A new revenue sharing formula in the Southern African Customs Union (SACU) could boost development but has met with resistance from the governments of poorer states in the sub-region that are interested in "just getting the money".
Differences over the economic partnership agreements (EPAs) with the EU nearly tore the customs union apart in 2010; now the issue of the revenue sharing formula has become equally contentious.
The South African government's treasury department wants a revision of the formula.
Smaller member states Botswana, Lesotho, Namibia and Swaziland (BLNS) argue that SACU's common external tariff (CET) gives South Africa an instrument to protect its own industry, while the level playing field in the union makes it hard for the peripheral countries to build their own industrial bases and compete with their much larger neighbour's products and services.
For this they deserve to be compensated, they argue.
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