./.RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/W/187
14 December 2000
(00-5467)
Council for Trade in Services Original:  English
COMMUNICATION FROM SOUTH AFRICA
Review of Article II Exemptions
Replies to Questions Posed on South Africa ’s MFN Exemptions by Japan and Australia
in the Course of the Review of MFN Exemptions
The attached communication has been received from the delegation of South Africa with the
request that it be circulated to Members of the Council for Trade in Services.
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Questions Posed by Japan
Question 676: Please provide a list of  the countries with which South Africa has concluded
bilateral or plurilateral agreements as mentioned in column 2.
1. South Africa has concluded an agreement with Botswana, Lesotho, Namibia and Swaziland
who, together with South Africa, comprise the Southern African Customs Union (SACU). South
Africa has concluded bilateral agreements with Malawi, Mozambique, Zambia and Zimbabwe.
Question 677: Please explain, with concrete examples, the “transport rights” in column 2.
2. These are rights, granted on a preferential basis, to transport passengers or goods in the
countries that are signatory to the agreement. These rights are granted through a permit which
regulates the transport of passengers and goods and which may specify limitations on the available
route.
Question 678: Please mention the names of the other sub-Saharan African countries in column 3.
3. See reply to question 676.
Question 679: Please explain why South Africa considers that an MFN exemption is necessary to
enhancing the development of an integrated transport system and for ensuring theavailability of an efficient distribution network.
4. In practice, foreign companies are granted licenses on the same basis as local companies,
provided that they are registered in South Africa. This encourages investment in the regional transport
system and promotes the development of sustainable transport networks across the region.S/C/W/187
Page 2
5. This exemption is required to prevent foreign operators, who are not registered in any of the
signatory countries to the agreements, from operating on an ad hoc  basis through leasing
arrangements when demand is high.
6. South Africa requires retention of the MFN exemption in order to manage the development of
an integrated, viable and efficient regional transport network that is not subject to volatility andfluctuations.
Question posed by Australia
Why is the reservation of cabotage to SA registered vehicles and operators covered
under MFN exemptions rather than under sector-specific commitments?
7. The reservation of cabotage to SA registered vehicles and operators under MFN exemptions
was part of the negotiated outcomes of the Uruguay Round. South Africa can consider that this
reservation be put as an exception under sector-specific commitments provided that we retain full
coverage, that the scope of rights obtained thr ough MFN exemption are not diminished, that it is
technically feasible, and that it does not  require reopening negotiations.
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