Southern African Customs Union

 

Windhoek, Namibia

English

1910

The Southern African Customs Union, correctly Customs Union of Southern Africa ( Southern African Customs Union english, SACU) is an association of States South Africa, Swaziland, Lesotho, Botswana and Namibia on the basis of a common customs agreement.

History

The SACU goes back to a customs union between the Union of South Africa, Bechuanaland, Swaziland and Basutoland from 1910. South West Africa (Namibia) can be regarded as a de facto member of SACU in 1918, as it stood at that time under third-party management by South Africa. SACU is the oldest still existing customs union in the world.

As the immediate precursor of the SACU customs union founded in 1889 between the British Cape Colony and the Orange Free State can be seen.

1969 and 2002, the South African Customs Union by new contracts was re- appropriate content.

Parallel to the SACU operate its member countries with the exception of Botswana, a common monetary policy, the currency of the four remaining states is coupled within the Common Monetary Area to the South African rand.

Member States

Members of SACU are:

  • Botswana Republic of Botswana
  • Lesotho Kingdom of Lesotho
  • Namibia Republic of Namibia
  • South Africa Republic of South Africa
  • Swaziland Kingdom of Swaziland

Developments up to 2002

After the Treaty of 1969, the Customs Union guarantees in principle the duty-free exchange of goods and services between the Member States. On top of a uniform tariff against third countries. To compensate for the economic disparities between the States, was a compensation mechanism, known as the Common Revenue Pool, introduced that on a disproportionate share of the customs revenue in favor of Botswana, Lesotho, Namibia and Swaziland (also BLNS states called ) is based. This compensation fund secures the BLNS States, a significant proportion of their revenue. So an average of 50 percent of government revenue Lesotho and Swaziland, as well as about 30 percent in the case of Namibia, and about 17 percent will be covered by the SACU fund in case of Botswana.

Disadvantages within SACU for BLNS states arise in part from a polarization in favor of South Africa, as the South African competition forces the less well-developed industries in the other Member States from the market. On the other hand it comes to trade diversification, with expensive South African products displace cheaper goods from third countries.

Under the Treaty of 1969 was regulated so that South Africa met all policy decisions alone, since the competent authorities for the SACU were located in the South African Department of Commerce. In addition, the states had to wait two years until their share of the SACU fund was paid by South Africa, while South Africa could pocket the interest on the funds in this period.

Developments from 2002

A revision of the SACU agreement of 1969 was ultimately achieved after nearly eight years of negotiations in October 2002. 2004 saw this new union agreements in force, which eliminates the political domination and the de facto exclusive right to determine the internal Union customs and excise legislation of South Africa in favor of a single administration. Among the most important SACU institutions include:

  • The Council of Ministers represents the highest decision-making body of the community and consists of one minister from the area of ​​finance or trade per member country. Decisions in the Council are taken by consensus.
  • The Secretariat and the Secretary General comes to the administrative management of SACU and is based in Windhoek, Namibia. It coordinates and monitors the decisions of the Council of Ministers.
  • The Commission is responsible for the implementation of the SACU agreement and for the monitoring of the Common Revenue Pool.
  • The Tribunal is to deal after its establishment as an independent, regional appellate court with the settlement of internal disputes.

In addition to the revision of the compensation mechanism, a development fund also has been set up, which is to support the weaker countries of the SACU.

On 1 July 2006, the SACU concluded a free trade agreement with the European Free Trade Association ( EFTA), by which the trade in industrial goods, processed agricultural products and fish and other marine products should be liberalized. The agreement came after the ratification in the Member States of the two alliances, in the year 2007.

In April 2008, also a cooperation agreement between SACU and the United States was completed to the mutual expansion of trade and investment.

Official language Working language Bechuanaland Protectorate
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