SACU/US free trade talks

The first round of negotiations on a Free Trade Agreement between the Southern African Customs Union (SACU) and the United States ended in South Africa on Thursday. "For both sides, these negotiations are of great importance. SACU is the first subregion in sub-Saharan Africa with which the USA is negotiating such a comprehensive agreement. Through enhanced trade relations and the mutual opening of their markets, SACU and the USA will construct a platform that bolsters growth and development in SACU, and serves to integrate the SACU region more fully into the global economy," a US embassy statement said after the three days of talks. "We are building on a solid foundation of interactions that include strengthened trade relations that have arisen out of the USA Africa Growth and Opportunity Act (AGOA), from which all SACU countries have benefited. The decision to enter into these negotiations is based on strategic considerations, in particular, on the importance of constructing a stable, long-term and predictable trade and investment relationship between SACU and the USA," the statement added. "SACU seeks to change the structure of its trade into a more balanced and mutually beneficial relationship, based on high value exports and enhanced investment. A free trade agreement with the USA would have a positive impact on SACU as an important investment destination." The SACU countries are Botswana, Lesotho, Namibia, South Africa and Swaziland. "In the course of this first round of negotiations, the parties have engaged in fruitful discussions on the scope, principles, structures and approaches in all areas of trade, including goods, services, investment, intellectual property, electronic commerce, public procurement, environment and labour. Through information exchange and the development of an agreed work programme, SACU and the USA have established a foundation on which to advance the trade negotiations," the statement noted. SACU and the US aim to conclude negotiations by the end of 2004 and have scheduled further talks in August, September and December this year.