1 update on developments on the sadc regional economic integration agenda by dhunraj kassee

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UPDATE ON DEVELOPMENTS ON THE SADC REGIONAL ECONOMIC INTEGRATION AGENDA

by

Dhunraj Kassee

RISDP

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TARGETSThe Regional Indicative Strategic Development Plan (RISDP) approved by the Summit in 2003, sets ambitious targets for regional integration:

TIME STATUS

A Free Trade Area(85% of trade in goods will be free )

SADC Customs Union

SADC Common Market

SADC Monetary Union and SADC Central Bank

Regional currency

2008

2010

2015

2016

?

?

2018 ?

SADC

PROTOCOL

ON

TRADE

ACHIEVEMENTS Minimum conditions for an FTA were attained in

2008 with 85% of tariffs on goods zero rated by almost all FTA participating countries.

Maximum tariff liberalization was attained in 2012 when tariffs on sensitive products were removed.

The 2012 Audit confirmed that intra-SADC trade substantially increased following the implementation of the SADC Protocol on Trade

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CURRENT STATUS ON SADC FTA All MS participating except:- Angola – High level mission conducted in Nov 2011 DRC – High level mission conducted in Oct 2012 to

engage them on key aspects of the accession process. Roadmap agreed upon and DRC undertook to join by Jan 2015. Key aspects of the roadmap include the commissioning of an FTA impact study that will inform preparation of the tariff offer.

Seychelles – recently joined Some Member States have recently re-introduced

duties on certain products

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Consolidation of the FTA Angola, DRC and Seychelles to join the SADC FTA To complete tariff phase down for outstanding

countries Simplifying and harmonizing ROOs Addressing NTBs Simplification and Harmonization of Customs

Procedures and Processes Extension/Alignment of border operating hours Trade Facilitation and Infrastructure development Harmonization of Standards &technical regulations

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Revised RISDP for 2015 - 2020

A. In

du

strial

De

velo

pm

en

t &

Ma

rke

t inte

gratio

n

B. In

fras

truc

ture

Su

pp

ort fo

r Re

gio

na

l In

tegra

tion

D. S

pe

cial

Pro

gra

mm

es o

f R

eg

ion

al D

imen

sio

n

C. Peace and Security Cooperation

Priorities for Revised RISDP 2015- 2020

Pillar A – Industrial Development & Market Integration:

CORE PILLARS OF THE SADC INDUSTRIAL STRATEGY

1. Industrialization as champion of economic and technological transformation.2. Enhanced competitiveness at firm,industry, country and regional level.3. Regional integration as the context for

industrial development. 

It is informed by African Union’s Accelerated Industrial Development of Africa and agenda 2063

VALUE ADDITIONVALUE ADDITION

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DENTAL EQUIPMENT

AUTO CATALYST

JEWELLERY

PLATINUM

INVESTMENTS

VALUE ADDITIONVALUE ADDITION

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GOLD

ELECTRONICS

JEWELLERY INVESTMENT

GOLD COINS

South Africa Zimbabwe Zambia DRC

23-04-21 11SARS-STS-PRES-SADC v0.8

Durban-Beitbridge-Harare-Chirundu/-Lusaka- Kasumbalesa- Lubumbashi

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Each Customs Administration requires the bond to be issued in

their country in order the good to be moved under transit procedure

At the moment each MS is using their national bond; no regional

- This situation create delays at the border as result of repeation of

procedures, verification, examination and processing

Bond Should be issued in one country and recognized across the region

Guarantor should appoint correspondent Bank/Insurance Agent (new draft transit Reg.)

Acquittal should occur at the last port of destination once the goods is under customs control

MS have to do homework to domesticate the RCTBG once it get approved

Current SituationCurrent

Situation

Proposed situationProposed situation

WTO ATF V/S STP

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SINGLE WINDOW

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SINGLE WINDOW

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Part of the Customs ICT Strategy and Recommendation from SADC Committees

Madagascar implemented Single Window system since 2009 called GASYNET

The Mozambique Single Window, launched in 2011 was designed to conform to international recommendations and standards. The design was based on the Singapore model

(PPP model) , also deployed in GhanaThe Mauritius Cargo Community System is a web based application which allows easier access to data related to cargo movements to all logistic stakeholders (Customs, Port Authority, Port Terminal, Container Freight Station,

Freight Forwarders, Importers, Exporters, Customs Brokers and Shipping Agents)

Presidential Directive in Botswana with BURS as the Lead Organization

Groundworks being done by USAID in some MS such as Malawi and Namibia

Some Member States exploring the use to use ASYCUDA World

List of Guidelines shared with MS to facilitate implementation

TRADE INFORMATION PORTAL

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Article X of GATT 1947 and the WTO Agreement on

Trade Facilitation, requires WTO members to publish ‘laws, regulations, judicial

decisions and administrative rulings’ pertaining to cross-

border trade procedures and ‘agreements affecting

international trade policy’ to be made available to third

parties. WCO RKC and the SADC

STP also has similar requirement

Lesotho, Mauritius, Namibia and Seychelles have already

implemented Trade Information Portal

Botswana, Malawi and Swaziland are currently

developing

The Government of Mauritius refers to the trade portal as a web-based state-of-the-art system whose prime

objective is to facilitate import and export. The trade portal is expected

to initially store information relating to

existing trade regulations and

procedures, including but not limited to laws,

administrative procedures, guidance notes, applicable fees,

forms, licences, permits and penalties applicable in case of

breaches.

RESOLUTION OF NTBs A number of NTBs have been recently reported in the

region Centred on delays at borders, introduction of new

systems and security concerns along the transport corridors. Reports were mainly on the those MS along the N-S Corridor.

Secretariat has encouraged use of the online reporting mechanism.

National Monitoring Committees have been established at national level

RECs also have a focal point Dealt by Sub Committee on Trade Facilitation and Sub

Committee on Customs Cooperation at regional level17

www.tradebarriers.org

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SADC CUSTOMS TRAINING OF TRAINERS (TOT) PROGRAMME

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The main objective of the programme is to provide technical and professional support to the

implementation of the SADC Protocol on Trade, particularly in view of the contribution of Customs

Administrations to the successful implementation and consolidation of the SADC FTA.

It is therefore meant to support implementation of agreed instruments and programmes under the SADC

Protocol on Trade The Programme was implemented in collaboration

with the WCO, the ROCB, RTCs and Member States Use of the WCO e-learning platform

Topics Covered

Communication and Facilitation SkillsSADC Rules of Origin

Risk ManagementTariff and Non Tariff Barriers

Customs Valuation

COMPREHENSIVE TRADE FACILITATION PROGRAMME

13th meeting of the Ministerial Task Force on Regional

Economic Integration held in July 2013, recognized that

impediments to movement of goods across the SADC region

should be urgently addressed.

MTF also directed the Secretariat to develop a Comprehensive Trade Facilitation Programme, aimed at addressing impediments to movement of goods across the region covering but not limited to the following:

–Accession to and implementation of the WCO Revised Kyoto Convention, –Data exchange and interconnectivity amongst customs administrations;–Implementation of the electronic certificate of origin in SADC; –Improvements to infrastructure at selected major border posts

The Secretariat, in collaboration with the US Trade Hub, is developing a comprehensive trade facilitation programme for the region, whose aim will be to progressively address the trade facilitation challenges confronting SADC.

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Legal Basis of the Proposed CTFP

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CTFP STRUCTURE

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Regional Infrastructure Development Master Plan (RIDMP)

Signed at the SADC Summit in August

2012, the Regional Infrastructure

Development Master Plan guides

development in key infrastructure

such as road, rail and ports, and

also acts as a framework for planning

and cooperation with development partners and the private sector.

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TRADE RELATED FACILITY• TRF is a EU mechanism (EDF 10) for financial and technical support to

SADC Member States to assist them to implement commitments they made under:

- the SADC Trade Protocol (STP) and

- the Economic Partnership Agreement (EPA) between the EU and the SADC EPA Group (Angola, Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland

• All , except Angola and South Africa will benefit

• Key Result 1:

• Higher level of compliance and implementation of the SADC Protocol on Trade commitments by SADC Member States is achieved

• Key Result 2:

• SADC EPA Member States are better prepared to effectively implement and monitor the EPA and benefit from it, particularly in terms of improved market access

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TRADE RELATED FACILITY TRF is for Euro 32 million Euro 14 million is for STP Window, Euro 6 million for EPA Window Areas of Support

1. Customs Cooperation

2. Technical Barriers to Trade

3. Sanitary & Phyto-sanitary (SPS) Measures

4. Rules of Origin

5. Trade Facilitation

6. Industrial Development

7. Trade Promotion & Development

8. Trade in Services

9. Non-Tariff Barriers (NTBs)

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Thank You

Merci Beaucoup

Obrigado

dkassee@sadc.int