Continental Free Trade Area Matter for Africa

Continental Free Trade Area Matter for Africa

  PACCI - Continental Free Trade Area Matters for Africa Conference   The African Chambers...

Economic Issues in the SADC Region

Economic Issues in the SADC Region

  EXECUTIVE SUMMARY   A World Bank Report in February 2001 established that in the period...

Tripartite Free Trade Areas - Regional Private Sector Dialogue

Tripartite Free Trade Areas - Regional Private Sector Dialogue

Report on the Regional Private Sector Dialogue on the Tripartite Free Trade Areas Birchwood...

What future now for the SADC Tribunal?

What future now for the SADC Tribunal?

What future now for the SADC Tribunal? A plea for a constructive response to regional...

SADC Summit - Priorities for SADC's regional economic intergration agenda

SADC Summit - Priorities for SADC's regional economic intergration agenda

Priorities for SADC's regional economic intergration agenda This Policy Brief starts from the...

  • Continental Free Trade Area Matter for Africa

    Continental Free Trade Area Matter for Africa

    Friday, 07 February 2014 00:04
  • Economic Issues in the SADC Region

    Economic Issues in the SADC Region

    Tuesday, 02 July 2013 13:21
  • Tripartite Free Trade Areas - Regional Private Sector Dialogue

    Tripartite Free Trade Areas - Regional Private Sector Dialogue

    Saturday, 09 March 2013 21:53
  • What future now for the SADC Tribunal?

    What future now for the SADC Tribunal?

    Wednesday, 22 August 2012 21:50
  • SADC Summit - Priorities for SADC's regional economic intergration agenda

    SADC Summit - Priorities for SADC's regional economic intergration agenda

    Monday, 20 August 2012 07:43

Association of SADC Chambers of Commerce and Industry (ASCCI)

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The Association of SADC Chambers of Commerce and Industry (ASCCI) is an independent, non-profit organisation established in response to the growing need for effective participation for organised business...

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The ASCCI represents 18 National Chambers of Commerce and Industry, Confederations of Industries, Trade Associations and Employer Organisations in all the Southern African Development Community (SADC) Member States...

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Subcribe to our Monthly newsletter. The ASCCI e-newsletter will keep you up to date with information on events, projects and business news that is relevant to the whole Southern African Development Community (SADC) region...

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SADC Summit - Priorities for SADC's regional economic intergration agenda

Priorities for SADC's regional economic intergration agenda

SADC Summits - Priorities for SADC's regional economic intergration agenda
This Policy Brief starts from the premise that regional economic integration
makes sense for Africa; a continent characterised by small markets, small
economies and small countries. The creation of an integrated economic space
can facilitate efficiencies in production, investment and trade, thus enhancing
development outcomes.

The 32nd Summit of Heads of State and Government of the Southern African
Development Community (SADC) takes place against the backdrop of two
status of an effective Free Trade Area (FTA) and the review of the Regional
Indicative Strategic Development Plan (RISDP).

Member States have undertaken commitments, in the SADC Treaty, to develop
specific instruments, such as Protocols, to foster deeper economic cooperation
and integration. The main objective is to address production, infrastructure and
efficiency barriers to growth and development. This approach to integration was
formalized in 2003 as the RISDP. The roadmap for SADC integration is premised
on the establishment of a free trade area (FTA) by 2008; Customs Union in 2010;
Common Market in 2015; Monetary Union in 2016; and an Economic Union with
single currency in 2018.

The RISDP is not a legally binding instrument and can be periodically reviewed
and amended to take into account global, regional and national developments.
The current RISDP review provides an opportunity to appraise the progress
achieved and the challenges to inform the process moving forward.
This Policy Brief highlights priority issues confronting the region in advancing the
regional integration process.

Enhancing effective implementation of the SADC FTA
SADC has made significant progress in reducing tariffs and eliminating quotas.
The potential benefits of tariff liberalization are however constrained by
restrictive, product-specific rules of origin, especially on clothing and textiles and
agro-processed products. More flexible rules of origin, that require lower
thresholds of regional value addition, would enable many smaller SADC
countries to expand their production capacity and enhance their trade
performance. In particular, a single-stage transformation rule for garment
production would allow producers to source competitively-priced inputs from
global sources and so increase their export competitiveness.

The potential gains from liberalisation are further eroded by the proliferation of
non-tariff barriers (NTBs), many of which violate specific provisions in the SADC
Trade Protocol. Imposing new NTBs, quantitative import and export restrictions
and export duties on intra-SADC trade are prohibited by the Protocol and should
only be applied in exceptional circumstances. NTBs affect in particular intra-
SADC trade in agricultural products which is closely linked to food security and
poverty. Trade facilitation is also hampered by NTBs such as protracted delays
at borders, road blocks and other behind-the-border regulatory impediments.
The current online NTB reporting system (www.tradebarriers.org) is an important
transparency mechanism, but requires a robust rules-based dispensation for the
resolution and prevention of NTBs.

Ensuring compliance with commitments undertaken
The potential benefits from these protocols will only be realized with effective
compliance with commitments undertaken. There is a clear challenge in SADC
with Member States not complying with the commitments undertaken in the
SADC Trade Protocol. Compliance requires legal and institutional infrastructure
at national and regional levels, and is part of a broader governance imperative.
The SADC Tribunal is an important institution provided for in the SADC Treaty to
ensure compliance as well as to adjudicate upon disputes. The suspension of the
Tribunal in August 2010 has cast a shadow on its legal autonomy, the
commitment of Member States to regional integration, as well as broader
governance issues. Its reinstatement would signal an important commitment to
rules-based integration process. In addition, the Secretariat, as the
principal executive institution of SADC, should have powers to monitor and
reliance.

Well-functioning FTAan essential step to deeper integration
In the RISDP 2010 was set as an indicative timeline for the establishment of the
SADC customs union. The linear integration model contained in the RISDP
indicates that the implementation of each integration stage prepares the way for
the next stage. Therefore effective implementation of the FTA should be
geometry, it is possible for some countries, when they are ready, to move ahead
to further stages of integration. Given the challenge of overlapping membership
and diversity in production structures and trade patterns, variable geometry
(subject to a clear rules-based dispensation) may be an optimal integration
strategy for SADC. The review of the RISDP is an opportunity to consider

Strengthening infrastructure and services synergies
Infrastructure development is an indispensable pillar for regional integration,
competitiveness and development. The Regional Infrastructure Development
Master Plan (RIDMP) is a very welcome initiative for the SADC region. While the
development of physical infrastructure is essential; effective access to
infrastructure services requires regulatory reform, regional harmonization of
regulation and a services liberalization agenda. Participation in value chains
(regional and global) is an important pathway to industrialization; this requires
competitive infrastructure services inputs such as energy, telecommunications,
finance and transport. Therefore services liberalization negotiations should be a
priority.

Fostering an inclusive and consultative integration process
The RISDP review provides an opportunity for an inclusive debate and
deeper integration. Regional economic integration should go beyond an intergovernmental
process, to foster broader participation by the private sector and
non-state actors, ensuring also that regional economic integration is
mainstreamed into national development policies and strategies.
Contact: Trudi Hartzenberg ( This email address is being protected from spambots. You need JavaScript enabled to view it. )

Meetings and Events

Written on 07/02/2014, 00:04
continental-free-trade-area-matter-for-africa   PACCI - Continental Free Trade Area Matters for Africa Conference   The African Chambers of Commerce Conference took place on 28th and 29th November, 2013 in Addis Ababa, Ethiopia. The Conference was entitled "The Continental Free Trade Area Matters for Africa".    The main...>READ MORE>>
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Written on 02/07/2013, 13:21
economic-issues-in-the-sadc-region   EXECUTIVE SUMMARY   A World Bank Report in February 2001 established that in the period 1998-1999, Sub-Saharan Africa experienced a negative growth of 1%, that more than 300 million people in Africa live on less than US$ 0.65 per day and that 25 million Africans are HIV-infected....>READ MORE>>
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Written on 09/03/2013, 21:53
tripartite-free-trade-areas-regional-private-sector-dialogue Report on the Regional Private Sector Dialogue on the Tripartite Free Trade Areas Birchwood Hotel, Johannesburg, South Africa, 25-26 February 2013 The objective of the meeting was to enhance the understanding and participation of the private sector in the TFTA negotiations. On the...>READ MORE>>
4649
Written on 22/08/2012, 21:50
what-future-now-for-the-sadc-tribunalWhat future now for the SADC Tribunal? A plea for a constructive response to regional needs   The Summit in Maputo last week (17 – 18 August 2012) decided the fate of the SADC Tribunal; at least as far as individual complaints against governments for human rights violations are...>READ MORE>>
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Written on 20/08/2012, 07:43
sadc-summit-priorities-for-sadc-s-regional-economic-intergration-agendaPriorities for SADC's regional economic intergration agenda This Policy Brief starts from the premise that regional economic integrationmakes sense for Africa; a continent characterised by small markets, smalleconomies and small countries. The creation of an integrated economic spacecan...>READ MORE>>
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