South Africas ability to increase dairy exports to Botswana remains constrained by Botswanas continued application of Infant Industry Protection IIP measures, despite strong regional demand and Sacus dominance as a destination for South African dairy products.
De Wet Jonker, business economist at the South African Milk Processors Organisation Sampro, told Freight News that Botswanas use of IIP had been in place for more than 15 years and remained a critical obstacle to expanded trade.
While the Southern African Customs Union Sacu agreement allows member states to introduce temporary protection for infant industries, Jonker notes that Botswana has undoubtedly stretched the mechanism far beyond its original intent.
