Anna Cox SOUTH AFRICA'S trade gap with the Southern African Development Community (SADC) is widening. A free trade agreement was signed by member countries in September 2000, with the intention of having all goods traded customs and duty-free by 2007 with the exception of Angola, the Democratic Republic of Congo and the Seychelles. However, the trade gap between South Africa and its neighbours has continued to grow since the agreement was signed. The trade balance has been deteriorating in favour of South Africa from the perspective of other countries but it is expected to narrow in the medium- to long-term, according to a recent report given to a joint sitting of the parliamentary committee by the Department of Trade and Industry. The trade ratio between South Africa and the rest of the region moved from 6:1 in 1999, to 8.1 in 2000 and to 9:1 in 2001. South African imports from SADC countries stood at R2.1 billion in 1999 falling to R2 billion in 2000 and increasing to R2.4 billion in 2001. The fall in imports in 2000 was largely due to moves to halt clothing and textile imports from Malawi because they did not meet the rules-of-origin requirements. Exports to Zimbabwe have fallen significantly. Mozambique is now South Africa's number one export destination. The rules of origin for wheat imports have been a major stumbling block with most members producing wheat but not enough for their own needs or those of the region. There has been an on-going row between member states over imports of plastic waste with some countries wanting to import it duty free while South Africa has expressed concerned about the effect this would have on raw material manufacturers and on the environment. Only eleven of the 14 SADC countries have so far ratified the free trade agreement.
