Unlocking East Asian Markets to Sub-Saharan Africa 161
Table 4.4 Overview of Trade Agreements between Sub-Saharan African Countries and India Country or regional group
Agreement
Current status
Mauritius
Comprehensive Economic Cooperation and Partnership Agreement (CECPA)
The chapter on Trade in Goods (PTA) has been finalized. It includes tariffs, text of PTA with rules of origin, operational certification procedures, and a trade defense measure. Negotiations were held on Trade in Services with the view of creating a liberal, facilitative, transparent, and competitive services regime. The Trade in Investments negotiations also took place to improve the legal frameworks in both countries, including the bilateral Double Taxation Avoidance Convention (DTAC) and Bilateral Investment Promotion and Protection Agreement (BIPA). There was delay in the finalization of the chapters of “Enterprise” and treatment of “Shell Companies.” This led to a standstill in the negotiations. India's proposal to modify DTAC was rejected by Mauritius, and this has put the CECPA negotiations on hold until the modifications are accepted by Mauritius.
Southern African Customs Union (SACU): Botswana, Eswatini, Lesotho, Namibia, and South Africa
Comprehensive Free Trade Agreement (CFTA)
The last round was held in October 2010, in which SACU presented a revised text of the PTA as a working document. At the round, both sides agreed on the following: the text on “Dispute Settlement Procedure”; to use the text proposed by India on “Customs Cooperation and Trade Facilitation” and “Technical Barriers to Trade (TBT)” as the working text; and to use the text “Sanitary and PhytoSanitary (SPS)” proposed by SACU as the working text. However, the fear of revenue loss from the implementation of an FTA is a sensitive issue for South Africa, which probably explains the lethargy shown by SACU authorities. This CFTA is still under consultation and study, but the hope that this PTA would concluded by the end of 2013 was dashed.
Selected Sub-Saharan African countries
Global System of Trade Preferences (GSTP)
The market access modalities adopted by the ministers are based on the principle of an across-the-board, line-by-line, linear cut of at least 20 percent on dutiable tariff lines; product coverage to be at least 70 percent of dutiable tariff lines; product coverage shall be 60 percent for participants having more than 50 percent of their national tariff lines at zero duty level; tariff cuts shall be made on the MFN tariffs applicable on the date of importation or, alternatively, participants may choose to apply the cuts on the MFN tariffs applicable on the date of conclusion of the third round; and the negotiating committee shall also consider the proposal for the revision of the GSTP rules of origin.
Common Market for Eastern and Southern Africa (COMESA)
Free trade agreement
A joint study group has been set up to look into the possibility of a free trade pact.
Source: Compiled from various sources. Note: FTA = free trade agreement; MFN = most favored nation; PTA = preferential trade agreement.
