The Minister of Trade and Industry Calle Schlettwein has set the record straight after international media reports claimed that Namibia refused to sign the Southern Africa Development Community (SADC) Protocol on Trade in Services. According to international media reports, South Africa and Namibia left SADC Chairperson Robert Mugabe ‘red-faced’ when they declined to sign the protocol at the close of the SADC Heads of State and Government Summit in Victoria Falls this week.

During the Summit, Mugabe pleaded for support to allow him to steer the agenda of the regional group, reports said.

The veteran Zimbabwean leader appealed to South Africa to cooperate with the region and allow other SADC states the chance to sell their products.

Mugabe hit out at the Zuma administration for being “selfish” by refusing to sign the protocol.

South Africa, which was highly industrialised, should cooperate with SADC and “not just regard the whole continent as an open market for products from South Africa,” he said, adding that the aim was to create a reciprocal relationship where countries sold to each other instead of just receiving products from one source.

Reports also sensationalised the issue, claiming that the master of ceremonies at the closing ceremony indicated that the two countries would sign the protocol, which turned out not to be the case.

President Jacob Zuma of South Africa and Namibian President Hifikepunye Pohamba decided not to sign after consulting with their ministers of trade.

Speaking on Thursday this week, Schlettwein noted that Namibia had actually given notice that it would not sign the protocol.

He emphasised that the country would only do so once it has concluded its own internal processes relating to regulated industries.

“I reminded [the president] that we are still busy with internal processes for the signing of free trade in services,” Schlettwein said.

“The difficulty is that all the services covered to date by the protocol are regulated services. There are complex issues we need to conclude and annexure. We will consider signing when this process is complete,” he said.

He added that, contrary to what the international media had portrayed, the decision had not caused an uproar and Namibia had not blatantly refused to sign the agreement.

Reports stated that the two countries had resisted pressure from regional heads during the deliberations.

However, Schlettwein said Namibia had decided on its position beforehand, and there would be no impact as the protocol and its annexures (some of which were still under negotiation) had not yet been enforced.

While the Heads of State signed the SADC Protocol on Trade in Services in August 2012, Namibia and South Africa requested more time to consider.

According to the SADC website, the protocol sets out general obligations for all State Parties with regard to the treatment of services and service suppliers from other State Parties.

It does not contain liberalisation obligations, but provides for a mandate to negotiate removal of barriers to the free movement of services progressively.

SADC launched negotiations on the liberalisation of six priority sectors (communication services, construction services, energy-related services, financial services, tourism services, and transport services) in April 2012.

Member countries expected these negotiations to result in market access commitments that would provide a predictable legal environment for trade and investment in the sector within the region, according to the regional body.

However, Schlettwein emphasised that people should not confuse the delay in the signing of this protocol with the SADC Free Trade Area, with which Namibia remained fully compliant and a strong proponent of.

The regional grouping achieved the SADC Free Trade Area in August 2008, when a phased program of tariff reductions that had commenced in 2001 resulted in the attainment of minimum conditions for the Free Trade Area.

The meant that 85 percent of intra-regional trade amongst the partner states attained zero duty.

While they met the minimum conditions, member countries only attained maximum tariff liberalisation by January 2012, when they completed the tariff phase down process for sensitive products.