Asymmetric tariff reduction within the SADC protocol on trade its implications for industrial development within member states: A theoretical perspective

• Main Author: Tsitsi Effie, Mutambara
• Format: Conference or Workshop Item
• Language: English
• Published: 2007
• Subjects: HF Commerce
• Online Access: http://repo.uum.edu.my/2571/1/Tsitsi_E.Mutambara.pdf; http://repo.uum.edu.my/2571/

The Southern African Development Community (SADC) aims to facilitate and attain deeper economic integration and industrial development among its members. To achieve these objectives, the grouping developed the SADC Protocol on Trade whose implementation began in 2000. While the SADC Protocol on Trade focuses primarily on trade integration, thus mainly a trade instrument, this paper seeks to explore how it could be used to facilitate industrial development instead of using it sorely for trade integration. In analyzing this Protocol it has been observed that it has specific provisions that address issues on industrial development within the grouping. These provisions are Part Two Article 3, Part Four Article 21 Paragraph 1, and Part Five Article 22. The asymmetric tariff reduction schedule governing the implementation of this Protocol enables liberalization of product categories at different paces taking into account the different levels of industrial development between members. As the region progresses in implementing the Protocol, the aforementioned Articles could be utilized to facilitate industrial development. Theoretical debates upon which these Articles could be used to facilitate industrial development rest on the infant industry argument, the static and dynamic effects of economic integration. Limitations of the theoretical frameworks will be explored and how this could impact on industrial development initiatives by the grouping.