JWANENG - Botswanas beef exports will continue to enter the European market beyond the December 31 lapse of the current trade arrangement following an interim agreement between some Southern African countries and the European economic bloc.
Trade and industry minister, Mr Neo Moroka said at the Southern District Beef Farmers Association (SDBFA) field day held near Jwaneng over the weekend that following the protracted negotiations between SADC and the EU, the two parties have agreed that beef exports from the Southern African countries will have unlimited access to the EU market while a standing trade negotiation between the two economic blocs is negotiated and finalised.
As per the new arrangement, Mr Moroka said, Botswana, Swaziland and Lesotho who are signatories of the new interim economic partnership agreement will export duty free to the EU market and without limitations on exports.
South Africa and Namibia are also expected to endorse the new trade deal in the coming week.
Economic Partnership Agreements (EPAs) between the two economic blocs that are aimed at opening a reciprocal trade between the two blocs in line with the World Trade Organisations set of international trade rules.
Therefore, the new interim agreement will provide Southern African countries with a lease of life while the negotiations continue.
The current trade regime of the Cotonou Partnership Agreement between EU and African Caribbean and Pacific countries was set to expire on December 31st as the waiver which extended preferences to the ACP countries was WTO incompatible according to a statement from Trade and Industry Ministry.
Mr Moroka who is the Chief Coordinator of the SADC EPA Group called on Botswana beef farmers to take advantage of the new arrangement and exploit it to the maximum, adding that under the new trade agreement, Botswanas exports, including beef and some textile goods will now enjoy permanent duty free, quota free access to the European market.
The interim agreement also provides for support from the European Union through development assistance through capacity building in various areas impacting trade.
A statement from the trade and industry ministry says the agreement provides for the continuation of negotiations beyond December 2007, after which a comprehensive EPA will be concluded.
Farmers applauded the new trade arrangement, saying it has wiped confusion that engulfed the meat sector for the better part of this year.
SDBFA Chairman, Mr Tshepo Masire said in an interview on the sidelines of the event that beef farmers are now motivated to exploit the opportunity presented by the interim trade deal.
He challenged beef farmers in the country to increase their calving rate to ensure that cattle numbers are good enough to satisfy Botswana beef markets both at home and abroad.
This in the wake of evidence that cattle numbers in the country have dwindled drastically in recent years.
He also talked of the need by the Land Boards to ensure that determined farmers get access to land. He said SDBFA is determined to advocate for more land for fulltime farmers.
The chief executive officer (CEO) for Botswana Cattle Producers Association, Mr Dikgang Makgalemele is also pleased with the new interim trade deal saying is a positive development for beef farmers particularly in the wake of uncertainty of the beef market that emerged after it was realized that the new trade deal will not be concluded before the set timetable.
He said the lucrative EU beef market has been enhanced by the fact that the new arrangement is both duty and quota free.
He said this makes easier for Botswana to woo Foreign Direct Investment (FDI) in the sector.
He said his organization is determined to build capacity in the farming sector adding that farmers must present agriculture as a business model across sections.
He said youth especially those with a background in agriculture should cease being liabilities to the economy and fully engage themselves in the agro industry.
Mr Makgalemele wants the weaner production to be scaled up and appealed to the government to come up with better financial packages to farmers.
Source: BOPA
