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BID TO PROTECT EU BEEF, SUGAR EXPORTS

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MBABANE – Minister of Commerce, Industry and Trade Manqoba Khumalo met with British High Commissioner to South Africa Nigel Casey to discuss the implications of Brexit on the Kingdom of Eswatini.

The meeting convened on Thursday was in light of on-going discussions in the United Kingdom regarding Brexit, where Prime Minister Theresa May was focused on a bid to avoid a no-deal scenario. The discussions have temporarily put a pause on the trade negotiations taking place with regard to the Southern African Customs Union (SACU), Mozambique and UK Economic Partnership Agreement (SACUM-UK EPA). The aim of the SACUM-UK EPA would be to deliver continuity in terms of trade between SACUM countries and the UK.

The minister learnt that the UK was ready to pick up on the negotiations as soon as a solution to the current Brexit deadlock was found. He was also briefed about a post-Brexit trade agreement with the UK; which was meant to spell out how the Kingdom of Eswatini will trade with the UK following Brexit. The main objective of the meeting was to ensure that trade relations between the two countries were not disrupted, particularly with regard to the country’s beef and sugar exports. In the event a solution to the deadlock leads to another Brexit delay, more time would be made available to attend to outstanding issues concerning the negotiations. Outstanding issues include sanitary and phyto-sanitary measures (i.e. health certificates for meat products and plant protection). The delay would also give exporters from Eswatini more time to prepare for any new trade requirements.

It should be mentioned that the Kingdom of Eswatini may be producing some of the most unique products in the world but they may not necessarily be of the required quality standards. Speaking during the recent signing ceremony of the E9 million Manzini Trade Hub project Khumalo said as a result of this substandardisation, the country’s products faced rejection in export markets. He listed poor packaging, labelling and several other standards as well as sanitary and phytosanitary issues as among the major impediments facing local products. “Eswatini is involved in both local and domestic trade. In order to compete and fully exploit possibilities of the Eswatini industry, the country has to attain a demonstrable product and/or service quality offering demanded by global, regional and domestic markets reflecting evidence of compliance to international requirements,” Khumalo said.

He said through the Manzini Trade Hub project COMESA and the European Union intended to strengthen national quality infrastructure institutions through providing the necessary support to produce competitive goods and services. Meanwhile, Minister of Finance Neal Rijkenberg said time had come for the upliftment of Micro Small and Medium Enterprises (MSMEs). He said the EU and COMESA had a very specific mandate towards MSMEs and improving the lives of the poor. He said as a ministry they appreciated the support provided by the two entities to the Kingdom. Rijkenberg further justified the introduction of consumptive taxes; saying this was aimed at improving the livelihoods of the poor through MSME development.

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