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Thursday, 23 June 2016

Southern Africa: EPA Could Stimulate Exports and Regional Manufacturing

While the preferential treatment extended to European Union (EU) goods would witness an increase in imports from that economic bloc, given its larger production and productivity base, it may strain the competitiveness of domestic industries. Minister of Finance Calle Schlettwein feels the 'cumulation provisions' in the Economic Partnership Agreement (EPA) nevertheless create interesting opportunities to develop regional value chains to support Namibia's industrialisation strategy and expand its export basket. Cumulation is a concept used in preferential trade agreements, which essentially widens the definition of originating products and helps manufactured goods meet the relevant rule of origin.

Source: allafrica.com