Signature of regional pact by Heads of State is expected in 2008
The Committee of Ministers of Trade and Industry from the 14 nations of the Southern African Development Community (The SADC CMT) approved on 2 July a regional Protocol on Services Trade Liberalization, setting the stage for signature by Heads of State in 2008.
This decision marked an important milestone in a negotiating process, which had benefited from the technical support of the UNCTAD Secretariat. This support was financed by the European Communities (1) .
Negotiated in the SADC Trade Negotiating Forum and vetted by SADC´s Committee of Ministers of Trade at Maseru (Lesotho), the text will now be passed on for further action to SADC Ministers of Justice and Attorneys General. They are scheduled to meet in August this year, as part of the annual SADC Summit. Submission for adoption and signature by Heads of State is expected by 2008.
By opting for a Protocol on Services, SADC Member States recognize the increasing importance of services for development. For most SADC countries, the services sector has become the driving force for structural change in their economies and is now a major contributor to employment. Services have become the most productive sector, contributing about 57% to the region´s GDP.
UNCTAD estimates point to significant opportunities for increasing intra-regional services trade between SADC countries. By enhancing such trade the newly adopted SADC Trade Protocol can help stimulate growth of the services sector and more broadly throughout the economy. As set out in the agreement, the 14 Southern African countries aim to use services trade liberalization for the harmonious, balanced and equitable development of the Region, including poverty alleviation.
Once adopted by SADC Heads of State, the Protocol will be implemented, including through sectoral follow-up negotiations amongst SADC Members, where countries decide on the depth and extent of liberalization they will offer to their regional partners. Sectors earmarked for priority liberalization include: communication, financial, transport, construction, tourism and energy.
Regional initiatives for services trade liberalization are thriving in parallel with the multilateral trading system and World Trade Organization´s Doha Round of trade talks which include negotiations on services. Increasing South-South integration can also offer an important stepping stone, preparing countries for the more far-reaching trade deals currently envisaged including under the European Communities Economic Partnership Agreements.
The 14 SADC member countries are Angola, Botswana, the Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe. The SADC is headquartered in Gaborone, Botswana.
