Regional trade in Southern Africa intensifies in response to Trump's tariffs
Angola is set to join the Southern African Development Community (SADC) Free Trade Area in June, becoming the 14th member state in the regional free trade zone. This move marks a significant step towards the integration of African economies, as Angola joins countries like South Africa, Botswana, Namibia, Zambia, and others who are already part of the SADC.
The SADC Trade Protocol, introduced in 2000, has been instrumental in phasing out tariffs and eliminating trade barriers within the region. Since its rollout, trade among member states has reportedly doubled, a testament to its success.
It's worth noting that most SADC countries, including South Africa, are also members of the African Continental Free Trade Area (AfCFTA). The AfCFTA, which aims to create a single continental market for goods and services, has been signed by all 55 members of the African Union. However, substantial work remains to ensure its successful implementation.
Balancing regional and national priorities is a challenge in Africa, given the diverse levels of development, industrialization, and economic sizes among countries. Effectively implementing the various trade instruments and ensuring their harmonization across the continent and its subregions is a key challenge.
South Africa, currently the economic powerhouse of the SADC, has indicated that it has no plans to counter the tariffs imposed by the new member, Angola. Instead, it aims to negotiate exemptions to avoid potential disruptions to trade.
The U.S., which once held the position of Africa's top trading partner, has fallen to third place, trailing behind China and India. This shift in trade dynamics underscores the growing economic ties between Africa and the rest of the world.
However, the potential for African countries to respond to tariffs with reciprocal measures is unlikely due to the power imbalance and limited leverage of African countries relative to the U.S. Striking a balance between a regional focus and the pursuit of global integration is essential for African nations.
Despite the challenges, achieving regional solidarity amid competing national interests remains a priority for African nations. The integration of Angola into the SADC Free Trade Area is a step towards this goal, fostering closer economic ties and promoting economic growth in the region.
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