SubRegional Conference on. Improving Industrial Performanc

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Sub-Regional Conference on Improving Industrial
Performance and Promoting Employment in SADC
Improving Regional Integration and Co-operation
to Facilitate Trade Gallagher Estates, Mid-Rand
6-8 December 2006 Mark Pearson
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• Why Regional Integration?

Economic Reasons Larger Markets Cross-border ac
tivities goods and services More attractive inv
estment opportunities Regional solutions to suppl
y side constraints Security Reasons Structure
s to resolve potential conflict and post conflict
situations Socio-Cultural Reasons Common hist
ories and traditions
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• The Story so Far

PTA/COMESA Lagos Plan of Action and closely
aligned to UNECA regional structures (MULPOC)
reason for technical nature? SADCC/SADC polit
ical cooperation of FLS to address economic
position vis-à-vis RSA, apartheid and
independence of Zim/Namibia. EAC long history
of economic cooperation revival of EAC which
collapsed in 1977. SACU CU since early 1900s
revenue sharing main BLNS benefit?
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• The Story so Far

Different focus of different RECs ECOWAS and
PTA, had a strong focus on economic integration
IGADD and SADCC, had more a focus on functional
cooperation. Countries becoming members of more
than one REC not a major policy coherence problem
until Member States expanded the mandates
overlapping mandates lead to what the World Bank
refers to as the "Spaghetti Bowl" and what the AU
refers to as "institutional cacophony".
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• Addressing Overlapping Membership

2006 - Assembly of African Union, Banjul, Gambia,
suspended recognition of new RECs other than 8
recognised (ECOWAS, COMESA, ECCAS, SADC, IGAD,
UMA, CEN-SAD and EAC). Urged RECs to co-ordinate
and harmonise policies and programmes and with
the AU Commission to accelerating Africas
integration process. RECs fall away with creation
of the AEC - harmonisation of RECs important for
AEC. Is multiple membership illogical?
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Not added IGAD, or ECCAS
Rwanda Burundi
SADC
Djibouti Eritrea Ethiopia Sudan
COMESA
Uganda Kenya
Tanzania
EAC
Mozambique
Malawi Zambia Zimbabwe
Angola
IOC
SACU (TDCA)
Mauritius Madagascar
Swaziland
Comoros Seychelles
Reunion
Botswana Lesotho Namibia South Africa
SADC EPA group
Eastern Southern Africa EPA group
Egypt Libya
D.R. Congo
CEMAC
Euro Med
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• SADC Trade Protocol

SADC Trade Protocol implemented in September
2000. Target to have a partial FTA by 2008 (85
product coverage), Customs Union by 2010 and a
full FTA by 2012. The 5 SACU MSs have fully lib
eralised their non-sensitive trade with all other
SADC members as per the agreed asymmetry
principle. 11 of SADCs 14 Member States are
implementing the Trade Protocol. Madagascar
submitted tariff phase own offer in October which
is being considered by SADC MSs.
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• SADC Trade Protocol MTR

TP MTR problems with implementation - delays in
gazetting the annual reductions discrepancies
with original negotiated offers suspension of
tariff reductions due to economic constraints.
Audit due in early 2007. MTR showed that comple
x product specific rules of origin prevents
region from fully utilising its trade potential.
MSs committed to revise and simplify rules of
origin.
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Progress towards Customs Unions
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• Success Stories

Free Trade Area negotiation and implementation
and increased intra-regional trade.
Air Traffic Liberalisation COMESA, SADC and EAC
cooperated to implement Yamoussoukro Agreement.
COMESA/SADC/EAC Task Force Establishment of Task
Force to harmonise implementation.
Conflict Resolution RECs have played a lead role
in arbitration of conflicts and post-conflict
resolution. SADC Power-pool Protocol on sharing
of electrical power. Yellow Card Regional 3rd pa
rty vehicle insurance run by the insurance
companies. Trans-frontier Parks Mz/SA/Zim and Zi
m/Bot/Zm
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• Potential Success Stories

• Customs Union
• Trade Facilitation Instruments
• Carriers license, vehicle dimensions and
  axle-load limits, customs bond guarantee system,
  vehicle insurance.
  
• One-stop-border posts (single-window systems).
• Harmonised customs procedures integrated
  cross-border systems.
  
• Regional competition policy.
• Finance and Investment Protocol - harmonised
  regional tax incentives and investment policies
  and harmonisation of monetary policies.

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• Experiences not to repeat

• Regional integration not regional rivalry
• Need to cooperate in the real sense joint
  policy making and joint implementation so that
  the AEC goal is met.
  
• Conflict between countries.
• Change in mindset walk the talk no policy
  reversals and implement what has been agreed.
  
• Failure to capitalise on opportunities
• History of bad governance corruption and a lack
  of transparency and accountability.
  
• Poor policies coupled with bad timing and
  sequencing.

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Thank You Mark Pearson Regional Trad
e Facilitation Programme PO Box 317 Persequor Pa
rk Pretoria 0020 Phone [phone] mpearso
n_at_rtfp.org