The AU and World Trade Organisation (WTO) could soon lock horns as the pan-African organisation prepares to implement its recently ratified new means of membership dues collection that directly flouts WTO rules. The AU secretariat wants to harvest 0.2% of the cost insurance and freight value of a specified range of imports, reaping about $1.2bn. It hopes the income will make it independent of the 65% of its budget provided by foreign donors. "They can’t do that," says South African director of the International Chamber of Commerce Pat Corbin. "It is in direct conflict with [the] WTO trade facilitation agreement, which is committed to simplifying and reducing the transaction cost of trade, not increasing it, as this new tax will do," Corbin says. "In addition, a further disproportionate portion of the AU budget will be met by SA — in this instance by consumers." The AU says the 0.2% levy is in line with practice elsewhere, although it does not identify where such taxes are levied. "T...
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