| SADC Free Trade Area launched, but questions remain |
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| Written by Staff Reporters | |
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The launch of the SADC Free Trade Area (FTA) by southern African leaders in South Africa last week was greeted with much contentment by most member states. All but the three countries of Seychelles, Angola and the DRC acceded to the agreement.
The FTA was launched under the banner: “SADC Free Trade Area for Growth, Development and Wealth Creation” and promises much hope for regional trade integration..
The three countries that did not put in their signatures
to the agreement clearly have reasons for their actions and this could
raise fears that the FTA could be another case of regional rhetoric
after similar concessions were made in the past, some analysts say.
Furthermore, other agreements that are expected to follows soon, such as creation of a customs union by 2010, a common market by 2015 and a monetary union by 2016 have had many believe that only rich countries such as South Africa will benefit. Some analysts believe that the full implementation of the SADC FTA by the member countries might even take up to 20 years. For its part, Namibia is a net importer of more than 90 percent of its requirements from South Africa. Removal of duties on certain items would be good for the end-user but questions also remain on how the receiver of revenue, which had previously raised large amounts from taxes from such large imports, would react. Some analysts also believe that the eventual implementation of the FTA and the proposed formation of unified trade structures could leave some countries poorer than they are presently. Prior to the SADC leaders’ meeting, the Southern African Forum on Trade (SAFT) organised a meeting where academics, activists, policymakers and senior government officials gathered in Tshwane, South Africa, to share their views on the pending agreements. The consensus at the SAFT meeting was that SADC needs to move away from a simple trade-based and market-led perspective of regional integration. The organisation says the region’s agenda should be refocused to support sustainable production capacity, address the supply constraints and reduce the high costs of trade and services in the region. “For the immediate future, SADC member states should prioritise the consolidation of the FTA, strengthen the trade facilitation agenda, liberalize stringent rules of origin and improve cooperation,” SAFT says in a communiqué. SAFT members said they feel there is very little time left before the creation of a customs union in 2010, therefore the principles of the FTA need to be implemented more expeditiously before the introduction of yet other agreements.. |
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