Meeting on free trade area for SADC yields ‘unsatisfactory’ conclusion

AS WE head deeper into the planned free trade area (FTA) for the Southern African Development Community (SADC), a serious schism has emerged between the SA interests and those of the other member states. According to Paul Kruger, a researcher at the Southern African Trade Law Centre (tralac), although it didn’t come to blows, the latest SADC private sector meeting didn’t come to a satisfactory conclusion. “Private sector organisations from 11 of the 14 member states were in attendance,” he told FTW, “but the representatives held different views on how to achieve an optimal integrated market. “SA representatives were primarily focused on exporting products to the rest of SADC as quickly, efficiently and economically as possible. “In contrast, representatives from the rest of SADC were less concerned about trade facilitation, and more about the supply-side capacity by creating the right environment and conditions for their manufacturing industries.” It’s a basic difference in intentions and raises a number of questions, according to Kruger. “How feasible is the creation of a customs union,” he asked, “considering the existence of the Southern African Customs Union (Sacu), and the intention of the Common Market for Eastern and Southern Africa (Comesa) to be a customs union by next year? The current intention – outlined in the regional indicative strategic plan (RISP) – plots a customs union in 2010; a common market by 2015; a monetary union by 2016; and a single currency by 2018. The SADC is set to launch the free trade area (FTA) on August 17.