Trade in Services in the Region
The services sector in the SADC region is characterised by moderate investment, comparatively high cost and limited access to services by the general public.Services trade can play an important role for the development of the services sectors in the region.
Most SADC Member States adopted services sector liberalization policies in the 1990s providing market access to foreign services suppliers, including through foreign direct investment. In 1995, all SADC MS (except the Seychelles) became WTO Members and undertook binding liberalization commitments through the GATS and bilateral agreements.
SADC Member States recognize that the deeper integration not only of trade in goods, but also of their services markets holds great economic potential. In the SADC Treaty Member States undertook to develop policies aimed at the progressive elimination of obstacles to the free movement of capital and labour, goods and services. The RISDP, [link to RISDP paragraph 3.2.2.2, ] recalls the objective of eliminating obstacles to the free movement of capital, labour and goods and services and the improvement of the region's economic management and performance through regional cooperation with the ultimate goal of eradicating poverty, and foresees the establishment of a Common Market through removal of barriers on factors of production. Whereas SADC has concentrated its efforts towards establishment of a Free Trade Area for goods, work on policies to eliminate obstacles to the movement of services has progressed slowly. A framework Protocol on Trade in Services was adopted in 2009 by Ministers of Trade, and awaits clearance by Ministers of Justice/Attorneys General and signature by Heads of State.
It is important to note that the Draft Protocol on Trade in Services provides for a mandate to progressively negotiate removal of barriers to the free movement of services, but does not bring about any integration of markets in and by itself.
The regional services liberalization agenda is on-going and it is expected that the liberalization of six priority sectors (communication services, construction services, energy-related services, financial services, tourism services, and transport services) will be carried out within 3 years after signature of the Protocol on Trade in Services. These commitments will provide a predictable legal environment for trade and investment in the sector within the region.