by Chengetai Madziwa – SANF 05 no 02
SADC Ministers of Trade have expressed confidence in the progress made to date in implementation of the Protocol on Trade which reached its fourth year of implementation in 2004, since ratification in January 2000.
The major objective of the trade protocol is to “achieve a Free Trade Area by 2008, when substantially all trade will be duty free.”
The SADC Trade Negotiation Forum, which has been tasked with producing the mid-term review report, will deliberate on the findings and recommendations of the review during the first quarter of 2005.
“By then the potential for fast tracking of trade liberalisation will be assessed,” SADC’s Executive Secretary, Prega Ramsamy, said at his year-end briefing in Gaborone. Work on this report began in February 2004.
The major obstacle facing the review has been the non-availability of current trade data. However “member states have committed themselves to make the data available for analysis purposes and to be able to see what has happened to the level of intra-SADC trade since the protocol implementation commenced,” Ramsamy said.
Intra-regional trade is estimated at 25 percent of all international trade in the region and is expected to rise to 35 percent by 2008, according to targets set out in SADC’s blueprint for development, the Regional Indicative Strategic Development Plan (RISDP).
Work on customs cooperation and trade facilitation has also progressed well, according to Ramsamy. In October 2004 the sub-committee on customs cooperation adopted the Customs Union Road Map in order to prepare customs administrations towards the eventual implementation of a SADC Customs Union by 2010 as envisaged in the RISDP.
As SADC prepares to strengthen its intra-regional trade, it remains aware of global developments, which affect the region’s market share in the world trading arena. The region has thus continued to reaffirm its commitment to multilateral trading systems on the basis of transparency and accountability.
SADC has devoted much effort to the Economic Partnership Agreements (EPA) being negotiated with the European Union (EU) beginning January 2005.
“While the outcome of the negotiations depends on the ability of member states undertaking the negotiations to put their development and poverty eradication needs upfront and to defend their positions adequately,” Ramsamy said, “there has been extensive preparatory work by both the member states and the secretariat.”
Training has also been initiated to strengthen the region’s capacity to negotiate. SADC is setting up a dedicated unit to coordinate and facilitate the EPA negotiations and to ensure that the necessary technical and logistical support is provided to this process.
In order to strengthen its approach to the negotiations SADC will conduct studies to ensure that the SADC EPA Negotiations have adequate information.
“Given the progress made so far in preparing for the negotiations, SADC is confident that the final agreement will not only be favourable to the region but will enhance the region’s productive competitiveness and integration into the continental and world economy,” the Executive Secretary said.
He added that the region has made significant progress in harmonising macroeconomic policy intended to strengthen the regional economy. In September 2004, Senior Treasury Officials from member states considered a draft Finance and Investment Protocol (FIP).
The FIP is intended to contribute to the establishment of a Regional Common Market where there would be free movement of capital, labour, goods and services.
A draft implementation framework of the FIP, which takes into account the targets set in the RISDP, has also been developed.
The Trade, Industry, Finance and Investment Directorate (TIFI) will likely dedicate most of its efforts in 2005 towards maintaining the momentum in the implementation of the trade protocol and ensuring that multilateral trade negotiations yield agreements that facilitate the achievement of the region’s main goal of poverty eradication.
Business Plans, to be launched at the Council of Ministers meeting in the first quarter of 2005, will facilitate the implementation of the RISDP in all areas, including trade and economic development, and this will be a boost to the directorate’s efforts. (SARDC)
