Harare - The executive secretary of the Southern African Development Community (SADC), Elias Magosi, announced, on Saturday, the entry into force of the Tripartite Free Trade Zone with COMESA and the EAC.
Speaking at the opening of the 44th ordinary SADC summit, in the Zimbabwean capital, Elias Magosi, revealed that the Tripartite Free Trade Zone has been in force since 25 July, paving the way for Member States and partners to access a largest market of 26 countries.
He explained that the materialization of this aim is the result of efforts currently underway to expand markets beyond the SADC region, aiming to reach a population of around 700 million inhabitants with a Gross Domestic Product (GDP) of one trillion US dollars.
The SADC executive secretary added that, in his capacity as chair of the Tripartite Working Group, he has already notified all Member States and partners about “this positive development”.
He said it was a fundamental milestone in promoting intra-African trade and strengthening economic integration in the Tripartite Zone.
In this regard, he recalled that intra-regional trade in SADC continues to be at a low level of around 23%, which means, according to him, that Member States are trading more with the rest of the world than each other.
Among the main reasons for these low levels of intra-regional trade, he said, are the usual non-tariff barriers.
He justified that, despite the elimination of the import tax on 85% of products traded between SADC Member States, intra-SADC importers and exporters continue to face non-tariff barriers.
Therefore, he warned, Member States must redouble their collective efforts to implement measures that reduce these barriers and promote intra-regional cooperation and integration.
He considered that the benefits of an expanded regional market for the SADC economy and its citizens cannot be underestimated, due to the “huge potential” it offers for trade and investment opportunities as well as economic growth.
He revealed that in its attempt to facilitate enhanced intra-regional trade within the community, the Secretariat is compiling information to produce a list of the top 10 exports and imports of SADC Member States and what the region trades with the rest of the world.
According to Magosi, the list will be used to develop strategic interventions and actions to improve access to markets within the community and facilitate improved intra-regional trade within SADC.
“I am hopeful that the conclusion of this exercise will produce statements about how we will negotiate going forward. The status quo is not ideal (…) and must be changed without delay,” he recommended. IZ/ART/DOJ
