allAfrica.com: Namibia: Free Trade is Far More Than a Statement On Paper (Page 1 of 1)

Establishing a Customs Union encompassing all or most of the member states of the Southern African Development Community (SADC) by 2010 is a pipe dream. Having a functional Free Trade Area in place over the medium term after 2010 is an even bigger pipe dream.

Don't get me wrong, the notion of a Free Trade Area for a substantial number of countries in southern Africa is noble. But the realities are far removed from the hot air dished up at the launch and even the thickest leaders must realise it is easy to establish an FTA intent on paper, but it is a far cry from making it work in reality.

Remember that the whole idea behind the integration of trade in the region is the obvious lack of integration. This shortcoming has been highlighted and discussed in umpteen reports for the better part of 20 years and still the very basic, rudimentary structures are not in place. Getting trade to fulfil the function we would like to, is an arduous road and I suggest it would take another 20 years before we even begin to see some progress.

In a Tralac report earlier this week, trade legal expert Gerhard Erasmus used the expression "Eyes wide shut?" He is a recognised authority in South Africa on trade agreements. He has also advised groups in Namibia when we hastily had to come up with an interim EPA at end of last year.

His considered opinion is that "member states of regional organisations.... shy away from firm commitments when it comes to the actual implementation of deeper regional and global integration programmes. Spelling it out clearly he says they [member states] "are concerned about their sovereignty, adopt their own trade and industrial development policies and domestic implementation of legal instruments leaves much to be desired.

"Dispute resolution through the use of adjudicating bodies is seldom practised and rules-based dispensations do not come about. Common visions and effective secretariats capable to speak on behalf of the collective are largely absent. This casts serious doubt about the viability of such organizations and their suitability as regional and global integration vehicles." And then finally he asks, "Why then do we really have them?"

Erasmus argues further that we do not need to re-invent the wheel when it comes to trade liberalisation and integration. Everything a government needs to know in terms of policy, implementation, monitoring, adjustment and outcomes, are tried and tested. All we need to do is make up our minds collectively what the real results are we want to see.

Looking at the intention to establish a regional Free Trade Area, I think there are several positive aspects that need to be emphasised but the political leadership in ALL the member countries must understand the enormous obstacles we face.

First and perhaps the most important: We must realise this is not an easy or quick process. The launch was nothing more than a statement of our intent.

Secondly, without political will and support, the whole concept is stillborn.

And then in terms of the more practical issues, we need to realise that harmonization of legal definitions will take many years, and implementation will not really come off the ground until there is an accurately defined "set of rules" upon which all members states agree, and which are implemented and enforced in exactly the same way in all the countries.

I think the intended FTA will perhaps follow much the same process as our Vision 2030. What we have on paper so far is merely intent. We are now in the process of fleshing out that intent and it is still a relatively long way, before we shall see actual implementation. Maybe it is not unrealistic to assume a similar timeframe for a SADC FTA.

If by 2015 we can have a framework in place for a customs union, then in another five years, we can set our goals on a common set of tariffs. Only after that can we agree on a schedule for the reduction of these tariffs. Anyone who has ever studied the two-volume excise and customs item list used by SACU will know that merely agreeing on the categories of goods, is an uphill battle. Then agreeing on what products must be protected and what not, and by how much, will also keep us busy for many years.

The final result will be beneficial only if there is a universal desire to actually make a Free Trade Area produce the trade benefits that we so eagerly, but only theoretically, anticipate. Meanwhile, all member states will have to invest massively in capacity building otherwise, as I said, it's just a dream.

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