Trade Policy and Strategy Framework

The Role of International Trade and Administration Commission (ITAC)

• Mandate defined by the International Admin Act 2002.
• Has developed a sophisticated and rigorous methodology that includes firm level investigations.
• Sets tariffs on the basis of cost-and-benefit analysis, guided by evidence and responding to the imperatives of industrial policy:
• Competitive position of the product; whether the product or substitute is manufactured in SACU; effective rate of protection; value chain implications; and macro-economic & social impact.
• Deals with applications for tariff changes and trade remedies.

Strategic Integration into the Global Economy

• There are other areas that are prioritised in SA’s trade policy and Strategy Framework:
• African Agenda: mainly focused on building trade and investment relations across the continent; building effective regional markets; enhancing production capacities; sustaining regional integration; and cross-border infrastructure development through spatial development initiatives (SDIs).

Strategic Integration

• Regional & Bilateral Relations: Intra-Africa trade remains important to SA. This remains low (10 %) and needs to be enhanced. More positively, this is worth 21 percent of total exports for African countries although the intra-Africa trade ratio is 10 percent. SA continues to pursue regional arrangements both in Southern Africa & beyond: SADC Trade Protocol & SACU; SACU-EFTA FTA; SACU-MECOSUR PTA.
• (negotiating outcomes to deal with non-tariff barriers as well; as well as to forge sectoral agreements that could benefit SA).

Strategic Integration

• SACU and SADC
• SA remains committed to pursuing regional integration in the context of SACU & SADC.
• The new SACU Agreement that entered into force in 2004 represents important departures: establish a democratic, consensus-based decision making mechanism; foresees new supranational institutions including a Tribunal to settle disputes, a SACU Tariff Board to determine changes to the CET, and a Secretariat; envisions deeper integration through development of common policies; and establish a revenue-sharing formula.