The provisions of this Chapter shall apply to trade in goods between the Parties (1).

The tariff preferences provided for in this Agreement shall be applied to goods qualifying under the rules of origin laid down in Protocol 1.

1. A customs duty shall include any duty or charge of any kind imposed on or in connection with the importation of goods, including any form of surtax or surcharge, but shall not include any:

(a) internal taxes or other internal charges imposed in accordance with Article 40; or

(b) duties imposed in accordance with Chapter II of PART II; or

(c) fees or other charges imposed in accordance with Article 27.

2. For all products subject to liberalisation, no new customs duties shall be introduced, nor shall those already applied be increased in trade between the Parties as from the entry into force of this Agreement, with the exception of:

(a) paragraph 7;

(b) paragraph 9;

(c) paragraph 7 of Section A of PART 1 of ANNEX I; and

(d) paragraph 8 of Section A of PART 1 of ANNEX II.

3. Except as otherwise provided for in this Agreement, for each product the basic duty to which the tariff reduction commitments set out in this Agreement apply, shall be the Most-Favoured-Nation (‘MFN’) rate of duty applied at the date of entry into force of this Agreement.

4. In cases where the process of tariff reduction does not start at the entry into force of this Agreement, the basic duty to which the tariff reduction commitments set out in this Agreement apply shall be either the rate of duty referred to in paragraph 3, or the MFN rate of duty applied on the starting date of the relevant tariff reduction schedule, whichever is the lower.

5. At the date of entry into force of this Agreement, the EU shall notify its list of basic duties, to which the tariff reduction commitments set out in this Agreement apply, to the SACU Secretariat and the Ministry of Industry and Trade of Mozambique. At the date of entry into force of this Agreement, SACU and Mozambique shall notify their respective lists of basic duties, to which the tariff reduction commitments set out in this Agreement apply, to the European Commission. After notification, as provided for in this paragraph, each party shall make public each of these lists according to their own internal procedures and within one month after the exchange of the notifications. The Trade and Development Committee shall, at its first meeting after notification and publication, adopt the lists of basic duties communicated by the Parties or SACU, as the case may be. The duties listed in the Schedule of the EU included in PART II of ANNEX I and in the Schedule of Mozambique included in PART II of ANNEX III serve an indicative purpose and do not constitute basic duties within the meaning of paragraph 3.

6. The reduced duties calculated in accordance with the tariff reduction schedules contained in this Agreement shall be applied rounded to the first decimal place or, in case of specific duties, to the second decimal place.

7. For those tariff preferences that are expressed as a percentage of the applied MFN rate of duty, if at any moment after the date of entry into force of this Agreement, a Party increases or reduces its applied MFN rate of duty, the rate of duty applied in relation to the other Party shall simultaneously be increased or reduced as long as the margin of preference in accordance with the Party's Schedule is maintained.

8. For those tariff preferences that are wholly expressed as a fixed rate of duty in this Agreement, if at any moment after the date of entry into force of this Agreement, a Party reduces its applied MFN rate of duty, that reduced rate of duty shall apply in relation to the other Party if and for as long as it is lower than the customs duty fixed rate calculated in accordance with that Party's Schedule.

9. The provisions of this Article shall not apply to those products excluded from tariff reduction commitments that are denoted by staging category ‘X’ in each Party's Schedule listed in ANNEX I, II and III respectively.

1. Products originating in Botswana, Lesotho, Mozambique, Namibia and Swaziland shall be imported into the EU in accordance with the duty-free quota-free treatment set out for those countries in ANNEX I.

2. Products originating in South Africa shall be imported into the EU in accordance with the treatment set out for South Africa in ANNEX I.

1. Products originating in the EU shall be imported into SACU in accordance with the treatment set out in ANNEX II.

2. Products originating in the EU shall be imported into Mozambique in accordance with the treatment set out in ANNEX III.

1. No new customs duties or taxes imposed on or in connection with the exportation of goods shall be introduced, nor shall those already applied be increased, in the trade between the Parties from the date of entry into force of this Agreement, except as otherwise provided for in this Article.

2. In exceptional circumstances, where justified for specific revenue needs, or where necessary for the protection of infant industries or the environment, or where essential for the prevention or relief of critical general or local shortages of foodstuffs or other products essential to ensure food security, Botswana, Lesotho, Namibia, Mozambique and Swaziland may introduce, after consultation with the EU, temporary customs duties or taxes imposed on or in connection with the exportation of goods, on a limited number of additional products.

3. In exceptional circumstances, where the SADC EPA States can justify industrial development needs, those SADC EPA States may introduce temporary customs duties or taxes imposed on or in connection with the exportation of a limited number of products to the EU. A SADC EPA State wishing to introduce such temporary custom duties or taxes shall notify the EU of such a duty, providing all relevant information and motivation and shall consult with the EU if the EU so requests. Such temporary duties or taxes shall only be applied on a total number of eight (8) products, as defined at an HS6 tariff line level, or in case of ‘ores and concentrates’ at an HS4 tariff line level, per SADC EPA State at any given time and shall not be applied for a period exceeding twelve (12) years in total.  This period can be extended or reinstated for the same product in agreement with the EU.

4. The following conditions shall apply to paragraph 3 but not to paragraph 2:

(a) the SADC EPA State shall for the first six (6) years from the date of introduction of an export tax or duty exempt from the application of that tax or duty exports to the EU of an annual amount equal to the average volume of exports to the EU of such product over the three (3) years preceding the date of introduction of the tax or duty. The SADC EPA State shall from the seventh year following the introduction of the said tax or duty until its expiry pursuant to paragraph 3, exempt from the application of the duty or tax, exports to the EU on an annual amount equal to 50 per cent of the average volume of exports to the EU of such product over the three (3) years preceding the date of introduction of the tax or duty; and

(b) export duties or taxes shall not exceed 10 per cent of the ad valorem export value of the product.

5. Any more favourable treatment consisting in or in relation to customs duties or taxes applied by the SADC EPA States to exports of any product destined for a major trading economy shall, from the entry into force of this Agreement, be accorded to the like product destined for the territory of the EU. For the purpose of this Article, ‘major trading economy’ is defined under Article 28(6).

6. Whenever a SADC EPA State has reasonable doubts as to whether a consignment of a product to which export duties shall not apply by virtue of paragraphs 1, 3 and 4 has been re-exported from, or re-routed without reaching, the EU to one or more third countries, that SADC EPA State may raise this matter at the Trade and Development Committee.

7. The Trade and Development Committee shall examine the matter within ninety (90) days. After the examination, if the Trade and Development Committee takes no decision, the customs authorities of the SADC EPA State concerned may request the Trade and Development Committee to decide that the importer of the product concerned into the EU make a declaration that the imported product will be processed in the EU and will not be re-exported to third countries.

8. If, after a system using such declarations has been in operation for at least ninety (90) days, a SADC EPA State continues to have reasonable doubts as to whether a consignment of a product to which export duties shall not apply by virtue of paragraphs 1, 3 and 4 is re-exported from, or re-routed without reaching, the EU to one or more third countries, that SADC EPA State may inform the Trade and Development Committee of the grounds of its concerns.

9. Having followed these steps, should no solution be found within thirty (30) days, the SADC EPA State concerned may impose effective measures to prevent such circumvention provided that these measures are the least trade-restrictive and exclude operators who have proven not to be involved in the process of circumvention. The retroactive reinstatement of export duties on the consignment that has been re-exported from the EU to one or more third countries may offer an alternate option.

10. The Parties agree to review the provisions of this Article in the Joint SADC EPA States — EU Council (‘Joint Council’) no later than three (3) years after the entry into force of this Agreement, taking fully into account their impact on development and diversification of the SADC EPA States' economies.

1. All fees and charges of whatever character, other than import and export duties and other than taxes within the scope of Article 40, imposed on or in connection with importation or exportation, shall not exceed the cost of services rendered and shall not represent an indirect protection to domestic products or a taxation of imports or exports for fiscal purposes.

2. Without prejudice to Article 30, no Party shall impose substantial penalties for minor breaches of customs regulations or procedural requirements. In particular, no penalty in respect of any omission or mistake in customs documentation which is easily rectifiable and obviously made without fraudulent intent or gross negligence shall be greater than necessary to serve merely as a warning.

3. The provisions of this Article shall extend to fees and charges, imposed by governmental authorities in connection with importation and exportation, including those relating to:

(a) consular transactions, such as consular invoices and certificates;

(b) quantitative restrictions;

(c) licensing;

(d) exchange control;

(e) statistical services;

(f) documents, documentation and certification;

(g) analysis and inspection; and

(h) quarantine, sanitation and fumigation.

4. Fees and charges shall not be imposed for consular services.

1. With respect to customs duties as defined in Articles 23(1) and 26(1) and fees and other charges as defined in Article 27, the EU shall extend to the SADC EPA States any more favourable treatment applicable as a result of the EU becoming party to a preferential trade agreement with third parties after the signature of this Agreement.

2. With respect to customs duties as defined in Articles 23(1) and 26(1) and fees and other charges as defined in Article 27, the SADC EPA States shall, upon request of the EU, extend to the EU any more favourable treatment applicable as a result of the SADC EPA States, individually or collectively as the case may be, becoming party to a preferential trade agreement with any major trading economy after the signature of this Agreement.

3. By derogation from paragraph 2, the SADC EPA States shall not extend to the EU the treatment applicable as a result of the SADC EPA States, individually or collectively as the case may be, becoming party to a preferential trade agreement with countries of the African, Caribbean and Pacific group or other African countries or regions.

4. By derogation from paragraph 2, where a SADC EPA State demonstrates that as a result of a preferential trade agreement it has entered into with a major trading economy, it receives substantially more favourable treatment overall than that offered by the EU, the Parties shall consult and jointly decide how best to implement the provisions of paragraph 2.

5. The provisions of this Article shall not be construed so as to oblige the EU or any SADC EPA State to extend reciprocally any preferential treatment applicable as a result of the EU or any SADC EPA State being party to a preferential trade agreement with third parties on the date of signature of this Agreement.

6. For the purposes of this Article, ‘major trading economy’ means any developed country, or any country accounting for a share of world merchandise exports above 1 per cent in the year before the entry into force of the agreement referred to in paragraph 2, or any group of countries acting individually, collectively or through an economic integration agreement accounting collectively for a share of world merchandise exports above 1,5 per cent in the year before the entry into force of the agreement referred to in paragraph 2.

7. By derogation from paragraph 1, where the EU becomes party to a preferential trade agreement with a third party after the signature of this Agreement and such a preferential trade agreement provides for more favourable treatment to the third party than that granted by the EU to South Africa pursuant to this Agreement, the EU and South Africa shall enter into consultations with a view to deciding whether and how to extend the more favourable treatment contained in the preferential trade agreement to South Africa. The Joint Council may adopt proposals to amend the provisions of this Agreement in accordance with Article 117.

8. By derogation from paragraph 2, where SACU or a SADC EPA LDC becomes party to a preferential trade agreement with a major trading economy and such a preferential trade agreement provides for more favourable treatment granted by SACU or the SADC EPA LDC concerned to the major trading economy than to the EU pursuant to this Agreement, SACU or the respective SADC EPA LDC and the EU shall enter into consultations with a view to deciding whether and how to extend the more favourable treatment contained in the preferential trade agreement to the EU. The Joint Council may adopt proposals to amend the provisions of this Agreement in accordance with Article 117.

1. Customs duties shall be levied only once for goods originating in the EU or in the SADC EPA States when imported into the territory of the EU or the SADC EPA States as the case may be.

2. Any duty paid upon importation in a SADC EPA State which is also a SACU Member State shall be refunded fully when the goods are re-exported from the customs territory of that SADC EPA State of first importation to a SADC EPA State which is not also a SACU Member State. Such products shall then be subject to the duty in the country of consumption. Pending agreement by the SADC EPA States on the procedures for this paragraph, the operation of this paragraph shall be in accordance with applicable customs legislation and procedures.

3. The Parties agree to cooperate with a view to facilitating the circulation of goods and simplifying customs procedures, within the SADC EPA States, in particular as provided for in Article 13(2).

1. The Parties agree that administrative cooperation is essential for the implementation and the control of the preferential treatment granted under this Chapter and underline their commitment to combat irregularities and fraud in customs and related matters.

2. The Parties also agree to cooperate in ensuring that the necessary institutional structures enable the responsible authorities to effectively respond to requests for assistance in a timely manner.

3. For the purpose of this Article, and without prejudice to Article 9 of Protocol 2, a failure to provide administrative cooperation shall mean, inter alia:

(a) repeated failure to respect the obligations to verify the originating status of the product or products concerned as provided for in Article 38 of Protocol 1;

(b) repeated refusal or undue delay in carrying out and/or communicating the results of subsequent verification of the proof of origin as provided for in Article 38 of Protocol 1;

(c) repeated refusal or undue delay in obtaining authorisation to conduct administrative cooperation missions to verify the authenticity of documents or accuracy of information relevant to the granting of the preferential treatment in question as provided for in Article 7 of Protocol 2.

4. For the purpose of this Article, a finding of irregularities or fraud may be made, inter alia, where there is a rapid increase, without legitimate explanation, in imports of goods exceeding the usual level of production and export capacity of the other Party that is linked to objective information concerning irregularities or fraud.

5. Where a Party has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud, the Party concerned may, in exceptional circumstances, temporarily suspend the relevant preferential treatment of the product or the products concerned, and of the specific origin concerned in accordance with this Article.

6. For the purposes of this Article, exceptional circumstances mean those circumstances which have or might have a significant negative effect on a Party if a relevant preferential treatment of the product or the products concerned is to be continued.

7. The application of a temporary suspension pursuant to paragraph 5 shall be subject to the following conditions:

(a) the Party which has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud shall without undue delay notify the Trade and Development Committee of its finding together with the objective information and enter into consultations within the Trade and Development Committee, on the basis of all relevant information and objective findings, including information related to capacity and/or structural constraints, with a view to reaching a solution acceptable to both Parties;

(b) where the Trade and Development Committee has examined the matter and has failed to agree on an acceptable solution within four (4) months from the receipt of the notification, the Party concerned may temporarily suspend the relevant preferential treatment of the product or products concerned, and of the specific origin concerned. A temporary suspension shall be notified to the Trade and Development Committee without undue delay. At the request of either Party, the period to agree on an acceptable solution may, where duly justified, be extended to five (5) months;

(c) temporary suspensions under this Article shall be limited to those necessary to protect the financial interests of the Party concerned. They shall not exceed a period of six (6) months, which may be renewed after the Trade and Development Committee has had the opportunity to re-examine the matter. Temporary suspensions shall be notified immediately after their adoption to the Trade and Development Committee. They shall be subject to periodic consul­tations within the Trade and Development Committee in particular with a view to their termination as soon as the conditions for their application are no longer given.

The Parties recognise each other's right to correct administrative errors during the implementation of this Agreement. Where errors are identified, either Party may request the Trade and Development Committee to examine the possibilities of adopting all appropriate measures with a view to resolving the situation.

The rights and obligations of either Party in respect of the application of anti-dumping or countervailing measures shall be governed by the relevant WTO Agreements. The provisions of this Article shall not be subject to the provisions of PART III.

1. Subject to the provisions of this Article, nothing in this Agreement shall prevent a Party from adopting measures in accordance with Article XIX of the GATT 1994, the WTO Agreement on Safeguards, Article 5 of the WTO Agreement on Agriculture annexed to the Marrakesh Agreement Establishing the World Trade Organisation (‘WTO Agreement’) and any other relevant WTO Agreements.

2. Notwithstanding paragraph 1, the EU shall, in the light of the overall development objectives of this Agreement and the small size of the economies of the SADC EPA States, exclude imports from any SADC EPA State from any measures taken pursuant to Article XIX of the GATT 1994, the WTO Agreement on Safeguards and Article 5 of the WTO Agreement on Agriculture.

3. The provisions of paragraph 2 shall apply for a period of five (5) years, beginning from the date of entry into force of this Agreement. Not later than one hundred and twenty (120) days before the end of this period, the Joint Council shall review the operation of paragraph 2 in the light of the development needs of the SADC EPA States, with a view to determining their possible extension for a further period.

4. The provisions of paragraph 1 shall not be subject to the provisions of Part III.

1. Notwithstanding Article 33, after having examined alternative solutions, a Party or SACU, as the case may be, may apply safeguard measures of limited duration which derogate from the provisions of Articles 24 and 25, under the conditions and in accordance with the procedures laid down in this Article.

2. Safeguard measures referred to in paragraph 1 may be taken if, as a result of the obligations incurred by a Party under this Agreement, including tariff concessions, a product originating in one Party is being imported into the territory of the other Party or SACU, as the case may be, in such increased quantities and under such conditions as to cause or threaten to cause:

(a) serious injury to the domestic industry producing like or directly competitive products in the territory of the importing Party or SACU, as the case may be; or

(b) disturbances in a sector of the economy producing like or directly competitive products, particularly where these disturbances produce major social problems, or difficulties which could bring about serious deterioration in the economic situation of the importing Party or SACU, as the case may be; or

(c) disturbances in the markets of like or directly competitive agricultural products in the territory of the importing Party or SACU, as the case may be. These safeguard measures shall not exceed what is necessary to remedy or prevent the serious injury or disturbances.

3. Safeguard measures referred to in this Article shall take the form of one or more of the following:

(a) suspension of the further reduction of the rate of import duty for the product concerned, as provided for under this Agreement; or

(b) increase in the customs duty on the product concerned up to a level which does not exceed the MFN applied rate at the time of taking the measure; or

(c) introduction of tariff quotas on the product concerned.

4. Without prejudice to paragraphs 1 to 3, where any product originating in any SADC EPA State is being imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations referred to in paragraphs 2(a) to (c) to a like or directly competitive production sector of one or several of the EU's outermost regions, the EU may take surveillance or safeguard measures limited to the region or regions concerned in accordance with the procedures laid down in paragraphs 6 to 8.

5. Without prejudice to paragraphs 1 to 3, where any product originating in the EU is being imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations referred to in paragraph 2(a) to (c) to a SADC EPA State or SACU, as the case may be, the SADC EPA State concerned or SACU, as the case may be, may take surveillance or safeguard measures limited to its territory in accordance with the procedures laid down in paragraphs 6 to 8.

6. Safeguard measures referred to in this Article:

(a) shall only be maintained for such a time as may be necessary to prevent or remedy serious injury or disturbances as defined in paragraphs 2, 4 and 5;

(b) shall not be applied for a period exceeding two (2) years. Where the circumstances warranting imposition of safeguard measures continue to exist, such measures may be extended for a further period of no more than two (2) years. Where a SADC EPA State or SACU, as the case may be, apply a safeguard measure, or where the EU apply a measure limited to the territory of one or more of its outermost regions, they may however apply that measure for a period not exceeding four (4) years and, where the circumstances warranting imposition of safeguard measures continue to exist, extend it for a further period of four (4) years;

(c) that exceed one (1) year shall contain clear elements progressively leading to their elimination at the end of the set period, at the latest; and

(d) shall not be applied to the import of a product that has previously been subject to such a measure, within a period of at least one (1) year from the expiry of the measure.

7. For the implementation of paragraphs 1 to 6, the following provisions shall apply:

(a) where a Party or SACU, as the case may be, takes the view that one of the situations referred to in paragraphs 2(a) to (c), 4 and/or 5 exists, it shall immediately refer the matter to the Trade and Development Committee for examination;

(b) the Trade and Development Committee may make any recommendation needed to remedy the circumstances which have arisen. If no recommendation has been made by the Trade and Development Committee aimed at remedying the circumstances, or no other satisfactory solution has been reached within thirty (30) days of the matter being referred to the Trade and Development Committee, the importing party may adopt the appropriate measures to remedy the circumstances in accordance with this Article;

(c) before taking any measure provided for in this Article or, in the cases to which paragraph 8 applies, the Party or SACU, as the case may be, shall, as soon as possible, supply the Trade and Development Committee with all relevant information required for a thorough examination of the situation, with a view to seeking a solution acceptable to the parties concerned;

(d) in the selection of safeguard measures pursuant to this Article, priority must be given to those which least disturb the operation of this Agreement. If the MFN applied rate in effect the day immediately preceding the day of entry into force of this Agreement is lower than the MFN applied rate at the time of taking the measure, measures applied in accordance with the provisions of paragraph 3(b) may exceed the MFN rate in effect the day immediately preceding the day of entry into force of this Agreement. In such a case, the Party or SACU, as the case may be, shall supply, in accordance with the provisions of paragraph (c), the Trade and Development Committee with the relevant information indicating that an increase of the duty up to the level of MFN applied at the time of entry into force is not sufficient and that a measure exceeding this duty is necessary to remedy or prevent the serious injury or disturbances pursuant to paragraph 2;

(e) any safeguard measure taken pursuant to this Article shall be notified immediately to the Trade and Development Committee and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit.

8. Where delay would cause damage which would be difficult to repair, the importing Party or SACU, as the case may be, may take the measures provided for in paragraphs 3, 4, and/or 5 on a provisional basis without complying with the requirements of paragraph 7.

(a) Such action may be taken for a maximum period of one hundred and eighty (180) days where measures are taken by the EU and two hundred (200) days where measures are taken by a SADC EPA State or SACU, as the case may be, or where measures taken by the EU are limited to the territory of one or more of its outermost region(s).

(b) The duration of any such provisional measure shall be counted as a part of the initial period and any extension referred to in paragraph 6.

(c) In taking such provisional measures, the interest of all parties involved shall be taken into account.

(d) The importing Party or SACU, as the case may be, shall inform the other Party concerned and it shall immediately refer the matter to the Trade and Development Committee for examination.

9. If the importing Party or SACU, as the case may be, subjects imports of a product to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows liable to give rise to the problems referred to in this Article, it shall inform the Trade and Development Committee without delay.

10. Safeguard measures adopted under the provisions of this Article shall not be subject to WTO Dispute Settlement provisions.

1. Notwithstanding Article 34, a safeguard measure in the form of an import duty may be applied if, during any given twelve-month period, the volume of imports into SACU of an agricultural product listed in Annex IV originating in the EU exceeds the reference quantity for the product therein indicated.

2. A duty which shall not exceed 25 per cent of the current WTO bound tariff or 25 percentage points, whichever is higher, may be imposed to the agricultural products referred to in paragraph 1. Such duty shall not exceed the prevailing MFN applied rate.

3. Safeguard measures referred to in this Article shall be maintained for the remainder of the calendar year or five (5) months, whichever is the longer.

4. Safeguard measures referred to in this Article shall not be maintained or applied with respect to the same good at the same time as:

(a) a general bilateral safeguard measure in accordance with Article 34;

(b) a measure under Article XIX of the GATT 1994 and the WTO Agreement on Safeguards; or

(c) a special safeguard measure under Article 5 of the WTO Agreement on Agriculture.

5. Safeguard measures referred to in this Article shall be implemented in a transparent manner. Within ten (10) days after applying such a measure, SACU shall notify the EU in writing and shall provide relevant data concerning the measure. On request, SACU shall consult the EU regarding the application of the measure. SACU shall also notify the Trade and Development Committee within thirty (30) days after such imposition.

6. The implementation and operation of this Article may be the subject of discussion and review in the Trade and Development Committee. On request of either Party, the Trade and Development Committee may review the reference quantities and agricultural products as provided for in this Article.

7. The provisions of this Article may only be applied during the period of twelve (12) years from the date of entry into force of this Agreement.

1. The Parties acknowledge that the removal of barriers to trade between them, as envisaged in this Agreement, may pose significant challenges to the SADC EPA States' producers in the agricultural and food sectors and agree to consult with each other on these issues.

2. Notwithstanding Article 34, where essential for the prevention or relief of critical general or local shortages of foodstuffs or other products in order to ensure food security of a SADC EPA State and where this situation gives rise or is likely to give rise to major difficulties for such a SADC EPA State, that SADC EPA State may adopt safeguard measures in accordance with the procedure set out in paragraph 7(b) to (d), 8 and 9 of Article 34. The measure will be reviewed at least annually and shall be removed as soon as the circumstances leading to its adoption cease to exist.

1. The Parties acknowledge the sensitivity of the liberalised products listed in Annex V for the BLNS States.

2. Notwithstanding Article 34, in the event that one of the products listed in Annex V and originating in the EU being imported into the territory of a BLNS State in such increased quantities as to cause or threaten to cause serious injury in any BLNS State, that BLNS State may apply a transitional safeguard measure.

3. Safeguard measures referred to in paragraph 2 shall take the form of a duty on the product concerned listed in Annex V up to a level which does not exceed the MFN applied rate at the time of taking the measure or introduce a zero duty tariff rate quota (TRQ), provided that the level of the duty outside the quota does not exceed the MFN applied rate at the time of taking the measure.

4. Thirty (30) days in advance of applying the safeguard measure, the BLNS State concerned shall notify the measure to the EU in writing. After notification, the BLNS State concerned shall have sixty (60) days to provide all relevant information concerning the measure.

5. Without prejudice to paragraph 2, the BLNS State concerned and the EU shall, upon request of either Party, enter into consultations on the safeguard measure.

6. Safeguard measures referred to in this Article shall be applied for a period not exceeding four (4) years. Where the circumstances warranting imposition of the measure continue to exist, such a measure may be extended for a further period of no more than four (4) years.

7. No safeguard measure referred to in this Article may be adopted after twelve (12) years from the entry into force of this Agreement.

1. Notwithstanding Article 34, Botswana, Lesotho, Namibia, Mozambique and Swaziland may temporarily suspend further reductions of the rate of customs duty or increase the rate of customs duty up to a level which does not exceed the applied MFN duty, where a product originating in the EU, as a result of the reduction of duties, is being imported into its territory in such increased quantities and under such conditions as to threaten the establishment of an infant industry, or cause or threaten to cause disturbances to an infant industry producing like or directly competitive products.

2. Safeguard measures adopted in accordance with the conditions of paragraph 1 by a SADC EPA State which is also a SACU Member State shall take the form of the levying of additional duties exclusively by the SADC EPA State invoking this provision.

3. Safeguard measures referred to in paragraph 1 may be applied for a period of up to eight (8) years and may be further extended by a decision of the Joint Council

4. With regard to the implementation of paragraphs 1 and 2, the following provisions shall apply:

(a) where a SADC EPA State takes the view that the circumstances set out in paragraph 1 exist, it shall immediately refer the matter to the Trade and Development Committee for examination. The SADC EPA State concerned shall supply the Trade and Development Committee with all relevant information required for a thorough examination of the situation;

(b) the Trade and Development Committee may make any recommendation with a view to seeking an acceptable solution needed to remedy the circumstances which have arisen. If no recommendation has been made by the Trade and Development Committee, or no other satisfactory solution has been reached within thirty (30) days of the matter being referred to the Trade and Development Committee, the SADC EPA State concerned may adopt measures in accordance with this Article;

(c) in the application of measures pursuant to paragraph 1, priority must be given to those which least disturb the operation of this Agreement; and (d) any measure taken pursuant to this Article shall be notified immediately to the Trade and Development Committee and shall be the subject of periodic consultations within that body.

5. In critical circumstances where delay would cause damage which would be difficult to repair, the SADC EPA State concerned may take measures provided for in paragraph 1 on a provisional basis without complying with the requirements of paragraph 4. Such measure may be taken for a maximum period of two hundred (200) days. The duration of any such provisional measure shall be counted as part of the period referred to in paragraph 3. In taking such provisional measures, the interest of all parties involved shall be taken into account. The importing SADC EPA State concerned shall inform the EU, and it shall immediately refer the matter to the Trade and Development Committee for examination of such provisional measure.

6. SACU Member States shall have the right to have recourse to Article 26 of the SACU Agreement.

The Parties may apply quantitative restrictions provided such restrictions are applied in conformity with the WTO Agreement.

1. The Parties recognise that internal taxes and other internal charges, and laws, regulations and requirements affecting the internal sale, offering for sale, purchase, transportation, distribution or use of products, and internal quantitative regulations requiring the mixture, processing or use of products in specified amounts or proportions, should not be applied to imported or domestic products so as to afford protection to domestic production.

2. Imported products originating in the other Party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products. Moreover, the Parties shall not otherwise apply internal taxes or other internal charges to imported or domestic products in a manner contrary to the principles set forth in paragraph 1 (1).

3. Imported products originating in the other Party shall be accorded treatment no less favourable than that accorded to like domestic products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. The provisions of this paragraph shall not prevent the application of differential internal transportation charges which are based exclusively on the economic operation of the means of transport and not on the nationality of the product.

4. The Parties shall not establish or maintain any internal quantitative regulation relating to the mixture, processing or use of products in specified amounts or proportions which requires, directly or indirectly, that any specified amount or proportion of any product which is the subject of the regulation must be supplied from domestic sources. Moreover, Parties shall not otherwise apply internal quantitative regulations in a manner contrary to the principles set forth in paragraph 1.

5. No internal quantitative regulation relating to the mixture, processing or use of products in specified amounts or proportions shall be applied in such a manner as to allocate any such amount or proportion among external sources of supply.

6. The provisions of this Article shall not apply to laws, regulations or requirements governing the procurement by governmental agencies of products purchased for governmental purposes and not with a view to commercial resale or with a view to use in the production of goods for commercial sale.

7. The provisions of this Article shall not prevent the payment of subsidies exclusively to domestic producers, including payments derived from the proceeds of internal taxes or charges applied consistently with the provisions of this Article and subsidies effected through governmental purchases of domestic products.

8. The Parties recognise that internal maximum price control measures, even though conforming to the other provisions of this Article, can have effects prejudicial to the interests of Parties supplying imported products. Accordingly, Parties applying such measures shall take account of the interests of exporting Parties with a view to avoiding to the fullest practicable extent such prejudicial effects.

9. The provisions of this Article shall not prevent any Party from establishing or maintaining internal quantitative regulations relating to exposed cinematograph films and meeting the requirements of Article IV of the GATT 1947.

The objectives of this Chapter are to:

(a) reinforce cooperation in the area of customs and trade facilitation with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the customs authorities, fulfil the objectives of effective control and the promotion of trade facilitation;

(b) promote harmonisation of customs legislation and procedures;

(c) ensure that legitimate public policy objectives, including those related to security and the prevention of fraud in the area of customs and trade facilitation, shall not be compromised in any way; and

(d) provide the necessary support for the SADC EPA States' customs administrations to effectively implement this Agreement.

1. In order to ensure compliance with the provisions of this Chapter and effectively respond to the objectives laid down in Article 41, the Parties shall:

(a) exchange information on customs legislation and procedures;

(b) develop joint initiatives relating to customs and trade facilitation and the strengthening of administrative capacity;

(c) exchange experience and best practices on combating corruption and fraud in matters relating to this Chapter;

(d) exchange experience and best practices on issues relating to import, export and transit procedures and to improving the service to the business community;

(e) exchange experience and best practices on facilitating transit;

(f) facilitate the exchange of experts between customs administrations; and

(g) promote coordination between all related agencies, both internally and across borders.

2. The Parties shall prepare and develop an enhanced cooperation on the implementation of the World Customs Organisation (‘WCO’) Framework of Standards to Secure and Facilitate Global Trade of 2005. This cooperation shall include initiatives in view of working towards the mutual recognition of the Authorised Economic Operator status and the exchange of advance information to allow an effective risk assessment and management for security purposes.

3. The Parties shall provide mutual administrative assistance in customs matters in accordance with the provisions of Protocol 2.

1. The Parties agree that their respective trade and customs legislation and procedures shall to the extent possible be based on:

(a) the Revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures of 1999, the substantive elements of the WCO Framework of Standards to Secure and Facilitate Global Trade, the International Convention on the Harmonised System and other international instruments and standards applicable in the field of customs and trade;

(b) the need to protect and facilitate legitimate trade;

(c) the need to avoid unnecessary and discriminatory burdens on economic operators, the need to safeguard against fraud and corruption and the need to provide further facilitation for operators that meet high level of compliance;

(d) the need for each Party to apply a single administrative document or electronic equivalent;

(e) the application of modern customs techniques, including risk assessment, simplified procedures for entry and release of goods, post release controls, and company audits;

(f) transparency, efficiency and proportionality, in order to reduce costs and increase predictability for economic operators;

(g) the need for non-discrimination in terms of requirements and procedures applicable to import, export and goods in transit, though it is accepted that consignments might be treated differently according to objective risk assessment criteria;

(h) the progressive development of systems, including those based upon information technology, for both export and import operations, to facilitate the exchange of information between economic operators, customs administrations and other agencies;

(i) the adoption of systems that facilitate the importation of goods through the use of simplified customs procedures and processes, including pre-arrival clearance;

(j) the elimination of any requirements for the mandatory use of pre-shipment inspections as defined by the WTO Agreement on Preshipment Inspection, or their equivalent;

(k) the application of rules that ensure that any penalties imposed for minor breaches of customs regulations or procedural requirements are proportionate and, in their application, do not give rise to undue delays in customs clearance;

(l) a system of binding rulings on customs matters, in particular on tariff classification and rules of origin, in accordance with rules laid down in their respective legislation;

(m) the facilitation of transit movements;

(n) the elimination of all requirements for the mandatory use of customs brokers; and

(o) transparent, non-discriminatory and proportionate rules in respect of the licensing of customs brokers.

2. In order to improve working methods and to ensure transparency and efficiency of customs operations, the Parties shall:

(a) ensure that the highest standards of integrity be maintained, through the application of anti-corruption measures in this field;

(b) take further steps towards the reduction, simplification and standardization of data in the documentation required by customs and other related agencies;

(c) simplify requirements and formalities wherever possible, in respect of the rapid release and clearance of goods;

(d) provide effective, prompt and non-discriminatory procedures enabling the right of appeal, against customs and other agency administrative actions, rulings and decisions affecting imports, exports or goods in transit. Procedures for appeal shall be easily accessible, including to small or medium enterprises; and

(e) create an environment for the effective enforcement of legislative requirements.

1. The Parties shall ensure freedom of transit through their territory via the route most convenient for transit. Any controls or requirements must be non-discriminatory, proportionate and applied uniformly.

2. Without prejudice to legitimate customs control, the Parties shall accord to traffic in transit treatment no less favourable than that accorded to domestic goods, exports and imports, and their movement.

3. The Parties shall:

(a) operate bonded transport regimes that allow the transit of goods without payment of duties or other charges, subject to the provision of an appropriate guarantee;

(b) promote and implement regional transit arrangements;

(c) use international standards and instruments relevant to transit; and

(d) promote coordination between all concerned agencies, both internally and across borders.

The Parties agree to:

(a) ensure that all customs legislation, procedures and fees and charges are made publicly available, as well as whenever possible the necessary explanations, and as far as possible through electronic means;

(b) consult, as far as possible, timely and regularly with trade representatives on legislative proposals and procedures related to customs and customs related trade issues;

(c) introduce, where appropriate, new or amended legislation and procedures and their entry into force in a way to allow traders to become well prepared for complying with them. The Parties shall make publicly available relevant notices of an administrative nature, including agency requirements and entry procedures, hours of operation and operating procedures for customs offices at ports and border crossing points, and points of contact for information enquiries; and

(d) to foster cooperation between operators and relevant administrations through the use of instruments such as memoranda of understanding.

1. The Agreement on Implementation of Article VII of the GATT 1994 (‘WTO Agreement on Customs Valuation’) shall govern customs valuation rules applied to trade covered by this Agreement.

2. The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.

1. The Parties shall promote harmonisation of customs legislation, procedures, standards and requirements.

2. Each Party shall determine the content and pace of this process.

1. The Parties recognise the importance of supporting the SADC EPA States' customs administrations for the implementation of this Chapter, in line with the provisions of Chapter III of Part I.

2. The priority areas for such support are:

(a) the application of modern customs techniques, including:

(i) risk management;

(ii) post release controls; and

(iii) automation of customs procedures;

(b) control of customs valuation, classification and rules of origin, including in view of meeting the requirement of Article 43(1)(j);

(c) the facilitation of transit and the enhancement of the efficiency of regional transit arrangements;

(d) transparency issues relating to the publication and administration of all trade regulations, as well as relevant fees and formalities;

(e) the introduction and implementation of procedures and practices which reflect international instruments and standards applicable in the field of customs and trade, inter alia the revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures and the WCO Framework of Standards to Secure and Facilitate Global Trade.

3. The Parties recognise the need for specific needs assessment studies taking into account the situation in each country, using WTO and WCO needs assessment instruments or any other mutually agreed instrument.

1. The Parties recognise the need for transitional arrangements to ensure the smooth implementation of the provisions of this Chapter.

2. In view of the need to enhance their capacity in the area of customs and trade facilitation and without prejudice to their WTO rights and obligations, the SADC EPA States shall benefit from a transitional period of eight (8) years to meet those requirements referred to in Articles 27, 43, 44, and 45 where the need for capacity building exists at the time of entry into force of this Agreement.

3. The Joint Council may decide to extend this transitional period by two (2) years in case the necessary capacity has not yet been attained.

1. The Parties hereby establish a Special Committee on Customs and Trade Facilitation, composed of representatives of the Parties.

2. The functions of the Special Committee on Customs and Trade Facilitation shall include:

(a) monitoring the implementation and administration of this Chapter and of Protocol I;

(b) providing a forum to consult and discuss all issues concerning customs, including rules of origin, general customs procedures, customs valuation, tariff classification, transit and mutual administrative assistance in customs matters;

(c) enhancing cooperation on the development, application and enforcement of rules of origin and related customs procedures, general customs procedures and mutual administrative assistance in customs matters;

(d) enhancing cooperation on capacity building and technical assistance;

(e) following up on the implementation of Article 47;

(f) determining its own rules of procedure; and

(g) addressing any other issues agreed by the Parties in respect of this Chapter.

3. The Special Committee on Customs and Trade Facilitation shall meet on a date and with an agenda agreed in advance by the Parties.

4. The Special Committee on Customs and Trade Facilitation shall be chaired alternatively by either Party.

5. The Special Committee on Customs and Trade Facilitation shall report to the Trade and Development Committee.

1. The Parties affirm their commitment to the rights and obligations provided for in the Agreement on Technical Barriers to Trade (‘WTO TBT Agreement’).

2. Those rights and obligations shall underlie the activities of the Parties under this Chapter.

The Parties agree to:

(a) cooperate in order to facilitate and increase trade in goods between them, by identifying, preventing and eliminating unnecessary barriers to trade within the terms of the WTO TBT Agreement;

(b) cooperate in strengthening regional, and specifically the SADC EPA States' integration and cooperation on matters concerning TBT; and

(c) establish and enhance the SADC EPA States' technical capacity on matters concerning TBT.

1. The provisions of this Chapter shall apply to standards, technical regulations, and conformity assessment procedures as defined in the WTO TBT Agreement in so far as they affect trade covered by this Agreement.

2. For the purposes of this Chapter, the definitions used by the WTO TBT Agreement shall apply.

The Parties agree that collaboration between national and regional authorities dealing with matters concerning TBT, in both the public and private sector, is important to facilitate trade in the region and between the Parties, as well as for the overall process of regional integration and undertake to cooperate to this end.

1. The Parties reaffirm the principle of transparency in the application of technical regulations and standards in accordance with the WTO TBT Agreement.

2. The Parties recognise the importance of effective mechanisms for consultation, notification and exchange of information with respect to technical regulations and standards in accordance with the WTO TBT Agreement.

3. The Parties agree to establish an early warning mechanism to ensure that the SADC-EPA States are informed in advance of new measures of the EU that may affect SADC EPA exports to the EU. The Parties shall make optimal use of existing mechanisms and avoid unnecessary duplications to multilateral or unilateral mechanisms.

The Parties agree to identify and implement mechanisms among those supported by the WTO TBT Agreement that are the most appropriate for particular priority issues or sectors. Such mechanisms may include:

(a) intensifying their collaboration to facilitate access to their respective markets, by increasing the mutual knowledge and understanding of their respective systems in the field of technical regulations, standards, metrology, accreditation and conformity assessment;

(b) exchanging information, identifying and implementing appropriate mechanisms for particular issues or sectors, i.e. alignment with international standards, reliance on the supplier's declaration of conformity, the use of internationally recognised accreditation to qualify conformity assessment bodies and the use of international product testing and certification schemes;

(c) identifying and organising sector-specific interventions on standards, technical regulations and conformity assessment procedures to facilitate understanding of and access to their respective markets. These sectors will be chosen taking into account key areas of trade, including priority products;

(d) developing cooperation activities and measures with a view to supporting the implementation of the rights and obligations under the WTO TBT Agreement;

(e) developing common views and approaches on technical regulatory practices, including transparency, consultation, necessity and proportionality, the use of international standards, conformity assessment requirements, the use of impact and risk assessment, enforcement and market surveillance, where appropriate;

(f) promoting harmonisation, whenever possible and in areas of mutual interest, towards international standards, and the use of such standards in the development of technical regulations and conformity assessment procedures;

(g) undertaking to consider, in due course, negotiating mutual recognition agreements in sectors of mutual economic interest;

(h) promoting collaboration between the Parties' organisations responsible for technical regulations, metrology, stan­dardisation, testing, certification, inspection and accreditation; and

(i) promoting the participation by the SADC EPA States in international standards-setting bodies.

The Parties agree that the Trade and Development Committee shall be competent to:

(a) monitor and review the implementation of this Chapter;

(b) provide coordination and consultation on TBT matters;

(c) identify and review priority sectors and products and the resulting priority areas for cooperation;

(d) make recommendations for modifications of this Chapter if necessary and appropriate; and

(e) address any other issues agreed by the Parties in respect of this Chapter.

1. The Parties recognise the importance of cooperating in the areas of technical regulations, standards, metrology, ac­creditation and conformity assessment in order to achieve the objectives of this Chapter.

2. The Parties agree that the following are priority areas for cooperation:

(a) the establishment of appropriate arrangements for the sharing of expertise, including appropriate training to ensure adequate and enduring technical competence of the relevant standardisation and conformity assessment bodies of the SADC EPA States and mutual understanding between such bodies in the territories of the Parties;

(b) the development of capacities of the SADC EPA States in the fields of technical regulations, metrology, standards, ac­creditation and conformity assessment including through the upgrading or setting up of laboratories and other equipment. In this regard, the Parties acknowledge the importance of strengthening regional cooperation and the need to take into account priority products and sectors;

(c) the development and adoption, within the SADC EPA States, of harmonised technical regulations, standards, metrology, accreditation and conformity assessment procedures based on relevant international standards;

(d) the support for the participation of the SADC EPA States in international standardisation, accreditation and metrology activities; and

(e) the development of TBT enquiry and notification points within the SADC EPA States.

1. The Parties affirm their commitment to the rights and obligations provided for in the Agreement on the Application of Sanitary and Phytosanitary Measures (‘WTO SPS Agreement’), the International Plant Protection Convention (‘IPPC’), the Codex Alimentarius Commission and the World Organisation for Animal Health (‘OIE’).

2. Those rights and obligations shall underlie the activities of the Parties under this Chapter.

The Parties agree to:

(a) facilitate trade and investment within the SADC EPA States and between the Parties while ensuring that measures adopted shall apply only to the extent necessary to protect human, animal or plant life or health in accordance with the provisions of the WTO SPS Agreement;

(b) cooperate in strengthening regional integration and specifically SADC EPA States' cooperation on matters concerning sanitary and phytosanitary measures (‘SPS measures’) and to address problems arising from SPS measures on agreed priority products and sectors as listed in Annex VI, whilst giving due consideration to regional integration;

(c) promote collaboration aiming at recognition of appropriate levels of protection in SPS measures; and

(d) establish and enhance SADC EPA States' technical capacity to implement and monitor SPS measures, including promoting greater use of international standards and other matters concerning SPS.

1. The provisions of this Chapter shall apply to SPS measures as defined in the WTO SPS Agreement.

2. For the purposes of this Chapter, definitions used in the WTO SPS Agreement and international standard-setting bodies, namely the Codex Alimentarius Commission, the IPPC and the OIE shall apply.

1. The respective SPS authorities shall be the competent authorities in the Parties for the implementation of the measures referred to in this Chapter.

2. The Parties shall, in accordance with this Agreement, inform each other of their respective competent SPS authorities and any changes thereto.

1. The Parties reaffirm the principle of transparency in the application of SPS measures, in accordance with the WTO SPS Agreement.

2. The Parties recognise the importance of effective mechanisms for consultation, notification and exchange of information with respect to SPS measures in accordance with the WTO SPS Agreement.

3. The importing Party shall inform the exporting Party of any changes in its sanitary and phytosanitary import requirements that may affect trade falling under the scope of this Chapter. The Parties undertake to establish mechanisms for the exchange of such information where appropriate.

4. The Parties will apply the principle of zoning or compartmentalisation when defining import conditions, taking into account international standards. Zones or compartments of defined sanitary or phytosanitary status may also be identified and proposed jointly by the Parties, on a case by case basis, wherever possible, in order to avoid disruption to trade.

1. The Parties agree to establish an early-warning system to ensure that the SADC EPA States are informed in advance of new SPS measures of the EU that may affect SADC EPA exports to the EU. This system shall be based on existing mechanisms where appropriate.

2. The Parties, agree to collaborate in the further development of the epidemiological surveillance network on animal diseases and in the domain of plant health. The Parties will exchange information on the occurrence of pests and diseases of known and immediate danger to the other Party.

The Trade and Development Committee shall be competent to:

(a) monitor and review the implementation of this Chapter;

(b) advise and make recommendations in order to achieve the objectives of this Chapter through its implementation;

(c) provide a forum for discussion and exchange of information and issues of cooperation;

(d) make recommendations for modifications to this Chapter if necessary and appropriate;

(e) review the list of priority products and sectors included in ANNEX VI as well as the resulting priority areas for cooperation;

(f) enhance cooperation on the development, application and enforcement of SPS measures; and

(g) discuss any other relevant matters relating thereto.

If either Party considers that the other Party has taken measures which may affect or have affected access to its market, appropriate consultations shall be held to avoid undue delays and to find an appropriate solution in conformity with the WTO SPS Agreement. In this regard, the Parties shall exchange names and addresses of contact points with sanitary and phytosanitary expertise in order to facilitate communication and the exchange of information.

The Parties agree to:

(a) promote cooperation between the equivalent institutions of the Parties;

(b) cooperate in facilitating regional harmonisation of measures and the development of appropriate regulatory frameworks and policies within and between the SADC EPA States, thereby enhancing intra-regional trade and investment; and

(c) cooperate in the following priority areas:

(i) building of technical capacity in the public and private sectors of the SADC EPA States to enable sanitary and phytosanitary control, including training and information events for inspection, certification, supervision and control;

(ii) building of capacity in the SADC EPA States to maintain and expand their market access opportunities;

(iii) building of capacity to ensure that measures adopted do not become unnecessary barriers to trade, while recognising the Parties' rights to set their own appropriate levels of protection;

(iv) enhancement of technical capacity for the implementation and monitoring of SPS measures, including promoting greater use of international standards;

(v) promotion of cooperation on the implementation of the WTO SPS Agreement, particularly strengthening SADC EPA States' notification procedures and enquiry points as well as other matters concerning relevant inter­national standards setting bodies;

(vi) development of capacities for risk analysis, harmonisation, compliance, testing, certification, residue monitoring, traceability and accreditation including through the upgrading or setting up of laboratories and other equipment to help the SADC EPA States comply with international standards. In this regard, the Parties acknowledge the importance of strengthening regional cooperation and the need to take into account the priority products and sectors identified in accordance with this Chapter; and

(vii) support for the participation of the SADC EPA States in relevant international standards setting bodies.

1. The Parties underline the importance of the agricultural sector to the SADC EPA States for food security, generating rural employment, increasing incomes of farm households, creating an inclusive rural economy, and as a basis for wider industrialisation and sustainable development, as well as to contribute to the objectives of this Agreement.

2. The use of export subsidies on agricultural goods in the trade between the Parties shall not be allowed from the date of entry into force of this Agreement.

3. An agricultural partnership is established between the EU and the SADC EPA States to facilitate an exchange of views between the Parties on agriculture, inter alia, food security, development, regional value chains and integration. The coverage of issues and operational rules for the agricultural partnership shall be established by common agreement of the Parties acting within the Committee referred to in Article 103.

1 Subject to the provisions of Articles 70 and 71, the Parties undertake to impose no restrictions on and to allow all payments for current transactions between their residents to be made in freely convertible currency.

2. The Parties may take the necessary measures to ensure that the provisions of paragraph 1 are not used to make transfers that are not compliant with a Party's laws and regulations.

1. Where, in exceptional circumstances, payments and capital movements between the Parties cause or threaten to cause serious difficulties for the operation of monetary policy or exchange rate policy in one or more SADC EPA States or one or more Member States of the European Union, safeguard measures with regard to payments and capital movements that are strictly necessary may be taken by the EU or the SADC EPA State concerned for a period not exceeding six (6) months.

2. The Joint Council shall be informed forthwith of the adoption of any safeguard measure and, as soon as possible, of a time schedule for its removal.

Where one or more Member States of the European Union or a SADC EPA State is in serious balance of payments difficulties or external financial difficulties, or under threat thereof, it may adopt restrictive measures in accordance with the conditions established under the WTO Agreement and the Articles of Agreement of the International Monetary Fund, which shall be of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. The Party having adopted or maintained such measures shall inform the other Party forthwith and shall submit to it as soon as possible a timetable for the elimination of the measures concerned.

The Parties recognise the growing importance of trade in services and investment for the development of their economies and reaffirm their commitment regarding services in Articles 41 to 43 of the Cotonou Agreement and their respective rights and obligations under the General Agreement on Trade in Services (‘GATS’).

1. The Parties may negotiate trade in services to extend the scope of this Agreement. In this regard, Botswana, Lesotho, Mozambique and Swaziland (‘Participating SADC EPA States’) on the one hand, and the EU on the other hand, have started and will continue to negotiate trade in services.

2. The negotiations between the EU and the Participating SADC EPA States shall be guided by the following principles:

(a) negotiations shall cover definitions and principles for the liberalisation of trade in services;

(b) negotiations shall cover lists of commitments, setting out the conditions applicable to the liberalisation of trade in services. Such conditions shall be listed per sector liberalised and include, where necessary, limitations on market access and national treatment as well as transition periods for liberalisation;

(c) negotiations shall also address regulatory provisions supporting the liberalisation of trade in services;

(d) liberalisation of trade in services shall meet the requirements of Article V of the GATS;

(e) liberalisation of trade in services shall be reciprocal and asymmetric, taking into account the development needs of the Participating SADC EPA States. This may also result in the inclusion of provisions on cooperation and on special and differential treatment;

(f) negotiations shall build on the relevant provisions in existing applicable legal frameworks.

3. The EU and the Participating SADC EPA States agree to cooperate on strengthening the regulatory frameworks of the Participating SADC EPA States as well as to support the implementation of the commitments resulting from the negotiations in accordance with Article 13(5). The Parties recognise that in accordance with Article 13(8) trade capacity building can support the development of economic activities.

4. If a Party that is not party to an agreement on trade in services negotiated in accordance with paragraphs 1 and 2 wishes to join, it may negotiate the terms of its entry to that agreement.

5. If any agreement emanating from negotiations envisaged in paragraphs 1 and 4 were to result in outcomes that prove to be incompatible with the future development of a SADC regional services framework, the Parties shall negotiate to bring this Agreement in line with such regional framework while ensuring a balance of benefits.

1. The EU and the Participating SADC EPA States agree to cooperate on investment in accordance with Article 13(6) and may in future consider negotiating an agreement on investment in economic sectors other than services.

2. If a Party that is not party to an agreement on investment negotiated in accordance with paragraph 1 wishes to join, it may negotiate the terms of its entry to that agreement.

3. If any agreement emanating from negotiations envisaged in paragraphs 1 and 2 were to result in outcomes that prove to be incompatible with the future development of a SADC regional investment framework, the Parties shall jointly endeavour to bring this Agreement in line with such regional framework while ensuring a balance of benefits.