As dialogue on rules of origin to facilitate trade amongst African countries under the African Continental Free Trade Area ( AfCFTA) agreement heightens, government wants the private sector to lead negotiations on the country’s position, especially for the textile and automobile industry. Launching the country’s national quality policy ( NQP) in Gaborone last week, Trade and Industry Minister, Mmusi Kgafela urged private sector to proactively participate on the crafting national position on rules of origin.

“Government policy position must be informed by the industry players not government officials,” said Kgafela.

The rules of origin are the ‘ passport’ for goods, determining whether they can be exempted from taxes or taxed less under a preferential trade arrangement or free trade area ( FTA).

With AfCFTA expected to create a single continental market for goods and services with free movement of business persons and investments, the rules of origin may make it difficult for products made using materials from different countries through global value chains, to qualify for trade preferences.

Economic analysts believe this can hinder local businesses from benefiting from preferential trade agreements that the country has signed to increase its export potential.

The country’s manufacturing industry imports most of its raw materials, a development that depending on the ratio, countries participating in the AfCFTA will agree on, indications are that most countries are rooting for 40 to 60 ratio, with 40 percent being local inputs.

Meanwhile, Botswana Bureau of Standards ( BOBS) Managing Director, Botsile Kebapetse said the country can only build a resilient economy, if its goods and services are globally competent.

He applauded the country’s efforts to build a robust national quality infrastructure and technical regulatory framework, as the developments would help reduce the country’s import bill and poverty while creating a sustainable development and resilient economy.

“We want to harmonise our standards with SADC and World Trade Organisation ( WTO) to facilitate trade,” said Kebapetse.

He said the current reality is that most laboratories are not accredited and the quality infrastructure is not up to standard.