Businesses ill-informed about EU trade prospects � envoy

Isaac Pinielo | Tuesday April 12, 2016 11:54

He said he was surprised and disappointed when he arrived in Botswana 18 months ago to discover that there was lack of interest and lack of awareness about the EU.

“When I came here to talk about trade and interact with the trading community and administration, I was shocked. What we heard was about the wonderful opportunities with China and the US,” he said. Taylor indicated that he arrived in Botswana at the right time to talk about the basis for better trade to the EU in Botswana.

“I joined the EU office here just as the EU negotiators and the negotiators of the SADC countries including Botswana concluded negotiations on a whole new trade agreement,” he said.

He said the trade agreement, known as the Economic Partnership Agreement (EPA), will hopefully be signed in a few months, adding that when it is in force it will open a whole new relationship between the EU and the SADC region.

According to Taylor, the EU is the world’s most lucrative market, with at least a quarter of the world’s gross domestic product (GDP).

He said the EU is Africa’s biggest partner in so many ways, noting that a lot of the countries in this region speak English and that English is a European language, which is also the language of trade. “That gives you an advantage over many other countries in the world. So even cultural things like that are benefits for your manufacturers and businessmen who want to trade with the rest of the world,” he said.

He said the EU as the best trading partner can help local businesses develop. With 28 member countries in the EU, Taylor said they can defend those countries as one single market.

“Some people might dispute that, but in terms of the market and the customs union that surrounds that market this is a very well established market,” he said. He also said companies based in the EU invest more in Africa than in any other part of the world, yet it is surprising that the EU does not jump up on people’s radar as quickly as it should.  “In terms of goods, I mean the physical products, that are being traded around the world, we are not the number one. We export less than China and we import less than the Americans and when you have the two together, exports and imports, we are up at the top,” said Taylor.

He said trade is not just about shipping products around the world, adding that there is also the trade in services like banking. He said the EU is the number one exporter and importer of services.  “When you come to Africa you see British banks here like Barclays and when you go to London you will see all sorts of African banks. So the trade in services is increasingly important for economies like the European union and that becomes more and more relevant,” he said.

Taylor further stated that the future of Botswana lies in services and that the EPA will touch on services.  He said the EU has customs borders between its member states so when you export a product from here to the EU it goes in anywhere it can go.  He emphasised that the EU is more integrated and has more customs between its member states, adding that when they export their product from here to the EU it can travel anywhere within these 28 countries.

He further stated that Norway and Switzerland have free trade agreements with all of the countries surrounding the EU.

Botswana exports averaged P4.7 billion from 2005 to 2016, exporting mostly diamonds, copper and nickel, beef and textiles.

According to Statistics Botswana, the United Kingdom, South Africa, Israel and Belgium are Botswana’s main export partners.