Options for Regional Integration in Southern Africa

Abstract

The Southern African Development Community (SADC) had at its inception a strong anti-apartheid political orientation. From 1992, economic cooperation has been based on 'efficiency, economy and competitiveness'. In 1996 SADC Protocol on Trade Co-operation for the creation of a Free Trade Area (FTA) was agreed and the ratification process is almost complete. Realisation of the full benefits of the FTA requires rule-based system institutional arrangements. The institutional reform that could deliver a workable FTA is demanding. Moreover, the FTA, or more accurately the 'intended' FTA, requires the application of strict rules of origin to succeed. Given the weak administrative capacity of the member countries, it is likely that the 'intended' FTA would, in practice, operate like a Customs Union with the Common External Tariff based on the lowest tariff rates prevailing for each commodity amongst member states (CUmin). Against the forces moving for regional economic integration, there are power forces from the international community leading towards unilateral freer trade, and ultimately Free Trade (FT). These circumstances provide a rich background for exploring the options for regional integration.