Southern African Customs Union (SACU)

The Southern African Customs Union (SACU), an African regional economic organization, is the world's oldest customs union, founded in 1910. Its members include Botswana, Lesotho, Namibia, South Africa, and Swaziland. The five member states maintain a common external tariff, share customs revenues, and coordinate policies and decision-making on a wide range of trade issues.

On July 16, 2008, the United States and SACU signed a Trade, Investment, and Development Cooperative Agreement (TIDCA).

The TIDCA establishes a forum for consultative discussions, cooperative work, and possible agreements on a wide range of trade issues, with a special focus on customs and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, and trade and investment promotion.

The TIDCA is designed to build on and potentially capture some of the progress made in previous Free Trade Agreement (FTA) negotiations between the United States and SACU, which were suspended in 2006 due to divergent views on the scope and level of ambition for a FTA. Ideally, the TIDCA will help to put in place the "building blocks" for a future FTA, which remains a longer-term objective for both the United States and SACU.

U.S.-SACU Trade Facts

The United States has $17.9 billion in total (two ways) goods trade with SACU countries during 2008. Goods exports totaled $6.9 billion; Imports totaled $11.0 billion. The U.S. goods trade deficit with SACU countries was $4.2 billion in 2008.

Exports

U.S. goods exports to SACU in 2008 were $6.9 billion, up 19.4 percent ($1.1 billion) from 2007.

The SACU Countries, together would rank 33rd as an export market for the United States in 2008.

Roughly 95 percent of U.S. exports to SACU went to South Africa in 2008. The U.S. export markets in SACU for 2008 were: South Africa ($6.5 billion) Namibia ($280 million), Botswana ($62 million), Swaziland ($12 million), and Lesotho ($1 million),

The top export categories (2-digit HS) in 2008 were: Machinery ($1.4 billion), Vehicles ($1.1 billion), Electrical Machinery ($577 million) Aircraft ($403 million), and Mineral Fuel (oil) ($380 million).

U.S. exports of agricultural products to SACU totaled $403 million in 2008. Leading categories are: wheat ($124 million), and vegetable oils (excluding soybean oil) ($53 million)

Imports

U.S. goods imports from SACU totaled $11.0 billion in 2008, up 9.5 percent ($953 million) from 2007.

The SACU Countries, together, would rank 33rd as the largest supplier of imports to the United States in 2008.

Over 90 percent of U.S. imports from SACU were from South Africa. The U.S. import suppliers from SACU for 2008 were: South Africa ($10.0 billion), Lesotho (374 million), Namibia ($301 million), Botswana ($219 million), and Swaziland ($134 million).

The five largest import categories in 2008 were: Precious Stones (platinum and diamonds) ($4.4 billion), Vehicles ($1.9 billion), Iron and Steel ($1.2 billion), Ores, Slag, Ash ($673 million), and Machinery ($395 million).

U.S. imports of agricultural products from SACU totaled $177 million in 2008. Leading categories include: wine and beer ($45 million), fresh fruit ($42 million), processed fruit and vegetables ($17 million), and fruit and vegetable juices ($15 million).

Balance of Merchandise Trade

The U.S. goods trade deficit with SACU was $4.2 billion in 2008, down 3.7 percent ($158 million) from 2007.

Investment

U.S. foreign direct investment (FDI) in SACU countries (stock) was $4.9 billion in 2007, up 17.5 percent from 2006.

SACU countries' FDI in the United States (stock) was $189 million in 2007, down 70 percent from 2006.