In principle the procedure described  in the SACU secretariat report is to be followed. However, in 
practice this has not been the case due to capac ity constraints in some Member States.  
(5)  S TANDARDS AND TECHNICAL REGULATIONS  
Paragraph 120 
The reference to Article 33 of the SACU Agreement in this context is incorrect as this article deals 
with the management of the common revenue pool. We suppose that the Secretariat is referring to 
Article 30 which covers SPS measures. 
Response: 
The EC's assumption is correct. Article 30 of the 2002 SACU Agreement deals with sanitary and 
phytosanitary measures, while Article 33 deals w ith the management of the common revenue pool. WT/TPR/M/222/Add.1 
Page 48  
 
  Question 27:
 
Page 31, Paragraph 120 According to the WTO Secretariat Report techni cal regulations, product standards, and sanitary and 
phytosanitary measures are not yet harmonised with in SACU, albeit harmonisation in these areas is 
provided for in Articles 28 and 30 of the 2002 SACU Agreement. The Report also states that Namibia 
and Lesotho use South Africa's standards, while Botswana and Swaziland have developed their own 
standards.  
Could SACU members indicate how these differentia l standards are affecting the free movement of 
goods (including those imported from  third countries) within SACU?  
Response: 
Given the evolution of the Customs Union, standa rds and technical regulations have been largely 
harmonized and as a result have not resulted in  significant barriers to intra-SACU trade. 
Question 28:
 
Page 31, Paragraph 120 What is the timeframe for implementing the harmonisation of technical regulations, product 
standards, and sanitary and phytosan itary measures as provided for in the 2002 SACU Agreement? 
Response: 
SACU has initiated work in defining an approach for SACU to give effect to the provisions of 
Article 28 on Technical Barriers to Trade. However, this work is still in its infancy and cooperation 
proposals on technical regulations and products st andards are still being considered by technical 
experts. Timelines for implementation have not yet been agreed.   
In the area of sanitary and phytosanitary measu res, the 2002 Agreement recognises Member States' 
right to apply SPS measures in accord ance with their national laws and international standards. There 
is no requirement for harmonization of these measures. However, a system of notification, consultation and monitoring of these measures is in place under the auspices of the Agricultural 
Liaison Committee established in terms of Article 12.  In addition, SACU Member States are all 
WTO Members and they participate in the work of the WTO Committee on SPS.  
Annex 1: Botswana (WT/TPR/S/222/BWA)
 
I.  THE ECONOMIC ENVIRONMENT 
(1)  M AIN FEATURES  
Question 29:  
Page 65, Paragraph 1 
The WTO Secretariat Report gives the figures of "o ver US$ 7 000 " for the average GDP per head in 
Botswana. What is the source of this figure and/or  the definition used, given that for example IMF 
estimates GDP per head at around US$13 000?  WT/TPR/M/222/Add.1 
 Page 49 
 
 
  Response: 
The figure provided to the WTO Secretariat by Botswana in the amount of US$7000.00 is correct. 
II.  TRADE AND INVESTMENT REGIME 
(4)  T RADE -RELATED TECHNICAL ASSISTANCE  
Question 30:  
Page 79, Paragraph 46 
Given the relative importance to Botswana of agricultural exports – notably of bovine meat and 
products – compliance with SPS requirements is  a particular challenge.  The Government has 
underlined the need for training in relation to e quivalence, transparency, and pest-risk analysis.  The 
shortage of trained personnel and "hard infrastruc ture" in relation to SPS remains a challenge. 
Is Botswana considering applying for any training projects?   
Response: 
Botswana is interested in applying for traini ng projects under SPS as identified in the document. The 
country is currently benefiting from a regional program  aimed at building capacity in the area of food 
safety and residues control where training of pers onnel and development of guidelines is ongoing.  
Hard infrastructure such as quarantine and inspection services also need to be established in strategic 
areas and will require capacity building in Plant heal th inspections and quarantine facility operation. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  M EASURES DIRECTLY AFFECTING IMPORTS  
(v)  Standards and other technical requirements (b)  Sanitary and phytosanitary measures 
Question 31:
 
Page 87, Paragraph 91 The WTO Secretariat Report notes that "the last notification submitted by Botswana under the SPS 
Agreement dates back to 1997." 
Could Botswana inform if new legislation and/or changes in legislation will be notified to WTO, 
before entering into force, e.g. new legislation on plant quarantine? 
Response: 
Botswana has new legislation on Plant Quarantine,  the Plant Protection Act of 2007 which recently 
entered into force on April 1, 2009. The legislation is scheduled to be notified by the national contact 
point by end of November 2009. 
Question 32:  
Page 87, Paragraph 96 
According to the WTO Secretariat Report the Plan t Protection Act of 2007 entered into force on 
1 April 2009.  WT/TPR/M/222/Add.1 
Page 50  
 
  Could Botswana report on the progress in impl ementation of the Plant Protection Act?  
Response: 
The Plant Protection Act entered into force on 1st April 2009 and to date fourteen (14) Plant-Health 
Inspectors have been appointed and trained. Owi ng to resource constraints however, these Inspectors 
have not yet been deployed to points of entry on a full time basis. Constraints include logistical 
difficulties; including lack of accommodation and of fices at the various border posts. The Department 
of Crop Production is currently wo rking to address the problem of lack of accommodation to ensure 
that, in the near future, the appointed Inspectors are at border posts on regul ar basis. Until then, 
pre-border inspection is undertaken. 
Plants, plant products and other regulated articles entering Botswana require  a Plant Health Import 
Permit, with the exception of fresh fruits and vegeta bles. In addition, Pest Risk Analysis (PRA) is 
conducted on an ad hoc basis due to the fact that th e implementation of the Act is still in its infancy.  
Implementation of the Act includes establishmen t of surveillance systems for monitoring and 
regulating Fruitflies (Bactrocera spp) and Larger Grain Borer (Prostephanus truncates). A Fruitfly 
monitoring program was initiated to facilitate market  access for Botswana products to South Africa as 
Botswana needed to demonstrate pest freedom fro m Bactrocera spp. Over the past three years 
Botswana has successfully demonstrated pest freed om from the Bactrocera spp and the country is now 
able to export cucurbits and other fruits to South Africa. 
Question 33:  
Page 87, Paragraph 96 Could Botswana inform whether information on impo rt requirements for plants and plant products as 
well as a list of quarantine pests will be made  available, e.g. on the website of IPPC? 
Response: 
The National Contact Point is going to avail the P est Schedule on the IPPC website, as provided for in 
the Plant Protection Act of 2007. Import require ments are currently under review and these 
requirements will be made availabl e on IPPC website in due course . 
Question 34:  
Page 88, Paragraph 97 WTO Secretariat notes the insufficient capacity of Botswana's SPS regime to provide adequate plant 
protection services. 
Could Botswana inform if it is considering an y applications for training projects in the 
above-mentioned area? 
Response: 
Botswana needs assistance in specialists traini ng (Pathology, Entomology, Weed Science, Food 
Safety and Toxicology). This is to equip the o fficers with the knowledge plant health in order for 
them to execute plant quara ntine services diligently.   WT/TPR/M/222/Add.1 
 Page 51 
 
 
  Annex 2: Lesotho (WT/TPR/S/222/LSO)  
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  M EASURES DIRECTLY AFFECTING IMPORTS  
(iv)  Standards and other technical requirements (b)  Sanitary and phytosanitary measures 
Question 35:
 
Page 165, Paragraph 78 WTO Secretariat Report notes that Lesotho has not yet notified its enquiry point or its national 
notification authority to the WTO SPS Committee. 
Could Kingdom of Lesotho inform when a WTO SPS contact point would be notified? 
Response: The Kingdom of Lesotho is yet to develop a clear policy on SPS.  SPS issues are spread across several 
government ministries and agencies i.e. Ministry of Trade and Industry, Cooperatives and Marketing, Ministry of Agriculture and Food Security, Minist ry of Health and Social Welfare and Food and 
Nutrition Coordination Office; therefore has been rea lised there is need for close cooperation between 
these ministries to formulate policy on SPS.  Efforts are being made to achieve the required level of 
cooperation and to notify on the WTO SPS contact point .  Lesotho fully understands her obligations 
to notify under WTO SPS Agreement.  
Question 36:
 
Page 165, Paragraph 78 Could Kingdom of Lesotho inform if new legislati on and/or changes in legislation will be notified to 
WTO before entering into force? 
Response: 
The legislation in question is at draft stage. In fulfilment of WTO SPS Agreement the Kingdom of 
Lesotho will notify WTO on new legislation before it is enforced. 
Question 37:
 
Page 165, Paragraph 78 
Could Lesotho inform whether information on impor t requirements for plants and plant products as 
well as a list of quarantine pests will be made  available, e.g. on the website of IPPC? 
Response: 
Pending – Lesotho is in the drafting stage of Plant Protection Policy, once this has been finalised, a 
list of plants and plants products and quarantine p ests will be developed.  The information will be 
shared with all stakeholders.   WT/TPR/M/222/Add.1 
Page 52  
 
  Annex 3: Namibia (WT/TPR/S/222/NAM)
 
I.  THE ECONOMIC ENVIRONMENT 
(3)  T RADE PERFORMANCE AND INVESTMENT  
(ii)  Investment 
Question 38:  
Page 213, Paragraph 17 
The WTO Secretariat Report provides Namibia' s rankings on a number of indexes measuring 
attractiveness for investment. 
What measures is Namibia planning to take to address areas where a number of these indexes identify 
weaknesses, such as "human development" or "time to start a business"? 
Response: Namibia spends a large proportion of its Nationa l Budget on Education and Health and these are 
efforts to address areas where Namibia can still make an improvement.  It takes 5 days to register a 
business in Namibia provided that all the required documentation is submitted.  
II.  TRADE AND INVESTMENT REGIME 
(1)  G
ENERAL  
Page 215, Paragraph 24 Question 39:
 
Could Namibia provide more detail on the status , mandate and oversight of the Namibia Board of 
Trade which, according to the WTO Secretariat Re port, should become operational in the course of 
2010? 
Response: Namibia has advance draft legislation to establis h the Namibia Board of Trade in 2010. The Board 
will be responsible for import and export licensing,  industrial policy implementation, trade remedies 
and tariff investigations, surveillance and re presenting Namibia on the SACU Tariff Board. 
Question 40:
 
Page 215, Paragraph 26 
The term of the Members of the Presidential Ec onomic Advisory Council has expired and the Council 
is to our knowledge not operational at p resent as no new Members have been appointed. 
Could Namibia inform whether the Council is expect ed to continue to exist and when new members 
would be appointed? 
Response: 
To be answered within one month.  WT/TPR/M/222/Add.1 
 Page 53 
 
 
  Question 41:  
Page 216, Table II.1 According to Table II.1, most of Namibia's trade-rel ated legislation dates from the first decade after 
independence and earlier. Only two laws, Financia l Intelligence Act and Standards Act, have been 
adopted in the past 5 years.  
Could Namibia indicate in which trade-related a reas it sees a need to update old or introduce new 
trade legislation in the next 3-5 years and why? 
Response: 
In 2010, the following bills will be tabled: 
• Board of Trade Bill 
• Intellectual Property Bill  
In 2010 the Standards and Trade Metrology Amen dment Ac, the Companies Act of 2004 and the 
Companies Amendment Bill currently at Parliament will commence. 
(2)  T
RADE AGREEMENTS  
Question 42:  
Page 219, Paragraph 41 Could Namibia provide more concrete information on: 
a) the benefits derived under AGOA to date; 
b) currently existing AGOA-related investments? 
Response: 
Namibia has current benefits unde r AGOA for more than 1000 tariff lin es preferential access to the 
USA market. In addition, Namibia is expecting to  expand these benefits once meat and meat products 
are certified as eligible for exportation to the USA. 
(3)  I
NVESTMENT FRAMEWORK  
Question 43:  
Page 219 Could Namibia explain the impact on its Investment  Framework of policies such as the Black 
Economic Empowerment Policy and the Value Addition on Raw Materials Policy, which are not 
mentioned in the WTO Secretariat Report? 
Response: 
Namibia continues to attract both domestic and foreign direct investment especially in sectors such as 
tourism and mining. Government encouragement of  BEE through joint ventures and promotion of WT/TPR/M/222/Add.1 
Page 54  
 
  value addition has resulted in increased manufacturi ng and other value addition activities, therefore 
positive impact on investment framework. More sp ecifically, FDI has increased substantially from 
USD 186 million in 2000 to over USD 732 million in 2007.  
(4)  T
RADE -RELATED TECHNICAL ASSISTANCE  
Question 44:  
Page 221, Paragraph 51b 
With regard to capacity-b uilding needs in the areas of SPS measures, is Namibia considering any 
applications for training projects? 
Response: 
The establishment of the national committee on SPS a nd Food Safety, Namibia will have consistent 
representation at SPS Committee meetings. This comm ittee will also be making recommendations on 
specific training needs related to SPS. 
Question 45:  
Page 222, Paragraph 51k Regarding sanitary and phytosanitary measures, Nami bia has identifies, inter alia, a need for 
"training of officials to comply with internationa l requirements. In addition, assistance is needed in 
enforcement of national measures and standards:  reli able product inspection services are vital at the 
point of entry for all products entering the country". 
Is Namibia considering any applications for relev ant training projects, notably as a follow-up to 
training projects made available on the IPPC web page?  
Response: 
This question is related to the one  above. With regular and consistent  participation at the WTO forums 
and the international standard setting bodies such as the IPPC Namibia would be timely informed of 
any specific or training projects or other tec hnical capacity building programmes available to 
developing countries. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)
  M EASURES DIRECTLY AFFECTING IMPORTS  
Question 46:  
Page 228, Paragraph 82 Is Namibia considering new plant quarantine legisla tion as a follow-up to the report on Review and 
Drafting of Plant Health Legislation dated Fe bruary 2007 and published on the IPPC website? 
Response: 
Namibia is currently doing needs assessment to gu ide amendment of legislation in line with its 
international obligations.  WT/TPR/M/222/Add.1 
 Page 55 
 
 
  Question 47:  
Page 228, Paragraph 82 Could Namibia inform if it will make available on the IPCC website information on import 
requirements for plants and plant products  as well as a list of quarantine pest? 
Response: 
Yes, Namibia will endeavour to make this in formation available at the appropriate fora. 
(iv)  Government procurement 
Question 48:
 
Page 228, Paragraph 86 How is the Black Economic Empowerment Poli cy (BEE) integrated into Namibia's public 
procurement policy? 
Response: 
Government is developing a BEE policy Fram ework which will be linked to Government 
Procurement. At the moment government it gives price preference of government to help redress social economic imbalances. 
(4)  M
EASURES AFFECTING PRODUCTION AND TRADE  
(iii)  Competition policy 
Question 49:  
Page 236, Paragraph 119 
a) Could Namibia describe the broad lines of th e new competition policy under the Competition 
Act of 2003?  
b) How are the Black Economic Empowerment Po licy (BEE) and the Value Addition on Raw 
Materials Policy integrated into the new competition legislation? 
Response: 
The general purpose of the Act is to enhance th e promotion and safeguarding of competition in 
Namibia. The purpose and objectives of the Act are outlined in Section 2 which aims to: 
(i) promote the efficiency, adaptability and development of the Namibian economy; 
(ii) provide consumers with competitiv e prices and products choices;  
(iii) promote employment and advance the social  and economic welfare of Namibians;  
(iv) expand opportunities for Namibian participation in world markets while recognizing the role 
of foreign competition in Namibia;  WT/TPR/M/222/Add.1 
Page 56  
 
  (v) ensure that small undertakings have an equita ble opportunity to participate in the Namibian 
economy; and lastly to promote a greater spread of ownership, in particular to increase ownership stakes of historically disadvantaged persons. 
The Competition Act, 2003 (Act No. 2 of 2003), c overs not only the three major competition concerns 
of anti-competitive agreements, abuse of dominance , and anticompetitive mergers, but it also takes 
into account the public interests provisions on pr otecting consumers by safeguarding competitive 
prices and product choices as well as promoting em ployment and advancing the social and economic 
welfare of Namibians. It also has special requirements of its ec onomy, which are the protection and 
promotion of small undertakings as well as promoting a greater spread of ownership of historically 
advantaged persons. 
Competition Policy in Namibia can be cross cutting in  the sense it can serve as a government policy 
that preserves or promote the adaptation, efficien cy and development of the Namibian economy. The 
policy can aim to promote other related government  policies such as industrial policy, consumer 
protection, standards, intellectual property rights (IPRs ), international trade, investment and licensing 
with the overall objective of putting in place pr ocesses and mechanisms that enable a competitive 
environment to develop in Namibia. 
Question 50:
 
Page 236, Paragraph 119 
a) When is the 2003 Competition Act expected to be fully implemented? 
b) Why is it that the Competition Commission is only commencing operations now, when the 
Competition Act was already passed in 2003? 
Response: The Competition Act has been operational since March 2008, and the institutional framework is 
gradually being put in place with the Competition Commission and Secretariat already in place. 
Further management, financial and human resource systems are currently being worked on and the 
handling of mergers and acquisitions (M&A) are al ready being handled by the Commission and its 
Secretariat. It is expected that the Commission and its Secretariat will be fully operational by the end 
of the third quarter of 2010. 
The Competition Act was enacted in 2003 without th e operating regulations. Therefore there was a 
need to draft the operation regulations which also had to go through the normal and usually 
cumbersome legislative processes. Moreover, afte r drafting and taking the Regulations through the 
legislative process there was still th e need to promulgate the commenc ement date for both the Act and 
its regulations, which was only done in March 2008. 
IV.  TRADE POLICIES BY SECTOR 
(3) F
ISHERIES  
Question 51:  
Page 246, Paragraph 166 
Does Namibia have a system to account for the exis ting capacity in fisheries in terms of number of 
vessels, tonnage, engine pow er, type of gear etc.?  WT/TPR/M/222/Add.1 
 Page 57 
 
 
  Response: 
A detailed electronic vessel register for catching diffe rent fish species exists as required by law. The 
system is called Fisheries Information Management System (FIMS). 
Question 52:  
Page 247, Paragraph 168-169 
How does Namibia define artisanal or "small-scale" fish eries? Are all types of fisheries subject to the 
same rules (i.e. TAC, fees etc.)? 
Response: 
Currently the Marine Resources Act, 2000 does not explicitly define artisanal or ''small scale'' 
fisheries. However, some fisher ies such as mullets, line-fish sp ecies e.g. (snoek, kob, steenbras and 
galjoen) and rock lobster because of their operationa l nature one could informally classify them as 
such. Not all fisheries are subjected to the same rule of TAC e.g., some  fisheries such as Line fisheries 
and Large Pelagic Fisheries are subjected to effort limitation control (limits on the number of vessels to be licensed). All commercial exploited fisheri es are subjected to fees payable such as license, 
by-catch and quota. 
(6)  S
ERVICES  
(i)  Telecommunications and post 
Question 53:  
Page 258, Paragraph 214 Could Namibia indicate when the Communications  Bill mentioned in paragraph 214 is expected to 
become effective?  
Response: The Bill has been passed by Parliament and is now pending promulgation. 
Annex 4: South Africa (WT/TPR/S/222/ZAF)
 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  M EASURES DIRECTLY AFFECTING IMPORTS  
(iv)  Standards and other technical requirements 
(b)  Sanitary and phytosanitary measures 
Question 54:  
Page 308, Paragraph 89 and Page 384, Appendix Table AIII.2 
The WTO Secretariat Report in Table AIII.2 lists Sout h Africa's technical regulations on foodstuffs.   
Could South Africa explain if these technical regul ations are in accordance with international 
standards, and if the risk assessmen t has been made available? WT/TPR/M/222/Add.1 
Page 58  
 
  Response: 
South Africa strives to ensure that technical re quirements are in accordance with international 
standards. Risk assessments ar e carried out on a specific commodity for a specific country. 
Question 55:
 
Page 310, Paragraph 91  
Could South Africa inform whether it will make av ailable on the IPPC website information on import 
requirements for plants and plant products as well as a list of quarantine pests?  
Response: 
South Africa conducts pest risk analysis for impor t applications for each relevant commodity per 
country. Its phytosanitary legislation is placed on the IPPC website. Section 3 of the primary 
legislation, namely the Agricultural Pests Act, 1983 (Act No. 36 of 1983) prescribes the importation 
of controlled goods, which is subject to a permit . There are also import requirements that are 
prescribed under Government Notice R.1013 of 26 May 1989 (Importation of controlled goods 
without a permit). Enquiries on import requirements are currently attended to on a bilateral basis 
through the national plant protection contact point. A quarantine pest list will be placed on the IPP in 
the future. 
Question 56:  
Page 310, Paragraph 91  Could South Africa inform whether the list of c ontrolled goods for which an import permit is not 
needed published on the IPPC website and dated 26 May 1989 is the most recent list? 
Response: 
The list of controlled goods provided on th e IPPC website is an updated list.   
Question 57:
 
Page 310, Paragraph 91  Could South Africa explain if import permits speci fy any phytosanitary condi tions that the products 
have to meet? If so, where can exporters in advan ce find information on which conditions have to be 
met for certain products? 
Response: 
Phytosanitary import permits are country- and commodity specific and provide specific phytosanitary 
import requirements.  Importers may inquire from the South African import permit office at:  
Director:  Directorate: Plant Health 
Private Bag X14, Gezina, 0031 Fax:  27 12 319 6370  
Tel:  27 12 319 6102 / 6396  
E-mail:  JeremiahMA@daff.gov.za 
  WT/TPR/M/222/Add.1 
 Page 59 
 
 
  IV. TRADE POLICIES BY SECTOR 
Question 58:  
We note that the Secretariat's report on South Africa  does not include information on sectoral policy 
in fisheries. What are the reasons for this omission? 
Response: 
South Africa tried to provide all the information th at was requested from us. However, we were not 
requested to provide inputs on fisheries. 
Question 59:  
Considering that sectoral policy in fisheries is co vered neither in the Secretariat's report nor in the 
report by the government of South Africa, could South Africa provide the following specific information: 
a) total catches, main species,  evolution over recent years; 
b) fishing capacity (number of vessels, total tonnage) and its evolution over recent years; 
c) main characteristics of the South African fis heries management regime: fishing authorization 
systems; allocation of fishing possibilities or right s; technical measures such as restrictions 
on the use of fishing gear; closed seasons and/ or areas seasons and other stock management 
measures; vessel monitoring and catch control systems;  reporting of catches including to 
international organisations; research in fish eries and its use in setting Total Allowable 
Catches; 
d) membership to Regional Fisheries Organisations , to international treaties and conventions 
relevant to fisheries; 
e) fisheries agreements (if any) concluded with other countries; 
f) treatment of foreign nationals and foreign companies in the fishing industry (allocation of 
fishing rights, access to investments); 
g) small scale (or artisanal) fisheries: definition, applicable rules.  
Response: 
RSA provided all the information requested by the S ecretariat. The Secretariat did not undertake a 
specific study on fisheries. This information can be obtained the Marine and Coastal Management 
website: www.deat.gov.za under Policy a nd Legislation: General Policy. 
(5)  S
ERVICES  
(iii)  Communications 
Question 60:  
Page 357, Paragraph 278 The WTO Secretariat Report refers to a new li censing framework for electronic communications 
network services (ECNS), electronic communications  services (ECS), and broadcasting services that 
should have become effective in early 2009 under the Electronic Communications Act. WT/TPR/M/222/Add.1 
Page 60  
 
  What is the current status of implementation of this licensing framework? 
Response: 
This licensing framework became effective on 16 January 2009.  
Annex 5: Swaziland (WT/TPR/S/222/SWZ)
 
(4)  T RADE -RELATED TECHNICAL ASSISTANCE  
Question 61:  
Page 423, Paragraph 57 WTO Secretariat Report notes that 'laboratory tec hnicians need to be trained in microbiology and 
existing staff upgraded to graduate level.  There is  a need for an active national SPS committee to 
ensure that regular training on sanitary and phyto sanitary measures, determining compliance with 
the measures, inspection monitoring, and approv al of procedures and systems-enforcement translate 
into tangible results."   
Is Swaziland considering applying for any training projects?  Response:   
Yes.  Given an opportunity and resource availa bility Swaziland would wish to train officers on SPS 
measures and bio-technology principles. Mainly  because Swaziland is a member of the WTO, 
signatory to the WTO SPS Agreement, member of  the International Plant Protection Convention 
(IPPC) as well as the member nation of the FAO. Also she is a member of CODEX Alimentarius Commission as well as a member of the OIE, as such Swaziland requires assistance in order for her to comply with the requirements of the above stated organizations. With respect to bio-technology Swaziland is a member of the Convention on Bio-Dive rsity and a signatory of the Cartagena Protocol 
on Bio-Safety. Swaziland is in the process of enacting legislation that will enforce the provisions of 
the Protocol as such she needs as sistance to develop human and institutional capacity to implement 
the legislation.  
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  M
EASURES DIRECTLY AFFECTING IMPORTS  
(iv)  Standards and other technical requirements 
(b)  Sanitary and phytosanitary measures 
Question 62:  
Page 431, Paragraph 98 Could Swaziland inform whether it will make availa ble on the IPPC website information on import 
requirements for plants and plant products as well as a list of quarantine pests?  
Response:  Yes, Swaziland will make the information availabl e on the IPPC website. Swaziland has benefited 
from an FAO technical cooperation project which enab led the country to come up with a national pest 
list and as such knows her quarantine pests a nd therefore could make them available.  WT/TPR/M/222/Add.1 
 Page 61 
 
 
  There is a Bill on Plant Health Pr otection for reviewing the national legal instrument that governs 
plant protection in Swaziland. In essence the Bill is a review of the Plant Control Act, therefore 
Swaziland can provide the information on the IPPC website.  
Question 63:  
Page 432, Paragraph 100 
Could Swaziland explain if import permits specify any  phytosanitary conditions that the products have 
to meet? If so, where can exporters in advance find information on which conditions have to be met 
for certain products? 
Response:   
The Plant Control Act requires that an importer obtains an import permit from Government. The 
phytosanitary conditions are clearly specified on the import permit. 
The information is not yet available on the website . However, after the FAO project the information 
will be posted in the IPPC website. Moreover, the I PPC website has co-ordinates for the IPPC contact 
points who deals with imports. 
Question 64:  
Page 432, Paragraph 101 
Could Swaziland inform whether it will make available, for example on the IPCC website, 
information on phytosanitary import requirements fo r seeds as well as a list of quarantine pests? 
Response:   
Yes, Swaziland will make available on the IPPC we bsite information regard ing phytosanitary import 
requirements for seeds and as well as a list of quarantin ed pests. In fact, such information will be 
made available by the end of this year on the website and will also be submitted to the WTO. 
Question 65:  
Page 432, Paragraph 101 
a) Could Swaziland explain the procedures for testing of imported seeds?  
Response:   
Swaziland is testing for purity and normal standard s through the Seed Quality Testing Unit under the 
Ministry of Agriculture. 
b) Do all imported seed lots need to be tested in Swaziland, even  if they are accompanied by a 
phytosanitary certificate stating the phytosanitary st atus of the seed lot? If so, what are the 
reasons for this requirement? 
Response:   
If there is a phytosanitary certificate, Swaziland relies on the information provided by the exporting 
country. WT/TPR/M/222/Add.1 
Page 62  
 
  RESPONSES TO ADDITIONAL QUESTIONS FROM THE EC 
A) SACU-Namibia
 
Copyrights 1. What protection does Namibia grant to broa dcasting organisations?  Does it protect against 
re-transmission of broadcasts? 
2. What protection does Namibia grant in relati on to the circumvention of technological measures 
and rights-management information? 
3. Does Namibia provide the right of making availabl e to the public to producers of the first fixations 
of films, for the original and copies of their films? 
Response: 
The copyright and neighbouring right protection Ac t, (Act No. 6 of 1994 as amended), protects 
Intellectual Property Rights of literally, artistic, a nd musical works embodied in such media as films 
sound recordings, broadcast, and published editions, by providing owners exclusive rights as required 
by the Bern Convention.   
Trademarks 
1. Could Namibia indicate the number of trade marks applications received on annual bases for the 
last 3 years? The number of registrations issued? 
Response: 
Year Patents registered Patents received Designs Trade marks 
2005 21 32 13 7409 
2006 14 30 5 4856 
2007 21 31 13 6150 
2008 32 43 8 5642 
2009 8 20 3 3501 
Total 96 156 42 27 558 
2. Is there an electronic database of trademarks? 
Response: Yes, work is ongoing to transfer data from the manu al system to the new electronic database of WIPO 
database called IPAS which process should be conclu ded in 2010. 
3. Could Namibia inform about the total number of trademark examiners?  
Response: 
Namibia has no in-house trademark examiners howev er four officials are employed as officials 
checking trademark formalities on which Namibia's tr ademark registration is based. Any requirement 
for substantive searches is referred to the WIPO and the ARIPO.  WT/TPR/M/222/Add.1 
 Page 63 
 
 
  4. Does the trade mark registration procedure contain the possibility of opposition proceedings 
and/or invalidity proceedings? 
Response: 
Yes. 
5. Is there a specialised chamber/court that deals with trade mark cases? If so, how many court cases 
are there per year (for the last three years)? 
Response: 
No, the normal civil court system is used for dealing with trademark cases if the hearing process does 
not resolve a process. 
Designs 
1. What is the state of play regarding protection of designs in Namibia? Response: 
Designs are protected under law. 
2. Do the registration procedures contain provisi ons on invalidity or refusal of registrations? 
Response: 
Yes. 
Patents 
1. Could Namibia inform whether there is a s ystem in place to guarantee the confidentiality, 
undisclosed and non-reliance of data submitted for the purpose of obtaining an authorisation to put a 
pharmaceutical product on the market? If so, what is the time frame? 
Response: 
Yes, please elaborate on the time-frame question.  
2. Do similar provisions fo r agro-chemical products exist? 
Response: 
Yes. 
3. Could Namibia indicate the number of patent applications received on annual bases for the last 
3 years? The number of registrations issued? 
Response: 
See above table. 
Geographical Indications 
1. On the basis of the provided documents, our understanding is that Namibia is preparing a new GIs 
legislation. Could Namibia send us the draft texts and could we have occasion to make comments? WT/TPR/M/222/Add.1 
Page 64  
 
  Response: 
This is in the Industrial Property Bill. The Bill coul d be made available, after tabling in Parliament. 
C) Botswana
 
Copyrights 1. What protection does Botswana grant to broad casting organisations?  Does it protect against 
re-transmission of broadcasts? 
Response: 
Protection is offered under Section 27 (1) of Co pyright and Neighbouring Rights Act (CAP 68:02). 
(a) The re-broadcasting of its broadcast. 
(b) The communication to the public of its broadcast. 
(c) The fixation of its broadcast. 
(d) The reproduction of a fixation of its broadcast. 
The Act also provides for the re-transmission of broadcasts as according to Section 27(1)(a). 
Trademarks 
1. Could Botswana indicate the number of trade marks applications received on annual bases for the 
last 3 years? The number of registrations issued? 
Response:  
Year Applications Registrations 
2006  897 111 
2007  882 177 
2008 888  157 
2. Is there an electronic database of trademarks? 
Response: 
There is a database, which is Industrial Property Automation System (IPAS) provided by World 
Intellectual Property Organisation (WIPO). 
3. Could Botswana inform about the total number of trademark examiners?  
Response: 
There are six (6) trademark examiners. 
4. Does the trade mark registration procedure contain the possibility of opposition proceedings 
and/or invalidity proceedings?  WT/TPR/M/222/Add.1 
 Page 65 
 
 
  Response: 
There are procedures for opposition and/or invalidation. 
Opposition is provided for under Section 56 of the I ndustrial Property Act, 1996 and invalidation is 
provided for under Section 63 of the Industrial Property Act, 1996. 
Designs 
1. What is the state of play regar ding protection of designs in Botswana? 
Response: 
Industrial Designs are protected under Industrial Property Act, 1996.  
2. Do the registration procedures contain provisi ons on invalidity or refusal of registrations? 
Response: 
The registration procedures contain provisions for i nvalidation and refusal.  Invalidation is provided 
under Section 52, and refusal under Section 45. 
Patents 
1. Could Botswana inform whether there is a sy stem in place to guarantee the confidentiality, 
undisclosed and non-reliance of data submitted for the purpose of obtaining an authorisation to put a 
pharmaceutical product on the market? If so, what is the time frame? 
Response: 
The current Industrial Property Act, 1996 does not provide a system to guarantee the confidentiality, 
undisclosed and non-reliance of data  submitted for the purpose of obtaining an authorisation to put a 
pharmaceutical product on the market.  
Botswana is currently amending the Industrial Prop erty Act, 1996 to make a provision for such a 
system under Acts of Unfair Competition provisions.  
2. Could Botswana indicate the number of patent  applications received on annual bases for the last 
3 years? The number of registrations issued? 
Response: 
Year Application Granted 
2006  14 3 
2007  22 - 
2008  20 6 
Geographical Indications 
1. It seems that Botswana currently does not prov ide for GIs protection. Therefore, it would be 
interesting to know whether Botswana is considering to adopt legislation on geographical indications 
any time soon and if yes, could Botswana share w ith us the draft texts and we eventually make 
comments?  WT/TPR/M/222/Add.1 
Page 66  
 
  Response: 
The current Industrial Property Act, 1996 does not  provide protection for Geographical Indications 
(GIs). Botswana is currently amending the Act to provide for the protection of Geographical 
Indication. The amendment Bill has been approved by Cabinet and is likely to the presented to 
Parliament meeting of November 2009. 
Enforcement 
1. Could Botswana inform whether special IPR uni ts exist within the police and customs services? 
Response: 
No, Botswana does not have special IPR units w ithin the Police and Customs services. However, 
training on enforcement is regularly provided to the Botswana Police and Customs officials. 
2. Are there any special units to tackle internet piracy? Response: 
No, Botswana does not have special units to tackle internet piracy. 
3. Could Botswana inform on the total number of raids carried out by the police and number of 
goods/rights seized for the last 3 years? 
Response: 
There is no available information in this area. 4. Regarding seized goods, how do the enforcemen t agencies store the goods and are there any 
facilities for destruction of goods? 
Response: 
There is no available information in this area. 5. Could Botswana indicate the amount of staff who is currently working on IPR enforcement in the 
different enforcement agencies? 
Response: 
There is no available information. General traini ng on enforcement has been provided to Botswana 
Police and Customs officials. 
D) Swaziland
 
Copyrights 
1. What protection does Swaziland grant to broadc asting organisations?  Does it protect against re-
transmission of broadcasts? 
Response:  
There is no such protection in place for now, however we are developing a Copyrights and 
Neighboring Rights Bill will include such protection.  WT/TPR/M/222/Add.1 
 Page 67 
 
 
  2. What protection does Swaziland grant in relati on to the circumvention of technological measures 
and rights-management information? 
Response:  
There is no such protection in place however we  are developing a Copyrights and Neighbouring 
Rights Bill will include such protection. 
3. Does Swaziland provide the right of making available to the public to producers of the first 
fixations of films, for the original and copies of their films? 
Response:   
There is no such protection in place however we  are developing a Copyrights and Neighbouring 
Rights Bill will include such protection. 
Trademarks 1. Could Swaziland indicate the number of trade marks applications received on annual bases for the 
last 3 years? The number of registrations issued? 
Response:   
The number of trade marks registrations received in the last three years (2007 to 2009) is 1401 
whereas the number of trade marks issued are presently at 907 registrations. 
2. Is there an electronic database of trademarks? 
Response:   
No, there is none. 
3. Could Swaziland inform about the total number of trademark examiners?  
Response:   
There is one examiner. 
4. Does the trade mark registration procedure contain the possibility of opposition proceedings 
and/or invalidity proceedings? 
Response: 
Yes, the Trade Marks Act No. 6 of1981 makes provi sion for opposition proceedings. Section 27(1) of 
the Act makes provision for any person to give noti ce opposing an application to the Registrar within 
the time prescribed from the date of the advertis ement, on the grounds that the application does not 
satisfy the requirements of the Act. Section 27(5)  empowers the Registrar to decide the matter upon 
hearing the evidence of both parties (the applicant and the opposing party) Section 27(6) entitles any person aggrieved by the Registrar' decision to lodge  appeal to the High Court of Swaziland. The High 
Court may after hearing the evidence of the Registra r permit the trademark proposed to be registered 
to be modified in any manner not substantially affecting the identity of the thereof. 
5. Is there a specialised chamber/court that deals with trade mark cases? If so, how many court cases 
are there per year (for the last three years)? WT/TPR/M/222/Add.1 
Page 68  
 
  Response:   
Currently, there is no specialized chamber or court dealing with trade mark cases. Currently, 
Swaziland is currently formulating a Bill to establish the Intellectual Property Tribunal to deal with all 
Intellectual Property cases. 
Designs 
1. What is the state of play regar ding protection of designs in Swaziland? 
Response:   
Protection of designs in Swaziland is done thro ugh the United Kingdom and South African Designs 
on Section 15 of the Act accords a registered propr ietor of a design that is registered in the 
United Kingdom the same privileges and rights in Swaz iland as if the certificate of registration in the 
United Kingdom was issued in Swazila nd under Section 18 and Section 20. 
2. Do the registration procedures contain provisi ons on invalidity or refusal of registrations? 
Response:   
Yes, the registration procedures do contain these provisions. 
Patents 
1. Could Swaziland inform whether there is a syst em in place to guarantee the confidentiality, 
undisclosed and non-reliance of data submitted for the purpose of obtaining an authorisation to put a 
pharmaceutical product on the market? If so, what is the time frame? 
Response:   
There is no such provision for now but it is bein g proposed in the Patents, Utility Models and 
Industrial Designs Bill which is being drafted. 
2. Do similar provisions fo r agro-chemical products exist? 
Response:   
There is no such provision for now but it is bein g proposed in the Patents, Utility Models and 
Industrial Designs Bill which is being drafted. 
3. Could Swaziland indicate the number of patent applications received on annual bases for the last 
3 years? The number of registrations issued? 
Response:   
There were 4 applications received in the last 3 years and they were all registered. 
Geographical Indications 
1. It seems that Swaziland currently does not prov ide for GIs protection. Therefore, it would be 
interesting to know whether Swaziland is consideri ng to adopt legislation on geographical indications 
any time soon and if yes, could Swaziland share with  us the draft texts and we eventually make 
comments?   WT/TPR/M/222/Add.1 
 Page 69 
 
 
  Response:   
Yes, that is true. Swaziland is c onsidering drafting that legislation. 
Enforcement 
1. Could Swaziland provide information of the tota l number of IPR-cases initiated with administrative 
courts, civil courts and criminal courts for the la st 3 years, also indicating the type of rights 
infringed? If so, also the total numbers of convictions?  
Response:   
Penalties for infringement of IPR legislation va ry between a maximum fine of E 2,000 and/or 
imprisonment for six months under the Trade Marks Ac t to a maximum fine of E 10,000 and/or five 
years' imprisonment under the Patents, Utility Models  and Designs Act.  Civil suits for damages may 
also be brought. The legislation allows for appeal  procedures at the High Court. Swaziland faces a 
severe problem of piracy in audio and audiovisual cassettes, CDs, and DVDs). The total number of convictions can be provided after High Court records have been analyzed. 
2. Could Swaziland inform whether special IPR un its exist within the police and customs services? 
Response:   
There are no specialized IPR units. 
3. Are there any special units to tackle internet piracy? 
Response:   
There are no specialized units to tackle internet piracy. 
4. Could Swaziland inform on the total number of  raids carried out by the police and number of 
goods/rights seized for the last 3 years? 
Response:   
The exact number to be provided after consultations. 
5. Do the police have ex-officio power to act against IPR-infringements (counterfeit, piracy etc.)? 
Response:   
Their power can be exercised through the Criminal  Procedures and Evidence Act. And this will 
further complemented by a provision in the Copyrights and Intellectual Property Bill. 
6. Could Swaziland inform of the number of IPR- objects registered with customs services as well as 
the total number of seizure s for the last 3 years? 
Response:   
Swaziland will provide a response after detailed consultations. 
7. Regarding seized goods, how do the enforcemen t agencies store the goods and are there any 
facilities for destruction of goods? WT/TPR/M/222/Add.1 
Page 70  
 
  Response:   
Goods are normally stored at the State Warehous es under the Royal Swaziland Police supervision 
who are also responsible for the destruction of the goods after the completion of the case in Court. 
Further provisions will be made in the Copyrights and Intellectual Property Bill. 
8. Could Swaziland indicate the amount of staff who is currently working on IPR enforcement in the 
different enforcement agencies? 
Response:   
The Intellectual Property Rights Depart ment has a staff complement of about 15 officers. In addition, 
the officers under Police and Customs whose exact number will be provided after further 
consultations.  
RESPONSES TO QUESTIONS FROM ECUADOR 
Report by the Secretariat (WT/TPR/S/222/ZAF:  Annex 4) 
II. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(iv) Standards and other technical requirements 
(b) Sanitary and phytosanitary regulations 
According to paragraph 90, a permit is required to import meat, and the permit may only be issued if 
meat is imported from a place approved by the national executive officer. 
On the basis of what criteria does the national officer grant a permit to import meat? Response:   
The import requirements for meat vary according to the conditions in individual prospective exporting 
countries.  
South Africa requires information regarding the co ntrols and procedures in the country of origin. 
These include:  
− animal disease situation (OIE re ports and other information ava ilable internationally, as well as 
 information received from the prospective exporting country); 
− systems of disease control and surveillance;  
− disease notifications and exotic disease response procedures; 
− the official (government) veterinary service;  
− relevant legislation and other requirements; 
− the legislative controls on import and export of animals and animal products;  
− the laboratory service coverage (both private and state);  
− the veterinary practitioner base and its interacti ons with the official veterinary services;  WT/TPR/M/222/Add.1 
 Page 71 
 
 
  − the industry, its use of veterinarians and its inte ractions with the official veterinary service. 
South Africa will first evaluate information receive d in a response to a questionnaire. If the outcome 
is favourable, an audit visit will be planned. The in spection of abattoirs and cutting plants can be done 
during the same visit, but will usually only be consider ed if the animal health situation appears to be 
favourable. 
Information on the importation of meat is available on the website of the South African Department of 
Agriculture, Forestry and Fisheries:   http://www.daff.gov.za → Divisions → Food and Veterinary 
Services → Import / Export → Import → Import procedures. 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(iii) Export prohibitions, controls and licensing 
Paragraph 125 refers to the diamond  exchange and the export centre. 
Who administers or manages the diam ond exchange or the export centre? 
Response:   
The Diamond Exchange and Export Centre (DEEC ) is managed by the South African Diamond and 
Precious Metals Regulator (SADPMR), which replaced the South African Diamond Board (SADB) under Section 3 of the Diamonds Second Amendment Act. 
Is their purpose administrative, or is it to  control the price and volume of exports? 
Response:   
The purpose of the SADPMR with regard to the D EEC is administrative as the Regulator facilitates 
both import and export sales.  There is no control over the volume and price of diamonds exported from the DEEC.   
III. TRADE POLICIES BY SECTOR 
(2) A
GRICULTURE  
Policy objectives and administration 
According to paragraph 188, guideline prices – for ce rtain products – are for administrative purposes 
only. 
Could you please explain in grea ter detail why these prices only influ ence the administrative sphere 
and have no effect on the market price and even production volumes? 
Response:   
The purpose of these guideline prices is to ensure th at the statutory levies for these products are not 
more that 5% of the price of the specific product. These guideline prices are average prices of the products at the first point of sale, for a period of up to three years. The guideline price is therefore a historic price used only to place a upper limit on the applicable levies and has no influence on the 
prevalent market price. South Africa's agricultu ral policies do not provide for market price 
interventions. 
According to paragraph 190, altho ugh the tariff remains the main trade policy instrument, the strict 
SPS requirements on agricultural prod ucts appear to have become the major barrier to trade, as most 
agricultural goods are subject to quality standar ds (Table III.6) or technical regulations. WT/TPR/M/222/Add.1 
Page 72  
 
  What, exactly, are these strict SPS requiremen ts to which the Secretariat report refers? 
Response:   
South African SPS standards are in accord ance with international standards. 
Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing 
Measures establish the requirement to submit reports on subsidies applied. 
On what date was the latest report on the subsidies applied by South Africa submitted? 
Response:   
Agricultural Subsidies for 2006 were notified in the Agricultural Committee on the 9 September 2009.  
RESPONSES TO QUESTIONS FROM HONG KONG, CHINA 
Contingency Trade Remedies
 
(WT/TPR/S/222, p. 27-28, paras. 95-97) 
1. We note that Botswana, Lesotho, Namibia an d Swaziland are in the process of establishing 
their own legal and institutional framework to e nable them to initiate trade remedies.  We 
would like to know the progress and the time fram e for the implementation of the new legal 
and institutional systems in each country. 
Response from Botswana: 
The legal and institutional framework for the administ ration of trade remedies is being established in 
Botswana. Currently the draft Bill which will provid e the basis for the required institution is being 
developed, after which it will go through the necessary parliamentary process. It is anticipated that 
this process will be completed in 2010.   
Response from Namibia: 
Namibia has established its Competition Commission and is in the process of setting up its National 
Body which is expected to in place by 2010. 
Response from Swaziland: 
Swaziland is currently customizing the SACU Model La w to be tabled before Parliament for approval 
and subsequent promulgation into an Act governing the establishment of the National Body to deal 
with, amongst others, tariff inves tigation and the initiation of trade remedies. At the moment tariff 
related issues are addressed through the Intern ational Trade Administration Commission (ITAC) in 
South Africa through a SACU Council decision. Domest ication of the Model Law is to be completed 
by the year 2010.  
Standards and Technical Requirements  
(WT/TPR/S/222, p. 31, paras. 120-121) 2. While there are provisions in the 2002 SACU Agreement on the harmonization of technical 
regulations, product standards, and sanitary and phytosanitary measures, it appears that 
alignment in these areas has yet to take pl ace.  Is there any plan/schedule for the 
harmonization?  WT/TPR/M/222/Add.1 
 Page 73 
 
 
  Response: 
SACU has initiated work in defining an approach for SACU to give effect to the provisions of 
Article 28 on Technical Barriers to Trade. However, this work is still in its infancy and cooperation 
proposals on technical regulations and products st andards are still being considered by technical 
experts. Timelines for implementation have not yet been agreed.   
In the area of sanitary and phytosanitary measu res, the 2002 Agreement recognises Member States' 
right to apply SPS measures in accord ance with their national laws and international standards. There 
is no requirement for harmonization of these measures. However, a system of notification, consultation and monitoring of these measures is in place under the auspices of the Agricultural 
Liaison Committee established in terms of Article 12. In addition, SACU Member States are all WTO 
Members and they participate in the work of the WTO Committee on SPS.  
Transport and Logistics Services
 
(WT/TPR/S/222/ZAF, p. 360, para. 288) 
3. We note from the Secretariat Report that South Africa's 2005 National Freight Logistics 
Strategy aims to achieve increased competitions in  the freight system but this has not yet been 
attained.  Would South Africa enlighten us further how the Strategy seeks to encourage 
competition and in particular whether compe tition from foreign service suppliers are also 
encouraged under the Strategy?  What are th e obstacles that have prevented the goal of 
increased competition from being attained? 
Response: 
The National Freight Logistics Strategy (NFLS) w as approved by Cabinet in 2005. It set out the 
vision and an integral objective of reducing th e cost of doing business in South Africa through 
seamless movement of goods and services e.g. cost of logistics currently at approximately 15% of Gross Domestic Product (GDP) compared to 8% of international best practice.  
To this end, the NFLS identifies strategic interv ention areas on rail, road, air and sea ports and across 
the modes where interventions shou ld be focused in order to elim inate current system blockages, 
increase cargo movement capacity and improve servi ce delivery performance in order to increase 
commodity throughput, grow the sector while reduci ng transaction costs. Relevant programmes in the 
rail, road and aviation sectors have been identifie d in the NFLS and are currently being implemented 
by the Department of Transport (DOT) to make positive contribution in this regard. 
RESPONSES TO QUESTIONS FROM JAPAN 
The Government Report (WT/TPR/G/222) 
REPORT BY BOTSWANA 
III.  TRADE AND TRADE RELATED DEVELOPMENTS 
(1)  T
RADE POLICIES AND STRATEGIES  
(Question 1: page 8, paragraph 9) 
The report by Botswana includes two initiatives. Fi rstly, Botswana's Trade Policy will be launched 
during 2009. Secondly, the country is also in the process of establishing a National Body, which will 
be responsible for international trade administra tion. Has Botswana already started these initiatives? WT/TPR/M/222/Add.1 
Page 74  
 
  If so, please provide the outlines. What is the worki ng relationship between the National Body and the 
existing Botswana Export Development and Investment Authority (BEDIA)?  
Response: 
The processes of finalising Botswana's Trade Policy as well as for the establishment of the National 
Body are at an advanced stage. The National Trad e Policy is scheduled for presentation to Parliament 
in 2009. The National Trade Policy outlines Botswana's  orientation to international trade and provides 
the necessary mechanisms for enhancin g the ability of the country to participate in and benefit from 
trade. 
As indicated in the Botswana Annex (WT/TPR/S/ 222/BWA) II (1), Botswana is currently drafting 
legislation establishing the national body; the draft is expected to be finalized in 2010.  The functions 
to be undertaken by the National Body is to c onduct trade remedies investigations whereas Botswana 
Export Development and Investment Authority (B EDIA) is mandated to promote investment and 
export.  There will therefore be no direct institu tional relationship between the envisaged National 
Body and BEDIA.  
The Secretariat Report (WT/TPR/S/222) 
SUMMARY OBSERVATIONS 
(1)  E CONOMIC ENVIRONMENT  
(Question 2: page vii, paragraph 1) 
The SACU membership consists of four middle- income countries and one least developed country, 
Lesotho. Are there any examples of South-South co operation within the SACU , such as preferential 
treatment for Lesotho (LDC) by other SACU members?  If there are, please explain the outline of the 
scheme. 
Response: 
The 2002 SACU Agreement recognizes the different le vels of economic development of its Member 
States. It therefore aims to enhance the economic development, diversification, industrialization and 
competitiveness of all its Member States, while at th e same time promoting the integration of Member 
States into the global economy. Lesotho is a full Me mber State of the Customs Union and therefore 
benefits from all the privileges the agreement pr ovides. Further, the Revenue Sharing Formula 
includes a development component that is specifi cally aimed to address the development needs of 
lesser developed SACU Member States by weighing it  in favour of the less developed Member States.  
(Question 3: page vii, para 4; page 16-17 , paragraph 75-79; page 31, para. 120) 
According to the Secretariat's report, in light of  the harmonization of the trade systems, the SACU 
attempts to unify customs procedures, standards, sanitary and phytosanitary (SPS) measures, rules 
regarding competition and unfair trad e practices. It appears that alignment in these areas has not 
taken place, except for few exceptions. 
Japan would like the SACU to explain the plan for further harmonization.  Response: 
SACU has initiated work in defining an approach for SACU to give effect to the provisions of 
Article 28 on Technical Barriers to Trade. However, this work is still in its infancy and cooperation  WT/TPR/M/222/Add.1 
 Page 75 
 
 
  proposals on technical regulations and products st andards are still being considered by technical 
experts.   
In the area of sanitary and phytosanitary measu res, the 2002 Agreement recognises Member States' 
right to apply SPS measures in accord ance with their national laws and international standards. There 
is no requirement for harmonization of these measures. However, a system of notification, consultation and monitoring of these measures is in place under the auspices of the Agricultural 
Liaison Committee established in terms of Article 12. In addition, SACU Member States are all WTO 
Members and they participate in th e work of the WTO Committee on SPS. 
Attempts to unify customs procedures are being pursued under the Customs development programme, 
which has as a core project the development of standard operating procedures for customs. The 
implementation of this programme has recently commenced, while work on the development of 
unified customs procedures in areas related to export, import, transit, documentation, risk 
management, and trade engagement is  scheduled to start in 2010.  
SACU is currently developing Annexes on Unfair Trade Practices and on a Cooperation Mechanism 
on Competition Policy. Once completed, these will fo rm annexes to the 2002 SACU Agreement in 
terms of Article 42 of the Agreement.  
The process of developing these Annexes is at an adva nced Stage.  However, this is linked to the 
capacity of Member States to develop and implem ent these Annexes.  Currently, Swaziland, Namibia 
and South Africa are the only Member States with the competition legislation, while the other two 
Member States are currently developing their own legislation. 
(Question 4: page viii, para 13-15) 
Tariff bindings by all SACU members are at ad valo rem rates. If the SACU sets import quotas (IQ) or 
tariff quotas, how will the SACU operate the system as a whole? How will the SACU comply with the 
WTO Agreement on Import Licensing Procedures?  
Response:   SACU has never set import or tariff quotas. 
II.  THE COMMON REGIMES 
(4)  T
RADE AGREEMENTS AND ARRANGEMENTS  
(iii)  Southern African Development Community (SADC) 
(Question 5: page 12, para 52) SADC/FTA was launched in August 2008 covering al l Southern African countries, including all 
SACU members. Because of the Most Favoured  Nation provision of the new FTA, does the 
preferential duty of the SACU, also apply to the other SADC members on equal footing? If this is not the case, please specify the reason.   
Response:  
In terms of the SADC Protocol on Trade, SACU has made a single, combined tariff phase-down offer 
to non-SACU SADC Member States that are signatori es to the Protocol. This implies that all SACU 
Member States implement the same tariff commitments vis-à-vis  SADC countries. 
Article 28, paragraph 3 of the SADC Protocol on Trade provides an exception to the Most Favoured 
Nation provision cited by Japan in that no Member St ate to the SADC Protocol on Trade is obliged to 
extend preferences of another trading bloc of which that member State was a member at the time of WT/TPR/M/222/Add.1 
Page 76  
 
  entry into force of the Protocol. SACU was already in existence at the time the FTA came into force 
and as such is exempt from this specific MFN provi sion. However, currently SACU is offering zero 
import duties on all products from SADC, with the exce ption of sugar and a limited number of textiles 
tariff lines, where special provisions such as ru les of origin and quota arrangements apply. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(4)  T
RADE AGREEMENTS AND ARRANGEMENTS  
(iii)  Safeguard measures 
(Question 6: page 30, para 114) 
Should the SACU invoke a safeguards provision agai nst SADC members, how could the invocation 
affect the SADC members under the SADC/FTA?  
Response:   
SACU can impose safeguard measures against SADC members under the multilateral safeguard 
agreement if the volume of imports from the specif ic SADC member state is above the volume of 
imports that can qualify for exclusion as a developing country. 
ANNEX 1. BOTSWANA 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(4)  T RADE AGREEMENTS AND ARRANGEMENTS  
(v)  Standards and other Technical requirements 
(a) Technical barriers to trade 
(Question 7: page 85, para 85) 
For the purpose of economic growth, Botswana established the Botswana Bureau of Standards 
(BOBS). Meanwhile, we hear from business circles in  Botswana that there is a continuous import of 
industry products of low quality. Does Botswana have a system where the country protects consumers 
from such low quality products? 
Response: 
In September 2008 the Standards Import Inspection Re gulations (SIIR) were introduced in Botswana 
to control entry into Botswana of low quality pro ducts with a view to protecting the consumers from 
such low quality goods. The SIIR came into effect on 1st April 2009 and was widely publicised to 
ensure that all stakeholders fully participate in  implementation of these regulations. A few products 
have been listed as prescribed products under the SIIR and the list is expected to expand.  
(4)  M EASURES AFFECTING PRODUCTION AND TRADE  
(ii)  State-trading, state-owned enterprises, and privatization 
(Question 8: page 95-96, para 135) 
Botswana decided to proceed with privatization fr om the viewpoint of industry diversification based 
on the master plan of 2005 prepared by PEEPA (P ublic Enterprises Evaluation and Privatization 
Agency). It seems that Botswana faces difficulties in some specific privatization cases. Does it affect 
the future of the privatization plan? If so, how w ill Botswana proceed with further privatization?   WT/TPR/M/222/Add.1 
 Page 77 
 
 
  Response: 
It is the exception rather than the norm, for priva tization plans to run smoothly, since we operate in a 
dynamic financial environment. Bo tswana's experience with privatization efforts are no different from 
any other country's experience, but Government of Botswana remains committed to play the role of 
facilitator, thereby empowering the private sector to play the leading role in the country's economy. At 
this time, there is no reason to discontinue the Privatization Master Plan. 
(ii)  Protection of intellectual property rights 
(Question 9: page 96, para 139) 
We hear from business circles in Botswana that pi rated copyright goods such as CDs, DVDs, and 
other illegal products are openly available in Bots wana. Please describe the plan to ensure protection 
of intellectual property rights, including trademark right and copyright.  
Response: 
(a) Copyright and Neighbouring Right Act Section 32 provides for boarder measures to tackle 
piracy. 
(b) The use of hologram (security device) to tackle piracy Section 35A. 
(c) Copyright and Neighbouring Right Act Section 29, provides for spot checks and raids by the 
police.   
ANNEX 2. LESOTHO II.  TRADE AND INVESTMENT REGIMES 
(4)  T
RADE -RELATED TECHNICAL ASSISTANCE  
(ii)  Supply-side constraints  
(Question 1: page 158, paragraph 48) According to the Secretariat's report, the World B ank conducted DTIS (Diagn ostic Trade Integrated 
Study) as the first step in implementing the Lesotho' s Integrated Framework: one of the prescriptions 
by the DTIS is to reduce  the "cost of trading" with the other SACU partners by removing various 
remaining barriers to trade, to movement of capital and labour within SACU, "using its integration in 
the SACU region as a springboard to greater integration into the world economy".  
Could you give us information on whether or not there is specific cooperation between  Lesotho, the 
only least developed country within SACU, and other SACU members, in order to remove barriers to 
trade, investment and movement of labour. If there a re, we would like the members of SACU to 
provide information on these cooperation schemes.  
Response: 
Lesotho has Joint Bilateral Commissions of Cooperation with Botswana and South Africa.      WT/TPR/M/222/Add.1 
Page 78  
 
  ANNEX 3. Namibia  
IV.  TRADE POLICIES BY SECTOR 
(6)  S
ERVICES  
(iii)  Transport 
(c)  Sea  
(Question 2: Annex 3, page 262-263, paragraph 238) 
The Secretariat's report states that there are plans to upgrade Walvis Bay by deepening the harbour 
in order to improve its capacity to handle the Panamax ships.  
Could Namibia elaborate on the outline of these plans, including port facilities, terminals for 
passengers and improved services?  
Response: The Walvis Bay port is being deepened; the cont ainer handling capacity will be doubled and further 
cranes are being purchases, new key sites are being developed including building of an artificial island to provide for expansion of container handling. Plans for the expansion are currently still being 
finalized. 
ANNEX 4. South Africa IV.  TRADE POLICIES BY SECTOR 
(5)  S
ERVICES  
(iv)  Transport  
(b)  Maritime services  
(Question 3: page 363, paragraph 296) 
The Secretariat's report points out the inefficiency and high cost of ports' operations in South Africa.  
Japan would like South Africa to provide informatio n on whether or not it has plans for improving 
ports' operations; and if it is the case, c ould it provide the outlines of these plans? 
Response:   
SA has prioritized the improvement of operations of all commercial ports as per the Commercial Ports 
Policy of 2001. The purpose of this policy is to ensure affordable, internationally competitive, 
efficient and safe port services based on the applica tion of commercial rules in a transparent and 
competitive environment applied consistently acr oss the transport system. This led to the 
promulgation of the National Ports Act of 2005.  The objectives of this Act are to:   
(a) promote the development of an effective and productive South African ports industry that is 
capable of contributing to the economic gr owth and development of our country; 
(b) establish appropriate instituti onal arrangements to suppor t the governance of ports; 
(c) promote and improve efficiency and performance in the management and operation of ports; 
(d) enhance transparency in the management of ports;  WT/TPR/M/222/Add.1 
 Page 79 
 
 
  (e) strengthen the State's capacity to:   
(i) separate operations from the landlord function within ports; 
(ii) encourage employee participation, in order to motivate management;  and 
(iii) facilitate the development of technology,  information systems and managerial 
 expertise through private sector involvement and participation; and  
(f) promote the development of an integrated regional production and distribution system in 
support of government's policies.  
This Act led to the establishment of the National Ports Authority (NPA), the National Ports Operator 
(NPO) and the National Ports Regulator. The NPA owns  all port real estate and infrastructure, whilst 
the NPO is responsible for all port operations. 
The port rules are currently in operation and Tran snet Port terminals have introduced Terminal 
Guidelines to improve port productivity. The tariff book has been submitted to the Port Regulator of 
South Africa for approval. 
RESPONSES TO QUESTIONS FROM KOREA 
1. Questions for Botswana  
Question 1 : Member's Report, page 10, paragraph 21 
Could Botswana further elaborate in detail the ame ndments to the Industrial Development Act which 
took place in 2006?  
1. What were the old provisions, and how were the old provisions changed? 
Response: 
The Industrial Development Act 2006, was implemente d in April 2008 following its review, to put in 
place a simplified and efficient system of licensing businesses and facilitate the removal of 
administrative and regulatory barriers that hinder investment attraction to improve Botswana's 
investment climate. The review of the Industrial Development Act achieved the following objectives:   
(a) Pre-2008: centralization of the issuance of industrial licenses: 
New provisions: decentralization of the issuance of industrial licences to Local Authorities to 
harmonize it with the Trade Act 2003, through th eir respective Regional Licensing Committees, and 
thus to avoid setting up of multiple licensing stru ctures that contribute to bureaucratic delays. 
(b) Pre-2008: centralization of licensing 
New provision: decentralization of licensing to Local Authorities, and hence, bringing essential 
services to the people, whilst also reducing the pe riod for the issuance of licences from a one month 
period to an effective (5) working days. 
(c) Pre-2008: the National Industrial Licensing Authority had an extensive licensing mandate. 
New provision: abolishment of the National Industrial Licensing Authority (NILA) and establishing 
the Industrial Licensing Authority (ILA) for large scale and more complex manufacturing WT/TPR/M/222/Add.1 
Page 80  
 
  applications; and setting up of Regional Licensing Committees for licensing small and medium scale 
enterprises by Local Authorities.  
(d) Pre-2008: limited validity of manufacturing licences 
New provision: the issuance of manufacturing licences for an indefinite period to match with global 
competitive standards that would enable investment attraction in manufacturing competitive with 
other countries, and thus achieving investor confidence.  
(e) Pre-2008: limited provision for citizen par ticipation in industrial development 
New provision: enhancement of citizen economic  empowerment in industrial development by 
increasing the number of reserved areas for small scale citizen businesses; and provision for a modification of the Reservation Policy to allow jo int ventures between citizens and non-citizens for 
medium and large scale enterprises.   
(f) Pre-2008: no provision for registration of the informal sector and insufficient support to micro 
enterprises. 
New provision: inclusion of a statutory provision for the official registration of the informal sector ie; 
micro enterprises exempted from licensing requirements. 
2. How do these changes make the Industrial Devel opment Act more compatible with the Trade 
Act? 
Response: 
We have since realized that for the Industria l Development Act 2006 and Trade Act 2003 to operate 
harmoniously, amendments have to be made simultaneously to both Acts.   
2. Questions for Lesotho  
Question 1 : Member's Report, page 19, paragraph 36 
Could Lesotho further elaborate in detail the refor m measures it is contemplating in the area of 
Investment, competition and consumer protection? 
Response: 
Reforms under Competition  
Lesotho does not have a competition authority or a consolidated competition policy; and having 
acknowledged the importance of competition policy, Lesotho is in the process of developing a 
Competition Law. The draft Competition Bill establis hes a competition authority and prohibits hard 
core cartels involving price fixing, bid rigging and market sharing; the Bill also contains provisions 
relating to merger control and abuse of dominance. 
Reforms under Investment  
Reform measures in this area are primarily aimed at  encouraging development of local investment and 
ensuring protection of FDI.  Currently, Lesotho do es not have FDI protection law and the envisaged 
measures include promulgation of a law for the promo tion and protection of investments in Lesotho.   WT/TPR/M/222/Add.1 
 Page 81 
 
 
  However, the Government has started the process of  consultation with stak eholders on development 
of Investment Policy. 
Consumer Protection  
Reforms in this area include having in place a sing le legal framework with predictable rules that 
govern consumer welfare issues. Currently, provisi ons relating to consumer protection are covered 
under various pieces of legislation and administered by different institutions.  Initiatives to review 
Consumer Protection Act are underway. 
Question 2 : Member's Report, page 19, paragraph 37 
Could Lesotho further elaborate on the new Land b ill? What the new elements are, and how they 
compare with the old regulations? 
Response:   The Government of Lesotho (GOL) has devel oped a New Land Bill in order to respond to inter alia, 
issues related to production and investment.  
Lesotho recognizes that the prohibition of ownership of land-lease titles by foreign investors under the 
Land Act of 1979 is a departure from the principl e of national treatment and creates problems for 
business in general and foreign investors in particul ar.  The Constitution of Lesotho vests all land in 
the nation. The Land Act abolished the chiefs' rights of land allocation and introduced a leasehold title 
system for land in designated urban, agricultura l and "development" areas and thus available for 
commercial use. Maximum lease tenure is up to 90 years for residential use and either 60 years or 30 years for business use.  The Land Policy Reform Commission (LPRC) report of 2000 made clear recommendations for a more investor-friendly legi slation; it recommended limited use of freehold 
title for commercial and industrial purposes and an open market in such titles.  As a result, a revised 
Land Bill was drafted and national consultations are currently underway. The bill advocates the wider 
use of freehold and leasehold owners hip which should enable foreign investors to lease land for at 
least 60 years. Ministerial powers will be retain ed to allocate new lease titles to land, whether on 
market or non-market terms, but title transfers and encumbrances will  be re gistered in conventional 
fashion by the deeds' registry instead of requiring  the minister's or officials' approval. This will 
promote a market in land and property and remove a ke y constraint in attracting private investment in 
developing land for business use. 
The bill also protects the rights of women and gives them rights equal to men in owning land. This 
means women would not require the consent of thei r spouses to acquire land or immovable property. 
3. Questions for Namibia
 
Question 1 :  
Korea notes that Namibia has not provided any info rmation on the recent developm ents in the area of 
Investment. Could Namibia elaborate on the recen t developments in this important area?  
Response: 
On Investment performance, kindly refer to tabl e 1, 5 which shows a steady increase of FDI into 
Namibia. Namibia is currently in the process of updating its investment law. WT/TPR/M/222/Add.1 
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  4. Questions for South Africa
 
Question 1 : Member's Report, page 30, paragraphs 9-11 
According to the Member's report, ASGISA (Accel erated Shared Growth Initiative for South Africa) 
was first conceived in year 2004, and officially laun ched in February 2006 with target goals set for 
year 2014. 
As we approach the mid-point of the implementation of ASGISA, could South Africa (hereinafter 
referred to as "SA") further elaborate on concrete de tails of the various programs it has implemented, 
and comment on its assessment on the results of th e various programs implemented thus far? 
Response:  
The third annual report for the period of 2008 coincides with a global economic meltdown of 
potentially history proportion, and some of the ASGISA programmes have been critical to 
South Africa's relative resilience on a global scale. 
Programmes put in place to eliminate constraints to  achieving a higher gross domestic product growth 
rate to a sustainable level of 6% by 2010, such as infrastructure investment; second-economy initiatives; skills and education (Joint Initiative for Priority Skills Acquisition) ; industrial policies and 
sector strategies; macroeconomic policy and gover nance intervention; have all been severely 
jeopardized by the ensuing global financial crises. 
Infrastructure has produces encouraging results, w ith meaningful growth in gross fixed capital 
formation, driven particularly by the public sector. The massive infrastructure programme being 
implemented and planned is opportu ne and now forms one of the main pillars of South Africa's 
response to the global economic crises, and indeed as the Minister of Finance said in his 2009 Budget 
speech, "we are fortunate in that the in frastructure programme is shovel ready". 
The full report is available at:  http://www.thep residency.gov.za/main.asp?include=docs/reports/ 
asgisa/2008/annual08.html. 
Question 2
: Member's Report, page 31, paragraphs 13-14 
According to the Member's report, the objectives of  NIPF are "to promote diversification, facilitate 
progression up the value chain and foster growth in  labor-intensive sectors of the economy." To 
achieve these objectives, interventions will be made in identified sectors. Could SA further elaborate 
on these "interventions?" 
1. In particular, could SA explain in detail sector  strategies for BPO and tourism, as well as for 
metals, chemicals, automotives, and clothing/textiles? 
Response:  
Relevant Sector strategies are still being developed. 
2. What is the policy direction in place as SA assumes its work to devise "strategies and action 
plans" for the capital goods sector, agr o-processing, film and creative industries? 
Response: 
RSA is in a process to develop specific sector strategies on these products.  WT/TPR/M/222/Add.1 
 Page 83 
 
 
  Question 3 : Member's Report, page 32, paragraphs 17-18 
According to the Member's report, SA is undertakin g a review of its trade policy since mid-2007. In 
this regard, Korea would appreciate replies to the following questions. 
1. Could SA provide further detail on the fi ndings of the review process thus far? 
2. How does SA define "downstream industries"? Could SA provide a few examples? 
Response:   Labour intensive and high value adding sectors e. g. clothing, automotives, agro-processing etc. 
3. A first read of SA's explanations in paragraphs  17 and 18 suggests that SA is reviewing the 
possibility of adjusting (in an upward direction) its  tariffs for "downstream industries." Could 
SA comment on whether this is indeed the case? 
Response:  The tariff structure is informed by the industrial policy imperatives and dete rmined on a case by case 
basis based on evidence. The upstream input indust ries that have been re viewed are aluminium, 
textiles, capital equipment and chemicals. 
4. (follow-up to Q3-3) If the answer is "yes" to Q3-3, could SA explain how its policy direction 
would be harmonized with its obligations  once the DDA negotiations are concluded? 
Response:  
For now the adjustment made by RSA are within our WTO obligations. 
Question 4
: Member's Report, page 34, paragraph 27 
In regards to the main elements of the new SACU  Agreement (as described in para. 27), SA comments 
that "progress on these fronts has been inadequate." 
1. Could SA comment on the possible reasons for the lack of progress? 
Response: 
There is a process for speeding up implemen tation of the outstanding institutions.  
2. Is there a new timeline/target date fo r implementation of these agreements? 
Response: 
The SACU Council of Ministers has agreed to a ro admap for the implementation of these agreements. 
5. Questions for Swaziland  
Question 1 : Member's Report, page 39, paragraph 14 
Could Swaziland provide further information with respect to the comment "T he Bill seeks to ease 
costs of doing business" in para. 14?  WT/TPR/M/222/Add.1 
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  Response:  
The bill contains cosmopolitan principles and is a ligned to present day principles on company law. 
These include the principle of simplification to cut down administrative and bureaucratic costs, and 
the principle of deregulation to allow small private companies to run their affairs with as little regulation as possible.  
What are the concrete changes enacted which would, in  Swaziland's view, contribute to easing cost of 
business in Swaziland? 
Response:   
Enactment of the Competition Act in 2007; Fair Tr ading Act and the Standards and Quality Act in 
2003 and the Draft Public Procurement Bill in 2008. 
RESPONSES TO QUESTIONS FROM MEXICO KINGDOM OF LESOTHO IV. TRADE POLICIES BY SECTOR 
(3) T
ERTIARY SECTOR  
According to paragraph 29, the Government of  Lesotho through support from its development 
partners is focused on identifying existing regulatory im pediments within this sector.  This is expected 
to culminate in the production of a services strate gy which will guide the process to dismantle 
regulatory impediments, enhance the efficien cy of supply of key business services and increase 
competitiveness within the services sector.  Could you please tell  us when you plan to develop this 
services strategy? 
Response: 
The review process is an initial stage in development of the services strategy.  Upon completion of 
this diagnostic exercise, the existing sub-sector al policies/strategies will be improved.   
RESPONSES TO QUESTIONS FROM SINGAPORE 
1. The WTO Secretariat's report mentions that  SACU members do not have the necessary 
legislation in place to implement the 2002 SACU  Agreement. Is this only with respect to the 
creation of national bodies and institutions as sti pulated in the Agreement, or does this also 
affect the rest of the elements  of the Agreement, such as t hose on trade in goods, services, 
customs procedures, and SPS measures? 
Response:  
By virtue of signing and ratifying the 200 2 SACU Agreement in accordance with accepted 
international norms and procedures, SACU Member St ates have incorporated the agreement into their 
national legislative frameworks. Member States ha ve further introduced the required customs and 
excise legislation to give effect to the main aspect of the agreement, namely the creation of a common 
external tariff for goods imported in to the Common Customs Area and free movement of Goods 
between the Member States. In order to strengthe n the implementation of the agreement, several 
Annexes have or are being devel oped. SACU Member States have a ll ratified an Annex on Mutual 
Administrative Assistance which creates a platform for joint cooperation on customs issues. SACU is 
further developed an Annex on the SACU Tariff Boar d and National Bodies. Member States are in the  WT/TPR/M/222/Add.1 
 Page 85 
 
 
  process of establishing National Bodies. To facilita te the operation of National Bodies, the SACU 
Secretariat has developed a model law (which has been approved at the highest level of SACU 
decision making, the Council of Ministers), based  on the legal instrument establishing the South 
African National Body, the International Trade Ad ministration Commission (ITAC). This law will 
help facilitate the establishment of  the respective National Bodies. It should be noted that the 2002 
SACU Agreement does not cover trade in services.  
2. South Africa imposes non-tariff barriers such as  seasonal import quotas and prohibitions, 
and additional duties on imports of certain agricu ltural products. Given the recent calls and 
work at both the political and technical levels to reduce and eliminate non-tariff barriers in the spirit of encouraging trade and investments, is South Africa working on lessening or 
doing away with these barriers? 
Response:   
RSA does not impose import quotas, prohibitions or additional duties. 
RESPONSES TO QUESTIONS OF SWITZERLAND 
SACU – TRADE POLICY REVIEW – DOCUMENT WT/TPR/S/222-00 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(4)  C
ONTINGENT TRADE REMEDIES  
In para. 95 , the Secretariat's report notes that as a result of their SACU membership, all SACU 
members must apply anti-dumping, countervailing or  safeguard measures imposed by South Africa 
through investigations conduc ted by the International Trade Ad ministration (ITAC) on behalf of all 
SACU countries. Thus the trade remedies applied by South Africa are by extension also applied by the 
BLNS countries. At the same time, the Secretariat's report suggests that the BLNS countries do not 
have trade remedies legislation or institutions in  charge of imposing trade remedies. Could the 
authorities of the BLNS countries explain how they reconcile the fact that they have no trade 
legislation or institutions in char ge of imposing trade remedies in  place – while still automatically 
applying the trade remedies imposed by South Africa to exporters from third countries – with the 
provisions of the WTO Agreement on Implemen tation of Article VI of the GATT of 1994 
(Anti-dumping Agreement), the WTO Agreement on Subsidies and Countervailing Measures and the 
WTO Agreement on Safeguards, in pa rticular with the need to de monstrate injury to the domestic 
industry before imposing such measures? Also, could the BLNS countries indicate if there are 
possible exceptions to that rule of automaticity, in particular if imposing such trade remedies would 
be detrimental to their own domestic producers  and/or consumers? Also, how does the ITAC 
determine the level of dumping and injury if the dom estic price of the product under consideration is 
different from one SACU country to another? Will the margin of dumping observed in South Africa 
serve as the basis for the calculation of the an ti-dumping duty or will it be based on an averaging 
method valid for all SACU countries? We woul d appreciate receiving some information on these 
issues. 
Response: The 2002 Southern African Customs Union (SAC U) Agreement, establishes SACU as a customs 
union, with a common external tariff (CET). 
Further, the SACU Agreement provides for th e establishment of, amongst others, specialized, 
independent and dedicated Nationa l Bodies in each of the Member States (or the designation of 
institutions) which shall be entrusted with recei ving requests for tariff changes and other related WT/TPR/M/222/Add.1 
Page 86  
 
  SACU issues. These National Bodies must carry out preliminary investigations and recommend any 
tariff changes necessary to the Ta riff Board. After consideration,  the Tariff Board will make a 
recommendation to the Council of Ministers for consideration. Should the decision of the Council of Ministers be to impose a duty, this duty will appl y to all imports into the common customs area. 
Although South Africa has already established its National Body (ITAC), the other Members of 
SACU has not yet finalized the establishment of their respective National Bodies nor has the Tariff 
Board been established. 
As a result, the Council of Ministers appointed ITAC to conduct, amongst others, trade remedy 
investigations on behalf of all the Members of SACU, with opportunity for other SACU Members to 
provide comments and input into the investigation process. 
As ITAC is established in term s of South African Legislation (ITA Act), it does not function as the 
Tariff Board envisaged in the SACU Agreement, an d can therefore not make recommendations to the 
Council of Ministers. ITAC's recommendations are made to the South African Minister of Trade and Industry (as per the ITA Act) and once the implem entation of a duty is approved, the duties are 
implemented on a SACU wide basis by the respective Customs Authorities. 
ANNEX 4 – SOUTH AFRICA – DOCUMENT WT/TPR/S/222-04 III. TRADE POLICIES AND PRACTICES BY MEASURE 
(3)  M
EASURES DIRECTLY AFFECTING EXPORTS  
(ii)  Export taxes and levies 
In para. 119 , the Secretariat's report indicates that, among others, South Africa levies export taxes on 
citrus fruit and wine. Could the South African aut horities explain the purpose of an export tax on such 
products. Indeed, one would think that by taxing the export of citrus fruit and wine, this is likely to 
reduce the competitiveness of these South African products on world markets compared to similar 
products from producers such as Argen tina or Chile, for instance. Furth ermore, is this export tax also 
levied when these exports are made to other member countries of SACU? 
Response:   
A statutory levy, not export taxes, is applicable on the export of citrus and wine to finance generic 
promotion programmes in foreign markets. SACU  markets are regarded as local markets.  
(iii)  Export prohibitions, controls and licensing 
In para. 123 , the Secretariat's report notes that exports of meat must be inspected, sampled and 
tested. Could the South African authorities explain the reason for the apparentl y stricter treatment of 
export meat products than of the ones for domestic consumption? Are there plans to raise also the 
SPS requirements for domestic me at production destined to domes tic consumption? Do these more 
stringent rules also apply to exports to the other SACU member countries? 
Response: 
Inspection of meat destined for export is done in  accordance with the requirements of the importing 
country. Depending on the importing country, these requirements may or may not be stricter than the 
requirements for local consumption.  
There are no immediate plans to raise SPS require ments for domestic meat production destined for 
domestic consumption.  WT/TPR/M/222/Add.1 
 Page 87 
 
 
  Meat exported to other SACU members is in accordance with the requirements of the importing 
SACU member. 
(4)  M EASURES AFFECTING PRODUCTION AND TRADE  
(iv)  Protection of Intellectual Property Rights 
Table III.10  indicates that under Sections 6 and 7 of the Merchandise Marks Act (Act No. 17 of 1941) 
and Merchandise Marks Amendment Act (2002) it is an offence if GIs "are falsely applied to goods" 
and "goods bearing false GIs are pr ohibited from being sold in Sout h Africa as they bear false 
descriptions". Could you please spec ify whether the protection granted to GIs under this Act prevents 
– or enables a rightholder to p revent – the use of a GI identifying a particular good for goods not 
originating in the place indicated by the GI in question? 
Response:   The question from Switzerland relating the ss 6 & 7 of the Merchandise Marks Act 17 of 1941 reads 
protection of GI's into the above-mentioned questions . This act does not refer to GI's and in practice 
the Merchandise Marks Act has not been used to prot ect GI's. However, it would be possible to bring 
the use of a wrong or misleading GI within the defin ition of a false trade description. To this extent, 
ss 6 & 7 of the Act may potentially apply to the mi sleading use of GI's. However, it should be clear 
that these provisions create a criminal offence and can not be seen to create a civil right of action.  
The Table III.10 also mentions that the Counterfeit Goods Act (1997) "provides for the 
criminalization of dealing in counterfeits and pira ted goods, such as [italics added] trade marks and 
copyrights". Could you please specify the scope of  this Act? Does it also cover other areas of 
intellectual property such as patents, designs and geographical indications? 
Response:   The Counterfeit Goods Act 37 of 1997 does not apply to  patents or designs. It does however apply to 
trade marks as defined in the Trade Marks Act 194 of  1993, the definition of a trade mark excludes a 
GI. 
According to the Secretariat's Report in para. 161 , parallel imports are not allowed in South Africa. 
Pursuant to Section 15c of the 1965 Medicine and Related Substances Control Act (as amended in 
1997) on the other hand, "the Minister may prescribe  conditions for the supply of more affordable 
medicines in certain circumstances so as to protect the health of the public, and in particular may (…) 
(b) prescribe the conditions on which any medicine wh ich is identical in composition, meets the same 
quality standard and is intended to have the same  proprietary name as that of another medicine 
already registered in the Republic, but which is im ported by a person other than the person who is the 
holder of the registration certificate of the medicine  already registered and which originates from any 
site of manufacture of the original manufacturer as  approved by the council in the prescribed manner, 
may be imported (…)".  
Is letter b of this Section to be understood as allowing parallel imports of medicines "in certain 
circumstances"? Could you please explain the meaning of the expression "in certain circumstances" 
and specify the conditions to be met according to  Section 15c to allow parallel importation of 
medicines?   
Response:  
Article 15C of the Medicine a nd Related Substances Control Act may be seen as falling with the 
TRIPS flexibilities with regard to the implementation of  Par 6 of the Doha Declaration. This article is WT/TPR/M/222/Add.1 
Page 88  
 
  further clarified by guidelines which were issued by the Department of Health in June 2003. The 
guidelines can be obtained from the website of th e Medicine Control Council of South Africa: 
www.mcc.za.com.  
The Secretariat's Report does not mention how South Africa implemented Article 39 of the TRIPS 
Agreement  (Protection of Undisclosed Information).  
Could you please explain how Article 39 of the TRIPS Agreement, and more particularly the 
obligation set out in its paragraph 3, has been im plemented in your legislation? Please cite the 
relevant acts or regulations. 
Response:  
There is no specific legislation that deals with the implementation of Artic le 39(3) of the TRIPS 
Agreement. The dti is considering various proposal s on how Article 39(3) can be implemented into 
current South African legislation. This process is still ongoing and has not been concluded at this 
stage. 
IV. TRADE POLICIES BY SECTOR  
(2)  A
GRICULTURE  
In para. 188 , The Secretariat's Report raises the issue of guideline prices. Could South Africa explain 
the mechanism of those guideline prices, in pa rticular regarding export products such as grape 
products? How does South Africa ensure that no market  intervention is provoked by such guideline 
prices? Do these guideline prices show different level s for one single product when determined either 
for internal use or for exports? 
Response: 
The purpose of these guideline prices is to ensure th at the statutory levies for these products are not 
more that 5% of the price of the specific product. These guideline prices are average prices of the products at the first point of sale, for a period of up to three years. The guideline price is therefore a historic price used only to place a upper limit on the applicable levies and has no influence on the 
prevalent market price. South Africa's agricultu ral policies do not provide for market price 
interventions. 
In table IV.2  and para. 196  and 198, the Secretariat's Report lists selected legislation on agriculture. 
The Marketing Amendment Act seems to regulate, am ong other aspects, quantitative controls over 
export. Do export levies for bulk wine fall under this  legislation? Could South Africa clarify, in which 
way these export levies are steered? Are furth er measures of export measures applied by 
South Africa? 
Response: This is a mistake in the secretariats report. Th e Marketing Amendment Act was repealed in 1996 with 
the promulgation of the Marketing of Agricultura l Products Act, Act 47 of 1996. This Act provides 
for the application of statutory levies on various products, including bulk wine. For wine, the levies 
are also used for generic export promotion in foreign markets.  
According to para 197  combined with the table III.3  in chapter III (2) South Africa shows very low 
quota fill rate for its cheese quota (36.5% in 2007). Could South Africa explain the reasons and 
describe, whether any measures are fore seen to improve the quota fill rate?  WT/TPR/M/222/Add.1 
 Page 89 
 
 
  Response: 
The full tariff quota for import permits has been is sued to prospective importers, however, due to 
market conditions; quotas have not been fully utilized. 
In recent years, there was an oversupply of milk a nd prices paid to farmers dropped significantly. As a 
result some farmers started producing cheese. This  increased the local supply of cheese reducing the 
need for imports. 
Various measures have already been taken to improve the quota fill rate. 
(3)  M ANUFACTURING   
According to para. 210  of the Secretariat's report the high cost of inputs and intermediate goods for 
the manufacturing industry is due to the lack of  competition in a number of key intermediate 
industries, and to import duties. Therefore, it seems counterproductive to envisage to increase duties 
to the bound rates despite the negative impact of the global downturn. Could South Africa indicate 
whether it has taken a final decision on this issue?  
Could South Africa provide more specific informa tion regarding the products which could be subject 
to such an increase of tariffs (please indica te the HS headings and the product description)? 
Response: 
RSA has reviewed all rates on upstream industries.  RSA has not raised any tariff above its bound 
rates. RSA has reduced a number (235) of tariff rates in the last two months. 
RESPONSES TO QUESTIONS FROM THE USA 
SUMMARY OBSERVATIONS 
(1) INSTITUTIONAL FRAMEWORK  
Page vii, paragraph 7:   The Secretariat report states that the SACU countries are having difficulties 
meeting their WTO notification obligations. Please identify the cause of such difficulties and the 
countries' remedial activities. 
Response from Botswana: 
Botswana has made efforts to adhere to its WTO notification obligations as stated in the Botswana 
Annex, which reflects the most recent notificati ons made in November 2008. Notwithstanding this 
compliance, Botswana continues to face capacity constraints in submitting all required notifications 
and as a result there are outstanding notifications. These challenges are being addressed while the 
country continues to work towards submitting its no tifications. Remedial actions being undertaken 
include expanding the human resource complement across the respective Ministries with 
responsibility for trade disciplines. An example of this is a National WTO Workshop on agriculture 
notification conducted in September 2009. Botswana is also currently  engaged in partnership with 
institutions to build the needed technical capacity . Full domestication of WTO commitments and their 
subsequent notification is also being undertaken. Si milarly, the challenge of coordinating notifications 
is being addressed through an appropriate structure.  
(2) TRADE POLICY INSTRUMENTS  
Page viii, paragraphs 10 and 16:  The Secretariat notes that, "South Africa continues to set the 
applied MFN Common External Tariff (CET) in consu ltation with its SACU partners.  In some cases, WT/TPR/M/222/Add.1 
Page 90  
 
  it appears that the structure of the CET does not  adequately reflect the needs of the individual 
economies of the other SACU members."  How do the members of SACU ensure that the structure of 
the CET adequately reflects the needs of the individ ual economies?  Are changes to the consultation 
process for setting the CET under consideration? If so, what changes are contemplated? 
Response:  
In the event that the International Trade Admini stration Commission (ITAC) initiates an investigation 
for the amendment of a customs duty, a notice w ill be published in the South African Government 
Gazette notifying all interested parties of the initiati on of the investigation. The notice will set out the 
name of the applicant, the type of application, a su mmary of the stated reasons for the application, the 
name and contact details of the investigating offi cial and the timeframe in which to submit comments 
on the investigation to ITAC. The published notice is  also send to the SACU Secretariat, as well as 
specific contact persons in the Governments of Botswana, Lesotho, Namibia and Swaziland (BLNS). 
Any interested party, including those in the BLNS, can submit comments to ITAC and all the 
comments received must be considered before a fi nal recommendation is made by ITAC to the South 
Africa Minister of Trade and Industry. In terms of ITAC's Tariff Investigation Regulations any 
interested party, including those in the BLNS, can also request to make oral representations to the 
Commission.  
It should be noted that this an interim arrangeme nt, because Article 11 of the 2002 SACU Agreement 
provides for the establishment of a SACU Tariff Board made of experts drawn from all Member 
States, while Article 14 provides for the establishm ent of National Bodies. The Tariff Board will be 
an independent institution, made up of full-time or part-time members, or both. It will make 
recommendations to the SACU Council, which is the highest decision-making body in SACU, on the 
level and changes of customs, countervailing and safeguard duties on goods imported from outside the 
customs union. Hence it will be responsible for overseeing the CET.  
The National Bodies will be specialized and indepe ndent national institutions established to support 
the Tariff Board in its work. National Bodies will receive requests for tariff changes, carry out 
preliminary investigations and recommend any ta riff changes necessary to the Tariff Board. In 
addition, National Bodies will determine the impact of  tariffs within the respective Member States and 
propose any changes deemed necessary to the SA CU Commission, which reports to the SACU 
Council. 
I. ECONOMIC ENVIRONMENT 
(1) M
AIN CHARACTERISTICS  
Page 1, paragraph 3:  The Secretariat notes that, "while the economy of South Africa is relatively 
diversified, Botswana, Lesotho, Namibia, and Sw aziland (BLNS) depend up on a limited number of 
products, such as diamonds, and beef for Botswana ; diamonds, fish, and meat for Namibia; water, 
clothing, and textiles for Lesotho; and sugar, and chemicals to be used in the food industries for Swaziland." Could the BLNS members of SACU descri be their efforts to diversify their economies?  
Response from Botswana: 
Economic diversification is a priority of  Botswa na's National Development Plans,  which adopt  a 
holistic approach to address challenges of product a nd export market diversification.  Initiatives to 
address the challenges at micro and macro levels include, inter alia , institutional (legislative and 
policy) reforms, infrastructure development a nd private-sector development and investment 
promotion.  WT/TPR/M/222/Add.1 
 Page 91 
 
 
  Response from Lesotho: 
A review of Lesotho's industrial policy has shown that diversification in manufacturing can most 
readily be achieved by developing the present textile sub-sector as well as actively pursuing non-textile areas of activity.  Diversification in the textile sub-sector will include efforts to revive 
Lesotho's former garment exports to the EU as a result of the improved rules of origin negotiated 
under the IEPA as well as the promotion of further investment in fabric and yarn production to supply 
the SACU/SADC regional markets.  Diversification in the non-textile areas of activities shall include 
adding value to Lesotho's agricultural and mineral output by processing these in country prior to export with the regional market being the target e xport outlets.  Lesotho shall also diversify into 
assembly operations in areas such as electrical appliances and electronics where her comparative 
advantage lies due to the existence of competitive labour that is already accustomed to industrial 
disciplines.  The recent opening of Phillips factory which produces high efficien cy light bulbs is an 
evidence of progress achieved in this area. 
GOL has also developed an Agricultural Strategy Document which, inter alia , advocates for crop 
diversification to high value cash crops and intens ive animal production in support of the effort to 
commercialise the sector. Agro-processing for valu e addition is also part of the strategy. 
Response from Namibia: 
The Government of Namibia pursues policies to increase diversity of products in markets and 
increasing productive capacity e.g., value addition to raw materials, export-led economic growth, and 
technology transfer through foreign direct investme nt, rural development, food security, aquaculture 
and mari-culture. 
Response from Swaziland:   
Fall on sugar prices has led to product diversification and also  value addition. Swaziland has 
revamped the cotton sector with the hope of engaging  in vertical integration. Emphasis has also been 
on tourism through improvement infrastructure, enc ouraging and enhancing th e development of the 
SME sector through institutional and human capacity. 
II. THE COMMON REGIME 
(2) SOUTHERN AFRICAN CUSTOMS UNION (SACU) 
(ii) Institutional structure 
Page 7, paragraph 27:   Is the SACU Tariff Board currently functional? If not, when does SACU 
envision that it will be functional? 
Response:  
The SACU Tariff Board in not functional as yet, althoug h it is expected that it will be in operation 
within the next two to three years. 
Page 13, paragraphs 56-58:   The Secretariat report discusses the Economic Partnership Agreement 
(EPA) negotiations with the EC.  South Africa's Mi nister of Trade and Industry reportedly said that 
South Africa may have to increase border controls for trade between itself and Botswana, Lesotho 
and Swaziland as a result of the EPA those three countri es have with the EC.  If the report is correct, 
what kind of border controls is South Africa cons idering and how will they affect intra-SACU trade?  WT/TPR/M/222/Add.1 
Page 92  
 
  Response: 
Border controls with Botswana, Lesotho and Sw aziland (BLS) would involve measures relating to 
those products for which there will be more liberal ru les of origin between the EC and BLS than what 
are applicable between the EC and South Africa. Th is is the case for some agricultural products and 
some articles of clothing. These measures would ensu re that in respect of such products entering 
South Africa from BLS, the MFN duty rate is applied before the goods are moved to South Africa.  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(3) T
ARIFFS AND OTHER CHARGES  
(ii) MFN bound tariffs 
Pages 23-24, paragraphs 88-89:   According to the Secretariat, the SACU members appear to exceed 
the bound rates accorded to several ta riff lines.  In light of their WTO commitments, what steps are 
the SACU members taking to ensure the MFN app lied tariffs do not exceed the bound tariffs? 
Response: 
It should be recognised that, by their very na ture, all formula duties, if not capped by the ad valorem  
bound rate for a particular tariff line, can exceed the latter rate from time to time due to exchange rate 
fluctuations and from country to country due to di fferent free-on-board import prices. This is a known 
fact and would apply to all jurisdictions using such  and similar duties. In theory, the duties can be 
infinitely high. However, the likely occurrence of  duties exceeding the bound rates are low and their 
significance has diminished over time due to relative  price differentials. Most formula duties were 
introduced prior to the 1990s and would now not exceed the bound rates. The small number of 
formula and specific duties that were introduced towa rd the end of the 1990s during the "tariffication" 
process, such as those applicable to livers and footwear and to sweetened water mentioned in 
table III.5, could still exceed the bound rate as indica ted, even if it is not clear which free-on-board 
price was used to calculate the ad valorem  equivalent duty of 40.8% (liv ers) and 31.9% (footwear) or 
if a mere average import price was used to determ ine the difference between the import price (net of 
the otherwise payable ad valorem  duties) and the reference price and then to calculate the ad valorem  
equivalent duty by expressing the difference as a percentage of the free-on board import price. 
(5) S TANDARDS AND TECHNICAL REGULATIONS  
Page 31, paragraph 120:  The 2002 SACU Agreement states that "there should be harmonization of 
technical regulations and product standards, and s anitary and phytosanitary measures.  However, 
SACU countries do not have a common policy on these issues." Does SACU plan to harmonize 
standards and technical regulations?  If so , what is the timeframe for doing so? 
Response: SACU has initiated work in defining an approach for SACU to give effect to the provisions of 
Article 28 on Technical Barriers to Tr ade.  However, this work is still in its infancy and cooperation 
proposals on technical regulations and products st andards are still being considered by technical 
experts.  Timelines for implementation have not yet been agreed.   
In the area of sanitary and phytosanitary measu res, the 2002 Agreement recognises Member States' 
right to apply SPS measures in accord ance with their national laws and international standards. There 
is no requirement for harmonization of these measures. However, a system of notification, consultation and monitoring of these measures is in place under the auspices of the Agricultural 
Liaison Committee established in terms of Article 12.  In addition, SACU Member States are all WTO Members and they participate in the work of the WTO Committee on SPS.  WT/TPR/M/222/Add.1 
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  All SACU Member States are also members of SADC, which also has programs in place for the 
harmonization of standards and technical regula tions. More information on these programs is 
available on www.sadcstan.co.za. 
WT/TPR/G/222 – REPORT BY BOTSWANA  
IV. SECTORAL POLICY DEVELOPMENTS 
(2)  A GRICULTURE  
Page 11, paragraph 24:   Botswana notes that the National Agricultural Policy (1991) is being 
reviewed, and that the review is expected to result in  a change of strategy towards commercialization 
of agriculture, in recognition of the Importance of  diversification of agricultural production. Could 
Botswana elaborate on the scope of this review?  When does Botswana expect to complete the 
review? 
Response: 
The sectoral review of 2009 will form the basis of a new agricultural policy.  The review is focused 
on the performance of all subsectors; being rain fed arable agriculture; livestock (communal and 
commercial systems) and horticulture.  The review al so looks at areas of research and development as 
well as institutional set-up (e.g. marketing arrangement s).  The Policy is expected to be in place by 
2010. 
WT/TPR/S222-01:   ANNEX 1:  BOTSWANA  
III. TRADE POLICIES AND PRACTICES BY MEASURE  
(2) M EASURES DIRECTLY AFFECTING  IMPORTS  
(iv) Import prohibition and licensing 
Page 85, paragraph 81:   It appears that Botswana has not yet  notified its import licensing procedures 
to the WTO Committee on Import Licensing Procedures.  When will Botswana submit both its notification and responses to the Questi onnaire on Import Licensing Procedures? 
Response: 
Botswana continues to face capacity constraints in  submitting all required notif ications and as a result 
there are outstanding notifications. These challeng es are being addressed while the country continues 
to work towards submitting its notifications. Reme dial actions being unde rtaken include expanding 
the human resource complement across the resp ective Ministries with responsibility for trade 
disciplines. 
Page 85, paragraph 82:   The Secretariat report indicates that, in practice, Botswana permits poultry 
imports only when there is a shortfall of poultry pro ducts in the domestic market.  Also, imports of 
some vegetables and dairy products are seasonally banned when Botswana determines that domestic 
supplies are adequate.  Please explain these import rest rictions in the context of Botswana's WTO 
obligations. 
Response: 
Government is currently reviewing Non Tariff Barri ers in which these restrictions will be addressed. WT/TPR/M/222/Add.1 
Page 94  
 
  (3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(iii) Export subsidies, finance, and assistance 
Page 92, Paragraph 121:   The Secretariat report explains that Bo tswana, along with the other SACU 
members, operates two industry-specific import duty credit schemes linked to export performance, 
which are designed to promote exports to non-SACU  markets.  These are the Duty Credit Certificate 
scheme for textiles and clothing, and the Motor I ndustry Development Programme (MIDP) for the 
automobile industry.  Please explain these programs in light of Botswana's commitment not to provide 
subsidies contingent upon export, as provided under Article 3 of the WTO Subsidies Agreement. When 
does Botswana plan to notify these programs purs uant to Article 25 of the Subsidies Agreement? 
Response: 
A review of both the MIDP and TCIDP was initiate d in order to assess its impact and recommend 
options to deal with identified gaps. 
(4)  M EASURES AFFECTING PRODUCTION AND TRADE  
(ii) State-trading, state-owned enterprises, and privatization 
Page 94, paragraph 131:   The Secretariat report indicates that although Botswana notified the WTO 
in 1997 that it had no state-trading enterprises w ithin the meaning of Article XVII of the GATT 1994, 
its Meat Commission has a statutory monopoly on beef exports.  Please explain why the Meat Commission is not a state-trading entity.  
Response: 
We confirm that the Botswana Meat Commission is a state trading enterprises. 
Page 95, paragraph 135:   Does Botswana plan to privatize any of its state-owned enterprises 
(SOEs)?  If so, please indicate the tim e-line for privatizing individual SOEs. 
Response: 
Since adoption of the Privatization Master Plan  (PMP) in 2005, 5 state owned enterprises were 
identified as candidates for privatization.  
WT/TPR/S/222/LSO:  ANNEX 2:  KINGDOM OF LESOTHO  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Import prohibitions and licensing 
Page 162, paragraphs 66-67:   It appears that Lesotho has submitted a response to the Questionnaire 
of Import Licensing Procedures, but has not notified its legislation on import licensing procedures.  
When will Lesotho submit its legislation on import licensing to the WTO Committee on Import 
Licensing? 
Response: 
Lesotho undertakes to submit notification regardin g import licensing procedures soon after the TPR.  WT/TPR/M/222/Add.1 
 Page 95 
 
 
  (iv) Standards and other technical requirements  
Page 164, paragraph 73:   The report states that while Lesot ho does not currently have a Bureau of 
Standards, a draft law establishing a Bureau of  Standards was submitted to the government law 
office.  What is the status of this proposed legislation?  
Response: 
The law establishing the Bureau of Standards is at the stage where the draft bill is being finalized 
before re-submission to Parliament for discussi ons. When the process is through the Kingdom of 
Lesotho will notify accordingly.  
WT/TPR/S/NAM:   ANNEX 3:  NAMIBIA  
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(iv) Government procurement 
Page 228, paragraph 86:  The Secretariat report explains th at "Namibian-registered domestic 
suppliers... receive price preferences based on local content." What type of price preferences are 
provided?  For example, does this provision allo w domestic suppliers to charge less for the goods 
they sell or are they allowed to purchase inputs at lo wer prices?  In light of Article 3 of the WTO 
Subsidies Agreement, please explain how this program  is consistent with Namibia's commitment not 
to provide subsidies contingent upon the use of  domestic over imported goods?  When will Namibia 
notify this program in accordance with  Article 25 of the Subsidies Agreement? 
Response: 
Price preferences are attracted on the total price tende red for a particular service to government. This 
means that the % preference a tenderer attracts is deducted from the total tender price, which makes 
such tenderer's bid lower than other tenderer a nd more favourable for award. Government, however, 
still pays the full tender price. 
Article 3 of WTO Subsidies Agreement does not have a bearing on the application of price 
preferences in procurement by Namibia. 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(iii)  Export subsidies, assistance, and processing zones 
Page 230, Paragraphs 98, 99, 102-105:   In paragraph 98, the Secret ariat report describes several 
schemes, which provide tariff exemptions and con cessions on imported inputs for exporters selling to 
non-SACU markets.  Paragraph 99 goes on to describe  a tax scheme, which provides tax deductions 
for income derived from exports of  manufactured goods, other than meat or fish.  Further, it appears 
that Namibia administers a program that provides gr ants of up to 50% of eligible expenditure on the 
direct costs of securing new export markets.  Paragraphs 102-105 descri be Namibia's export 
processing zones (EPZ).  The report explains t hat EPZ status confers a number of incentives; 
however, in order to acquire EPZ status, companies are required to export all production.  Please 
explain these programs in light of Namibia's comm itment not to provide subsidies contingent upon 
export, as provided under Article 3 of the WTO Subs idies Agreement?  What are Namibia's plans to 
notify these programs in light of Artic le 25 of the Subsidies Agreement? WT/TPR/M/222/Add.1 
Page 96  
 
  Response: 
On the EPZ incentives, it should be noted that th ere are no subsidies being provided to the EPZ 
companies. The incentives provided for under the EPZ are as follows: exemptions from corporate tax; 
VAT, Stamp and transfer duties as well as on import of raw materials and machinery by EPZ 
enterprises. 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(ii) State trading and state-owned enterprises 
Page 234, paragraph 116:   According to the Secretariat, "T here are 52 parastatals operating in 
Namibia covering a wide variety of sectors…  They include monopolies in key utilities..."  The 
Secretariat goes on to note that "A t present, privatization is not u nder active consideration although it 
has been discussed in the past."  The 2003 TPR note d that "parastatals potentially undermine the 
private sector and lead to inefficiency, especially where competition is weakened as a result of, for 
example, de facto or statutory monopolies."  In light of this, what is the Government's reasoning in 
not pursuing privatization of at least some of these parastatals? 
Response: 
Parastatal enterprises in Namibia as a developing co untry comply with developmental imperatives as 
set out by government.   
(iv) Protection of intellectual property rights 
Copyright  
Page 237, paragraph 128:   The Secretariat notes that Namibia is considering extending copyright 
protection to compilations of data.  In light of Artic le 10 of the TRIPS Agreement,  what is the scope of 
protection that Namibia plans to provide?   
Page 237, paragraph 128:   The Secretariat also notes that Namibia has a rental right.  Please 
confirm whether, in addition to audiovisual works, musical works, and books, the rental right applies 
to computer programs? 
Patents  
Page 238, paragraph 131:   The Secretariat provides a discussion of Namibia's proposed patent 
legislation.  Please confirm that the proposed legi slation provides patent holders with exclusive rights 
against making, using, and offering for sale as well as against selling, and importing the patented 
products.  
Response: 
Yes. 
Trademarks and other distinctive signs  
Page 239, paragraph 134:   The Secretariat report states that Namibia's new industrial property act 
will "expand the coverage, in particular, of service  marks and include protection of trade names and 
sound marks, in line with TRIPS and the Paris Conven tion" as well as "protect well-known marks by 
preventing registration of identical or confusingl y similar marks."  Will the new Act implement the 
relevant provisions of Paris Article 6bis and Artic le 16 of the TRIPS Agreement with respect to 
well-known marks?   WT/TPR/M/222/Add.1 
 Page 97 
 
 
  Response: 
Yes. 
Undisclosed information  
Page 239, paragraph 137:   In light of TRIPS Article 39, does Namibia plan to enact legislation to 
provide protection for undisclosed information? 
Response: Yes. 
Enforcement
 
In WT/TPR/S/222/NAM, paragraphs 129, 133, and 139:  The Secretariat describes Namibia's 
procedures and remedies that are available for the enforcement of intellectual property rights, such 
as Customs procedures and criminal penalties for c opyright piracy.  Please clarify whether any 
existing or pending legislation provides for crimi nal procedures, and identify the penalties that are 
available in cases of wilful trademark counterfeiting on a commercial scale. 
Response: 
Yes, the existing legislation pr ovides for forfeiture and fines. 
WT/TPR/S/222/ZAF:  ANNEX 4:  SOUTH AFRICA II.   TRADE AND INVESTMENT REGIMES  
(1)
  G ENERAL  
Page 289, paragraph 26:   In discussing South Africa's Black Economic Empowerment (BEE) policy, 
the Secretariat report states that the BEE Codes of Good Practice "allow global and multinational 
companies some flexibility in how they structu re their empowerment deals."  Some multi-national 
companies have raised concerns with how BEE po licies with respect to multi-nationals have been 
implemented, emphasizing the process for approving "equity equivalent" plans, the mechanism that 
multinationals can use in place of selling equity, has been slow and non-transparent.  How is the South African Department of Trade and Indus try planning to address these concerns?   
Response: 
The Equity Equivalent Programme for Multinationa ls is a special dispensation for multinationals 
operating in South Africa who have a global practic e prohibiting them from selling equity. In lieu of 
selling equity, these Multinationals may apply to the dti for exemption from selling equity and for 
participation in an Equity Equivalent Programme . The process is comprised of two main phases, 
which are clearly detailed in the guidelines for Equity Equivalents: 
• Phase 1:  The application for exemption from se lling equity and participation in an Equity 
Equivalent Programme 
 This phase entails the Multinational providing sufficient evidence of the Holding Company's 
 global practice not to sell equity anywhere in the world. All evidence required is included in 
 the application form that Multinationals must fill in when applying for exemption. WT/TPR/M/222/Add.1 
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  • Phase 2:  Submission of the valuation re port and Equity Equi valent business plan 
o Phase 2.a:  The evaluation of the valuation report 
 A key principle of the submission of the valuation of the Multinational's 
 South African operations is that the valuation and the accompanying report must be  conducted by an independent third party.  
 The Discounted Cash Flow (DCF) Methodology is the preferred methodology with 
 other standard valuation methodologies be ing used as comparisons against the DCF 
 Methodology. 
All assumptions made in the valuation must be  substantiated and clearly justified. The 
committee cannot consider the business plan until such time as the valuation has been 
approved. This is due to the fact that the value agreed upon will have a direct bearing 
on the business plan's targets and outputs which must be clearly demonstrated in the 
submission by the Multinational. 
o Phase 2.b:  The evaluatio n of the business plan 
The business plan is measured against the requirements of Code 100, Statement 103, 
which is very clear in terms of the types of programmes acceptable under Equity 
Equivalents. 
A key requirement for the business plan is that the project must be measurable against 
clearly set targets and objectives. 
Once the committee has reviewed the bu siness plan, it would tender its 
recommendations to the Minister of Trade and Industry for approval or rejection. Where there is a recommendation for approval, the Multinational will not be awarded 
points until the MOU between the dti and the Multinational has been signed, the 
transfer of funds into the project has been  completed and all other legal requirements 
have been fulfilled. 
The summarized process detailed above is available to all Multinationals seeking to participate in 
Equity Equivalents in a more comprehensive format. As the dti, we have sought to ensure that though 
the process is rigorous, that constant communication is maintained at all times with the Equity 
Equivalent applicants in terms of the progress of  their application and any other queries they may 
have regarding the programme or the process as it specifically pertains to them.  
Some of the challenges the dti has faced with regards to delays in some of the applications are as 
follows: 
• Conflict over the valuation report 
o As stated above a fundamental principle in this respect is the use of an independent 
 third party to conduct the valuation. It has been our experience that some 
 Multinationals have a preference for using their internal parties to do so. This has 
 severely delayed the process of approving the valuation due to the lengthy  communication we have had to engage in, in an attempt to ensure that the  Multinational's views are taken into cons ideration. However, in as much as their 
 views are taken into consideration, as the dti, we are not in a position to deviate on 
 this fundamental principle. In some inst ances, this process has taken over five months  WT/TPR/M/222/Add.1 
 Page 99 
 
 
   due to the Multinational's rejection of this principle until such time as it becomes 
 evident to them that as a committee and as the dti no flexibility may be given on this 
 issue. 
o The date of the valuation report has also  been a challenge where Multinationals 
 submit valuations that are over two y ears old and therefore can no longer be 
 reasonably expected to be a true reflecti on of the organisation's value. The guidelines 
 do provide for guidance in terms of how old a valuation may be, and it is stated that it 
 should be no older than 12 months from ti me of application. The delays take place 
 where the Multinational is of the opinion th at such a valuation would be a challenge, 
 and too costly. However, the dti does enga ge with the multinational to gain a better 
 understanding as to the challenges faced by the multinational and where possible 
 considers the alternatives that may be taken to ensure that the most reasonable 
 valuation figures are arrived at. 
• Submission of clear and detailed business plans 
o It has been the experience of the comm ittee that Multinationals submit business 
 concepts to the committee, which give a broad overview of the Equity Equivalent 
 Programme they intend to initiate. And in  most instances, the committee may be in 
 favour of the concept. However the guidelin es request a detailed business plan of how 
 the concept will be initiated. This has b een a severe challenge to the committee who 
 on regular, documented occasion has requested information from the Multinational on  the details of the business plan. On regu lar occasion the response to these requests is 
 seldom satisfactory. The committee and th e dti is therefore not in a position to 
 approve a programme that does not illustrate the impact of the programme and has no 
 clear measurable targets that the Multina tional can be measured against during the 
 Monitoring and Evaluation Phase after the approval.  
The dti continually avails itself to Multinationals wher e assistance is required, and the dti also ensures 
that constant contact is maintained with the Multina tionals to ensure that at all times the process is 
transparent, fair and just. However, in as much as the dti is willing to engage with Multinationals as 
well as any other key stakeholders on the individual  applications we are not in a position to grant 
special concessions to applicants who are not in favour of complying with the requirements of the 
Equity Equivalent process. The process will continually  be streamlined by the dti to ensure that both 
the objectives of government and EE applicants are met and also to ensure the integrity of the Equity 
Equivalent Programme. The dti engages with several key stakeholders in ensu ring that the quality of 
the Equity Equivalent Programmes is maintained  and also that the process and objectives and 
principles of the Equity Equivalent statement are upheld. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)
  M EASURES DIRECTLY AFFECTING IMPORTS  
(iv) Standards and other technical requirements  
Page 309, paragraph 91:  The Secretariat describes South Africa's import requirements relating to the 
Agricultural Pests Act of 1983.  Please confirm that South Africa develops its SPS import 
requirements in conformance with the interna tionally recognized standards of the IPPC, OIE, and 
Codex. WT/TPR/M/222/Add.1 
Page 100  
 
  Response: 
South Africa is a contracting party of the Intern ational Plant Protection Convention (IPPC) and bases 
its import requirements on the relevant Internati onal Standards for Phytosanitary Measures (ISPMs) 
of the IPPC. 
South Africa is also a member of the OIE a nd Codex and import require ments are based on the 
standards of these organisations. 
Page 310, paragraph 93:
  According to the Secretariat's repor t, South Africa bases its animal health 
requirements on OIE guidelines and on risk assessments.  If this is the case, please explain the basis 
upon which South Africa bans U.S. beef and beef products considering that the OIE classifies the 
United States as "controlled risk" for BSE. 
Response: RSA has taken into account the rules and guidelines of  the OIE and has lifted all restriction that were 
in place as a result the BSE. In this regard hea lth certificates of all affected countries are being 
reviewed. A questionnaire to obtain the required in formation from USA for this review was sent to 
USDA on 14 July 2009. 
(v) Government procurement  Page 313, paragraph 108:
  The Secretariat report states that South Africa is working to harmonize 
and reform its government procurement system and is introducing a framework for supply-chain 
management.  What progress has the Government of Sout h Africa made in this area, and in what time 
frame does the Government plan to co mplete the harmonization process? 
Response: 
Supply Chain Management Framework was promulgated on the 5th December 2003. It has since been 
implemented in all spheres of government. In sup port of this framework guides were issued to 
accounting officers to assist them in the implementation. 
(3)  M EASURES DIRECTLY AFFECTING EXPORTS  
(iv) Export subsidies, finance, and assistance 
Page 317, paragraphs 128 and 132:   In these paragraphs, and in Table AIII.4, the Secretariat 
describes a variety of incentives that the South Af rican government makes available to South African 
exporters for the promotion and development of expor ts and export markets.  Please explain how the 
programs that the Secretariat describes are consiste nt with South Africa's commitment not to provide 
subsidies contingent upon expor t, as provided under Article 3 of the WTO Subsidies Agreement.  
When will South Africa notify these programs in light of Article 25 of the Subsidies Agreement? 
Response: RSA in designing its incentive programmes ensur es that they are consistent with our WTO 
commitments. 
IV. TRADE POLICIES BY SECTOR 
(5) S
ERVICES  
(iii) Communications 
Page 357, paragraph 277:   What specific steps has the Depar tment of Communications taken since 
the last TPR to strengthen the Independent Comm unications Authority of South Africa (ICASA)?  WT/TPR/M/222/Add.1 
 Page 101 
 
 
  Response: 
In seeking to improve the effectiveness and efficien cy of the regulator, the Department amended the 
ICASA Act in 2006. One of the objectives of amendi ng the Act was to ensure that the Regulator is 
adequately resourced, financially and otherw ise. The Amendment will strengthen ICASA by 
increasing the number of councillors, taking into account  its new tasks with relation to the regulation 
of the postal sector and furthermore, separate the appointment of the Chairperson of the Authority 
from that of other Councillors. 
In addition, the Communications Portfolio Comm ittee of Parliament has started to seriously 
strengthen its oversight role over ICASA. Parlia ment and the Department have insisted on the 
finalisation of a Performance Management System for ICASA Councillors by December 2009.  
Page 357, paragraph 278:   Has ICASA issued any new value- added network services (VANS) licences 
since the entry into force of the El ectronic Communications Act?  b) How many of the licenses issued 
under the previous regime have been converted in accordance with the Act?  If there has been a delay 
in conversion, please explain the reason for the delay. 
Response:  
− The licence conversion process has resulted in 11 converted  I-ECNS licences (Telkom, 
Vodacom, Neotel, etc). 
− The process has resulted in 280 new I-ECNS licences (former VANS). 
− A further 260 I-ECNS have been granted but are pending issue, subject to further information 
being submitted to the Authority by applicants. 
− If all are finally issued, there will be approximately 550 holders of I-ECS licences in 
South Africa. 
There has not been a delay in the conversion of licences. The Act gave ICASA 24 months plus an 
extension of 6 months if necessary to do licence c onversion. The Act came into force on 19 July 2006. 
Licences were converted on 16 January 2009, 3 days  before the lapse of the extended deadline. 
Page 357, paragraph 279:   What is the rationale for requiri ng that invitations be issued for 
companies to apply for individual licenses?  
Response:   
Only one between 2006 and 2009: Neotel (Pty) Ltd, which was licensed in December 2005. On 
licence conversion, Neotel received an Elect ronic Communications Network Service licence 
(I-ECNS). Since July 2008, all VANS who indicated that they wanted to be converted into ECNS 
licences have been converted. So technically, be tween 2006 and 2009, over 500 ECNS licences have 
been granted.  
Page 357, paragraph 280:   How many additional fixed line opera tors have been licensed since the 
market was liberalized in 2006?  
Response: Neotel, the second fixed line operator, was licensed in 2006. No other additio nal fixed line operators 
have been licensed since 2006. WT/TPR/M/222/Add.1 
Page 102  
 
  ANNEX 5:  KINGDOM OF SWAZILAND 
II.  TRADE AND INVESTMENT REGIMES 
(3)
  I NVESTMENT FRAMEWORK  
Page 421, paragraph 46:   The Secretariat report states that Swaziland is working on a 
comprehensive investment code and hopes to finalize the draft Investme nt Policy by the end of 2009.  
Is this time-line still accurate? When might the comprehensive investment code be finalized? 
Response:   
The Investment Policy will be finalized by Decemb er 2009 and the Investment Code to be completed 
by end of 2010.  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(ii)  Import prohibitions, restrictions, and licensing 
Page 428, paragraph 82:   It appears that Swaziland notified its  legislation on import licensing 
procedures, but has not submitted its responses to the Questionnaire on Import Licensing Procedures.  
When does Swaziland plan to submit its respon ses to the WTO Committee on Import Licensing 
Procedures?  
Response:   
Once the process of internal consultations has b een completed Swaziland w ill be in a position to 
submit her responses to the WTO Committee on Import Licensing Procedures. 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(iii) Export subsidies and assistance 
Page 443, Paragraphs 111-113:  The Secretariat report discusses Swaziland's Export Credit 
Guarantee Scheme (ECGS).  Please explain this pr ogram in light of Swaziland's commitment not to 
provide subsidies contingent upon export, as provided under Article 3 of the WTO Subsidies 
Agreement?  When will Swaziland notify these progr ams, in accordance with Article 25 of the 
Subsidies Agreement? 
Response:   
The Export Credit Guarantee Scheme  (ECGS), financed through the Ministry of Commerce, Industry 
and Trade, aims to enable:  exporters to meet their working capital requirements; exporters who do 
not have enough collateral security to obtain fi nance from commercial banks which normally are 
reluctant to lend small exporters. Th is scheme is not intended to provi de subsidy but only assist small 
exporters to obtain finance. 
(4)  M EASURES AFFECTING PRODUCTION AND TRADE  
(ii)  State-trading, state-owned enterprises, and privatization 
Page 435, paragraph 118-119:   The Secretariat report refers to a 2006 privatizati on roadmap, but 
does not specify details of the roadmap's implementation.  What is the status of implementing the roadmap?  If it is not complete, what is the time-line for completion? 
Response:   
Still working towards completing the implementation of  the roadmap by the end of next year (2010). 
__________