Sacu summit gets underway

[newsroom]

Pretoria - The Southern Africa Customs Union (SACU) Heads of State and Government are meeting to reposition the union as a vehicle for deeper economic integration after friction developed within the five-nation bloc.

The two-day summit, which is expected to be attended by President Jacob Zuma, will focus on the challenges facing the Sacu, the oldest Customs Union in the world. Sacu commemorated its centenary anniversary in April 2010.

Last June, SACU’s 100-year unity was dealt a blow when Namibia and South Africa held back from signing an interim Economic Partnership Agreement (EPA) with the European Union while Botswana, Swaziland and Lesotho went ahead.

The EPA and disagreement on further discussions with the EU created instability within Sacu, with some commentators predicting its demise.

The South African government is of the view that unless this issue is addressed the union could see a regression or ‘backward movement’ where the existing framework risks are undermined and regional integration stalls.

During the summit, the leaders will review the revenue-sharing agreement as well as the 2002 SACU Agreement, specifically to broaden it to include areas such as Trade in Services, Finance and Investment, Government Procurement, the Environment, Market and Monetary Integration.

Other agenda items include the establishment of outstanding institutions such as Tariff Boards and Tribunal and positioning the customs union within the regional context, as well as the signing of new members.

South Africa’s vision for regional integration within Sacu is that of advancing from a customs union to a development economic community, and as a basis for deeper integration in SADC.

Deeper commitment to a common vision, including how the union positions itself in a changing global economy and taking into account the imperative of South-South cooperation will also be discussed. – BuaNews