Technical barriers hampering Namibian trade

NAMIBIA is in the process of negotiating Free Trade Agreements (FTAs) with both the United States of America and the European Union.

Jurgen Hoffmann of the Namibian Agronomic Board, last week released a concept note highlighting the importance of Technical Barriers to Trade (TBTs) and how they can be addressed in ongoing negotiations. He said “developed countries, that are a lucrative target market for Namibian exports, and especially agricultural exports, are still using higher standards and bureaucratic measures to try to impede market access of Namibian produce to their markets”.According to Hoffmann, “not only tariffs, but technical barriers to trade are also a major impediment to trade liberalisation”.Such barriers are manifold and can address issues of health and safety as well as quality standards and environmental protection.Hoffmann illustrates the importance of TBTs by citing all the World Trade Organisation (WTO) agreements that strive to create a forum to address their effects on trade.These include the WTO agreements on the Application of Sanitary and Phytosanitary Measures, on Technical Barriers to Trade, on trade related investment measures, on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement), on Rules of Origin, on Import licensing Procedures, on Subsidies and Countervailing Measures and the agreement on Safeguards.As far as Namibia is concerned, Hoffmann pointed out that the existing WTO agreements “form a negotiating framework that, as a bottom line, protects Namibian interests,” in particular in safeguarding “the development of the sustainable economic potential on Namibia against unfair trade practices and safeguard measures”.Although Hoffmann pointed out that “the two major export commodities of Namibia – minerals and tourism – are not subject to either tariffication of TBTs, as long as the demand is larger than the offered commodities or services, and as long as these are controlled outside the WTO provisions.”However, in the case of diamond exports, an imposed strict Rule Of Origin could be considered as a TBT.”Special and Differential Treatment entailing support and aid from developed countries to developing countries and Least Developed Countries (LDC) (of which Namibia is one), to build capacity and to give technical assistance; introduced since the WTO’s last round of negotiations in Doha, “have also to be negotiated in all the FTA’s that are under negotiation presently,” he said.Hoffmann maintains that all these ongoing negotiations are “time consuming and entail a lot of capacity from the Namibian negotiation team”.He said “developed countries, that are a lucrative target market for Namibian exports, and especially agricultural exports, are still using higher standards and bureaucratic measures to try to impede market access of Namibian produce to their markets”.According to Hoffmann, “not only tariffs, but technical barriers to trade are also a major impediment to trade liberalisation”.Such barriers are manifold and can address issues of health and safety as well as quality standards and environmental protection.Hoffmann illustrates the importance of TBTs by citing all the World Trade Organisation (WTO) agreements that strive to create a forum to address their effects on trade.These include the WTO agreements on the Application of Sanitary and Phytosanitary Measures, on Technical Barriers to Trade, on trade related investment measures, on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement), on Rules of Origin, on Import licensing Procedures, on Subsidies and Countervailing Measures and the agreement on Safeguards.As far as Namibia is concerned, Hoffmann pointed out that the existing WTO agreements “form a negotiating framework that, as a bottom line, protects Namibian interests,” in particular in safeguarding “the development of the sustainable economic potential on Namibia against unfair trade practices and safeguard measures”.Although Hoffmann pointed out that “the two major export commodities of Namibia – minerals and tourism – are not subject to either tariffication of TBTs, as long as the demand is larger than the offered commodities or services, and as long as these are controlled outside the WTO provisions.”However, in the case of diamond exports, an imposed strict Rule Of Origin could be considered as a TBT.”Special and Differential Treatment entailing support and aid from developed countries to developing countries and Least Developed Countries (LDC) (of which Namibia is one), to build capacity and to give technical assistance; introduced since the WTO’s last round of negotiations in Doha, “have also to be negotiated in all the FTA’s that are under negotiation presently,” he said.Hoffmann maintains that all these ongoing negotiations are “time consuming and entail a lot of capacity from the Namibian negotiation team”.