SADC launches long-awaited FTA

THE Southern African Development Community (SADC) yesterday officially launched the free trade area (FTA), ushering in a new era of economic integration in the region.

The FTA was launched under the theme “SADC Free Trade Area for Growth, Development and Wealth Creation.”

The launch is supposed to lead to the establishment of a Customs Union by 2010, Common Market by 2015 and creation of a Monetary Union by 2016.
The free trade zone is aimed at giving the region economic muscle.

Only 11 countries in the 14-nation SADC agreed to the pact, which the region hopes will boost trade and investment opportunities and create jobs.

The FTA will exempt 85 per cent of trade from tariffs and the aim is to fully liberalise by 2012.

Addressing the summit of SADC on Saturday, South African President Thabo Mbeki said the launch of FTA was much more than a simple acknowledgement that the majority of traded goods in the region are duty-free.

“Rather we should view the achievement of this milestone as a major step towards addressing the fundamental challenges of poverty and underdevelopment through deeper integration and economic development.

“Regional economic cooperation and integration offer us the opportunity to pool our limited resources and build an economic base to address the challenges of economic growth and development,” President Mbeki said.

Yesterday’s launch of the FTA market was a historic event that will usher in a new era of economic integration in the region.

The political situation in the region has remained relatively calm although some of the member states are currently facing some challenges in the area of peace and security, namely the Democratic Republic of Congo, Lesotho, Malawi, South Africa and Zimbabwe.

SADC first mooted the idea of a free-trade zone in 1996 but progress has been slow and some economies continue to lag behind in developing infrastructure and policies which are crucial for integration.

[Times of Zambia]