The SACU-EFTA agreement, also known as the Southern African Customs Union-European Free Trade Association agreement, is a comprehensive free trade agreement that aims to boost economic growth and create new opportunities for businesses in both regions.
Signed in 2016, the agreement was the result of four years of negotiations between the Southern African Customs Union (SACU) and the European Free Trade Association (EFTA) comprising Iceland, Liechtenstein, Norway, and Switzerland.
The SACU-EFTA agreement covers a wide range of areas, including trade in goods, services, investments, and intellectual property rights. The agreement provides a framework for the elimination of tariffs and non-tariff barriers, which will help to increase trade flows between SACU and EFTA countries.
Under the agreement, SACU countries will eliminate tariffs on 98 percent of all imports from EFTA countries over a period of ten years. Meanwhile, EFTA countries will eliminate tariffs on more than 95 percent of all imports from SACU countries.
The agreement also provides for the liberalization of trade in services, including telecommunications, financial services, and professional services. It also ensures the protection of intellectual property rights, which will encourage innovation and the development of new products and services.
In addition to boosting trade flows, the agreement is expected to have a positive impact on employment and economic growth in SACU and EFTA countries. It will create new opportunities for businesses to expand their operations and enter new markets, which could lead to the creation of new jobs.
Overall, the SACU-EFTA agreement is a significant milestone in the economic relationship between SACU and EFTA countries. It represents a commitment to open and rules-based trade, and it provides a framework for further cooperation in the years ahead. As such, it is a positive development for businesses, workers, and consumers in both regions.
