Non-tariff barriers sour spirit of SADC protocol

Britain’s decision to
exit the European
Union (Brexit) has
raised questions
about the viability of a
customs union which is much
closer to home. The Southern
African Development
Community (SADC) remains
a work in progress.
Clearing and forwarding
agents remain essential
to keeping freight moving
through the region,
particularly as the goalposts
keep moving, with non-tariff
barriers being introduced.
An example is the
Mozambican customs
officials digging up dormant
regulations dating back to the
colonial era in order to raise
income for the government.
Donors and the International
Monetary Fund have either
cancelled or reduced support
due to the Mozambican
government’s failure to disclose
state-guaranteed loans
totalling US$1.4 billion.
Any commitment to free
trade now takes second place
to the need to raise money
through duties, fines and other
charges.
Another example is the
Tanzanian government
introducing VAT
on transit goods
– which has
led to shippers
rerouting
through Beira,
Walvis Bay and
Durban.
Business
travel in the
region has also
been affected
by moves such
as Namibia and
Mozambique
enforcing business visas.
Namibia has since
relaxed the requirement, but
Mozambican officials are
known to have burst into
meetings and levied large fines
if the foreign national did not
have a visa.
In most SADC countries it
is also becoming increasingly
difficult for expats to obtain
work permits for more than
two years.
These developments
contravene the spirit of the
SADC Protocol
on Trade signed
in 2005, which
set the target of
establishing a
free trade area
in the SADC
region by 2008.
According
to the SADC
site this was
achieved in
August 2008,
“when a phased
programme
of tariff reductions that
had commenced in 2001
resulted in the attainment
of minimum conditions for
the Free Trade Area – 85% of
intra-regional trade amongst
the partner states
attained zero duty.
“While the minimum
conditions were met,
maximum tariff
liberalisation was only
attained by January 2012,
when the tariff phase-down
process for sensitive products
was completed,” it adds.
However, only 12 out of
fifteen SADC member states
are part of the free trade area,
with Angola, Democratic
Republic of Congo and
Seychelles remaining outside.
Even more ambitious is the
ratification of the Comesa-
EAC-SADC Tripartite Free
Trade Area Agreement (TFTA),
which came into being in June
2015.
It plans to create a
27-country common market
from Cape to Cairo, with a
combined population of 600
million people.
In June Zambia became
the 17th country to sign the
TFTA agreement.
By August 2016 the
other signatories were
Angola, Burundi, Comoros,
Democratic Republic of Congo
(DRC), Djibouti, Egypt,
Kenya, Malawi, Namibia,
Rwanda, Seychelles, Sudan,
Tanzania, Uganda, Swaziland
and Zimbabwe.
South Africa has yet to sign.
Meanwhile SADC clearing
agents and hauliers keep freight
moving despite breakdowns
in customs systems, border
protests, border customs
offices closing for the afternoon
so the staff can go to a funeral,
floods, deteriorating roads and
unofficial road blocks – all in a
day’s work.
INSERT
Any commitment to
free trade now takes
second place to the
need to raise money
through duties, fines
and other charges.