SADC Protocol on Trade in Services operational

Hosia Mviringi

Southern African Development Community  Protocol on Trade in Services has entered into force following the deposit of ratification instruments by two thirds of the Member States.

This was announced by the block's Executive Secretary, His Excellency, Mr Elias M. Magosi in a notification to the 16 Member States.

"I have the honour and pleasure to inform member states that the Protocol on Trade in Services entered into force on January 13, 2022," said Mr Magosi.

According to Article 30 of the SADC Protocol on Trade in Services provides that the Protocol shall enter into force 30 days after the deposit of ratification instruments by a simple majority of member States of not less than two thirds.

So far eleven SADC Member States have ratified the Protocol, paving the way for it's adoption by the economic block.

Zimbabwe is among the eleven countries that have ascended to the Protocol that will facilitate trade in services across the region.

The Protocol will be key in facilitating increased intra-regional trade among member states as services and finished products move to boost country GDP of exporting countries while facilitating knowledge transfer between member states.

Through a preferential trade agreement that covers all commercial tradable services in all sectors, the Protocol is geared towards gradual removal of hitherto cumbersome regulations which have hindered regional inter-state supply of services within the SADC region.

Most countries in the region had maintained laws that hinder trade in services through such sectors as banking and insurance, and transport where strict measures were in place that hinder the ability of foreign services suppliers to trade freely across the border.

Such measures have had the natural economic impact that adversely limit the movement of service resources from one country to the other.

In such countries as South Africa and Zambia have been found wanting when transport unions in those countries have consistently harassed Zimbabwean transporters, to some extent causing loss of property and injury or death of truck drivers.

This is one area that the SADC Protocol on Trade in Services is envisaged to address.

Trade in services can not be divorced from trade in manufactured goods as such services as transportation are key in the efficient delivery of goods to destination markets.

"The Protocol offsets the general and specific obligations binding the ratifying or acceding Member States (State Parties) to grant each other preferential market access and non-discriminatory(" national") treatment for SADC service suppliers," said SADC Secretariat in a statement.

"The State Parties guarantee to extend to all SADC State Parties the best conditions for trade that they grant to one SADC State Party or a non- State Party, including non-SADC countries".

The first round of negotiations was concluded in 2019 and these covered communication, financial, tourism, transport, construction, and energy related services.

SADC Trade Ministers then concluded the second round of negotiations in 2021 and this round covered such sticky areas as business services, distribution, education and training, health and social services, recreational, cultural and sporting services.

The operationalisation of the Protocol is one giant step by the Southern African regional block towards fostering regional cohesion and economic cooperation.

This in turn has the wider impact the regional GDP which is set to be boosted by the expected wider access to a bigger regional market by member states.

As at 2018 SADC commanded a total population of 345 million and a whooping US$721 billion GDP economy from which State Parties are expected to tap from.

Countries that are yet to ratify the Protocol include Angola, Democratic Republic of Congo, Madagascar, and the United Republic of Tanzania, plus the Union of Comoros.