The problem in context

Participation in the WTO

Botswana is a founding member of the WTO; it joined the General Agreement on Tariffs and Trade (GATT) in 1987 and opened its mission in Geneva in 2001. The mission also serves other Geneva-based UN and specialized agencies. The Ministry of Trade and Industry is responsible for foreign trade policy formulation and implementation, negotiations on bilateral agreements, licensing and regulation of domestic trade and regulation, and monitoring of domestic consumer issues. Within the Ministry, the Department of International Trade is responsible for foreign trade policy, including co-ordination of WTO negotiations.

Botswana's new foreign trade policy is aimed at achieving free and dependable access for its exports and lowering the cost of importing goods by reducing tariffs and trade barriers. Reduction of tariffs on imported inputs is aimed at promoting manufacturing for export and domestic consumption.

Botswana's foreign trade policy has been influenced by the concentration of the direction of its exports (to Europe and South Africa). Diamonds, the main export commodity, are exported to the United Kingdom under a special arrangement with De Beers, while beef enters the European Union (EU) market under preferential access under the Cotonou Agreement (formerly the Lomé Agreement). The little that Botswana manufactures is exported mainly to South Africa duty free under the Southern African Customs Union (SACU) Agreement. The bulk of Botswana's imports (almost 80%) come from South Africa.