Swaziland

Location : Southern Africa, between Mozambique and South Africa.

Capital : Mbabane but Lobamba is the royal and legislative capital

Languages : English (official, government business conducted in English), siSwati (official)

Area : 30,355 sq km

Land Use : arable land: 10.35%, permanent crops: 0.7%, other: 88.95% (2001)

Natural Resources : asbestos, coal, clay, cassiterite, hydropower, forests, small gold and diamond deposits, quarry stone, and talc

Population : 1,173,900 (July 2005 est.).

Labour force : 383,200 (2000)

Labour force participation rate : 32.64% of population (2000)

Population below poverty line : 40% (2002 est.)

International Organisation participation : ACP, AFDB, AU, C, FAO, G-77, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, ISO (correspondent), ITU, MIGA, NAM, OPCW, PCA, SACU, SADC, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WHO, WIPO, WMO, WToO, WTO

GDP per capita : U$5,100 (2004 est.)

GDP Growth Rate : 3.2% p.a. 1990-2001

GDP sectoral composition : agriculture: 16.1%; industry: 43.4%; services: 40.5% (2004 est.)

Investment (gross fixed): 23.6% of GDP (2004 est.)

Industries: mining (coal, raw asbestos), wood pulp, sugar, soft drink concentrates, textile and apparel

Agriculture - products : sugarcane, cotton, corn, tobacco, rice, citrus, pineapples, sorghum, peanuts; cattle, goats, sheep

Exports : U$900.1 million f.o.b. (2004 est.)

Exports - commodities : soft drink concentrates, sugar, wood pulp, cotton yarn, refrigerators, citrus and canned fruit

Exports - partners : South Africa 59.7%, EU 8.8%, US 8.8%, Mozambique 6.2% (2004)

Imports : U $1.14 billion f.o.b. (2004 est.)

Imports - commodities : motor vehicles, machinery, transport equipment, foodstuffs, petroleum products, chemicals

Imports - partners : South Africa 95.6%, EU 0.9%, Japan 0.9%, Singapore 0.3% (2004)

QUALITATIVE TRADE PROFILE

The Swazi economy is heavily dependent on soft drink concrete and sugar cane. Sugar and wood pulp account for the majority of foreign exchange earning and subsistence agriculture employs more than 80% of the population. South Africa is the largest trading partner for Swaziland providing imports, investment and employment. As a member of the Southern Africa Customs Union (SACU), Swaziland's trade policy is regionally determined.

Swaziland has tariff bindings covering 96.5% of its tariff lines. Average applied tariff rates stood at 5.8% in 2002, with the average for agricultural goods being 9.1% and non-agricultural goods being 5.3 %. A key issue for SACU is the structure of the external tariff which is determined by South Africa and often reflects South Africa's policy priorities and industrial structure. Approximately 45% of tariff lines are duty free on an MFN basis and non-ad valorem rates apply to approximately 14% of tariff lines. In accordance with the revised provisions of the 2002 SACU Agreement, the joint SACU Tariff Board will, in future, determine duty rates, including anti-dumping and countervailing duties.

INSTITUTIONAL FRAMEWORK 

Trade policy formulation in Swaziland is fragmented with a large number of ministries with responsibilities for different aspects of Swaziland's trade policy. Formal responsibility for trade relations, WTO participation, Cotonou renegotiation, and trade promotion rests with the Ministry of Foreign Affairs and Trade. The Ministry of Enterprise and Employment remains responsible for internal trade regulation and for the promotion of foreign and domestic investment. The Ministry of Agriculture and Cooperatives is responsible for Swaziland's participation in the WTO agriculture negotiations (the only aspect of WTO where a Swazi delegation participates regularly and actively). The Ministry of Finance is in charge of SACU relations, because of the revenue aspects. The Ministry of Economic Planning and Development is responsible for overall economic policy planning; Customs is responsible for the administration of border measures, sales tax and collection of import and export statistics; the Ministry of Justice and Constitutional Affairs is the custodian of laws relating to intellectual property; and the Central Statistical Office (CSO) is responsible for publication of statistical series.

The 2002 SACU Agreement also provides for a National Body to be established in each SACU member country. Swaziland's National Body, which will be a unit of the International Trade Department of the Ministry of Foreign Affairs and Trade, will be in charge of SACU issues (including tariff changes) at the national level and will make recommendations to the Customs Union Commission. The International Trade Department has overall responsibility for external trade policy questions. It therefore has to deal with the complex relations among SACU, SADC, COMESA, the RIFF, the African Union, new African initiatives like NEPAD, EPAs, AGOA, and the WTO.  

TRADE AGREEMENTS

Bilateral

Swaziland is not a signatory to any bilateral preferential trade agreements. However, Swaziland is a beneficiary under the United States' African Growth and Opportunity Act (AGOA). Additionally, Swaziland has access to the GSP schemes of most developed markets.

Regional

Swaziland is a member of the Southern African Customs Union (SACU), the Southern African Development Community (SADC) and the African Union (AU). Through SACU, it is currently in the process of negotiating free trade agreements with the United States, MERCUSOR and EFTA. Swaziland is currently negotiating an Economic Partnership Agreement with the EU through the SADC configuration.

Multilateral

Swaziland is a member of the WTO and extends at least MFN treatment to all its trading partners. It has GATS commitments in nine service sectors.

NEED PRIORITIES  

Swaziland needs assistance with trade policy research, training and analysis as well as assistance for developing a comprehensive trade policy and preparation of strategies for all ongoing trade negotiations. Swaziland is also in need of assistance in incorporating commitments into national laws, rules and regulations on WTO requirements; notification requirements; and training of Government officials on WTO matters. Swaziland also has implementation-related concerns in the areas of TRIPS, customs valuation, and sanitary and Phytosanitary measures (SPS). Finally, Swaziland needs assistance to resolve the understaffing faced by the International Trade Department.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.