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SACU Workshop at SA Parliament 16 March 2011 Legal and Institutional Aspects of SACU Prof Gerhard Erasmus. OVERVIEW OF PRESENTATION. What is a Customs Union? Basic features of 2002 SACU Agreement Developments in SACU Developments in SADC Tripartite FTA Economic Partnership Agreements
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SACU Workshop at SA Parliament 16 March 2011 Legal and Institutional Aspects of SACU Prof Gerhard Erasmus
OVERVIEW OF PRESENTATION • What is a Customs Union? • Basic features of 2002 SACU Agreement • Developments in SACU • Developments in SADC • Tripartite FTA • Economic Partnership Agreements • What does this mean for SA Parliament? • Concluding Remarks
What is a Customs Union? • It is about regional integration and trade • WTO requirements – Art. XXIV GATT • Single Customs Territory • Common External Tariff • Preferential Trade among members • No internal rules of origin unless re third parties • What happens at internal borders? • To what extent does it promote trade among members? • Why have it? • Part of AU and REC philosophy
Basic Features of 2002 SACU Agreement • It has a specific history • It is an Int. Organization • Institutions -- not yet fully consolidated • Unique revenue sharing formula • Role of Secretariat – what does it do? • Who speaks on behalf of collective? • Agreement contains remnants from 1969 Agreement • Art. 42 and new Annexes • How does it fit in int. trade negotiations? • Is it rules-based?
Developments in SACU • How does it look after a 100 years? • A Summit to come - Const. amendments • Consolidation – outstanding Institutions • Implications of Tariff Board for SA role and doing business • A new revenue sharing formula? • SACU’s role in trade negotiations (EPAs, Tripartite FTA, EFTA, Mercosur…. ) • What powers for the Secretariat? • A Development Fund?
Developments in SADC • Is the SADC customs union on the backburner? • Members have different views re future direction & Tripartite FTA • What has Tribunal brought since 2005? • What happened re Tribunal and what to expect? • Are present developments around the Tribunal a crisis? • Uncertainty about SADC trade regime – is it rules-based? • Incomplete building blocks – derogations and Annex VI to Trade Protocol • Bigger picture problems consists of interrelated aspects, overlapping membership consequences and lack of clear rules
Tripartite FTA • Still in early stages – Negotiations still to start • Who will negotiate? On behalf of whom? • Very detailed legal instruments proposed • What institutions? • Who will be the members? • Watch the rules of origin • Notification to WTO • Remember domestic constitutional requirements • Will a burning Egypt be a partner? • Southern Sudan? • How serious is the political will?
Economic Partnership Agreements • Formally still on track • WTO compatibility issue will not go away • Less noise • Less enthusiasm • In SADC EPA - fit with TDCA • What required for finalising & ratifying them? • Are they too cumbersome? • Do they fit into a global picture? See regional MFN issue.
What does this mean for SA Parliament? • Role under Art. 231 of Constitution • Oversight function • Interaction with Executive • Int. Trade and DIRCO dimensions • Budgetary aspects • Keeping up with developments • There is a bigger picture • Regional and African developments • Multilateral developments • Do we have a regional policy?
Concluding Remarks • Quo vadis SACU? • Quo vadis southern Africa? • Who will take the initiative? • Need for regional policy and leadership • RECs – institutional overload? Lack of clear vision & technical constraints • Issue of Sovereignty • Weak states uneasy with regional bodies & enforcement of their rules • In WTO -- is there a proper fit? Tralac experience re trade remedies • How will we deal with China? How will China deal with us? • Where are the regional policies and policy making? Is there a plan? • Implications of BRICSA? What are the global priorities?