Namibia has raked in U$1.059 billion from trade exports to the European Union (EU) almost twice as much as the U$643 million worth of goods imported from the EU for the year 2014/2015.

In comparison, South Africa recorded a negative trade balance with the EU of about U$5 million after exporting goods worth of U$20 million while importing goods worth about U$25 million.

Botswana on the other hand exported goods worth U$2 million while importing goods worth only about U$300 thousand over the same period.

Latest statistics dated February 2016 from the European Commission in Namibia shows that 26 percent of the U$1.059 billion came from the exportation of fish and crustaceans, molluscs and other aquatic products.

Zinc represents 19 percent, copper 18 percent while inorganic chemicals represent 9 percent with ‘others’ make up the other 27 percent.

Such exports has made Namibia to become EU’s second largest trading partner after South Africa with approximately 30 percent of all Namibian exports going to the EU market.

This trade income is guaranteed to decrease however if Namibia does not sign the Economic Partnership Agreement (EPA) with the EU by October 2016 as the current application of the Market Access  Regulation will lapse on 1 October 2016.

“The current terms of trade with the EU are very much in Namibia’s favour. Namibia’s raw materials and goods enjoying duty and quota-free access to the EU market under what is referred to as the Market Access Regulation.

“While on the other hand, EU imports to Namibia are subjected to tariffs and customs duties. In order for Namibia to continue to enjoy duty and quota-free access to the EU market, Namibia needs to sign an Economic Partnership Agreement with the EU,” said EU Ambassador to Namibia Jana Hybášková.

Namibia has negotiated the EPA as part of a regional Southern Africa Development Community group that included Botswana, Lesotho, Swaziland, Mozambique, Angola and South Africa. The negotiation process started in 2007 and ended on 15 July 2014 which Namibia now needs to sign, ratify and implement the EPA.

Hybášková said the EPA is in compliant with World Trade Organisation rules and its asymmetric  nature  benefitting Namibia more than it benefits the EU – is intentional on the latter’s part in order to help the gradual integration of Namibia into the world trade.

“In this manner, EU trade can act as an instrument for the development of Namibia, creating jobs and fostering growth in the long-term,” she said.

The EU has also set its sights on reinforcing economic ties with Namibia saying that the emerging investment opportunities both in Namibia and Europe, access to new markets and the exchange of skilled labour will make the partnership more equal.

The EU demonstrated the importance of the reinforcement of relations with Namibia by availing late last year over N$900 million towards the new National Indicative Programme which will be focused on education and rural development as well as continued support to projects and programmes in the areas of good governance and civil society in Namibia.

Hybášková said the long-standing partnership with Namibia will continue in terms of development cooperation and that their focus up until 2020 will be on education and skills development as well as agriculture.

“By supporting activities in these sectors we hope to support increased employment opportunities and incomes in a sustainable manner in order to help reduce poverty. Other areas of support include strengthening the capacity of civil society (CSOs) to better undertake their vital role as development actors.    

“Furthermore, our aim will be to support sustainable growth and stability in the country. Peace and security, the democratic process, respect of human rights and the rule of law should never be taken for granted. They should be safeguarded and further embodied into the social fabric of Namibia, as all other development efforts depend on these pillars,” she said.    

With regard to trade, Hybášková  says  the relations between Namibia and the EU are on a solid footing following the successful  conclusion of the Economic Partnership Agreement negotiations and that they now look forward to the signing and ratification of the EPA Agreement in 2016.

“Also in 2015 the EU launched a public consultation on the future of the EU’s partnership with African, Caribbean and Pacific countries as the Cotonou Agreement will expire in 2020. The relationship between the EU and ACP countries has moved beyond simply development cooperation and trade in the last twenty years.”

In addition she said a number of pressing challenges have come to light – such as the fight against terrorism, sustainable and inclusive growth, migration and climate change. There is need for debate and consultation in order that they arrive at a new formulation of the EU and ACP partnership that better reflects these common challenges and promotes the shared interests.