Nam focuses on AfCFTA’s rules of origin
The benefits that the Namibian agricultural community could obtain from the Continental Free Trade Agreement are twofold.
NDAMA NAKASHOLE - The senior trade adviser at the Agricultural Trade Forum, Anton Faul, says the Namibian agricultural community stands to benefit from the African Continental Free Trade Area (AfCFTA) in the form of cheaper and more readily available inputs.
These inputs could then be used in the manufacturing and agro-processing sectors.
Here the rules of origin are an important component of the negotiations that Namibia is paying full attention to.
Rules of origin are the criteria used to determine the national source of a product. Their importance is derived from the fact that import duties and restrictions in several cases depend upon the source of imports. There is wide variation in the practice of governments with regard to the rules of origin.
Faul told Market Watch that Namibia needs flexible rules of origin, unlike those in SADC, to allow its processing and manufacturing sector to source inputs competitively in order to produce tradeable goods that can compete with those from the rest of the continent.
“The current restrictive rules of origin that exist especially in SADC and in the Tripartite Free Trade Area do not benefit Namibia,” he said, adding that they were trying to develop new rules for the continental free trade area that could be more beneficial to Namibia’s emerging and existing industries.
Apart from offering an opportunity for Namibia to competitively source its inputs, the AfCFTA could provide opportunities in the form of an enlarged market for Namibia’s agricultural exports.
“This is provided that Namibian negotiators manage to get rid of tariffs and non-tariff barriers that currently hamper our exports to these markets on the continent,” said Faul, who is an experienced agricultural economist.
Sitting at the table
The Namibian Agriculture Trade Forum (ATF) and the Namibia Trade Forum (NTF) are both represented on the Namibian negotiating team on AfCFTA.
According to Faul, they provide technical and strategic advice and support to the ministry of trade, industrialisation and SME development, the ministry of agriculture, water and forestry, the ministry of finance as well as the attorney-general office during the negotiations.
“The ATF also provides continuous feedback to its members as the negotiations unfold and this includes sharing of information and providing trade updates on the negotiations,” he said.
The two trade forums also produce quarterly trade negotiating reports that cover all other trade negotiations that Namibia is involved in as part of SACU.
Status
Faul said the current agreement, although Namibia has signed it along with 48 other African countries, is not yet economically implementable.
This, he said, is because negotiations on the core components of the agreement are yet to be concluded.
“These include tariff offers, market access schedules and the rules of origin. Without these components concluded, there will be no trade under preferential terms,” he said.
“The agreement in its current form is therefore, from a trade and economic point of view, just an empty shell which still needs to be populated. In the same vein, the trade in services negotiations are also not yet completed.”
Namibia recently signed the agreement after being one of a small number of countries that did not immediately sign in March.
The chief negotiator, Annacsy Mwanyangapo, told Market Watch that the country will continue participating in the ongoing negotiations on outstanding negotiation issues as provided for in the AfCFTA Transitional Work Programme.
The Namibian parliament is yet to ratify the agreement.
Lack of awareness
One of the concerns that emerged recently is a lack of knowledge and awareness of the AfCFTA among the Namibian private sector and business community, Faul said.
“I am glad to inform you that the ATF has arranged a public dialogue for 14 August 2018 in Windhoek to provide such opportunity for the public and interested stakeholders to learn more about the AfCFTA, its challenges and opportunities and the process and progress in the negotiations thus far.
“Invitations to the public dialogue will be distributed in the media during the course of the next two weeks,” he said, urging members of the public to participate.
These inputs could then be used in the manufacturing and agro-processing sectors.
Here the rules of origin are an important component of the negotiations that Namibia is paying full attention to.
Rules of origin are the criteria used to determine the national source of a product. Their importance is derived from the fact that import duties and restrictions in several cases depend upon the source of imports. There is wide variation in the practice of governments with regard to the rules of origin.
Faul told Market Watch that Namibia needs flexible rules of origin, unlike those in SADC, to allow its processing and manufacturing sector to source inputs competitively in order to produce tradeable goods that can compete with those from the rest of the continent.
“The current restrictive rules of origin that exist especially in SADC and in the Tripartite Free Trade Area do not benefit Namibia,” he said, adding that they were trying to develop new rules for the continental free trade area that could be more beneficial to Namibia’s emerging and existing industries.
Apart from offering an opportunity for Namibia to competitively source its inputs, the AfCFTA could provide opportunities in the form of an enlarged market for Namibia’s agricultural exports.
“This is provided that Namibian negotiators manage to get rid of tariffs and non-tariff barriers that currently hamper our exports to these markets on the continent,” said Faul, who is an experienced agricultural economist.
Sitting at the table
The Namibian Agriculture Trade Forum (ATF) and the Namibia Trade Forum (NTF) are both represented on the Namibian negotiating team on AfCFTA.
According to Faul, they provide technical and strategic advice and support to the ministry of trade, industrialisation and SME development, the ministry of agriculture, water and forestry, the ministry of finance as well as the attorney-general office during the negotiations.
“The ATF also provides continuous feedback to its members as the negotiations unfold and this includes sharing of information and providing trade updates on the negotiations,” he said.
The two trade forums also produce quarterly trade negotiating reports that cover all other trade negotiations that Namibia is involved in as part of SACU.
Status
Faul said the current agreement, although Namibia has signed it along with 48 other African countries, is not yet economically implementable.
This, he said, is because negotiations on the core components of the agreement are yet to be concluded.
“These include tariff offers, market access schedules and the rules of origin. Without these components concluded, there will be no trade under preferential terms,” he said.
“The agreement in its current form is therefore, from a trade and economic point of view, just an empty shell which still needs to be populated. In the same vein, the trade in services negotiations are also not yet completed.”
Namibia recently signed the agreement after being one of a small number of countries that did not immediately sign in March.
The chief negotiator, Annacsy Mwanyangapo, told Market Watch that the country will continue participating in the ongoing negotiations on outstanding negotiation issues as provided for in the AfCFTA Transitional Work Programme.
The Namibian parliament is yet to ratify the agreement.
Lack of awareness
One of the concerns that emerged recently is a lack of knowledge and awareness of the AfCFTA among the Namibian private sector and business community, Faul said.
“I am glad to inform you that the ATF has arranged a public dialogue for 14 August 2018 in Windhoek to provide such opportunity for the public and interested stakeholders to learn more about the AfCFTA, its challenges and opportunities and the process and progress in the negotiations thus far.
“Invitations to the public dialogue will be distributed in the media during the course of the next two weeks,” he said, urging members of the public to participate.
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