Sacu
Foreign Trade
The SACU (South African Customs Union) Is one of the trading blocks South Africa & Namibia Are part of .It also consists of 5 Countries ,such as South Africa, Namibia , Swaziland , Lesotho & Botswana.
Rules of the Foreign Trade
Trade Relations with third parties:-
Article 31 of the 2002 SACU Agreement states that No Member State shall enter into new preferential trade arrangement with third parties or amend existing arrangements without the consent of other member States.
Trade Liberalization:- (allows traders to act or transact without interference from the government.) * Free trade movement of domestic products within the SACU Region. * Cstoms Duties on imported goods. * Protection of infant industries. * Technical barriers to trade ,ie:- protect their natural resources,protect infant industries,domestic industries.
South Africa :-
Benefits From The SACU :- * Was responsible for 93% of the exports made to the USA by the SACU.(About $4.3 Billion)[Regional Dominance] * Receives trade advantages from the SACU.(dominate the customs union) * Largest source of foreign direct investment for the BLNS Countries.
Demerits From the SACU :- * Was responsible for 87% of the Imports made by SACU from the United States (About $5.9 Billion)[Heavily dependant on by SACU]
Namibia :-
Benefits from the SACU :-
* Recently The SACU and The Marcosur are going to sign a deal which will give the Namibian exports access to huge markets across the Atlantic.( Marcosur is a trade bloc associated with Paraguay, Uruguay, Peru ,Columbia , Chile, Ecuador & Bolivia). The Namibian exports include dried grapes, vegetables & Maize seeds. It is estimated that the SACU will successfully reduce the cost of imports on these products, thus creating increased profit margins for the Namibian Businesses.
* The SACU protects Namibia From other Foreign Exporters from Dumping, thus helping in protecting the Local, or
The SACU (South African Customs Union) Is one of the trading blocks South Africa & Namibia Are part of .It also consists of 5 Countries ,such as South Africa, Namibia , Swaziland , Lesotho & Botswana.
Rules of the Foreign Trade
Trade Relations with third parties:-
Article 31 of the 2002 SACU Agreement states that No Member State shall enter into new preferential trade arrangement with third parties or amend existing arrangements without the consent of other member States.
Trade Liberalization:- (allows traders to act or transact without interference from the government.) * Free trade movement of domestic products within the SACU Region. * Cstoms Duties on imported goods. * Protection of infant industries. * Technical barriers to trade ,ie:- protect their natural resources,protect infant industries,domestic industries.
South Africa :-
Benefits From The SACU :- * Was responsible for 93% of the exports made to the USA by the SACU.(About $4.3 Billion)[Regional Dominance] * Receives trade advantages from the SACU.(dominate the customs union) * Largest source of foreign direct investment for the BLNS Countries.
Demerits From the SACU :- * Was responsible for 87% of the Imports made by SACU from the United States (About $5.9 Billion)[Heavily dependant on by SACU]
Namibia :-
Benefits from the SACU :-
* Recently The SACU and The Marcosur are going to sign a deal which will give the Namibian exports access to huge markets across the Atlantic.( Marcosur is a trade bloc associated with Paraguay, Uruguay, Peru ,Columbia , Chile, Ecuador & Bolivia). The Namibian exports include dried grapes, vegetables & Maize seeds. It is estimated that the SACU will successfully reduce the cost of imports on these products, thus creating increased profit margins for the Namibian Businesses.
* The SACU protects Namibia From other Foreign Exporters from Dumping, thus helping in protecting the Local, or