Trade Policy & Strategy Framework
Through the International Trade and Economic Development (ITED) Division, the Department of Trade and Industry (the dti) initiated a Review of South Africa’s trade policy in mid-2007. The Framework sets out the key principles and approaches to South Africa’s strategy for global integration with respect to our engagements and negotiations at multilateral, regional and bilateral levels.
Industrial Policy Action Plan (IPAP) 2014/15-2016/17
The IPAP outlines South African government initiatives to accelerate the industrialisation of the South African economy. IPAP which is updated on a year on year basis, is one of the key pillars of the New Growth Path (NGP), an economic policy framework for 2010-2020. There are seven key areas of focus in IPAP 6: procurement will play a role, industrial finance will be a focus, as will developmental trade policy, competition policy, regulation and intellectual property, and innovation and technology.
SACU – SOUTH AFRICAN CUSTOMS UNION
The Southern African Customs Union (SACU) consists of Botswana, Lesotho, Namibia, South Africa, and Swaziland. The Economic structure of the Union links the Member states by a single tariff and no customs duties between them. The Member States form a single customs territory in which tariffs and other barriers are eliminated on substantially all the trade between the Member States for products originating in these countries; and there is a common external tariff that applies to nonmembers of SACU.
SADC – SOUTH AFRICAN DEVELOPMENT COMMUNITY
Member countries include Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe.
The SADC Free Trade Area seeks to meet the following needs of the private sector and other regional stakeholders:
- Increased domestic production.
- Greater business opportunities.
- Higher regional imports and exports.
- Access to cheaper inputs and consumer goods.
- Greater employment opportunities.
- More foreign direct investment and joint ventures.
- The creation of regional value chains.
The Tripartite Free Trade Area consists of 26 countries from the East African Community (EAC), the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) – all of which make up about half of the African continent with a combined gross domestic product (GDP) of ZAR12.5 trillion and a total population of 622 million people.
The FTA is expected to reduce trade barriers and costs, thereby further opening up opportunities for trade. Statistics from the IMF outlook (2013) reflect that the combined GDP is set to reach ZAR24 trillion and population will reach 732 million people by 2020. The outlook shows the magnitude of the opportunities that the FTA will create for South Africa’s agricultural and agribusiness sector.
COUNTRIES IN THE TRIPARITE FTA:
Angola, Botswana, Democratic Republic of the Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, Swaziland, South Africa, Tanzania, Zambia, Zimbabwe, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Libya, Sudan, Burundi, Kenya, Rwanda, Uganda.