ATC180911: Report of the Portfolio Committee on Trade and Industry and the Standing Committee on Finance on the Review of the 2002 Southern African Customs Union (SACU) Agreement, dated 11 September 2018
Report of the Portfolio Committee on Trade and Industry and the Standing Committee on Finance on the Review of the 2002 Southern African Customs Union (SACU) Agreement, dated 11 September 2018
The Portfolio Committee on Trade and Industry and Standing Committee on Finance, having considered the subject of the Review of the 2002 Southern African Customs Union (SACU) Agreement, and having been briefed by the Ministers of Trade and Industry and of Finance thereon, report as follows:
The Committees note that the 2002 SACU Agreement is currently undergoing a review. SACU needs to be transformed to implement a developmental integration approach that seeks to promote industrialisation and economic diversification of SACU economies. The Committees therefore resolve that the Ministers of Trade and Industry and of Finance should undertake the following during their engagements with SACU:
- Emphasise the importance of the developmental integration approach that combines market integration with industrial and infrastructure development so as to move SACU towards a sustainable developmental trajectory.
- Advance the position that the architecture entailed in the 2002 SACU Agreement on tariff setting be reviewed to find a more suitable decision-making mechanism for tariff setting.
- Advocate for the need to preserve tariffs as instruments for industrial development, and ensure an efficient tariff setting mechanism that is responsive to current global developments on trade.
- Advocate for the review of the revenue sharing formula to take into consideration the current economic environment and the future of SACU, including provision for the establishment of a financing mechanism for cross-border projects.
- Ensure that the tariff setting mechanism is adjusted on the basis of discussions in the revenue sharing arrangement.
- Promote efficient cross-border movement of goods especially for agricultural products across SACU.
The Committees recommend that the National Assembly approve the said resolution.
Report to be considered.
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