By Emma Kakololo
WINDHOEK
The door has not completely closed for Namibia to sign the Interim Economic Partnership Agreement (IEPA) with the European Union (EU).
The European Commission last week in a statement said it never imposed an ultimatum on countries and remained open to include improvements if the region concerned agreed.
It however noted that the deadline of December 31, 2007 was a well-known constraint since the Cotonou Agreement and the WTO waiver on its trade provisions date since their respective signing and granting in 2000.
“The EC considers that it is possible to remove the remaining hurdles delaying the initialling by Namibia of an IEPA,” EC Head of Delegation to Namibia Dr Elizabeth Pape said.
“This would ensure continued and even increased competitiveness of Namibian goods in the EU market and avoid a loss of markets, which have taken great effort and time to create. It is therefore essential to find a solution without further delays.”
Last week, Minister of Trade and Industry Immanuel Ngatjizeko highlighted four provisions in the Interim EPA that have prompted Namibia to shy away from signing it. These provisions were the “most favoured nation” (MFN) clause; the limitation of export taxes; infant industry protection; and the free circulation of goods.
Ngatjizeko said the requirement that SADC EPA States immediately freeze any new export taxes or levies was only introduced by the EC during the final round of negotiations, much to the surprise of Government.
Responding to this, Dr Pape said the EC was fully aware of the important fiscal role such taxes presently have in Namibia.
The EU proposal she said leaves Namibia and the other SADC EPA States, except South Africa, totally free to maintain all existing export taxes and levies. They could furthermore even increase them, or add new ones, when required for public revenues, protection of the environment or of infant industry – subject only to consultations.
“The European Commission strongly supports the objective of diversifying production and increasing local value addition.
“In that regard, through its development co-operation with Namibia – together with the European Investment Bank – several opportunities have been created and continue to be funded, while more can be expected in the future.” Pape said the MFN Clause was not a new addition to the proposed agreement and a similar clause had been part of the Cotonou Agreement for many years, and before that of the Lomǟ