/ 2 July 2009

Cosatu slams trade agreement breakaways

The Congress of South African Trade Unions on Wednesday strongly criticised countries which have made trade agreements outside of the Southern African Customs Union (Sacu).

”Cosatu condemns these countries for sacrificing regional integration and the future of African integration in return for short-term benefits by increasing their exports to the [European Union],” said spokesperson Patrick Craven in a statement.

Two weeks ago, Botswana, Lesotho, Swaziland, all members of Sacu, signed interim Economic Partnership Agreements (EPA) with the EU. Mozambique is also believed to interested in signing an EPA.

”Subsequent to the signing off on the EPAs there has been media speculation about the possibility of Sacu being dissolved, because of South Africa’s possible withdrawal,” said Craven.

”This may be premature and unfortunate, as Sacu is an established regional institution despite weaknesses and disagreements among its member states.”

Craven said the union federation was concerned that ”cheap European imports” would be able to enter South Africa via those countries which had already signed EPAs.

”This might make it necessary for South Africa to put up border controls and demand rules of origin certificates in order to prevent this from happening. This would seriously undermine the basis of Sacu,” said Craven.

He also criticised the EU for ignoring the integration ambitions of Southern African nations. Craven said the EPAs would only create access for EU companies who would exploit African mineral wealth, and to encourage deregulation and privatisation in those countries which had signed the agreements.

”That is why Cosatu supports the South African, Angolan and Namibian governments for standing firm against the bullying arm twisting tactics of the EU,” said Craven.

The trade union federation has also called on further talks between Sacu members with an eye towards greater economic integration. — Sapa