1. CHALLENGES FACING SACU IN
PREPARATION FOR THE NEXT ROUND
OF NEGOTIATIONS

2. BACKGROUND 1.1 The new SACU Agreement
Article 31 of the new SACU Agreement provides for the establishment of a Common Negotiating Mechanism.
It further requires a Member State to obtain the consent of other Member States before negotiating and entering into new trade agreements.
1.2 SACU Trade Workshop in Namibia held in August 2002 recognised the need for:
Developing common negotiating positions
Identifying common areas of interest
A SACU identity

3. IMMEDIATE CHALLENGES
Establishing a Common Negotiating Mechanism
Agreeing on rules of engagement
Building capacity around key negotiating areas such as Tariffs, Services and Safeguards
Identifying common areas of interest
Generating and sharing reliable trade data
Ensuring that Trade Ministers (as opposed to Finance Ministers) take the lead in the negotiations
Co-ordinating with foreign trade representatives of the SACU States
Recognition of the various levels of development especially in relation to the protection of infant industries
Trust and confidence amongst the Member States
Scheduling of negotiations to suit SACU
Prioritizing our negotiations with third parties.

4. LONG-TERM CHALLENGES
Although we have new entity, we also have challenges to face in order to develop the new SACU into a fully integrated regional bloc.
The key challenges relate to:
Policy co-ordination across the Customs Area
Economic growth
Creating strong institutions
Linking the region to the rest of the World
Co-ordinating amongst ourselves as e interact with the rest of the SADC, Africa and the rest of the World.
Elaborating on how the new SACU institution will function
Creating an enabling environment at all levels for the effective implementation of the new Agreement.

5. PROGRESS TO DATE WITH VARIOUS NEGOTIATIONS
4.1 SACU/US FTA
Common Negotiating Mechanism established to immediately start work on the proposed FTA
Work Programme for the FTA agreed upon
TOR endorsed by the Ministers
Respective Cabinets to be approached for approval
4.2 SACU/MERCOSUR FTA
Framework Agreement is in place
Exchange of information taking place
Preparations to meet with MERCOSUR delegation on-going.

6. OTHER NEGOTIATIONS
5.1 SACU and Europe (Cotonou Agreement, TDCA and EFT/EFTA
5.2 SACU and WTO
5.3 SACU and Southern Africa (SADC/COMESA) and the rest of Africa (AU/NEPAD)
5.4 The rest of the World

7. PROGRESS TOWARDS IMPLEMENTING THE NEW AGREEMENT
Selection of Windhoek as the host capital for the SACU Secretariat
Preparatory work for the appointment of Executive Secretary
Development of annexes on Dispute Settlement and Unfair Trade Practices
ITAC Bill to establish a national body on the RSA side to work with SACU institutions.