Namibia not breaking trade agreements with SA
SA remains important trade partner
The Namibian Agronomic Board (NAB) has dismissed reports that current restrictions in Namibia on certain agronomic and horticultural crops from South Africa are against the Southern African Customs Union (Sacu) agreement.
Agriculture minister Calle Schlettwein said that Namibia will not be treated like a lamb to slaughter following an uproar from South African agricultural organisations with regards to the country’s import ban on crop and horticultural products.
The Namibian Agronomic Board (NAB) has in the meantime dismissed reports that current restrictions in Namibia on certain agronomic and horticultural crops from South Africa are against the Southern African Customs Union (Sacu) agreement.
This follows after Agri SA wrote to the South African agriculture minister, Thoko Didiza, requesting urgent intervention and stating that Botswana and Namibia "took unilateral action to block a number of South African agricultural commodities from entering their borders."
Agri SA, a federation of agricultural organisations, said the South African government must immediately respond to this "unjustified action in violation of the Southern Africa Customs Union Agreement."
Double morality
In response to the statements by Christo van Rheede, executive director of Agri SA, in which he described Botswana and Namibia's actions as "particularly horrific", Schlettwein said: "What is horrific is how South Africa is countering our industrialisation".
The minister, in comments made to Namibia Media Holdings yesterday, added that "South Africa maintains a double morality. They dump their products into our market and introduce all kinds of rules to protect their markets, but get unhappy when we do.
"When we wanted to import sugar from other markets that are cheaper than South Africa, they banned it. Similarly, they did not want to grant a rebate on wheat imports when we asked for it," he said.
Agri SA requested that if their government cannot succeed in having Namibia's import ban lifted, it should introduce similar measures, such as the possible cessation of payments from Sacu’s common revenue pool.
"Namibia will not let it be treated like a lamb to the slaughter," Schlettwein said in response to this.
Auguste Fabian, NAB spokesperson, stressed that the Sacu agreement also makes provision for the protection of infant industries such as Namibia.
"The mechanisms facilitated by the NAB for open and close border periods for certain primary agronomic and horticultural products are part of the agenda to develop the crop industry and protect our local farmers from cheap imports."
Young industry
Fabian further explained that the Namibian crop industry is at its infant stage, faced with many challenges, and the development of this industry started merely 20 years ago.
“Crop farming development in South Africa started over a century ago and South African farmers have a high level of economies of scale compared to Namibian farmers as we are a new baby on board.”
According to Fabian, Namibia currently imports almost 100% of farming inputs from South Africa, which means that South African farmers have a production cost advantage of almost 25% compared to Namibian farmers due to high input costs in Namibia.
This situation results in Namibian products being more expensive on the shelves than South African products.
On the other hand, Fabian said that in 2020 Namibia exported horticulture and agronomic products worth N$402 million and imported products worth N$5.2 billion.
“This is 13 times the value of our exports to South Africa, and surely this is not a balanced trade. Therefore, the current regulatory mechanisms are put in place to protect our local farmers in order to stimulate industry growth, food self-sufficiency, and create job opportunities.”
Fabian said that South Africa remains a very important trade partner to Namibia, as it currently imports over 80% of crop-based products and 100% of production inputs from there.
Agri SA said that restrictions currently include tomatoes, potatoes, beetroot, cabbage, and coloured peppers amongst other commodities.
“The actions by Botswana and Namibia are particularly egregious as they do not stem from any wrongdoing by South African farmers. Rather, these countries have cited the need to protect their own local production even as they continue to export their produce to South Africa.”
The Namibian Agronomic Board (NAB) has in the meantime dismissed reports that current restrictions in Namibia on certain agronomic and horticultural crops from South Africa are against the Southern African Customs Union (Sacu) agreement.
This follows after Agri SA wrote to the South African agriculture minister, Thoko Didiza, requesting urgent intervention and stating that Botswana and Namibia "took unilateral action to block a number of South African agricultural commodities from entering their borders."
Agri SA, a federation of agricultural organisations, said the South African government must immediately respond to this "unjustified action in violation of the Southern Africa Customs Union Agreement."
Double morality
In response to the statements by Christo van Rheede, executive director of Agri SA, in which he described Botswana and Namibia's actions as "particularly horrific", Schlettwein said: "What is horrific is how South Africa is countering our industrialisation".
The minister, in comments made to Namibia Media Holdings yesterday, added that "South Africa maintains a double morality. They dump their products into our market and introduce all kinds of rules to protect their markets, but get unhappy when we do.
"When we wanted to import sugar from other markets that are cheaper than South Africa, they banned it. Similarly, they did not want to grant a rebate on wheat imports when we asked for it," he said.
Agri SA requested that if their government cannot succeed in having Namibia's import ban lifted, it should introduce similar measures, such as the possible cessation of payments from Sacu’s common revenue pool.
"Namibia will not let it be treated like a lamb to the slaughter," Schlettwein said in response to this.
Auguste Fabian, NAB spokesperson, stressed that the Sacu agreement also makes provision for the protection of infant industries such as Namibia.
"The mechanisms facilitated by the NAB for open and close border periods for certain primary agronomic and horticultural products are part of the agenda to develop the crop industry and protect our local farmers from cheap imports."
Young industry
Fabian further explained that the Namibian crop industry is at its infant stage, faced with many challenges, and the development of this industry started merely 20 years ago.
“Crop farming development in South Africa started over a century ago and South African farmers have a high level of economies of scale compared to Namibian farmers as we are a new baby on board.”
According to Fabian, Namibia currently imports almost 100% of farming inputs from South Africa, which means that South African farmers have a production cost advantage of almost 25% compared to Namibian farmers due to high input costs in Namibia.
This situation results in Namibian products being more expensive on the shelves than South African products.
On the other hand, Fabian said that in 2020 Namibia exported horticulture and agronomic products worth N$402 million and imported products worth N$5.2 billion.
“This is 13 times the value of our exports to South Africa, and surely this is not a balanced trade. Therefore, the current regulatory mechanisms are put in place to protect our local farmers in order to stimulate industry growth, food self-sufficiency, and create job opportunities.”
Fabian said that South Africa remains a very important trade partner to Namibia, as it currently imports over 80% of crop-based products and 100% of production inputs from there.
Agri SA said that restrictions currently include tomatoes, potatoes, beetroot, cabbage, and coloured peppers amongst other commodities.
“The actions by Botswana and Namibia are particularly egregious as they do not stem from any wrongdoing by South African farmers. Rather, these countries have cited the need to protect their own local production even as they continue to export their produce to South Africa.”
Comments
Namibian Sun
No comments have been left on this article