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International Trade in Southern Africa and Africa
International Trade in Southern Africa and Africa
International Trade in Southern Africa and Africa
Lecture overview
The Southern African Development community (SADC)
What is SADC? The SADC Protocol on Trade The mission of SADC The SADC economy Exports and imports in southern Africa.
Learning objectives
Describe the role of SADC in facilitating development and economic growth in the southern African region. Appreciate the importance of the adoption of the SADC Protocol on Trade in enhancing bilateral and regional initiatives to advance regional economic integration. Identify initiatives that improve the African countries market access to the EU and the US. Outline the export and import trends in southern Africa
What is SADC?
It is the Southern African Development Community. Its predecessor the Southern African Development Co-ordination Conference (SADCC) was formed in Lusaka, on 1 April 1980. The Treaty establishing the Community, which replaced the SADCC, was signed at the Summit of Heads of State on 17 August 1992. SADC consists of fourteen member countries.
To achieve development and economic growth To alleviate poverty Enhance the standard and quality of life of the peoples of southern Africa To support the socially disadvantaged through regional integration To evolve common political values, systems and institutions To promote and defend peace and security
To promote self-sustaining development To achieve complementarities between national and regional programmes To promote and maximise productive employment and utilisation of resources in the region To achieve effective protection of the environment To consolidate the long-standing historical, social and cultural affinities and links among the peoples of the region.
Goal of SADC
The ultimate goal of SADC is to extend the current preferential trade arrangement so as to establish a regional trading block and a common market for SADC.
The EU is the leading export market for Mauritius. Mozambiques most important trade partner is South Africa. Namibias trade is highly oriented towards the EU on the import side SA is the dominant partner. Seychelless main trading partners are France, the UK, Germany and Japan. The EU is South Africas most influential trade partner.
1. Angola
2. Botswana
3. DRC 4. Lesotho
cobalt,
coffee,
Clothing and textiles, food and live animals, tobacco, chemicals, machinery, manufactured goods, diamonds
5. Malawi
Machinery and transport, chemicals, materials based manufactures Manufactured goods, machinery and transport, food and animals, fuels Machines, transport equipment, oil, food
6. Mauritius
Clothing, sugar, fish, pearls and precious stones Aluminium, wood, food and live animals, electricity
7. Mozambique
Canned tuna, frozen fish, cinnamon bark Gold, platinum, diamonds, machinery and transport equipment food, beverages, tobacco, manufactured goods Raw sugar, apparel and clothing, wood pulp, waste paper Gold, agricultural products, fish products, manufactured goods Copper, non-metals, cobalt Tobacco, gold, horticulture, minerals, sugar, cotton
12. Tanzania
Exports processing zones in southern Africa In South Africa four IDZs can be identified:
Coega East London Johannesburg Saldanha and Richards Bay
All part of a broader initiative to encourage private sector participation in areas with underutilised potential
The Common Market for Eastern and Southern Africa (COMESA) was established in 1994.
COMESA is a regional grouping that started with 20 countries in eastern and southern Africa. The original 20 member countries of COMESA were Angola, Burundi, Comoros, DRC, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe.
New entrants may establish commercial presence through joint ventures, licensing agreements, merger or acquisition.
Intra-industry trade is a more effective channel for technology transfer: Integrating foreign technologies if actively involved in trade and cross-country product sharing. Intra-industry trade reduces transaction costs associated with intra-regional trade. Engage in inter-firm and intra-firm research and development for transfer and development of technology Intra-regional industrialisation and socio-economic progress lie in the accelerated development of industries where FTAs have a comparative advantage.
The African Charter on Human and Peoples Rights (Nairobi 1981) and the Grand Bay Declaration and Plan of Action on human rights the two instruments to promote human rights in the continent
The OAU Declaration on the political and socio-economic situation in Africa and the fundamental changes taking place in the world (1990) which underscores Africas resolve to seize the imitative, to determine its destiny and to address the challenges to peace democracy and security
The Abuja Treaty (1991) proposed the establishment of an African Economic Community (AEC) whose objective is to foster the economic, social, and cultural integration of the African continent
African Common Position on Africas External Debt Crisis (1997) a strategy for addressing the continents external debt crisis The Algiers decision on unconstitutional changes of government (1999) and the Lome Declaration on the framework for an OAU response to unconstitutional changes (2000) The New Partnership for Africas Development (NEPAD) adopted as a Programme of the AU at Lusaka Summit in 2001
SACU provides for common external tariff and common excise tariff. Customs revenue collected is shared among members.