1.   This Agreement is based on the Fundamental Principles, as well as the Essential and Fundamental Elements, as set out in Articles 2 and 9, respectively, of the Cotonou Agreement. This Agreement shall build on the achievements of the Cotonou Agreement, the TDCA and the previous ACP-EC agreements in regional cooperation and integration, as well as economic and trade cooperation.

2.   This Agreement shall be implemented in a complementary and mutually reinforcing manner with respect to the Cotonou Agreement and the TDCA, subject to Articles 110 and 111.

3.   The Parties agree to cooperate to implement this Agreement in a manner that is consistent with the development policies and regional integration programmes in which the SADC EPA States are or may be involved.

4.   The Parties agree to cooperate to fulfil their commitments and obligations and to facilitate the capacity of the SADC EPA States to implement this Agreement.

1.   The Parties recognise that regional integration is an integral element of their partnership and a powerful instrument to achieve the objectives of this Agreement.

2.   The Parties reaffirm the importance of regional and sub-regional integration among the SADC EPA States to achieve greater economic opportunities, enhanced political stability and to foster the effective integration of developing countries into the world economy.

3.   The Parties support, in particular, the integration processes based on the SACU Agreement, the SADC Treaty, and the Constitutive Act of the African Union adopted on 11 July 2000, as well as the development policies and political objectives related to such processes. The Parties aim at implementing this Agreement in a mutually supportive manner with those instruments, taking into account the respective levels of development, needs, geographical realities and sustainable development strategies.

1.   The Parties undertake to continuously monitor the operation and impact of this Agreement through appropriate mechanisms and timing within their respective participative processes and institutions, as well as those set up under this Agreement, in order to ensure that the objectives of this Agreement are achieved, that it is properly implemented and that the benefits for their people deriving from it, in particular the most vulnerable groups, are maximised.

2.   The Parties undertake to consult each other promptly over any issue concerning the implementation of this Agreement.

1.   The Parties recall the Agenda 21 on Environment and Development of 1992, the ILO Declaration on Fundamental Principles and Rights at Work of 1998, the Johannesburg Plan of Implementation on Sustainable Development of 2002, the Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work of 2006, the ILO Declaration on Social Justice for a Fair Globalisation of 2008 and the UN Conference on Sustainable Development of 2012 entitled ‘The Future We Want’.

2.   The Parties reaffirm their commitments to promote the development of international trade in such a way as to contribute to the objective of sustainable development, in its three pillars (economic development, social development, and environmental protection) for the welfare of present and future generations, and will strive to ensure that this objective is integrated and reflected at every level of their trade relationship.

3.   The provisions of this Chapter shall not be subject to the provisions of PART III, with the exception of Article 7.

1.   The Parties reaffirm that the objective of sustainable development is to be applied and integrated at every level of their economic partnership, in fulfilment of the overriding commitments set out in Articles 1, 2 and 9 of the Cotonou Agreement, and especially the general commitment to reducing and eventually eradicating poverty in a way that is consistent with the objectives of sustainable development.

2.   The Parties understand this objective to apply in the case of this Agreement as a commitment that:

3.   As a result, the Parties agree to work cooperatively towards the achievement of people-centred sustainable development.

1.   The Parties recognise the value of international environmental governance and agreements as a response of the international community to global or regional environmental problems as well as decent work for all as a key element of sustainable development for all countries and as a priority objective of international cooperation.

2.   Taking into account the Cotonou Agreement, and in particular its Articles 49 and 50, the Parties, in the context of this Article, reaffirm their rights and their commitment to implement their obligations in respect of the Multilateral Environmental Agreements (‘MEAs’) and the International Labour Organisation (‘ILO’) conventions that they have ratified respectively.

1.   The Parties recognise the right of each Party to establish its own levels of domestic environmental and labour protection, and to adopt or modify accordingly its relevant laws and policies, consistently with internationally recognised standards and agreements to which they are a party.

2.   The Parties reaffirm the importance of protection as afforded in domestic labour and environmental laws.

3.   Recognising that it is inappropriate to encourage trade or investment by weakening or reducing domestic levels of labour and environmental protection, a Party shall not derogate from, or persistently fail to effectively enforce, its environmental and labour laws to this end.

1.   The Parties reconfirm their commitment to enhance the contribution of trade and investment to the goal of sustainable development in its economic, social and environmental dimensions.

2.   A Party may request, through the Trade and Development Committee, consultations with the other Party regarding any matter arising under this Chapter.

3.   Dialogue and cooperation on this Chapter by the Parties, through the Trade and Development Committee, may involve other relevant authorities and stakeholders.

1.   The Parties recognise the importance of working together on trade related aspects of environmental and labour policies in order to achieve the objectives of this Agreement.

2.   The Parties may exchange information and share experience on their actions to promote coherence and mutual supportiveness between trade, social and environmental objectives, and shall strengthen dialogue and cooperation on sustainable development issues that may arise in the context of trade relations.

3.   In respect of paragraphs 1 and 2, the Parties may cooperate, inter alia, in the following areas:

1.   The Parties commit to cooperating in order to implement this Agreement and to support the SADC EPA States' trade and development strategies within the overall SADC regional integration process. The cooperation may take both financial and non-financial forms.

2.   The Parties recognise that development cooperation is a crucial element of their Partnership and an essential factor for the achievement of the objectives of this Agreement as laid down in Article 1. Development finance cooperation for regional economic cooperation and integration, as provided for in the Cotonou Agreement, shall be carried out to support and promote the efforts of the SADC EPA States to achieve the objectives and to maximise the expected benefits of this Agreement. Areas of cooperation and technical assistance are set out in this Agreement, as appropriate. Cooperation shall be implemented according to the modalities provided for in this Article. Such modalities shall be kept under ongoing review and shall be revised as necessary in accordance with the provisions of Article 116.

3.   The EU (1) financing pertaining to development cooperation between the SADC EPA States and the EU supporting the implementation of this Agreement shall be carried out within the framework of the rules and relevant procedures provided for by the Cotonou Agreement, in particular the programming procedures of the European Development Fund, and within the framework of the relevant instruments financed by the General Budget of the Union. In this context, supporting the implementation of this Agreement shall be a priority.

4.   The Member States of the European Union collectively undertake to support, by means of their respective development policies and instruments, development cooperation activities for regional economic cooperation and integration and for the implementation of this Agreement in the SADC EPA States and at regional level, in conformity with the principles of complementarity and aid effectiveness such as those contained in the Paris Declaration on Aid Effectiveness of 2005 and the Accra Agenda for Action of 2008.

5.   The Parties recognise that adequate resources will be required for the implementation of this Agreement and the fullest achievement of its benefits. In this respect, the Parties shall cooperate to enable the SADC EPA States to access other financial instruments as well as facilitate other donors willing to further support the efforts of the SADC EPA States in achieving the objectives of this Agreement.

6.   The Parties agree that a regional development financing mechanism such as an EPA fund would provide a useful instrument for efficiently channelling development financial resources and for implementing EPA accompanying measures. The EU agrees to support the efforts of the region to set up such a mechanism. The EU will contribute to the fund following a satisfactory audit.

1.   For the purpose of implementing this Agreement and taking into account the development policies of the SADC EPA States, the Parties agree that the areas listed in this Article and in Article 14 are priority areas for trade and economic cooperation.

2.   Cooperation in trade in goods shall aim at enhancing trade in goods and the SADC EPA States capacity to trade, including by phasing out tariffs and customs duties in line with liberalisation commitments laid down in this Agreement, by properly implementing rules of origin, trade defence instruments, non-tariff measures, sanitary and phytosanitary (‘SPS’) standards, and technical barriers to trade (‘TBT’), by addressing non-tariff measures and by promoting customs cooperation and trade facilitation.

3.   Cooperation in supply-side competitiveness shall aim at increasing the competitiveness of the SADC EPA States and remove supply side constraints at national, institutional and, in particular, at company level. This cooperation includes, amongst others, fields such as production, technology development and innovation, marketing, financing, distribution, transport, diversification of economic base, as well as development of the private sector, improvement of the trade and business environment and support to small and medium enterprises in the fields of agriculture, fisheries, industry and services.

4.   Cooperation in business enhancing infrastructure shall aim at developing a competitive business enhancing environment in areas such as information and communication technology, transport and energy.

5.   The Parties agree to cooperate to develop and enhance trade in services as provided for in Article 73.

6.   The Parties agree to cooperate, to develop and enhance trade-related issues as provided for in Articles 8 to 11, 16 to 19, 73 and 74.

7.   Cooperation in trade data shall aim at improving the capacity of the SADC EPA States in the area of trade data capture, analysis and dissemination.

8.   Cooperation for EPA institutional capacity building shall aim at supporting institutional structures for EPA implementation management, capacity building for trade negotiations and for trade policy in cooperation with the relevant institutional mechanisms established under the SADC Treaty and SACU Agreement or in the respective SADC EPA States.

1.   The Parties recognise that the phasing out or reduction of customs duties laid down in this Agreement may affect the fiscal revenues of the SADC EPA States and agree to cooperate on this matter.

2.   The Parties agree to cooperate, in accordance with Article 12, in particular on:

3.   The Parties recognise that the impact of tariff reduction will particularly affect Lesotho's fiscal revenues and agree to pay particular attention to Lesotho's situation in the application of Article 12.

1.   The Parties reaffirm their commitments under Article 46 of the Cotonou Agreement and their rights, obligations and flexibilities as set out in the Agreement on Trade-related Aspects of Intellectual Property, contained in Annex IC to the Agreement establishing the World Trade Organisation (‘TRIPS Agreement’).

2.   The Parties agree to grant and ensure adequate, effective and non-discriminatory protection of intellectual property rights (‘IPRs’), and provide for measures for the enforcement of such rights against infringement thereof, in accordance with the provisions of the international agreements to which they are a party.

3.   The Parties may cooperate in matters related to Geographical Indications (‘GIs’) in line with the provisions of Section 3 (Articles 22 to 24) of the TRIPS Agreement. The Parties recognise the importance of GIs and origin-linked products for sustainable agriculture and rural development.

4.   The Parties agree that it is important to respond to reasonable requests to provide information and clarification to each other on GI and other IPR related matters. Without prejudice to the generality of such cooperation, the Parties may, by mutual agreement, involve international and regional organisations with expertise in the areas of GIs.

5.   The Parties consider traditional knowledge as an important area and may cooperate on it in future.

6.   The Parties may consider entering into negotiations on the protection of IPRs in future, and the SADC EPA States have as their ambition, and will endeavour, to negotiate as a collective. Should negotiations be launched, the EU will consider including provisions on cooperation and special and differential treatment.

7.   If a Party that is not a party to a future agreement on protection of IPRs negotiated in accordance with paragraph 6 wishes to join, it may negotiate the terms of its entry to that agreement.

8.   If any agreement emanating from negotiations envisaged in paragraphs 6 and 7 were to result in outcomes that prove to be incompatible with the future development of a SADC regional IPRs framework, Parties shall jointly endeavour to adjust this Agreement to bring it in line with that regional framework while ensuring a balance of benefits.

1.   The Parties recognise the importance of transparent public procurement to promote economic development and industrialisation. The Parties agree on the importance of cooperation to enhance the mutual understanding of their respective public procurement systems. The Parties reaffirm their commitment to transparent and predictable public procurement systems in accordance with national laws.

2.   The Parties recognise the importance of continuing to publish their laws, or otherwise make publicly available their laws, regulations and administrative rulings of general application and any modifications thereof, in an officially designated electronic or paper form that is widely disseminated and remains readily accessible to the public. The Parties agree that it is important to respond to reasonable requests to provide information and clarification to each other on above-mentioned matters.

3.   The Parties may consider entering into negotiations on public procurement in future, and the SADC EPA States have as their ambition, and will endeavour, to negotiate as a collective. Should negotiations be launched, the EU agrees to include provisions on cooperation and special and differential treatment.

4.   If a Party that is not a party of a future agreement on public procurement wishes to join, it may negotiate the terms of its entry to that agreement.

5.   If any agreement emanating from negotiations envisaged in paragraphs 3 and 4 were to result in outcomes that prove to be incompatible with the future development of a SADC regional public procurement framework, the Parties shall jointly endeavour to adjust this Agreement to bring it in line with the regional framework while ensuring a balance of benefits.

1.   The Parties recognise that certain business practices, such as anti-competitive agreements or concerted practices and abuses of dominant positions, may restrict trade between the Parties and thereby undermine the fulfilment of the objectives of this Agreement.

2.   The Parties agree to cooperate on competition matters in accordance with Article 13(6).

3.   The Parties may consider entering into negotiations on competition in future, and the SADC EPA States have as their ambition, and will endeavour, to negotiate as a collective. Should negotiations be launched, the EU agrees to include provisions on cooperation and special and differential treatment.

4.   If a Party that is not a party of a future agreement on competition wishes to join, it may negotiate the terms of its entry to that agreement.

5.   If any agreement emanating from negotiations envisaged in paragraphs 3 and 4 were to result in outcomes that prove to be incompatible with the future development of a SADC regional competition framework, the Parties shall jointly endeavour to adjust this Agreement to bring it in line with the regional framework while ensuring a balance of benefits.

1.   This Agreement establishes a free trade area between the Parties, in conformity with the General Agreement on Tariffs and Trade (‘GATT 1994’), and in particular Article XXIV thereof.

2.   This Agreement shall respect the principle of asymmetry, commensurate to the specific needs and capacity constraints of the SADC EPA States, in terms of levels and timing for commitments under this Agreement.

1.   A customs duty shall include any duty or charge of any kind imposed on or in connection with the importation of goods, including any form of surtax or surcharge, but shall not include any:

2.   For all products subject to liberalisation, no new customs duties shall be introduced, nor shall those already applied be increased in trade between the Parties as from the entry into force of this Agreement, with the exception of:

3.   Except as otherwise provided for in this Agreement, for each product the basic duty to which the tariff reduction commitments set out in this Agreement apply, shall be the Most-Favoured-Nation (‘MFN’) rate of duty applied at the date of entry into force of this Agreement.

4.   In cases where the process of tariff reduction does not start at the entry into force of this Agreement, the basic duty to which the tariff reduction commitments set out in this Agreement apply shall be either the rate of duty referred to in paragraph 3, or the MFN rate of duty applied on the starting date of the relevant tariff reduction schedule, whichever is the lower.

5.   At the date of entry into force of this Agreement, the EU shall notify its list of basic duties, to which the tariff reduction commitments set out in this Agreement apply, to the SACU Secretariat and the Ministry of Industry and Trade of Mozambique. At the date of entry into force of this Agreement, SACU and Mozambique shall notify their respective lists of basic duties, to which the tariff reduction commitments set out in this Agreement apply, to the European Commission. After notification, as provided for in this paragraph, each party shall make public each of these lists according to their own internal procedures and within one month after the exchange of the notifications. The Trade and Development Committee shall, at its first meeting after notification and publication, adopt the lists of basic duties communicated by the Parties or SACU, as the case may be. The duties listed in the Schedule of the EU included in PART II of ANNEX I and in the Schedule of Mozambique included in PART II of ANNEX III serve an indicative purpose and do not constitute basic duties within the meaning of paragraph 3.

6.   The reduced duties calculated in accordance with the tariff reduction schedules contained in this Agreement shall be applied rounded to the first decimal place or, in case of specific duties, to the second decimal place.

7.   For those tariff preferences that are expressed as a percentage of the applied MFN rate of duty, if at any moment after the date of entry into force of this Agreement, a Party increases or reduces its applied MFN rate of duty, the rate of duty applied in relation to the other Party shall simultaneously be increased or reduced as long as the margin of preference in accordance with the Party's Schedule is maintained.

8.   For those tariff preferences that are wholly expressed as a fixed rate of duty in this Agreement, if at any moment after the date of entry into force of this Agreement, a Party reduces its applied MFN rate of duty, that reduced rate of duty shall apply in relation to the other Party if and for as long as it is lower than the customs duty fixed rate calculated in accordance with that Party's Schedule.

9.   The provisions of this Article shall not apply to those products excluded from tariff reduction commitments that are denoted by staging category ‘X’ in each Party's Schedule listed in ANNEX I, II and III respectively.

1.   Products originating in Botswana, Lesotho, Mozambique, Namibia and Swaziland shall be imported into the EU in accordance with the duty-free quota-free treatment set out for those countries in ANNEX I.

2.   Products originating in South Africa shall be imported into the EU in accordance with the treatment set out for South Africa in ANNEX I.

1.   Products originating in the EU shall be imported into SACU in accordance with the treatment set out in ANNEX II.

2.   Products originating in the EU shall be imported into Mozambique in accordance with the treatment set out in ANNEX III.

1.   No new customs duties or taxes imposed on or in connection with the exportation of goods shall be introduced, nor shall those already applied be increased, in the trade between the Parties from the date of entry into force of this Agreement, except as otherwise provided for in this Article.

2.   In exceptional circumstances, where justified for specific revenue needs, or where necessary for the protection of infant industries or the environment, or where essential for the prevention or relief of critical general or local shortages of foodstuffs or other products essential to ensure food security, Botswana, Lesotho, Namibia, Mozambique and Swaziland may introduce, after consultation with the EU, temporary customs duties or taxes imposed on or in connection with the exportation of goods, on a limited number of additional products.

3.   In exceptional circumstances, where the SADC EPA States can justify industrial development needs, those SADC EPA States may introduce temporary customs duties or taxes imposed on or in connection with the exportation of a limited number of products to the EU. A SADC EPA State wishing to introduce such temporary custom duties or taxes shall notify the EU of such a duty, providing all relevant information and motivation and shall consult with the EU if the EU so requests. Such temporary duties or taxes shall only be applied on a total number of eight (8) products, as defined at an HS6 tariff line level, or in case of ‘ores and concentrates’ at an HS4 tariff line level, per SADC EPA State at any given time and shall not be applied for a period exceeding twelve (12) years in total. This period can be extended or reinstated for the same product in agreement with the EU.

4.   The following conditions shall apply to paragraph 3 but not to paragraph 2:

5.   Any more favourable treatment consisting in or in relation to customs duties or taxes applied by the SADC EPA States to exports of any product destined for a major trading economy shall, from the entry into force of this Agreement, be accorded to the like product destined for the territory of the EU. For the purpose of this Article, ‘major trading economy’ is defined under Article 28(6).

6.   Whenever a SADC EPA State has reasonable doubts as to whether a consignment of a product to which export duties shall not apply by virtue of paragraphs 1, 3 and 4 has been re-exported from, or re-routed without reaching, the EU to one or more third countries, that SADC EPA State may raise this matter at the Trade and Development Committee.

7.   The Trade and Development Committee shall examine the matter within ninety (90) days. After the examination, if the Trade and Development Committee takes no decision, the customs authorities of the SADC EPA State concerned may request the Trade and Development Committee to decide that the importer of the product concerned into the EU make a declaration that the imported product will be processed in the EU and will not be re-exported to third countries.

8.   If, after a system using such declarations has been in operation for at least ninety (90) days, a SADC EPA State continues to have reasonable doubts as to whether a consignment of a product to which export duties shall not apply by virtue of paragraphs 1, 3 and 4 is re-exported from, or re-routed without reaching, the EU to one or more third countries, that SADC EPA State may inform the Trade and Development Committee of the grounds of its concerns.

9.   Having followed these steps, should no solution be found within thirty (30) days, the SADC EPA State concerned may impose effective measures to prevent such circumvention provided that these measures are the least trade-restrictive and exclude operators who have proven not to be involved in the process of circumvention. The retroactive reinstatement of export duties on the consignment that has been re-exported from the EU to one or more third countries may offer an alternate option.

10.   The Parties agree to review the provisions of this Article in the Joint SADC EPA States — EU Council (‘Joint Council’) no later than three (3) years after the entry into force of this Agreement, taking fully into account their impact on development and diversification of the SADC EPA States' economies.

1.   All fees and charges of whatever character, other than import and export duties and other than taxes within the scope of Article 40, imposed on or in connection with importation or exportation, shall not exceed the cost of services rendered and shall not represent an indirect protection to domestic products or a taxation of imports or exports for fiscal purposes.

2.   Without prejudice to Article 30, no Party shall impose substantial penalties for minor breaches of customs regulations or procedural requirements. In particular, no penalty in respect of any omission or mistake in customs documentation which is easily rectifiable and obviously made without fraudulent intent or gross negligence shall be greater than necessary to serve merely as a warning.

3.   The provisions of this Article shall extend to fees and charges, imposed by governmental authorities in connection with importation and exportation, including those relating to:

4.   Fees and charges shall not be imposed for consular services.

1.   With respect to customs duties as defined in Articles 23(1) and 26(1) and fees and other charges as defined in Article 27, the EU shall extend to the SADC EPA States any more favourable treatment applicable as a result of the EU becoming party to a preferential trade agreement with third parties after the signature of this Agreement.

2.   With respect to customs duties as defined in Articles 23(1) and 26(1) and fees and other charges as defined in Article 27, the SADC EPA States shall, upon request of the EU, extend to the EU any more favourable treatment applicable as a result of the SADC EPA States, individually or collectively as the case may be, becoming party to a preferential trade agreement with any major trading economy after the signature of this Agreement.

3.   By derogation from paragraph 2, the SADC EPA States shall not extend to the EU the treatment applicable as a result of the SADC EPA States, individually or collectively as the case may be, becoming party to a preferential trade agreement with countries of the African, Caribbean and Pacific group or other African countries or regions.

4.   By derogation from paragraph 2, where a SADC EPA State demonstrates that as a result of a preferential trade agreement it has entered into with a major trading economy, it receives substantially more favourable treatment overall than that offered by the EU, the Parties shall consult and jointly decide how best to implement the provisions of paragraph 2.

5.   The provisions of this Article shall not be construed so as to oblige the EU or any SADC EPA State to extend reciprocally any preferential treatment applicable as a result of the EU or any SADC EPA State being party to a preferential trade agreement with third parties on the date of signature of this Agreement.

6.   For the purposes of this Article, ‘major trading economy’ means any developed country, or any country accounting for a share of world merchandise exports above 1 per cent in the year before the entry into force of the agreement referred to in paragraph 2, or any group of countries acting individually, collectively or through an economic integration agreement accounting collectively for a share of world merchandise exports above 1,5 per cent in the year before the entry into force of the agreement referred to in paragraph 2.

7.   By derogation from paragraph 1, where the EU becomes party to a preferential trade agreement with a third party after the signature of this Agreement and such a preferential trade agreement provides for more favourable treatment to the third party than that granted by the EU to South Africa pursuant to this Agreement, the EU and South Africa shall enter into consultations with a view to deciding whether and how to extend the more favourable treatment contained in the preferential trade agreement to South Africa. The Joint Council may adopt proposals to amend the provisions of this Agreement in accordance with Article 117.

8.   By derogation from paragraph 2, where SACU or a SADC EPA LDC becomes party to a preferential trade agreement with a major trading economy and such a preferential trade agreement provides for more favourable treatment granted by SACU or the SADC EPA LDC concerned to the major trading economy than to the EU pursuant to this Agreement, SACU or the respective SADC EPA LDC and the EU shall enter into consultations with a view to deciding whether and how to extend the more favourable treatment contained in the preferential trade agreement to the EU. The Joint Council may adopt proposals to amend the provisions of this Agreement in accordance with Article 117.

1.   Customs duties shall be levied only once for goods originating in the EU or in the SADC EPA States when imported into the territory of the EU or the SADC EPA States as the case may be.

2.   Any duty paid upon importation in a SADC EPA State which is also a SACU Member State shall be refunded fully when the goods are re-exported from the customs territory of that SADC EPA State of first importation to a SADC EPA State which is not also a SACU Member State. Such products shall then be subject to the duty in the country of consumption. Pending agreement by the SADC EPA States on the procedures for this paragraph, the operation of this paragraph shall be in accordance with applicable customs legislation and procedures.

3.   The Parties agree to cooperate with a view to facilitating the circulation of goods and simplifying customs procedures, within the SADC EPA States, in particular as provided for in Article 13(2).

1.   The Parties agree that administrative cooperation is essential for the implementation and the control of the preferential treatment granted under this Chapter and underline their commitment to combat irregularities and fraud in customs and related matters.

2.   The Parties also agree to cooperate in ensuring that the necessary institutional structures enable the responsible authorities to effectively respond to requests for assistance in a timely manner.

3.   For the purpose of this Article, and without prejudice to Article 9 of Protocol 2, a failure to provide administrative cooperation shall mean, inter alia:

4.   For the purpose of this Article, a finding of irregularities or fraud may be made, inter alia, where there is a rapid increase, without legitimate explanation, in imports of goods exceeding the usual level of production and export capacity of the other Party that is linked to objective information concerning irregularities or fraud.

5.   Where a Party has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud, the Party concerned may, in exceptional circumstances, temporarily suspend the relevant preferential treatment of the product or the products concerned, and of the specific origin concerned in accordance with this Article.

6.   For the purposes of this Article, exceptional circumstances mean those circumstances which have or might have a significant negative effect on a Party if a relevant preferential treatment of the product or the products concerned is to be continued.

7.   The application of a temporary suspension pursuant to paragraph 5 shall be subject to the following conditions:

1.   Subject to the provisions of this Article, nothing in this Agreement shall prevent a Party from adopting measures in accordance with Article XIX of the GATT 1994, the WTO Agreement on Safeguards, Article 5 of the WTO Agreement on Agriculture annexed to the Marrakesh Agreement Establishing the World Trade Organisation (‘WTO Agreement’) and any other relevant WTO Agreements.

2.   Notwithstanding paragraph 1, the EU shall, in the light of the overall development objectives of this Agreement and the small size of the economies of the SADC EPA States, exclude imports from any SADC EPA State from any measures taken pursuant to Article XIX of the GATT 1994, the WTO Agreement on Safeguards and Article 5 of the WTO Agreement on Agriculture.

3.   The provisions of paragraph 2 shall apply for a period of five (5) years, beginning from the date of entry into force of this Agreement. Not later than one hundred and twenty (120) days before the end of this period, the Joint Council shall review the operation of paragraph 2 in the light of the development needs of the SADC EPA States, with a view to determining their possible extension for a further period.

4.   The provisions of paragraph 1 shall not be subject to the provisions of Part III.

1.   Notwithstanding Article 33, after having examined alternative solutions, a Party or SACU, as the case may be, may apply safeguard measures of limited duration which derogate from the provisions of Articles 24 and 25, under the conditions and in accordance with the procedures laid down in this Article.

2.   Safeguard measures referred to in paragraph 1 may be taken if, as a result of the obligations incurred by a Party under this Agreement, including tariff concessions, a product originating in one Party is being imported into the territory of the other Party or SACU, as the case may be, in such increased quantities and under such conditions as to cause or threaten to cause:

These safeguard measures shall not exceed what is necessary to remedy or prevent the serious injury or disturbances.

3.   Safeguard measures referred to in this Article shall take the form of one or more of the following:

4.   Without prejudice to paragraphs 1 to 3, where any product originating in any SADC EPA State is being imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations referred to in paragraphs 2(a) to (c) to a like or directly competitive production sector of one or several of the EU's outermost regions, the EU may take surveillance or safeguard measures limited to the region or regions concerned in accordance with the procedures laid down in paragraphs 6 to 8.

5.   Without prejudice to paragraphs 1 to 3, where any product originating in the EU is being imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations referred to in paragraph 2(a) to (c) to a SADC EPA State or SACU, as the case may be, the SADC EPA State concerned or SACU, as the case may be, may take surveillance or safeguard measures limited to its territory in accordance with the procedures laid down in paragraphs 6 to 8.

6.   Safeguard measures referred to in this Article:

7.   For the implementation of paragraphs 1 to 6, the following provisions shall apply:

8.   Where delay would cause damage which would be difficult to repair, the importing Party or SACU, as the case may be, may take the measures provided for in paragraphs 3, 4, and/or 5 on a provisional basis without complying with the requirements of paragraph 7.

9.   If the importing Party or SACU, as the case may be, subjects imports of a product to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows liable to give rise to the problems referred to in this Article, it shall inform the Trade and Development Committee without delay.

10.   Safeguard measures adopted under the provisions of this Article shall not be subject to WTO Dispute Settlement provisions.

1.   Notwithstanding Article 34, a safeguard measure in the form of an import duty may be applied if, during any given twelve-month period, the volume of imports into SACU of an agricultural product listed in Annex IV originating in the EU exceeds the reference quantity for the product therein indicated.

2.   A duty which shall not exceed 25 per cent of the current WTO bound tariff or 25 percentage points, whichever is higher, may be imposed to the agricultural products referred to in paragraph 1. Such duty shall not exceed the prevailing MFN applied rate.

3.   Safeguard measures referred to in this Article shall be maintained for the remainder of the calendar year or five (5) months, whichever is the longer.

4.   Safeguard measures referred to in this Article shall not be maintained or applied with respect to the same good at the same time as:

5.   Safeguard measures referred to in this Article shall be implemented in a transparent manner. Within ten (10) days after applying such a measure, SACU shall notify the EU in writing and shall provide relevant data concerning the measure. On request, SACU shall consult the EU regarding the application of the measure. SACU shall also notify the Trade and Development Committee within thirty (30) days after such imposition.

6.   The implementation and operation of this Article may be the subject of discussion and review in the Trade and Development Committee. On request of either Party, the Trade and Development Committee may review the reference quantities and agricultural products as provided for in this Article.

7.   The provisions of this Article may only be applied during the period of twelve (12) years from the date of entry into force of this Agreement.

1.   The Parties acknowledge that the removal of barriers to trade between them, as envisaged in this Agreement, may pose significant challenges to the SADC EPA States' producers in the agricultural and food sectors and agree to consult with each other on these issues.

2.   Notwithstanding Article 34, where essential for the prevention or relief of critical general or local shortages of foodstuffs or other products in order to ensure food security of a SADC EPA State and where this situation gives rise or is likely to give rise to major difficulties for such a SADC EPA State, that SADC EPA State may adopt safeguard measures in accordance with the procedure set out in paragraph 7(b) to (d), 8 and 9 of Article 34. The measure will be reviewed at least annually and shall be removed as soon as the circumstances leading to its adoption cease to exist.

1.   The Parties acknowledge the sensitivity of the liberalised products listed in Annex V for the BLNS States.

2.   Notwithstanding Article 34, in the event that one of the products listed in Annex V and originating in the EU being imported into the territory of a BLNS State in such increased quantities as to cause or threaten to cause serious injury in any BLNS State, that BLNS State may apply a transitional safeguard measure.

3.   Safeguard measures referred to in paragraph 2 shall take the form of a duty on the product concerned listed in Annex V up to a level which does not exceed the MFN applied rate at the time of taking the measure or introduce a zero duty tariff rate quota (TRQ), provided that the level of the duty outside the quota does not exceed the MFN applied rate at the time of taking the measure.

4.   Thirty (30) days in advance of applying the safeguard measure, the BLNS State concerned shall notify the measure to the EU in writing. After notification, the BLNS State concerned shall have sixty (60) days to provide all relevant information concerning the measure.

5.   Without prejudice to paragraph 2, the BLNS State concerned and the EU shall, upon request of either Party, enter into consultations on the safeguard measure.

6.   Safeguard measures referred to in this Article shall be applied for a period not exceeding four (4) years. Where the circumstances warranting imposition of the measure continue to exist, such a measure may be extended for a further period of no more than four (4) years.

7.   No safeguard measure referred to in this Article may be adopted after twelve (12) years from the entry into force of this Agreement.

1.   Notwithstanding Article 34, Botswana, Lesotho, Namibia, Mozambique and Swaziland may temporarily suspend further reductions of the rate of customs duty or increase the rate of customs duty up to a level which does not exceed the applied MFN duty, where a product originating in the EU, as a result of the reduction of duties, is being imported into its territory in such increased quantities and under such conditions as to threaten the establishment of an infant industry, or cause or threaten to cause disturbances to an infant industry producing like or directly competitive products.

2.   Safeguard measures adopted in accordance with the conditions of paragraph 1 by a SADC EPA State which is also a SACU Member State shall take the form of the levying of additional duties exclusively by the SADC EPA State invoking this provision.

3.   Safeguard measures referred to in paragraph 1 may be applied for a period of up to eight (8) years and may be further extended by a decision of the Joint Council

4.   With regard to the implementation of paragraphs 1 and 2, the following provisions shall apply:

5.   In critical circumstances where delay would cause damage which would be difficult to repair, the SADC EPA State concerned may take measures provided for in paragraph 1 on a provisional basis without complying with the requirements of paragraph 4. Such measure may be taken for a maximum period of two hundred (200) days. The duration of any such provisional measure shall be counted as part of the period referred to in paragraph 3. In taking such provisional measures, the interest of all parties involved shall be taken into account. The importing SADC EPA State concerned shall inform the EU, and it shall immediately refer the matter to the Trade and Development Committee for examination of such provisional measure.

6.   SACU Member States shall have the right to have recourse to Article 26 of the SACU Agreement.

1.   The Parties recognise that internal taxes and other internal charges, and laws, regulations and requirements affecting the internal sale, offering for sale, purchase, transportation, distribution or use of products, and internal quantitative regulations requiring the mixture, processing or use of products in specified amounts or proportions, should not be applied to imported or domestic products so as to afford protection to domestic production.

2.   Imported products originating in the other Party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products. Moreover, the Parties shall not otherwise apply internal taxes or other internal charges to imported or domestic products in a manner contrary to the principles set forth in paragraph 1 (4).

3.   Imported products originating in the other Party shall be accorded treatment no less favourable than that accorded to like domestic products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. The provisions of this paragraph shall not prevent the application of differential internal transportation charges which are based exclusively on the economic operation of the means of transport and not on the nationality of the product.

4.   The Parties shall not establish or maintain any internal quantitative regulation relating to the mixture, processing or use of products in specified amounts or proportions which requires, directly or indirectly, that any specified amount or proportion of any product which is the subject of the regulation must be supplied from domestic sources. Moreover, Parties shall not otherwise apply internal quantitative regulations in a manner contrary to the principles set forth in paragraph 1.

5.   No internal quantitative regulation relating to the mixture, processing or use of products in specified amounts or proportions shall be applied in such a manner as to allocate any such amount or proportion among external sources of supply.

6.   The provisions of this Article shall not apply to laws, regulations or requirements governing the procurement by governmental agencies of products purchased for governmental purposes and not with a view to commercial resale or with a view to use in the production of goods for commercial sale.

7.   The provisions of this Article shall not prevent the payment of subsidies exclusively to domestic producers, including payments derived from the proceeds of internal taxes or charges applied consistently with the provisions of this Article and subsidies effected through governmental purchases of domestic products.

8.   The Parties recognise that internal maximum price control measures, even though conforming to the other provisions of this Article, can have effects prejudicial to the interests of Parties supplying imported products. Accordingly, Parties applying such measures shall take account of the interests of exporting Parties with a view to avoiding to the fullest practicable extent such prejudicial effects.

9.   The provisions of this Article shall not prevent any Party from establishing or maintaining internal quantitative regulations relating to exposed cinematograph films and meeting the requirements of Article IV of the GATT 1947.

1.   In order to ensure compliance with the provisions of this Chapter and effectively respond to the objectives laid down in Article 41, the Parties shall:

2.   The Parties shall prepare and develop an enhanced cooperation on the implementation of the World Customs Organisation (‘WCO’) Framework of Standards to Secure and Facilitate Global Trade of 2005. This cooperation shall include initiatives in view of working towards the mutual recognition of the Authorised Economic Operator status and the exchange of advance information to allow an effective risk assessment and management for security purposes.

3.   The Parties shall provide mutual administrative assistance in customs matters in accordance with the provisions of Protocol 2.

1.   The Parties agree that their respective trade and customs legislation and procedures shall to the extent possible be based on:

2.   In order to improve working methods and to ensure transparency and efficiency of customs operations, the Parties shall:

1.   The Parties shall ensure freedom of transit through their territory via the route most convenient for transit. Any controls or requirements must be non-discriminatory, proportionate and applied uniformly.

2.   Without prejudice to legitimate customs control, the Parties shall accord to traffic in transit treatment no less favourable than that accorded to domestic goods, exports and imports, and their movement.

3.   The Parties shall:

1.   The Agreement on Implementation of Article VII of the GATT 1994 (‘WTO Agreement on Customs Valuation’) shall govern customs valuation rules applied to trade covered by this Agreement.

2.   The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.

1.   The Parties shall promote harmonisation of customs legislation, procedures, standards and requirements.

2.   Each Party shall determine the content and pace of this process.

1.   The Parties recognise the importance of supporting the SADC EPA States' customs administrations for the implementation of this Chapter, in line with the provisions of Chapter III of Part I.

2.   The priority areas for such support are:

3.   The Parties recognise the need for specific needs assessment studies taking into account the situation in each country, using WTO and WCO needs assessment instruments or any other mutually agreed instrument.

1.   The Parties recognise the need for transitional arrangements to ensure the smooth implementation of the provisions of this Chapter.

2.   In view of the need to enhance their capacity in the area of customs and trade facilitation and without prejudice to their WTO rights and obligations, the SADC EPA States shall benefit from a transitional period of eight (8) years to meet those requirements referred to in Articles 27, 43, 44, and 45 where the need for capacity building exists at the time of entry into force of this Agreement.

3.   The Joint Council may decide to extend this transitional period by two (2) years in case the necessary capacity has not yet been attained.

1.   The Parties hereby establish a Special Committee on Customs and Trade Facilitation, composed of representatives of the Parties.

2.   The functions of the Special Committee on Customs and Trade Facilitation shall include:

3.   The Special Committee on Customs and Trade Facilitation shall meet on a date and with an agenda agreed in advance by the Parties.

4.   The Special Committee on Customs and Trade Facilitation shall be chaired alternatively by either Party.

5.   The Special Committee on Customs and Trade Facilitation shall report to the Trade and Development Committee.

1.   The Parties affirm their commitment to the rights and obligations provided for in the Agreement on Technical Barriers to Trade (‘WTO TBT Agreement’).

2.   Those rights and obligations shall underlie the activities of the Parties under this Chapter.

1.   The provisions of this Chapter shall apply to standards, technical regulations, and conformity assessment procedures as defined in the WTO TBT Agreement in so far as they affect trade covered by this Agreement.

2.   For the purposes of this Chapter, the definitions used by the WTO TBT Agreement shall apply.

1.   The Parties reaffirm the principle of transparency in the application of technical regulations and standards in accordance with the WTO TBT Agreement.

2.   The Parties recognise the importance of effective mechanisms for consultation, notification and exchange of information with respect to technical regulations and standards in accordance with the WTO TBT Agreement.

3.   The Parties agree to establish an early warning mechanism to ensure that the SADC-EPA States are informed in advance of new measures of the EU that may affect SADC EPA exports to the EU. The Parties shall make optimal use of existing mechanisms and avoid unnecessary duplications to multilateral or unilateral mechanisms.

1.   The Parties recognise the importance of cooperating in the areas of technical regulations, standards, metrology, accreditation and conformity assessment in order to achieve the objectives of this Chapter.

2.   The Parties agree that the following are priority areas for cooperation:

1.   The Parties affirm their commitment to the rights and obligations provided for in the Agreement on the Application of Sanitary and Phytosanitary Measures (‘WTO SPS Agreement’), the International Plant Protection Convention (‘IPPC’), the Codex Alimentarius Commission and the World Organisation for Animal Health (‘OIE’).

2.   Those rights and obligations shall underlie the activities of the Parties under this Chapter.

1.   The provisions of this Chapter shall apply to SPS measures as defined in the WTO SPS Agreement.

2.   For the purposes of this Chapter, definitions used in the WTO SPS Agreement and international standard-setting bodies, namely the Codex Alimentarius Commission, the IPPC and the OIE shall apply.

1.   The respective SPS authorities shall be the competent authorities in the Parties for the implementation of the measures referred to in this Chapter.

2.   The Parties shall, in accordance with this Agreement, inform each other of their respective competent SPS authorities and any changes thereto.

1.   The Parties reaffirm the principle of transparency in the application of SPS measures, in accordance with the WTO SPS Agreement.

2.   The Parties recognise the importance of effective mechanisms for consultation, notification and exchange of information with respect to SPS measures in accordance with the WTO SPS Agreement.

3.   The importing Party shall inform the exporting Party of any changes in its sanitary and phytosanitary import requirements that may affect trade falling under the scope of this Chapter. The Parties undertake to establish mechanisms for the exchange of such information where appropriate.

4.   The Parties will apply the principle of zoning or compartmentalisation when defining import conditions, taking into account international standards. Zones or compartments of defined sanitary or phytosanitary status may also be identified and proposed jointly by the Parties, on a case by case basis, wherever possible, in order to avoid disruption to trade.

1.   The Parties agree to establish an early-warning system to ensure that the SADC EPA States are informed in advance of new SPS measures of the EU that may affect SADC EPA exports to the EU. This system shall be based on existing mechanisms where appropriate.

2.   The Parties, agree to collaborate in the further development of the epidemiological surveillance network on animal diseases and in the domain of plant health. The Parties will exchange information on the occurrence of pests and diseases of known and immediate danger to the other Party.

1.   The Parties underline the importance of the agricultural sector to the SADC EPA States for food security, generating rural employment, increasing incomes of farm households, creating an inclusive rural economy, and as a basis for wider industrialisation and sustainable development, as well as to contribute to the objectives of this Agreement.

2.   The use of export subsidies on agricultural goods in the trade between the Parties shall not be allowed from the date of entry into force of this Agreement.

3.   An agricultural partnership is established between the EU and the SADC EPA States to facilitate an exchange of views between the Parties on agriculture, inter alia, food security, development, regional value chains and integration. The coverage of issues and operational rules for the agricultural partnership shall be established by common agreement of the Parties acting within the Committee referred to in Article 103.

1   Subject to the provisions of Articles 70 and 71, the Parties undertake to impose no restrictions on and to allow all payments for current transactions between their residents to be made in freely convertible currency.

2.   The Parties may take the necessary measures to ensure that the provisions of paragraph 1 are not used to make transfers that are not compliant with a Party's laws and regulations.

1.   Where, in exceptional circumstances, payments and capital movements between the Parties cause or threaten to cause serious difficulties for the operation of monetary policy or exchange rate policy in one or more SADC EPA States or one or more Member States of the European Union, safeguard measures with regard to payments and capital movements that are strictly necessary may be taken by the EU or the SADC EPA State concerned for a period not exceeding six (6) months.

2.   The Joint Council shall be informed forthwith of the adoption of any safeguard measure and, as soon as possible, of a time schedule for its removal.

1.   The Parties may negotiate trade in services to extend the scope of this Agreement. In this regard, Botswana, Lesotho, Mozambique and Swaziland (‘Participating SADC EPA States’) on the one hand, and the EU on the other hand, have started and will continue to negotiate trade in services.

2.   The negotiations between the EU and the Participating SADC EPA States shall be guided by the following principles:

3.   The EU and the Participating SADC EPA States agree to cooperate on strengthening the regulatory frameworks of the Participating SADC EPA States as well as to support the implementation of the commitments resulting from the negotiations in accordance with Article 13(5). The Parties recognise that in accordance with Article 13(8) trade capacity building can support the development of economic activities.

4.   If a Party that is not party to an agreement on trade in services negotiated in accordance with paragraphs 1 and 2 wishes to join, it may negotiate the terms of its entry to that agreement.

5.   If any agreement emanating from negotiations envisaged in paragraphs 1 and 4 were to result in outcomes that prove to be incompatible with the future development of a SADC regional services framework, the Parties shall negotiate to bring this Agreement in line with such regional framework while ensuring a balance of benefits.

1.   The EU and the Participating SADC EPA States agree to cooperate on investment in accordance with Article 13(6) and may in future consider negotiating an agreement on investment in economic sectors other than services.

2.   If a Party that is not party to an agreement on investment negotiated in accordance with paragraph 1 wishes to join, it may negotiate the terms of its entry to that agreement.

3.   If any agreement emanating from negotiations envisaged in paragraphs 1 and 2 were to result in outcomes that prove to be incompatible with the future development of a SADC regional investment framework, the Parties shall jointly endeavour to bring this Agreement in line with such regional framework while ensuring a balance of benefits.

1.   The objective of Part III is to avoid or settle any dispute between the Parties concerning the interpretation and application of this Agreement with a view to arrive at, where possible, a mutually agreed solution.

2.   For disputes that relate to the collective action of SACU, SACU will act as a collective for the purposes of this Part, and the EU shall act against SACU as such.

3.   For disputes that relate to an individual action of a SADC EPA State, the SADC EPA State concerned shall act individually for the purposes of this Part, and the EU shall act only against the specific State that it considers has infringed a provision of this Agreement.

1.   Part III shall apply to any dispute concerning the interpretation and application of this Agreement, except as otherwise expressly provided.

2.   Notwithstanding paragraph 1, the procedure set out in Article 98 of the Cotonou Agreement shall be applicable in the event of a dispute concerning the financing pertaining to development cooperation between the Parties.

1.   The Parties shall endeavour to resolve any dispute referred to in Article 76 by entering into consultations in good faith with the aim of reaching an amicable solution.

2.   A Party shall seek consultations by means of a written request to the other Party, copied to the Trade and Development Committee, identifying the measure at issue and the provisions of this Agreement with which it considers the measure not to be in conformity.

3.   Consultations shall be held within forty (40) days of the date of the receipt of the request. The consultations shall be deemed concluded within sixty (60) days of the date of the receipt of the request, unless both Parties agree to continue consultations. All information disclosed during the consultations shall remain confidential.

4.   Consultations on matters of urgency, including those regarding perishable or seasonal goods, shall be held within fifteen (15) days of the date of the receipt of the request, and shall be deemed concluded within thirty (30) days of the date of the receipt of the request.

5.   If consultations are not held within the timeframes laid down in paragraph 3 or 4 respectively, or if consultations have been concluded and no mutually agreed solution has been reached, the complaining Party may request the establishment of an arbitration panel in accordance with Article 79.

1.   If consultations fail to produce a mutually agreed solution, the Parties may, by agreement, seek recourse to a mediator. Unless the Parties agree otherwise, the terms of reference for the mediation shall be the matter referred to in the request for consultations.

2.   Unless the Parties agree on a mediator within fifteen (15) days of the date of the agreement to request mediation, the Chairperson of the Trade and Development Committee, or his or her delegate, shall select by lot a mediator from the pool of individuals who are on the list referred to in Article 94 and are not nationals of either Party. The selection shall be made within twenty-five (25) days of the date of the submission of agreement to request mediation and in the presence of a representative of each Party. The mediator will convene a meeting with the Parties no later than thirty (30) days after being selected. The mediator shall receive the submissions of each Party no later than fifteen (15) days before the meeting and notify an opinion no later than forty-five (45) days after having been selected.

3.   The mediator's opinion may include a recommendation on how to resolve the dispute consistent with the provisions of this Agreement. The mediator's opinion is non-binding.

4.   The Parties may agree to amend the time limits referred to in paragraph 2. The mediator may also decide to amend these time limits upon request of any of the Parties or on his own initiative, given the particular difficulties experienced by the Party concerned or the complexities of the case.

5.   The proceedings involving mediation, in particular all information disclosed and positions taken by the Parties during these proceedings, shall remain confidential.

1.   Where the Parties have failed to resolve the dispute by recourse to consultations as provided for in Article 77, or by recourse to mediation as provided for in Article 78, the complaining Party may request the establishment of an arbitration panel.

2.   The request for the establishment of an arbitration panel shall be made in writing to the Party complained against and the Trade and Development Committee. The complaining Party shall identify in its request the specific measures at issue, and it shall explain how such measures constitute a breach of the provisions of this Agreement.

1.   An arbitration panel shall be composed of three (3) arbitrators.

2.   Each Party shall appoint one arbitrator within ten (10) days of the date of the receipt of the request for the establishment of an arbitration panel. The two (2) arbitrators shall appoint a third arbitrator, who shall be the chairperson of the arbitration panel, within twenty (20) days of the receipt of the request for the establishment of a panel. The chairperson of the arbitration panel shall not be a national of the Parties nor permanently reside in the territory of the Parties.

3.   If all three (3) arbitrators are not appointed within twenty (20) days, or if, within ten (10) days of the appointment of the third arbitrator, either Party submits a reasoned written objection to the appointed arbitrators to the Trade and Development Committee, either Party may request the Chairperson of the Trade and Development Committee, or her or his delegate, to select all three (3) members by lot from the list established under Article 94, one among the individuals proposed by the complaining Party, one among the individuals proposed by the Party complained against, and one among the individuals selected by the Parties to act as chairperson. Where the Parties agree on one or more of the members of the arbitration panel, any remaining members shall be selected by the procedure laid down in this paragraph.

4.   The Chairperson of the Trade and Development Committee, or her or his delegate, shall select the arbitrators within five (5) days of receipt of the request made by either Party referred to in paragraph 3 and in the presence of a representative of each Party.

5.   The date of establishment of the arbitration panel shall be the date on which the three (3) arbitrators are finally selected.

1.   The arbitration panel shall notify its ruling to the Parties and to the Trade and Development Committee within one hundred and fifty (150) days from the date of the establishment of the arbitration panel. Where it considers that this deadline cannot be met, the chairperson of the arbitration panel must notify the Parties and the Trade and Development Committee in writing, stating the reasons for the delay and the date on which the panel plans to conclude its work. Under no circumstances should the ruling be notified later than one hundred and eighty (180) days from the date of the establishment of the arbitration panel.

2.   In cases of urgency, including those involving perishable and seasonal goods, the arbitration panel shall make every effort to notify its ruling within ninety (90) days from the date of its establishment. The arbitration panel may give a preliminary ruling within ten (10) days of its establishment on whether it deems the case to be urgent.

3.   Either Party may request the arbitration panel to provide a recommendation as to how the Party complained against could bring itself into compliance.

1.   No later than thirty (30) days after the receipt of notification of the arbitral ruling to the Parties, the Party complained against shall notify the complaining Party and the Trade and Development Committee of the reasonable period of time it will require to bring itself into compliance with the arbitral ruling.

2.   Upon notification by the Party complained against, the Parties shall seek to agree on such a reasonable period of time. If there is disagreement between the Parties on the reasonable period of time to comply with the arbitral ruling, the complaining Party shall, within thirty (30) days of the notification made under paragraph 1, request in writing the original arbitration panel to determine the length of the reasonable period of time. Such request shall be notified simultaneously to the Party complained against and to the Trade and Development Committee. The arbitration panel shall notify its ruling to the Parties and to the Trade and Development Committee within thirty (30) days from the date of the receipt of the request.

3.   The arbitration panel shall, in determining the length of the reasonable period of time, take into consideration the length of time that it will normally take the Party complained against to adopt comparable legislative or administrative measures to those identified by such Party as being necessary to ensure compliance. The arbitration panel shall also take into consideration capacity constraints and the different level of development which may affect the adoption of the necessary measures by the Party complained against.

4.   In the event of the original arbitration panel, or some of its members, being unable to reconvene, the procedures set out in Article 80 shall apply. The time limit for notifying the ruling shall be forty-five (45) days from the date of the receipt of the request referred to in paragraph 2.

5.   The reasonable period of time may be extended by agreement of the Parties.

1.   The Party complained against shall notify the complaining Party and the Trade and Development Committee, before the end of the reasonable period of time, of any measure that it has taken to comply with the arbitral ruling.

2.   In the event of a disagreement between the Parties concerning the compatibility of any measure notified under paragraph 1 with the provisions of this Agreement, the complaining Party may request in writing the original arbitration panel to rule on the matter. Such request shall identify the specific measure at issue and it shall explain how such measure is incompatible with the provisions of this Agreement. The arbitration panel shall notify its ruling within ninety (90) days of the date of the receipt of the request. In cases of urgency, including those involving perishable and seasonal goods, the arbitration panel shall notify its ruling within forty-five (45) days of the date of the receipt of the request.

3.   In the event of the original arbitration panel, or some of its members, being unable to reconvene, the procedures set out in Article 80 shall apply. The time limit for notifying the ruling shall be one hundred and five (105) days from the date of the receipt of the request referred to in paragraph 2.

1.   If the Party complained against fails to notify any measure taken to comply with the arbitral ruling before the expiry of the reasonable period of time, or if the arbitration panel rules that the measure notified under Article 85(1) is not compatible with the provisions of this Agreement, the Party complained against shall, if so requested by the complaining Party, present an offer for compensation. Such compensation may include or consist of financial compensation, although nothing in this Agreement shall oblige the Party complained against to offer such financial compensation.

2.   If no agreement on compensation is reached within thirty (30) days of the end of the reasonable period of time or of the arbitral ruling under Article 85 that a measure taken to comply is not compatible with this Agreement, the complaining Party shall be entitled, upon notification to the Party complained against, to adopt appropriate measures.

3.   In adopting such measures the complaining Party shall seek to select measures proportionate to the violation which least affect the attainment of the objectives of this Agreement and shall take into consideration their impact on the economy of the Party complained against and on the individual SADC EPA States.

4.   If the EU fails to notify any measure taken to comply with the arbitral ruling by the expiry of the reasonable period of time at the latest, or if the arbitration panel rules that the measure notified under Article 85(1) is not compatible with that Party's obligations under this Agreement, and the complaining Party asserts that the adoption of appropriate measures would result in significant damage to its economy, the EU shall consider providing financial compensation.

5.   The EU shall exercise due restraint in asking for compensation or adopting appropriate measures pursuant to paragraphs 1 or 2.

6.   Compensation or appropriate measures shall be temporary and shall be applied only until any measure found to violate the provisions of this Agreement has been withdrawn or amended so as to bring it into conformity with those provisions or until the Parties have agreed to settle the dispute.

7.   For the purposes of Articles 86 and 87, appropriate measures refer to measures similar to those available under Understanding on Rules and Procedures Governing the Settlement of Disputes contained in Annex 2 of the WTO Agreement (‘DSU’).

1.   The Party complained against shall notify the complaining Party and the Trade and Development Committee of any measure it has taken to comply with the arbitral ruling and of its request to end the application of appropriate measures by the complaining Party.

2.   If the Parties do not reach an agreement on the compatibility of the notified measure with the provisions of this Agreement within thirty (30) days of the date of notification, the complaining Party shall request in writing the original arbitration panel to rule on the matter. Such request shall be notified to the Party complained against and to the Trade and Development Committee. The arbitral ruling shall be notified to the Parties and to the Trade and Development Committee within forty-five (45) days of the date of the receipt of the request. If the arbitration panel rules that any measure taken to comply is not in conformity with the provisions of this Agreement, the arbitration panel shall determine whether the complaining Party may continue to apply appropriate measures. If the arbitration panel rules that any measure taken to comply is in conformity with the provisions of this Agreement, the appropriate measures shall be terminated.

3.   In the event of the original arbitration panel, or some of its members, being unable to reconvene, the procedures laid down in Article 80 shall apply. The period for notifying the ruling shall be sixty (60) days from the date of the receipt of the request referred to in paragraph 2.

1.   The Parties shall agree on Rules of Procedure and a Code of Conduct within twelve (12) months of the entry into force of this Agreement which shall be adopted by the Joint Council.

2.   Any meeting of the arbitration panel shall be open to the public in accordance with the Rules of Procedure, unless the arbitration panel decides otherwise on its own motion or at the request of the Parties. The arbitration panel shall meet in closed session when the submissions or arguments of a Party contain confidential information.

1.   The written and oral submissions of the Parties shall be made in any official language of the Parties.

2.   The Parties shall endeavour to agree on a common working language for any specific proceedings under this Part. If the Parties are unable to agree on a common working language, each Party shall arrange for and bear the costs of the translation of its written submissions and interpretation at the hearings into the language chosen by the Party complained against, unless such language is an official language of that Party. The EU shall, when seeking to agree on a common working language, take into account the potential impact of such costs on the SADC EPA States.

1.   The arbitration panel shall make every effort to take any decision by consensus. Where, nevertheless, a decision cannot be arrived at by consensus, the matter at issue shall be decided by majority vote.

2.   The ruling shall set out the findings of fact, the applicability of the relevant provisions of this Agreement and the reasoning behind any findings and conclusions that it makes. The Trade and Development Committee shall make the arbitral ruling publicly available unless it decides not to do so.

1.   The Trade and Development Committee shall, no later than three (3) months after the entry into force of this Agreement, establish a list of twenty-one (21) individuals who are willing and able to serve as arbitrators. Each of the Parties shall select eight (8) individuals to serve as arbitrators. The Parties shall also agree on five (5) individuals who are not nationals of either Party and who shall act as chairperson of the arbitration panel. The Trade and Development Committee will ensure that the list is always maintained in accordance with this Article.

2.   Arbitrators shall have specialised knowledge on matters covered by this Agreement or experience in law and international trade. They shall be independent, serve in their individual capacities and not take instructions from any organisation or government, or be affiliated with the governments of any of the Parties, and shall comply with the Code of Conduct annexed to the Rules of Procedures.

3.   The Trade and Development Committee may establish an additional list of fifteen (15) individuals having a sectoral expertise in specific matters covered by this Agreement. When recourse is made to the selection procedure of Article 80, the Chairperson of the Trade and Development Committee may use such a sectoral list upon agreement of both Parties.

1.   Arbitration bodies set up under this Agreement shall not arbitrate disputes on a Party's rights and obligations under the WTO Agreement.

2.   Recourse to the dispute settlement provisions of this Agreement shall be without prejudice to any action in the WTO framework, including dispute settlement action. However, where a Party has, with regard to a particular measure, initiated a dispute settlement proceeding under this Agreement or under the WTO Agreement, it may not initiate a dispute settlement proceeding regarding the same measure in the other forum until the first proceeding has ended. For the purposes of this paragraph, dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a Party's request for the establishment of a panel under Article 6 of the DSU.

3.   Nothing in this Agreement shall preclude a Party from implementing the suspension of obligations authorised by the Dispute Settlement Body of the WTO.

1.   Any time limits referred to in this Part, including the limits for the arbitration panels to notify their rulings, shall be counted in calendar days from the day following the act or fact to which they refer.

2.   Any time limits referred to in this Part may be extended by mutual agreement of the Parties.