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Trade barriers in SADC PDF Print E-mail
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Friday, 12 March 2010 14:56

What are trade barriers for, and which barriers exist in the Southern African Development Community (SADC)? These two questions provide the forum for deliberations. Under the global trade governance of the World Trade Organisation (WTO), trade barriers are described as those discretionary policies that restrict trade. Thus, trade barriers are trade inhibiting instruments that an authority can impose for reasons among others: health and security concerns captured under ‘Sanitary and Phytosanitary Standards’; to shield a product so that such a product may not face stiff-foreign competition; to protect upcoming small industries under the concept ‘infant industry protection’; to improve the balance of payment; to counter dumping activities; to raise revenues needed; and to protect existing jobs by restricting imports of certain commodities.  Types of Trade Barriers
In 1996 SADC member states designed the SADC Trade Protocol (TP) which was ratified in 2000. In 2008, SADC was declared a free trade area (FTA). As a legal instrument, the TP prescribes that member states should abolish trade barriers amongst themselves. This prescription is in line with the expectations of the WTO which advocates free trade. In light of this, the WTO also advises that trade barriers should be tariff-bound and be set against a recommended ceiling. In an attempt to implement the provisions of the TP, an NTB-Monitoring Mechanism (NTBMM) was established at the SADC Secretariat. The NTBMM serves to identify and notify member states about trade restrictions that undermine the flow of goods across borders.  So far NTBs that exist are heterogeneous in nature and include the following:
First, cumbersome customs procedures. Although efforts have been made to harmonise such procedures it’s necessary to point that customs documents that are still predominantly in other languages other than English poses a challenge. There are also too many administrative hurdles at other boarder posts with many forms that have to be completed.
Second, the road and rail networks are characterised by potholes and and are in a dilapidated condition. This is also common outside the SACU sub-region.
Third, there are costly and multiple transit bonds in place which member states require to be complied with when cargo transits from one border post to the other.  Finally, visa requirements are still in existence in some member states. For example business visas are still required for business people when they enter some SADC member states.
Third party insurance is an issue that is beginning to surge cross border charges. It will be better and transparent to introduce toll gates to avoid the current problem of third party insurance at some borders. If SADC member states could abolish existing NTBs with an exception of those that are based on health and security concerns, intra-SADC trade may improve. Learning other languages spoken in the region would improve the pace of trade activities and reduce costs of hiring translators. The possibility of introducing a single transit bond should also be looked into.

 
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