Business must help negotiate RTAs

Exporters should be exploring Regional Trade Agreements (RTAs) to extend their reach into new markets. That was the message from Niel Joubert, director of Trade Law Chamber, when he addressed the Cape Exporters’ Club recently. And while they do offer challenges and have certain legal considerations that must be kept in mind, more businesses can benefit from these agreements, he said. “Free Trade Agreements (FTAs) as well as RTAs offer opportunities to enter new markets affordably,” he said. “The Southern African Development Community (SADC) for instance is in the process of implementing such an agreement that will see goods flow much more freely and improve trade between its members.” Joubert said if one looked at SADC with its 15 member states, it immediately represented some 200 million people. “That is a massive market to tap into which could increase dramatically should SADC harmonise its agreements with its Tripartite partners Comesa and the EAC.” He said not only did these agreements and the harmonisation of customs and legal processes reduce costs, they would also dramatically increase regional trade. “Business should also be lobbying government to make sure they are in an advantageous position when these agreements are set in place.” Citing the example of an FTA signed with the EU to export table grapes at reduced import duties over a number of years, Joubert said South African exporters were found to be non-competitive in the market when Chile negotiated a better deal for its exporters. “They negotiated a deal for better rates implemented over a quicker period, giving them a major advantage over South Africa,” said Joubert. “Business therefore needs to be involved in the agreements not only at implementation stage but when they are being negotiated to ensure that government knows what the interests of its exporters are and can fight the right fight.” INSERT ‘SADC with its 15 member states represents some 200 million people.’ CAPTION Niel Joubert … reducing costs and increasing regional trade.