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Non-tariff barriers stymie intra-regional trade growth

15 Dec 2022 - by -
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Harmonised systems, single customs windows and one-stop borders are essential if southern African countries want to grow intra-regional trade.This is according to Desiderio Fernandes, the current president of The Federation of Clearing and Forwarding Associations of Southern Africa (FCFASA). He says regional integration is key to streamlining the movement of cargo and reducing costs.“Mauritius is the only country in Africa that has a 100% functioning single-window system, and the gains they have made are clear to see. The fully integrated system does clearance based on risk assessments, of course, in 45 minutes within two hours of the container landing,” he says. “Compare this to Mozambique where even with preclearance it takes a minimum of 24 hours if not 48.”That is not to mention other challenges – such as the policy that no containers will be released until the working of the vessel has been completed. “If that vessel is in port for three days, then that is how long you will wait. It is costing us money and making our corridors and our region uncompetitive.”He says addressing the numerous non-tariff barriers is essential for countries to grow volumes and increase trade.One example is the legislation in Mozambique that requires that all perishable goods in transit, even if precleared, need a transit phytosanitary certificate. “The request for the certificate is submitted at one’s local office, then sent to Maputo, and then sent back to the local office. It is a cumbersome process that is legislated and is nothing else other than a trade barrier. Fertilisers in general take up to 15 days to get approval. Doing it in advance ahead of the cargo is near impossible as one cannot do it without the bill of lading.”He said a fully functioning and integrated single window would make a major difference for issues such as these – having all the government entities integrated into one.“One-stop borders will also bring a lot of improvement to the system – not to mention the increased turnaround times.”According to Fernandes, the lack of a complete integrated single window and data sharing between member states – along with a lack of trust – continued to be the biggest stumbling block in creating one-stop borders in SADC.“Without integration between government entities within countries and then between member states, there will continue to be bureaucratic delays, higher cost and lower trade. Only once we get this right will we be able to move forward.”He says at the regional level a lot is being done to effect change. In addition to the SADC, Comesa and the EAC are working towards improved systems and more integration and harmonisation.“Just as important in all of this is the private sector because the policies and decisions will not work if one does not consider the realities of trade. Too often policy is set up with revenue collection in mind and not the reduction of trade costs, improved ease of business, and increased volumes.”He says business is a partner of government and it is imperative to foster this mindset – not only in a country such as Mozambique but across the region. “Government cannot collect revenue without the private sector and vice versa. We need to work together to bring about change.”

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