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Draft Protocol Relating to the Unique Situation of Botswana, Lesotho and Swaziland

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ECA/"}.rtJLPOC/ Lusaka/nA/V

/7

11 Sep-':;ember 1979

Original: ENG LISH

ECONOMIC C '!IIII SSIOliI FOR AFRICA

Fifth Meet.i.ng of the Intergovernmental Negotiat g Team on the Treaty for the Establi en t of a Preferenti~l Trade Area for Eas t e r n and Southern African states

Addis Ababa, Ethiopia, 8-19 October 1979

DRAFr PROTOCOL REIJ~TnTG TO THE IDIIQUE SITUATIOl'T OF BOTSlIAL"'iA, LESOTHO AND Si-"J'AZILAlI1D

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:CCA/MULPOC/ Lusalca/PfA/V

/1

Tm::: HIGH cOnTRACTING PARTIES, ,.

AHARE Botswana, unique nat options fo DETE by Lncr-eas of their

of the critical socia-economic conditions prevailing in the Republic of he Kingdom of Iesotho and the Kingdom.at: S\-1D.ziland resulting from the

e of ~heir excessive dependence

on '

'So"uth Africa and their limited independent economic development; ,

!NED to reduce the dependence of the three countries on South Africa ng their productive capacities and generally transforming the structure s con omi .es,;.

coNse US of the fact that the Republic of Botawana, thEl Kingdom of LesOtho

and the Ki gdom of Swaziland would be in a better position:to'face the challenge 0

dependence t~oughclosereconomic co-operation with the other membor states of the Preferenti 1 Trade Area for Em::t0rn ~n(~ Southern Afric;). in thespiri t of ee If-he lp and

self-reliance; . .

RECA

LING

the provlslons of paragraph •••• of Article •••• of the Treaty for the establishment of the'Preferential'Tr ad e l~ea for Eastern and Southern African states which stipulai;~s that a special Protocol on the unique situation of Botsw lesotho ani Swaziland shall be prepared and annexed to the'said Treaty.

REHER"! AGREE as follows:

.·ARTI CLE·l -.. : . . .Interpretation

In ttls Protocol:

"BLS ta t e s " means the Republic of Bots,\-lana, the Kingdom of lesotho and the Kingdom 01 Swaziland;

IICo

Treaty;

nrliem the Prefe

"Pre Southern

cil" me an s the Councilof.l~I?-nisters established by Article ••• of the

....

r state'or Member- states" means a member state or member states of ntial Trade Area;

re n t i a l Trade Area" means the Pr-ef'er'entLal Trade Area for Eastern and ri c an states;

"Sou h Africall. means the Republic of South !~rica;

"Sou signed be

1919;

African Cusboms.pnion Agreement" 'me an s '~he Customs Union Agreement ee n the Governments of the BLS States and South Africa in December

"Thi country" means·a courrtry or State which is not a member of the

Preferent~ 1 .Tr ade Area;

"Tre-'tyl' means the Treaty for the e st.ab li ehment of the Preferential Trade Area.

(3)

:":'Ci-~/KULPOC/Lu;.;ak2,/ P'J-'A/·1!/ 7

Page 2

,

.

.ji d ARTICLE 2

Ob,je'ctives

.,

I

1. It shall be the aim of this Protocol to further the broad objectives fo~ the Preferential Trade ,Area, -a s provided for in Article ••••• of the Treaty, and to ensure full-arid effective 'par t i ci pa t i on of BLS states in the Preferential Trade Area. It shall more particularly aim at:

(~)

. .

~

promoting in each BLSSta:te a sustained expansion of ecqnomic activity, grow~h__of ernpl.oymerrt ,'i ncr e a sed producitvity and rati'onal use 'of

're ~ource s ;'.

."~

ensuring economic disengagement of the BLS states from, or reduction'_ of,their excessive dependence on ,South ll.fr i ca wtthout dislocation , f ' C - or fUndamental disturbances to the,economies o£ these countries;

contributing to the harmonious and

co-ordin~t~d

socia-economic development'of all the members states including the BLS states and ; rapid expansion of intra-area trade and to progressive removal of barriers to it.

A.l1TICLC 3

Scope of exceptions

,'..}

1. Hi thout derogating from the genez-a.Hty of. the., provisions of the Treaty the provisions of this Protocol shall apply for purposes of establishing within the framework of the Preferential Trade Area special arrangements in regard,to the participation ofBLS states in the Preferential Tr&l~ Area.

2. Pursuant to the provisions of paragraph 1 of this Article member State_s agree that by r.e.a-son -of,their curr.enf membership :of the South African Customs Union Agreement, the BLS States shall maintainfdr

a

transitional period ,the duration of which shall be determined by the Council, tariff and non-tariff

preferences accorded to Sout h 4frica ,under the sai~ South African Customs Union

I~greement, provided that: - , , , : , ;

the goods .Lmpor-ted il?-~o the BLS, States and benefiting from such preferences when re-exported to the o~her member States shall be treated as goods originating from a third country; except in cases

whe~ ~he Council directs, otherwise;

I

during the ,transitional period, the BLS states embark on gradual phasing out of such preferential 't r e at ment 'pr ef er ab l y beg~nning

tvith the goods included in the common list of commodities to "

traded Within the framework of the Preferential Trade Area;

at the end of the transitional 'per i od the Council, on the

recommendation of the Committee on BlS St a t e s established under Article 6 of this Proto90l, shall determine the extent to which the clerogations accorded the BLS States shall be maintained, altered or terminated;

(4)

f

ECA/MULPOC/Lusaka/PTA/V/7 Page 3 3. Not hi ng contained in this Protocol shall affect any decisions ta~en or acts done unde r the Southern' African customs Union Agreement immediately before the comin . :frrtio force of this Protocol or the continued application and developmen of that ee ment ; provided that such application or development does not conflic with the . ligations assumed under the Treaty by member Stateso

ARTICLE

4

-':".-._-... .-._.,_.

--

.--

1. Th

economic from exce

2. Me

the objec menting t

!frining an

3 0 Nemb

more part of the Tr involving

4. The

establish other mem

fur1;heran

BLS Sta'l;es shall undertake 2.11 measures, including those of a structural, technical nature, that Hill make possible the progressive disengagem nt

ive socia-economic dependence on South Africa;

er states shall use their best endeavours to help the BLS states achieve

·ve s set out in paragraph I of this Article by supporting and/or supple- efforts made by the BLS states in such fields as Agriculture, Industry,

Training of Personne1.

I

States agree that the financial institutions, more psnti lub,l!

u.,-

cular ~ the investments institutions, established under Article 0 0 0 . 0 ty shall give preferential treatment to programmes and projects BLS states.

ounci l may on the recommendation of·the Committee on the BLS states under Article 6 of this Protocol make proposals to the BLS and r states concerning the measures and projects to be undertaken in

of the provisions of this Protocol.

ARTICLE 5

.Obligations of BLS states 1. Th BLS states undertake to:

(~ pursue socio-economic policies that will be conducive to the fulfilment of,the ob'je ctLves of' this Protocol and facilitate the implementation of the relevant provisions of the Treaty and related Protocols;

(~ set up their own national customs administrations, procedures and documentation;

(~ establish any other major or basic instruments necessary for the control and guidance of the economyo

(5)

ECA/llffiLPOC/Lusa1ca/?rA/V/7 Page 4

2. The Kingdoms .of lesotho and SvTaziland undertake to establish their own national independent monetary financial and fiscal (including currency)

systems.

ARTIClE 6

Institutional arrangements

I. For the effective implementation of the provisions of this Protocol, member states agree to establish a Committee on the BLS states, whose composition shall be determined by the Council.

2 . " 'I'he functions of the Committee on the BLS States shall be, \..i thout derogating from the general po\~rs of the Council,to review the activities assigned to the Committee, including tho-following:

(!:) all activities directed tm'lards the realization of the objectives of this Prqtocol;

(~) undertaking studies and making appro pirate recommendations on the practical aspects of mrl any other matter relating to the the implementation of this Protocol.

ARTICLE 7

Settlement of disputes

Any disputes arising out of the interpretation or application of this Protocol shall be settled in accordance with the provisions of Article •••

of the Treaty.

fu1TIClE 8 Regulations

The Council may make regulati,ons for the better carrying out of ihe

provisions of ihis Proiocol and for matters incidental to or connected therewith.

ARTICLE

9

Amendmenis

o v0 0

This Protocol may be amended from time to time in accordance with Article of the Treaty.

ARTICU; 10 Signe:ture

The Protocol shall be open for signature by all member states until •••••••0 0 . 1980 at •• 0• • • • • • and, subsequently, until ••••DO • •1980, at the "he adquart er s of the United Nations Economic Commission for Africa, Addis Ababa, Ethiopia.

(6)

ECA!MULPOC/Lusaka/PTA/V/1 Page 5

ARrrrCLL 11

Ratification

Thi Protocol shall be subject to ratification. The instruments of

ratifica .on shall be deposited l"Tith the Executive Secretary of the United Ilc.ti ons Economic Commi s s i on for A£rica.

ARTICLE 12 Accession

Thi Protocol shall remain open for accession by all member states. The instrume ts of accession shall be deposited with the EYecutive Secretary of the United Ntion s Economic Commission for fi£ r i ca .

lJ1TI Cm 13

Functions of the Depository

The Executive Secretary of the United nations Economic Commission for Afric~

shall tr smi t certified true oopies of this Protocol to all member states, and notify them of the dates of deposit of instruments of ratification and accession and shall register this Protocol with the Organization of J~rican Unity, the United :£. ti on s Organizations and such other organizations at the.Council shall detemmi

iillTICU:; 14

Entry into Forc~

(~) This Protocol shall enter into force on the thirtieth day f'oLl.ovring the date of deposit of the seventh instrument of ratification or accession.

<.~) For each State ratifying or acceding to this Protocol after

the deposit of the seventh instrument of ratification or accession, this Protocol shall enter into force on the

thirtieth day after deposit by such State of its instruments of ratification or accession.

nr

ITT.UBSS T'1HEIillOF the follhmng Plenipotentiarie s from Eastern and Southern African t~t e s have signed this Protocol:

DO .;....l at II0 0 II III 0 1:10 e0 0 0Q0 00 0 00 0 0 0 0 0 0 0 this 0 0 0 0 0 0 0 0 0 0 II 0 0 .. 0 0 0 • •a III 0 o . o . . . .

day o~ •••••••••••••••••••••••••••••• 1980 in the English and French languages, both +'ex s being equally authentic.

Angola Bo'ts.mn Comoros Djibout_

Ethiopia Konya

Lesotho l.:adagascaf'

Malawi

M:,mri tius Mozambique Seychelles

Somalia Swaziland

Tanzania (United Republd:c) Uganda

Zambia

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