Botswana has proposed safeguard measures to ascertain whether the heightened imports of products are causing or posing a threat of serious injury to domestic industries.
As a member of the World Trade Organisation (WTO) and the Southern African Customs Union (SACU), Botswana is authorised to implement safeguard actions, such as temporary import restrictions, only if it determines that the increased imports of a product are causing or threatening to cause serious injury to domestic industries.
According to the proposed Botswana Trade Commission Safeguards Regulations of 2024 signed by the Minister of Investment, Trade and Industry, Mmusi Kgafela, a SACU industry (the domestic producers in the SACU who produce like products) or person acting on behalf of the SACU industry shall in writing apply to the Botswana Trade Commission for a general safeguard investigation.
The proposed regulations specify that an application must provide evidence demonstrating that the product being investigated is imported into Botswana or the Common Customs Area of SACU in significantly increased quantities, either in absolute terms or relative to SACU production. Furthermore, it must show that these imports are occurring under conditions that are causing or threatening to cause serious injury to the SACU industry producing similar or directly competitive products.
Additionally, the proposed regulations grant the Botswana Trade Commission the authority to initiate a general safeguards investigation even without receiving a written application from the SACU industry.
The proposed regulations state that a special safeguards investigation application shall include evidence that the volume of imports of the product under investigation exceeds a trigger level which relates to the existing market access opportunity as set out in Article 5 of the World Trade Organisation on Agriculture. It shall also include the price at which imports of that product may enter the SACU area, as determined based on the import price of the shipment concerned expressed in terms of its domestic currency, which falls below a trigger price equal to the average 1986 to 1988 reference price for the product concerned.
The proposed regulations explained that “serious injury” means a significant overall impairment in the position of the SACU industry.” The proposed regulations state that the Commission shall determine whether an increase in imports of the product under investigation has caused serious injury to a SACU industry after an evaluation of all relevant factors in particular, the rate and amount of the increase in imports of the product that is being investigated and the impact of increased imports of the product under investigation on the SACU industry.
In making a determination regarding the existence of a threat of serious injury, the Botswana Trade Commission shall consider among others the following; a substantial increase in production capacity of the foreign exporters indicating the likelihood of substantially increased exports to SACU. The proposed regulations state further that Botswana Trade Commission may only determine that increased imports of the product under investigation have caused or are threatening to cause serious injury to the SACU industry if it concludes that there is a genuine and substantial relationship of cause and effect between the increased imports and the actual threat of serious injury.
The proposed regulations also indicate that a safeguard measure shall be applied only to the extent necessary to prevent serious injury or threat and facilitate adjustment of the SACU industry. They also state that safeguard measures shall not be applied against a product originating in a developing country as long as its share of imports of the product concerned in SACU does not exceed three percent.
