The United States government expects to sign a free trade agreement with the SA Customs Union (Sacu) when they meet in Johannesburg on Tuesday, trade representative Karan Bhatia said.

"We believe the region (Sacu members) are very important trading partners of the US, and we would like to see a deeper and broader relationship," Bhatia said in Johannesburg on Monday.

"Trade can be an engine in economic growth and poverty alleviation."

The agreement would cover intellectual property rights, non-tariff barriers and investment.

He said the intellectual property rights were important in industries where products could be easily copied.

"US companies don't feel comfortable where there is weakness in intellectual property rights," he said.

Bhatia mentioned, as an example, the pirated copies of SA's Oscar-winning movie ''Tsotsi'' that were available on the streets.

"That is costing producers the revenue and it is impeding that industry."

He said the free trade agreement would also provide open markets and trade flow.

"We are sensitive to the needs of the least developed countries. The US government's procurement access is enormous and will open Sacu members to opportunities."

Bhatia said the US would lower its tariffs and urge other developed countries to do the same.

He said talks at the World Trade Organisation (WTO) between developed and least developed countries on lowering trade barriers around the world needed political will.

At the 2001 WTO talks in Doha, Qatar, trade ministers did not reach an agreement on reducing trade barriers.

Bhatia said the goal of the proposed aid-for-trade deal in the Doha round was to stimulate trade as driver of the global economy.

He said the concern with least developed countries was their lack of infrastructure such as roads and ports, which was hampering trade.

Bhatia said they hoped an agreement would be reached, especially in agriculture.

"Agriculture is the most critical, important bulk of the economy and it is the area that South Africa would benefit, especially with oranges."

Sacu was formed by SA, Botswana, Lesotho, Namibia and Swaziland.

It is an agreement where goods are traded free of duty between members. SA tariffs are used as a common external tariff.

Sapa

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