MPs must stop ‘war’ with SA

Comment

Parliament is about to be presented with a trade bill that has sparked a trade war with neighbouring South Africa and has the potential of dismantling the Southern African Customs Union (SACU).

This could cost this country more than 20 per cent loss in revenue from customs receipts. SACU revenue forms 60 per cent of the national budget; or should we say, pays for the entire wage bill of the civil service.

 
This follows Swaziland’s decision to sign an Economic Partnership Agreement (EPA) with the European Union in Brussels on Thursday much against SACU rules which prevent SACU members from entering into separate trade agreements with other countries.

The rules state that they must sign as a bloc and a unit. SA, Namibia and Angola still had a lot of concerns with the EPA that EU needed to answer.
Swaziland signed together with Botswana and Lesotho while South Africa, Namibia and Angola withheld their signatures and also declined an invitation by the EU to attend the signing ceremony. Mozambique, on the other hand, is reported to have indicated its willingness to sign but has not done so. Independent economists say that Swaziland was under pressure to sign.

Her preferential trade access to the EU market is coming to an end next year and without a fall back position, a number of companies locally that trade with the EU would be hit hard and may eventually have to close down. But does it compare to the loss of SACU receipts?
The signing of the EPA has outraged the South African trade minister who has come out to say he was prepared to set up trade barriers with Swaziland, Lesotho, Botswana and Mozambique which would be meant to stop a flood of cheap imports entering SA.

South Africa’s problem is that countries like Swaziland allow cheap goods to be made elsewhere only to have labels of ‘Made in Swaziland’ stitched on before they flood SA and other countries in the region.
Trade economists in South Africa have warned that this move could have ‘devastating economic and humanitarian consequences’ for countries in the region that could spill over into SA.

Swaziland’s Commerce, Trade and Industry Minister Jabulile Mashwama is currently out of the country, but when she returns, she is expected to take the EPA to parliament for endorsement.
It is now up to parliament to carefully scrutinise the effect of signing the EPA and the threats by SA on Swaziland and its neighbouring states under SADC.

Their research, advice and ultimate decision making has a huge bearing on the economic and humanitarian future of this country. Never has it mattered so much.

What seems to be obvious though, is that we may just have to choose one or the other if ‘Big Brother’ South Africa is not willing to allow us to have a little bit of both.
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