US and SACU begin free trade talks

Anna Cox THE US and the South African Customs Union (Sacu) have started free trade agreement talks. Initial talks began in Pretoria in December with the aim of concluding a free trade agreement in terms of the Africa Growth and Opportunities Act (AGOA). Sacu member countries include South Africa, Swaziland, Namibia, Lesotho and Botswana. The free trade agreement would involve the reduction or phasing out of World Trade Organisation tariffs and other trade barriers. Such a free trade agreement could have major implications for many business sectors but especially for the agricultural sector as many of these products are produced in the US at well below cost because of subsidies offered by the US government. The preliminary talks have yet to be ratified at a political level. Formal negotiations will start in the first quarter of this year and will probably be held in Washington. The Department of Trade and Industry has said the agreement will be comprehensive and will benefit both importers and exporters in South Africa. It will include all products from the outset.