The United States has reiterated its support for Black Economic Empowerment (BEE) but trade negotiators have called for transparency in the process, says government's chief trade negotiator Xavier Carim.  

 

Briefing the media today about the outcomes of the last round of Free Trade Agreement (FTA) talks between the Southern African Customs Union (SACU) and the US in Namibia, Mr Carim said US negotiators "had no problem with BEE."

 

SACU member states - Botswana, Namibia, Lesotho, Swaziland and South Africa - launched the FTA negotiations last year to see increased investment in sub-Saharan Africa by US companies. 

 

The issue about BEE came onto the fore after some US companies doubted whether the policy would not have an effect on their investments in South Africa. But according to its strategy, BEE will not affect any share-holding structures of any foreign company.

 

South Africa launched the strategy last year, to accelerate economic empowerment among the majority of black South Africans. "The US supports BEE and understands it as you know they also have a long history of affirmative action. But all they said was that empowerment needs to be transparent but they have no problem with BEE," said Mr Carim.

 

Mr Carim said US negotiators were in agreement with the way BEE was implemented but warned against any double standards applied to local companies to the detriment of foreign companies. "In principle they agreed BEE would not hamper negotiations, said the Chief Director for Multilateral Trade Negotiations. Mr Carim said the Namibia meeting discussed issues such as trade remedies, protection of traditional knowledge, tariffs, market access and agricultural subsidies for US farmers.

 

He said SACU has submitted "text" for their proposals that formed the basis for negotiations in different areas, and there were similarities on certain areas and differences in some. Mr Carim, however, allayed fears that the FTA due to be completed by end of this year, would be put "on hold" by the new US administration if President George W Bush lost the November presidential elections. "Unlike other FTAs with other countries, the FTA with SACU is extremely important to the US. I'm confident that the FTA will go through even if there is change in US administration after the US elections.  It would be extremely difficult, politically, to try to stop FTA with SACU," said Mr Carim.

 

Issued by: GCIS (Government Communication and Information System)- BuaNews