GABORONE - Botswana managed to make P17 million savings from European Union (EU) beef exports last June, thanks to the interim Economic Partnership Agreement (IEPA) the two parties signed recently.

Ministry of Trade and Industry Public Relations Officer, Ms Montlenyane Baaitse said that the interim agreement abolished beef quotas as well as the eight per cent beef levy, translating into a significant monetary gain for Botswana.

Ms Baaitse revealed that the EU currently absorbed 70 per cent of Botswana exports, particularly beef.

Thus, the recent gain, she said, was a clear demonstration to local producers particularly the private sector that they could derive maximum benefits from the European as well as other regional and international markets. That would then assist the county realise its economic diversification drive, she added.

According to Ms Baaitse the EU market alone has availed access to at least 100 product lines manufactured in Botswana, ranging from womens and girls jerseys, shirts, blouses, dresses, t-shirts, anoraks, pull-overs, ceramic tables and kitchen ware, printed postcards, calendars, basket work, boxes and crates for packaging.

Ms Baaitse said IEPA opportunities were augmented by development assistance aimed at enhancing trade related capacity strengthening with the aim of empowering beneficiary African companies to improve their capacity and capabilities to manufacture tradable goods.

Similarly, the African Growth and Opportunity Act (AGOA) enables Batswana producers to export 650 product lines to the United States market, which include beef, textile, flowers, eggs, cabbage, beans as well as dairy products.

Ms Baaitse reminded Batswana about AGOAs lapse in 2015, hence appealed to them to set up manufacturing businesses to export their products to the US and other markets.

She pointed out that so far only two Botswana companies exported textile and furniture to the US market through AGOA.

The ministry further implored Batswana to seize such opportunities and venture into the 648 product mix that remained unexplored in the EU market.

She said developing countries, Botswana included, had struggled to access global markets, leading to a considerably regrettable regression of their economic diversification programmes and share of international trade.

Ms Baaitse underscored the importance of the recently signed IEPA as well as other trade agreements such as the Economic Free Trade Agreement towards providing a springboard for poor and developing countries such as Botswana to become active players in global trade.

She added that the agreements did not only enhance opportunities for Botswana and other developing countries to actively participate in global trade but also contributed to sustainable economic development.

She said the duty free quota provision under IEPA provided free access to the EU market for all products except arms, ammunition, sugar and rice.

Botswana would also benefit from relaxed rules of origin in certain areas of the clothing and textile sector because the textile industry would be able to access cheaper raw materials from supplier anywhere and apply simplest methods of manufacturing eligible textile and clothing. BOPA