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TEXTILE TRADE WITHIN THE CUSTOMS UNION

he Southern African Customs Union (SACU) is from the BLNS countries in the official customs
Tan agreement between South Africa, Botswana, statistics. The reason being that South Africa's
Lesotho, Namibia and Swaziland (BLNS). It was exports of goods show a better picture when our trade
established in 1910, making it the world's oldest with SACU is included in the figures. According to
customs union. Historically SACU was administered the estimated figures for 2016, approximately 42% of
by South Africa through the 1910 and 1969 the value of total exports of textiles and clothing went
Agreements. Negotiations to reform the 1969 to the BLNS countries, whilst 13% of the value of total
Agreement started in 1994 and a new agreement was imports of textiles and clothing came from the BLNS
signed in 2002. countries.

The objectives of the The official statis-
Customs Union are, tics show that the
amongst others, to value of textiles and
promote conditions clothing imports
of fair competition in have increased
the customs area, to since 2014. Cloth-
facilitate the equi- ing represents the
table sharing of majority of imports
revenue arising from from the BLNS
customs, excise and countries. The
additional duties exports of textiles
levied by member and clothing also
states, to facilitate showed an in-
the cross-border crease, with cloth-
movement of goods ing representing the
between the terri- major part.
tories of the member
states and to create effective, transparent and South Africa and Lesotho are the major players in the
democratic institutions which will ensure equitable textiles and clothing trade within the SACU region.
trade benefits to member states. The clothing industry in Lesotho is the country's
largest formal employer and has approximately
The economic 40 000 workers in
structure of the the textile and
Union links the clothing industry.
member states by a Lesotho has about
single tariff and no 40 factories specia-
customs duties lising in both woven
between them. and knitted gar-
According to the old ments. By compari-
Agreement, the son South Africa
Customs Union currently employs
collected duties on about 34 200
local products and workers in the
customs duties on clothing industry
imports from outside and 36 200 workers
SACU, and the in the textile
resulting revenue industry.
was allocated to
member countries in quarterly instalments using a One can only hope that the SACU agreement will
revenue-sharing formula. The new revenue-sharing continue to enhance the economic development,
formula began in 2006 and is based on three diversification, industrialization and competitiveness
components, namely customs, excise and of the member states and that there will be substantial
development. investment opportunities in this common customs
area in future.
Since 2013/14 South Africa has started to include the
South African "imports" and "exports" of goods to and Helena Claassens - Cotton SA
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