by Chengetai Madziwa – SANF 04 no 17
SADC is now halfway through the implementation of its Trade Protocol, which seeks to achieve a free trade area by 2008 when over 85 percent of goods will be at zero tariffs.
SADC Ministers of Trade and Industry, who met in Dar es Salaam recently, commended the progress made so far in the implementation of the Trade Protocol and urged member states to remain committed and to observe the agreed timeframes.
Given regional and global developments, the challenge for SADC member states is to implement these strategies within a reasonable time frame in order to increase the percentage share of SADC trade in the world market.
“We are on track in implementing the Trade Protocol,” said the Executive Secretary of SADC, Prega Ramsamy during a pre-council of ministers briefing recently.
“A mid term review of the protocol will take place this year and the findings would clearly indicate the levels of trade that have taken place under the protocol preferences,” he said, of the protocol which came into force in January 2000.
The recent SADC Trade Ministers meeting urged member states to provide information for the trade protocol mid-term review, which is underway.
The major objective of the trade protocol is to liberalise intra-regional trade through the following strategies:
The gradual elimination of tariffs;
- Adoption of common rules of origin;
- Harmonization of customs rules and procedures;
- Attainment of internationally acceptable standards, quality, accreditation and metrology;
- Harmonization of sanitary and phyto-sanitary measures;
- Elimination of non-tariff barriers; and
- Liberalization of trade in services.
Substantial work has already been done to deepen intra-regional trade, which is currently estimated at 24 percent.
Beyond member states complying with the SADC Trade Protocol, there is need for alignment with and implementation of World Trade Organisation (WTO) obligations as well as taking advantage of preferences provided under international trade agreements.
In addition, SADC will be launching Economic Partnership Agreement negotiations with the European Union in May this year in Namibia. These negotiations come at a time when SADC is carrying out the mid-term review of its trade protocol, whose findings may be instrumental in guiding the negotiating process.
Ministers of trade have agreed to conduct the SADC EPA negotiations in two stages. The first stage will focus on market access issues including rules of origin. SADC has already made notable progress in market access issues as well as rules of origin where agreements have been made for most products except wheat products, which is expected to be resolved soon.
The second stage will focus on trade in services, trade related issues, legal provisions and institutional arrangements. Under the SADC Trade Protocol the SCCC has to date developed training modules on rules of origin, client care, train the trainer, customs cooperation and trade facilitation and other areas of capacity building.
There has been significant progress in the harmonization of documentation and procedures under customs and trade facilitation through the SADC Sub-Committee on Customs Cooperation (SCCC). The committee is tasked with harmonization and implementation of programmes under a customs action plan covering operationalisation of rules of origin, customs cooperation, trade facilitation, transit and training.
According to a press release issued after the trade ministers meeting, the countries that will negotiate a SADC EPA include Angola, Botswana, Lesotho, Mozambique, Namibia, Swaziland and the United Republic of Tanzania. South Africa will participate as an observer.
On the multilateral trade arena, efforts are being made to re-launch the WTO negotiations on the Doha Development Agenda that collapsed last year after developing countries rejected a draft text which they felt ignored their views. SADC as well as other African countries have prioritized economic development and poverty reduction in these negotiations.
All these developments in the regional and global trade arena point to the need for a strengthened industrial sector, which will be able to produce the quality and quantity of goods required by both the regional and the international markets.
The need for complementary developments in the region’s industrial sector in view of the timeframe of implementation of the trade protocol is inevitable. SADC Ministers of trade, in recognition of the role of industry in trade, agreed to hold a dedicated ministerial session on industry before the end of the year.
In addition “the Ministers stressed the need for member states to ensure that appropriate industry experts including the private sector, attend the industry symposium scheduled for May this year.” (SARDC)
