The recently signed Economic Partnership Agreement (EPA) should not be allowed to undermine the SA Customs Union (SACU), Trade and Industry Minister Rob Davies said on Monday.
However, he emphasised that South Africa had not threatened to ”walk into the SACU and pull it apart”.
Davies was addressing a media briefing following his meeting with Business Unity SA (Busa) leaders.
His comments came after three SACU members — Botswana, Lesotho, and Swaziland — opted to sign a separate trade agreement, the EPA,
with the European Union (EU).
Mozambique also indicated a willingness to sign the deal. South Africa, Namibia and Angola had taken the view that fundamental issues needed to be resolved before the agreement could be signed, Davies said, adding that one of the conditions required was to keep cheap clothing imports out of South Africa.
”South Africa doesn’t want the EPA to create a climate where the SACU is undermined. In fact South Africa is in favour of even deeper integration in SACU.
”We don’t want to see it as only a form of convenience for transfers of revenue,” Davies said.
Turning to changes in his department’s policy, he added that a new industrial policy plan would be put in place in January 2010.
It would have ”a higher impact” than the plan presently in place and its aim would be to create and preserve jobs, Davies noted.
Davies said his department would also release new incentives for the embattled clothing and textile sector.
Without providing details, the minister hinted that packages to assist those sectors in distress would be unveiled soon.
”The reality of job losses has led to the crisis response. The first consideration is to preserve jobs and then to preserve strategic industrial capacity.”
Davies added that government’s plans with industry meant that ”we will request something in return”.
Asked if conditions would be imposed on companies, he said he would look askance on a situation if a company asked for money and then gave its management huge bonuses or paid out massive dividends.
Davies said that he was engaging with trade unions ”all the time”.
”A lot of the work we’re dealing with in the economic crisis response means meeting with the unions,” Davies said.
The minister noted that the issue of administered prices — such as Eskom’s tariffs — was not in his court.
”But I know some corporates have said this is a serious matter,” he said.
Asked how responsibilities for trade and industry matters would be divided between his department and the new minister of economic development Ebrahim Patel, Davies said that precise allocations of functions had not yet been completed.
”Initial discussions have taken place but I can’t make any comment,” he said. – Sapa