Sacu Agreement 2004

In December 2004, MERCOSUR and the Southern African Customs Union (SACU), which consists of Botswana, Lesotho, Namibia, South Africa and Swaziland, signed a preferential trade agreement. In conjunction with the agreement, they reached an agreement on the conclusion of their preferential trade agreement, in which they expressed satisfaction with the conclusion of the agreement and reaffirmed their determination to continue negotiations and strengthen bilateral cooperation to facilitate the implementation of the agreement. Ministers indicated that these negotiations would begin as soon as possible and provided for additional protocols for the agreement in the customs and automotive sectors. The Chair has officially read the agreement reached by the Committee on the Annex on the Institutionalization of SACU. The agreement was unanimously requested for adoption by the Committee. The SACU agreement, currently in force, was published in the Government Gazette 26537`s R.800 release of July 2, 2004 and came into effect on July 15, 2004. The 1969 SACU agreement replaced the first-ever SACU agreement of 1910. This agreement was signed in June 1910 and the members were composed of the union of South Africa at the time, South West Africa (now Namibia) and the British territories of the High Commission, which are now Lesotho, Botswana and Swaziland. This 1969 agreement was denounced on 15 July 2004 with the entry into force of the current SACU agreement (see Article 51) Montevideo, Uruguay. Report on the ninth session of the Negotiating Committee, The Framework Agreement establishing a MERCOSUR-SACU free trade agreement on the institutionalisation of the South African Customs Union (SACU) summit, Ms Xolelwa Mlumbi-Peter, Deputy Director General of the Ministry of Trade and Industry (DTI), presented to the Committee the annex to the institutionalization of the SACU summit, highlighting the context of the 2002 SACU agreement, the decisions of the Heads of State and Government , the objectives of the annex, the role of the summit and the procedural and legal implications.

South Africa was a signatory to the Southern African Customs Union (SACU), which had been the oldest customs union in the world since 1910. As a result of its revision, the 1969 agreement was reached. The SACU agreement was then renegotiated and signed in 2002 and came into force on 15 July 2004. The highest decision-making institution of the 2002 agreement was the Council of Ministers. In 2004, it established a secretariat organized by Namibia. The first meeting of SACU heads of state and government was held on 22 April 2010 and, at that meeting, the Heads of State and Government decided that SACU would hold a summit that would be the highest decision-making body and provide political and strategic direction. The annex to the institutionalization of the summit was developed and adopted by the Council in 2012 and signed by the Heads of State and Government at a meeting in Botswana in 2013. The aim of the summit was to facilitate cross-border trade in goods between Member States` territories; establishing effective, transparent and democratic institutions that would guarantee Member States equitable trade benefits; Promote the conditions for fair competition in the common customs area; Significantly increase investment opportunities in the common customs area; improving the economic development, diversification, industrialisation and competitiveness of Member States; Promote member states` integration into the global economy by strengthening trade and investment; facilitate an equitable distribution of revenue from customs duties, excise duties and additional duties collected by Member States; Facilitate the development of common policies and strategies.

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