Treaties can be sometimes bulky and laborious to go through. Sometimes what one is really looking for is a simplified summary of key provisions of the agreement which is often the case when am researching for my writing.
The following is a summary of the SADC Protocol on Trade which I developed as a simplified quick reference. You may still read/download the full Protocol here.
The SADC Protocol on Trade came into force in 1996 and was amended in 2000, 2007, and 2008, according to SADC to “clarifying aspects of Rules of Origin and safeguard measures and incorporating new annexes on settlement of disputes and trade in sugar”.
Article 1
Covers definitions of terms
Article 2 – Objectives
Over and above a push towards improving the region’s investment climate, facilitation of efficient production by recognising member comparative advantages and enhancing industrialisation, the objectives of the Protocol also include liberalisation of inter-regional trade with the aim of establishing a Free Trade Area (FTA).
Article 3 – Elimination of Barriers to Intra-SADC trade
The Article guides the elimination of tariffs and non-tariff barriers (NTB) within 8 years from entry into force of Protocol. The Committee of Ministers responsible for trade matters (CMT) is responsible for overseeing the implementation.
Article 4 – Elimination of Import Duties
The Article seeks to implement phased down reductions and eventual elimination of import duties on goods originating within the Community as part of the goals of Article 2. SADC members are prohibited from raising import duties beyond those in existence at the time of entry into force of the Protocol.
Article 5 – Elimination of Export Duties
Article 5 prohibits the application of any export duties on goods for export to members of the Community. A waiver is available on the application of export duties necessary to meet any prohibitions or restrictions which apply to exports outside the Community provided the MFN principle is guaranteed.
Article 6 – Elimination of Non- Tariff Barriers (NTB)
This Article argues Community members to adopt policies and implement measures that seek to eliminate NTBs and calls on Community members to refrain from imposing any new NTBs.
Article 7 – Quantitative Import Restrictions
Forbids the application of any new quantitative restrictions and calls for a phasing out of the restrictions on the import of goods originating within SADC (Article 3). Quantitative restrictions provided for in the Protocol are permissible, for example under Article 20.
Article 8 – Quantitative Export Restrictions
Article 8 forbids the application of any quantitative restrictions on exports to other SADC countries except were it’s allowed in the Protocol. Members may however apply export restrictions provided the application of the export restrictions is necessary to meet any prohibitions or restrictions which apply to exports outside the Community, provided the MFN principle is guaranteed.
Article 9 – General Exceptions
Justifies trade restriction measures by member countries on grounds of protecting public morals, human, animal or plant life or health, food shortages, conservation among other things.
Article 10 – Security Exception
Justifies trade restriction measures by member countries on grounds of protecting security interests or for the purpose of maintaining peace.
Article 11 – National Treatment (NT)
Upholds the national treatment principle. Goods from other member countries are to be accorded same treatment as domestic goods once they enter the domestic market.
Part Three – Customs Procedures
Article 12 – Rules of Origin
Goods originating within the Community shall be accorded Community treatment in accordance with the provisions of Annex 1 of the Protocol.
Article 13 – Cooperation in Customs Matters
Seeks to harmonize application of the provisions of the Protocol including customs administration among member countries in accordance with Annex II of the Protocol
Article 14 – Trade Facilitation
Community members are to take measures as are necessary to facilitate the simplification and harmonization of trade documentation procedures in accordance with Annex III of the Protocol.
Article 15 – Transit Trade
Promotes freedom of transit of products imported into, or exported from a member of the Community in accordance with Annex IV of the Protocol.
Part Four – Trade Laws
Article 16 – Sanitary and Phytosanitary Measures
Seeks to harmonize Community sanitary and phytosanitary measures by following international standards, guidelines and recommendations. Recognises the WTO Agreement on the Application of Sanitary and Phytosanitary Measures as guide.
Article 17 – Standards and Technical Regulations on Trade
Community members shall use relevant international standards as a basis for their standards-related measures. Without endangering human, animal, or plant life or health or other such, Community members are encouraged to utilize standards-related measures that facilitate trade and not hinder it. While standards are essential, they should not be allowed to unnecessarily hinder intra-regional trade.
Article 18 – Anti-Dumping Measures
Community members are free to utilize anti-dumping measures against other members in the Community as long as they conform with WTO provisions.
Article 19 – Subsidies and Countervailing Measures
Subsidies which distort or threaten to distort competition within the Community are prohibited. In accordance with WTO provisions, a member of the Community can levy countervailing duties as a means of offsetting the effects of subsidies. New subsidies can only be introduced in accordance with WTO provisions.
Article 20 – Safeguard Measures
Community members are permitted to institute safeguard measures to protect domestic industry from serious injury or threat of serious injury. Serious injury shall be determined in accordance with Article 4 of the WTO Agreement on Safeguards. Total period of application of a safeguard measure shall not exceed eight (8) years.
Article 21 – Protection of Infant Industry
The Committee of Ministers on Trade (CMT) in accordance with WTO provisions may authorise a Community member to take measures to protect its domestic infant industry by suspending certain obligations under the Protocol in respect of like goods imported from other members of the Community.
Part Five – Trade Related Investment Matters
Article 22 – Cross-Border Investment
Community members shall adopt policies and implement measures that promote and open cross-border investment regime.
Part Six – Other Trade Related Investment Issues
Article 23 – Trade In Services
Community members shall adopt policies and implement measures in accordance with their obligations in terms of the WTO’s General Agreement on Trade in Services (GATS), with a view to liberalising their services sector within the Community.
Article 24 – Intellectual Property Rights
Community members shall adopt policies and implement measures within the Community for the protection of Intellectual Property Rights, in accordance with the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS).
Article 25 – Competition Policy
Article promotes implementation of measures by Community members that prohibits unfair business practices and promote competition.
Part Seven – Other Substantive Provisions
Article 26 – Trade Development
Community members are to adopt comprehensive trade development measures aimed at promoting trade within the Community in accordance with Annex V of the Protocol
Part Eight – Trade Relations Among Member States and with Third Countries
Article 27 – Preferential Trade Arrangements
Preferential trade and other trade related arrangements existing at the time of entry into force of the Protocol can be maintained, however, with a view to undertake to review their further application for the purpose of attaining the objectives of the Protocol. Community members are free to enter into preferential trade arrangements between themselves, provided such arrangements do not violate the provisions of the Protocol.
Article 28 – Most Favoured Nation Treatment (MFN)
Community members shall accord MFN to one another. Advantages and benefits accorded to a third country in a preferential trade arrangement are to be extended to other members of the Community. MFN is not applicable to the Community were a member was already in an arrangement prior to coming into force of the Protocol.
Article 29 – Co-ordination of Trade Policies
The Community shall endeavour to coordinate its trade policies and negotiating positions in respect of relations with third countries or other blocs and international organisations as found in Article 24 of the SADC Treaty as a way of accelerating the achievement of the objectives of the Protocol.
Article 30 – Co-operation with Third Countries or Groups of Third Countries
The Community shall develop cooperation and conclude agreements with third countries or groups of third countries and international organisations as provided for in Article 24 of the SADC Treaty as a way of accelerating the achievement of the objectives of the Protocol.
Part Nine – Institutional Arrangements and Dispute Settlement Procedures
Article 31 – Institutional Arrangements
The Article sets-out the institutional hierarchy and terms of reference of the CMT, Committee of Senior Officials responsible for trade matters, the Trade Negotiation Forum (TNF) and the Senior Coordinating Unit.
Article 32 – Settlement of Disputes
Community members endeavour to agree on the interpretation and application of the Protocol, and shall make every effort, through cooperation and consultation, to arrive at a mutually satisfactory agreement. In case of disagreement, the Community may take recourse to a panel of trade experts.
Article 33 – General Undertaking
The Community undertakes to cooperate in addressing any impediments to intra-SADC trade that may arise as a result of any action or lack of action by any Community member on issues having material bearing on such trade and which are not covered elsewhere in this Protocol. In the event of disagreement on the existence of impediments to intra-SADC trade, the Community may take recourse to Article 32 of the Protocol.
Article 34 – Amendment
Amendments of the Protocol shall be in accordance with the procedures established by Article 36 of the SADC Treaty.
Front Image Credit: ZHCKL