SACU - MERCOSUR Southern Common Market of the South Agreement
Namibia as part of SACU joined the SACU-MERCOSUR PTA on 16 December 2004. The MERCOSUR member countries include: Argentina, Brazil, Paraguay, Uruguay, Venezuela (suspended since 2016). Chile, Colombia, Ecuador, Guyana, Peru, Suriname and Bolivia are associates members of MERCOSUR. This agreement enhances trade and economic integration between Southern Africa and South America.
Benefits for Namibia
- Market Access: Preferential access to MERCOSUR markets.
- Diversified Trade Partners: Expands trade relationships.
- Investment Opportunities: Attracts foreign investment.
- Trade Facilitation: Simplifies customs procedures.
- Economic Cooperation: Enhances economic ties.
- Resource and Technology Access: Eases transfer of technology and resources.
- Regional Value Chains: Supports regional supply chains.
To claim preferences under the agreement the business operator (exporter) should meet one of the Rules of Origin conditions as below
- Wholly Obtained Goods: Products from within SACU or MERCOSUR.
- Substantial Transformation: Significant processing or tariff change.
- Cumulation: Use of materials from member states.
- Administrative Requirements: Specific documentation needed.
- Transparency and Cooperation: Customs cooperation.
- Tolerances and Exceptions: Limited use of non-originating materials.
Economic Impact
- Regional Integration: Promotes economic cooperation.
- Economic Development: Reduces tariffs and business costs.
- Market Access: Population: 358 million people.
- Geographical Coverage: Southern Africa to South America.
- GDP: SACU: ~$750 billion (2022); MERCOSUR: ~$4.6 trillion (2022).