Empowerment policies may give rise to discrimination when local suppliers are treated more favourably, or perhaps even limit the market access opportunities for foreign suppliers, when, for example, the equity share of the foreign partner is limited. However, the flexible rules incorporated in services agreements provide countries with the ability to schedule the empowerment policies in order to legally maintain restrictions against foreign services and investors. SADC member states are in the early stages of negotiating on trade in services and certain member states are applying empowerment policies that are in danger of contravening the rules of the anticipated services agreement. It is necessary that these measures are clearly identified and accurately recorded in the schedules of the respective countries. The paper considers the effect of the earlier GATS commitments on scheduling empowerment restrictions in the regional context and the challenges being posed by the SADC standstill clause and the requirements of GATS Article V. The paper also proposes some alternatives to safeguard local industries and concludes by evaluating the possible exceptions provided by the services agreements.

• Download:  S11TB10 SADC Empowerment policies Kruger 20111123fin.pdf [237kb]

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