'SADC members must exploit free trade agreement'

Lethargy keeps trade volumes fairly static TRADE LEVELS have remained fairly static between countries involved in the Southern African Development Community (SADC) free trade agreement since it was implemented on September 1 last year. But, says SADC principal trade director Michael Kassaja, this can be blamed on a number of countries falling behind the pace of progress. The agreement, he says, will not increase levels of trade and economic integration without additional and deliberate measures by some of the member states. There has been a lack of up-to-date and reliable data coming from some of them with the result that a significant market for intra-trade opportunities is being ignored. At the same time others are unhappy about the slow rate of progress, which is an additional problem, says Kassaja. The agreement is an important instrument which has provided confidence for investors to explore cross-border opportunities, and for member countries to liberalise their markets, he says. However, those showing impatience need to be reminded that the agreement is in reality a gradual process in which member states will reduce 85% of intra-regional tariffs over an eight-year period from its inception and up to 2008. "Members must realise that the liberalisation of markets and increased intra-regional trade needs a two-way give-and-take philosophy to eliminate unnecessary non-tariff trade barriers. There has, however, been an intensification of business contact, while export, import and investment opportunities are being discovered and good relationships are being formed," he says. Kassaja's head office in Tanzania, responsible for the SADC Trade and Industry sector, is in the process of identifying and resolving a number of non-tariff barriers that have been a handicap to trade in the region. He stresses that the flexibility of the agreement is important and that a blanket approach to reducing tariffs in the various countries would be catastrophic.