SA union signs trade agreement with Mercosur
SABC News
SA union signs trade agreement with Mercosur
April 12, 2005
Countries making up the South African Customs (SACU) Union have signed a preferential trade agreement with Mercosur, South America’s trading bloc. However, trade negotiations with the US have run into problems.
Meanwhile, Mandisi Mpahlwa, the trade and industry minister, has called on companies to become more competitive. The clothing industry has felt the harsh blow of global trade. It is battling to compete with cheap Chinese imports and has had to retrench thousands of workers. Now the government is looking at possible remedies to limit clothing that is illegally dumped on South Africa. It has ruled out blanket subsidies, but it may help in other ways.
The Mercosur agreement with South America is small for now. About 1 000 products have been included in a special trade package. SACU is hoping the US will back down on its hard-line approach to technical co-operation and other aspects. This year is a busy year for trade deals. Formal trade negotiations with China and India will be launched later this year.
