Deepening Integration in SADC - Fes-botswana.org
Deepening Integration in SADC - Fes-botswana.org
Deepening Integration in SADC - Fes-botswana.org
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2.3 Free Trade Area and Custom Union<br />
<strong>SADC</strong> is implement<strong>in</strong>g a Protocol on Trade Exchanges, which will<br />
lead to a Free Trade Area by 2008. To this effect, it is imperative<br />
that <strong>SADC</strong> rapidly develops a regulated, predictable and applausive<br />
trade and f<strong>in</strong>ancial system. RISDP considers the liberalisation of trade<br />
as key to a deeper regional <strong>in</strong>tegration and eradication of poverty.<br />
It is important to note the existence <strong>in</strong> the <strong>SADC</strong> region of the<br />
Southern African Customs Union (SACU4 ), which is benefit<strong>in</strong>g from<br />
the Trade and Development Cooperation Agreement between South<br />
Africa and the European Union, and that some <strong>SADC</strong> member states<br />
are part of the Common Market of East and Southern Africa (COMESA5 ).<br />
The negotiations towards the creation of the <strong>SADC</strong> Customs Union<br />
are expected to be concluded by 2010.<br />
To clear the way for a Customs Union with<strong>in</strong> <strong>SADC</strong>, the issue of<br />
multiple affiliations of some member countries must be addressed.<br />
Multiple memberships to different economic <strong>in</strong>tegration <strong>org</strong>anisations,<br />
and the proliferation of Free Trade Areas - the majority of which at<br />
bilateral or even more limited - are beg<strong>in</strong>n<strong>in</strong>g to cause <strong>in</strong>creas<strong>in</strong>g<br />
concerns <strong>in</strong> different <strong>org</strong>anisations, <strong>in</strong>clud<strong>in</strong>g the African Union.<br />
2.4 Common Market and Monetary Union<br />
From a population of about 60 million <strong>in</strong> 1980 when the <strong>org</strong>anisation<br />
was formed as the Southern Africa Development Coord<strong>in</strong>ation<br />
Conference (<strong>SADC</strong>C), the market has now raised more than 200 million<br />
consumers. The sharp <strong>in</strong>crease <strong>in</strong> population is attributed to natural<br />
growth, as well as new member states that have jo<strong>in</strong>ed over the years<br />
<strong>in</strong>creas<strong>in</strong>g from 9 found<strong>in</strong>g nations to the present 14 Member States.<br />
The establishment of a free market area and of a customs union<br />
are some of the essential conditions for the <strong>SADC</strong> common market.<br />
Negotiations around these issues are expected to be concluded <strong>in</strong> 2015,<br />
which would mean a common external tariff and ultimately a common<br />
currency <strong>in</strong> 2016. However, all this will depend on the successful<br />
4 SACU: - South Africa, Namibia, Lesotho, Swaziland and Botswhana<br />
5 COMESA: Burundi, Comores, Djibuti, Egypt, Eritrea, Ethiopia, Quenia, Madagascar, Malawi, Mauritius,<br />
Ruanda, Seycheles, D. R. Congo, Sudan, Swaziland, Uganda, Zambia and Zimbabwe<br />
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