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Advancing SADC Regional Economic Integration: Trade Achievements and Future Directions

This update highlights the achievements and current status of the SADC Protocol on Trade. It covers progress in attaining free trade agreement conditions, consolidating the FTA, and revising the RISDP for 2015-2020 with core pillars focusing on industrial development, market integration, and value addition investments. Furthermore, it discusses the need for infrastructure support, peaceful cooperation, stability-oriented convergence, and investment promotion. The text details key areas such as the SADC Transit, bond issuance, Single Window systems, and Trade Information Portals, emphasizing the importance of streamlining customs procedures and enhancing trade facilitation in the region.

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Advancing SADC Regional Economic Integration: Trade Achievements and Future Directions

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  1. UPDATE ON DEVELOPMENTS ON THE SADC REGIONAL ECONOMIC INTEGRATION AGENDAbyDhunraj Kassee

  2. RISDP SADC PROTOCOL ON TRADE

  3. ACHIEVEMENTS • Minimum conditions for an FTA were attained in 2008 with 85% of tariffs on goods zero rated by almost all FTA participating countries. • Maximum tariff liberalization was attained in 2012 when tariffs on sensitive products were removed. • The 2012 Audit confirmed that intra-SADC trade substantially increased following the implementation of the SADC Protocol on Trade

  4. CURRENT STATUS ON SADC FTA • All MS participating except:- • Angola – High level mission conducted in Nov 2011 • DRC – High level mission conducted in Oct 2012 to engage them on key aspects of the accession process. Roadmap agreed upon and DRC undertook to join by Jan 2015. Key aspects of the roadmap include the commissioning of an FTA impact study that will inform preparation of the tariff offer. • Seychelles – recently joined • Some Member States have recently re-introduced duties on certain products

  5. Consolidation of the FTA • Angola, DRC and Seychelles to join the SADC FTA • To complete tariff phase down for outstanding countries • Simplifying and harmonizing ROOs • Addressing NTBs • Simplification and Harmonization of Customs Procedures and Processes • Extension/Alignment of border operating hours • Trade Facilitation and Infrastructure development • Harmonization of Standards &technical regulations

  6. Revised RISDP for 2015 - 2020 Priorities for Revised RISDP 2015- 2020 B. Infrastructure Support for Regional Integration A. Industrial Development & Market integration D. Special Programmes of Regional Dimension C. Peace and Security Cooperation

  7. Pillar A – Industrial Development & Market Integration: Productive competitiveness & supply side capacity • Free movement of goods & services Pillar A Industrial Development & Market Integration • Stability oriented macroeconomic convergence Financial market integration & monetary cooperation Intra-regional investment & foreign direct investment

  8. CORE PILLARS OF THE SADC INDUSTRIAL STRATEGY • Industrialization as champion of economic and technological transformation. 2. Enhanced competitiveness at firm,industry, country and regional level. • Regional integration as the context for industrial development. It is informed by African Union’s Accelerated Industrial Development of Africa and agenda 2063

  9. VALUE ADDITION INVESTMENTS PLATINUM DENTAL EQUIPMENT JEWELLERY AUTO CATALYST

  10. VALUE ADDITION JEWELLERY INVESTMENT GOLD GOLD COINS ELECTRONICS

  11. SADC TRANSIT (North-South Corridor) DRC Zambia South Africa Zimbabwe Durban-Beitbridge-Harare-Chirundu/-Lusaka- Kasumbalesa- Lubumbashi 2020-01-01 SARS-STS-PRES-SADC v0.8 11

  12. Each Customs Administration requires the bond to be issued in their country in order the good to be moved under transit procedure • At the moment each MS is using their national bond; no regional • - This situation create delays at the border as result of repeation of procedures, verification, examination and processing • Bond Should be issued in one country and recognized across the region • Guarantor should appoint correspondent Bank/Insurance Agent (new draft transit Reg.) • Acquittal should occur at the last port of destination once the goods is under customs control • MS have to do homework to domesticate the RCTBG once it get approved Proposed situation Current Situation

  13. WTO ATF V/S STP

  14. SINGLE WINDOW

  15. SINGLE WINDOW • Part of the Customs ICT Strategy and Recommendation from SADC Committees • Madagascar implemented Single Window system since 2009 called GASYNET • The Mozambique Single Window, launched in 2011 was designed to conform to international recommendations and standards. The design was based on the Singapore model (PPP model) , also deployed in Ghana • The Mauritius Cargo Community System is a web based application which allows easier access to data related to cargo movements to all logistic stakeholders (Customs, Port Authority, Port Terminal, Container Freight Station, Freight Forwarders, Importers, Exporters, Customs Brokers and Shipping Agents) • Presidential Directive in Botswana with BURS as the Lead Organization • Groundworks being done by USAID in some MS such as Malawi and Namibia • Some Member States exploring the use to use ASYCUDA World • List of Guidelines shared with MS to facilitate implementation

  16. TRADE INFORMATION PORTAL • Article X of GATT 1947 and the WTO Agreement on Trade Facilitation, requires WTO members to publish ‘laws, regulations, judicial decisions and administrative rulings’ pertaining to cross-border trade procedures and ‘agreements affecting international trade policy’ to be made available to third parties. • WCO RKC and the SADC STP also has similar requirement • Lesotho, Mauritius, Namibia and Seychelles have already implemented Trade Information Portal • Botswana, Malawi and Swaziland are currently developing The Government of Mauritius refers to the trade portal as a web-based state-of-the-art system whose prime objective is to facilitate import and export. The trade portal is expected to initially store information relating to existing trade regulations and procedures, including but not limited to laws, administrative procedures, guidance notes, applicable fees, forms, licences, permits and penalties applicable in case of breaches.

  17. RESOLUTION OF NTBs • A number of NTBs have been recently reported in the region • Centred on delays at borders, introduction of new systems and security concerns along the transport corridors. Reports were mainly on the those MS along the N-S Corridor. • Secretariat has encouraged use of the online reporting mechanism. • National Monitoring Committees have been established at national level • RECs also have a focal point • Dealt by Sub Committee on Trade Facilitation and Sub Committee on Customs Cooperation at regional level

  18. www.tradebarriers.org

  19. SADC CUSTOMS TRAINING OF TRAINERS (TOT) PROGRAMME • The main objective of the programme is to provide technical and professional support to the implementation of the SADC Protocol on Trade, particularly in view of the contribution of Customs Administrations to the successful implementation and consolidation of the SADC FTA. • It is therefore meant to support implementation of agreed instruments and programmes under the SADC Protocol on Trade • The Programme was implemented in collaboration with the WCO, the ROCB, RTCs and Member States • Use of the WCO e-learning platform • Topics Covered • Communication and Facilitation Skills • SADC Rules of Origin • Risk Management • Tariff and Non Tariff Barriers • Customs Valuation

  20. COMPREHENSIVE TRADE FACILITATION PROGRAMME • 13th meeting of the Ministerial Task Force on Regional Economic Integration held in July 2013, recognized that impediments to movement of goods across the SADC region should be urgently addressed. • MTF also directed the Secretariat to develop a Comprehensive Trade Facilitation Programme, aimed at addressing impediments to movement of goods across the region covering but not limited to the following: • Accession to and implementation of the WCO Revised Kyoto Convention, • Data exchange and interconnectivity amongst customs administrations; • Implementation of the electronic certificate of origin in SADC; • Improvements to infrastructure at selected major border posts • The Secretariat, in collaboration with the US Trade Hub, is developing a comprehensive trade facilitation programme for the region, whose aim will be to progressively address the trade facilitation challenges confronting SADC.

  21. Legal Basis of the Proposed CTFP

  22. CTFP STRUCTURE

  23. Regional Infrastructure Development Master Plan (RIDMP) • Signed at the SADC Summit in August 2012, the Regional Infrastructure Development Master Plan guides development in key infrastructure such as road, rail and ports, and also acts as a framework for planning and cooperation with development partners and the private sector.

  24. TRADE RELATED FACILITY • TRF is a EU mechanism (EDF 10) for financial and technical support to SADC Member States to assist them to implement commitments they made under: • the SADC Trade Protocol (STP) and • the Economic Partnership Agreement (EPA) between the EU and the SADC EPA Group (Angola, Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland • All , except Angola and South Africa will benefit • Key Result 1: • Higher level of compliance and implementation of the SADC Protocol on Trade commitments by SADC Member States is achieved • Key Result 2: • SADC EPA Member States are better prepared to effectively implement and monitor the EPA and benefit from it, particularly in terms of improved market access

  25. TRADE RELATED FACILITY • TRF is for Euro 32 million • Euro 14 million is for STP Window, • Euro 6 million for EPA Window • Areas of Support • Customs Cooperation • Technical Barriers to Trade • Sanitary & Phyto-sanitary (SPS) Measures • Rules of Origin • Trade Facilitation • Industrial Development • Trade Promotion & Development • Trade in Services • Non-Tariff Barriers (NTBs)

  26. Thank You Merci Beaucoup Obrigado dkassee@sadc.int

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