Nedlac urges exporters to get involved in rules of origin formulation

RULES OF origin are a vital element in preferential trade negotiations between South Africa and the EU, and exporters are urged to involve themselves in the consultative process being followed for the formulation of these rules.
This is the message from the National Economic Development and Labour Council (Nedlac) which convened a meeting of government, labour and business representatives in Johannesburg last week to consider the needs of specific industries.
Part of the Nedlac process is to formulate rules of origin as they impact on the proposed free trade agreement between South Africa and the EU, says Shan Ramburuth of Nedlac's Trade & Industry Chamber.
The fine print that will ultimately determine the ability of exporters to exploit the provisions of the proposed free trade agreement with the European Union is contained in the rules of origin. Nedlac advises South African exporters to grasp the critical importance of ensuring that their particular interests are accommodated in these rules.
The rules of origin ensure that benefits provided through preferential trade arrangements are confined to those products originating in the beneficiary country. They aim to prevent goods produced in other countries that are simply transhipped or have undergone insufficient local processing, from enjoying the benefits of trade preferences.
Ramburuth points out that current discussions on rules of origin in SA/EU negotiations are also particularly important in the context of SADC protocol and the negotiations of the future of the Lome convention.
The recent Nedlac meeting, which included a technical presentation from Stefano Inama of the United Nations Conference for Trade Development (UNCTAD), was a follow-up to an investigation by the Board on Tariffs and Trade which called on private sector interests to respond by the end of January 1998 to the EU's proposals on rules of origin.
A consultative process is being instituted through industry associations and the sectoral directorates of the Department of Trade and Industry to offer SA business a more inclusive voice across all industries when dealing with this crucial aspect of trade negotiations, said Ramburuth.
As a result SA trade negotiators will be more fully equipped when they meet with their EU counterparts at the negotiating table.
SA exporters who wish to add their voices to the consultative process should contact the sectoral directorates listed in the table on the left.