Trade Policy and Strategy Framework

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Strategic Integration

Future value of SACU will lie in its ability to be used as a vehicle for advance & deepening developmental integration in the region, and as an anchor for SADC regional project.
This requires SACU members to forge common trade & industrial policies, where production value chains in agriculture and industry are developed.
SACU can be an important nucleus for deeper SADC integration and a crucial platform to facilitate beneficial global integration.

SADC: aims to combine market integration through trade protocol with policy coordination & sectoral cooper in a broad development project.
Free trade negotiations concluded in 2000, and implementation of tariff reduction began that time. By 2008, 85% of goods – duty free; by 2012 this will be 99%.
Challenges remain: including with Rules of Origin, development of region-wide standard-setting capacity, and work on trade facilitation.
Promising signs in T&C and sugar sectors. But SADC production structures is still undeveloped.
Consolidating FTA and addressing real economy capacity constraints is a priority.
Need to align this to ongoing tripartite FTA: COMESA, EAC and SADC to build the region’s competitive advantage.

Economic Partnership Agreements: SA’s objective in entering negotiations – to preserve regional unity and advance regional integration on developmental basis.

SA has its own TDCA with the EU.
The Interim EPA is far from advancing regional integration and development but accentuates dependencies, and forecloses diversification of trade relations in future (MFN).
Under EPA, SADC has 5 separate trade relation and regimes with the EU and all are different. This complicates internal trade relations, makes it difficult to ensure policy harmonisation: services, investment, competition and procurement.
EPA also threaten to weaken SACU.

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