Costed Action Plan for SADC Industrialization Strategy and Roadmap 6.2 Trade Integration Because value chain participation is substantially driven by trade policy it is important to minimize – if not eliminate altogether – obstacles to imports and exports of both goods and services. This implies reducing “at border” costs – tariffs and other regulatory requirements and time delays as well as “behind the border” regulatory measures. Tariffs in SADC have been largely eliminated, although tariffs applicable to imports to non-SADC countries in Africa remain high in several countries. Specific policy recommendations in the Action Plan include: (a) Completion of the FTA area to cover all intra-regional trade; (b) Elimination of non-tariff barriers; (c) Rules of Origin should be amended in a targeted manner to facilitate industrialization; (d) Harmonization of differential trading regimes, particularly in the COMESA, EAC and SADC regions; (e) Eventual establishment of a Common External Tariff; (f) Measures to phase out behind-the-border obstacles to free trade in the region, such as harmonization of health and safety regulations etc.; (g) Enhanced and coordinated cross border investment in trade infrastructure – roads, railways, ports, airlines etc.; (h) Accelerated implementation of Trade Facilitation measures and programmes; (i) Logistics, border post management etc. – a shared function between the regional authority and the Member States, who will have prime responsibility. 6.3 Regional Integration Policies The Industrialisation Strategy calls for a revitalisation of regional integration. Integration requires a collaborative approach to secure 1) investment in economic infrastructure, and 2) an enabling environment for domestic and foreign direct investment by the private sector in productive capability, supported by the state. Optimally this should lead to increased trade, regional investment and industrial policy interventions to ensure that all countries increasingly benefit from the expanded regional market. Twenty-first century Regional Trade Agreements or “deep” RTAs include tariff preferences, but they are not primarily about preferential market access but focus instead on disciplines underpinning international supply chains”. Going forward SADC must adapt to the new regionalism of the 21st century, characterised by two crucial elements:  Internationally dispersed production facilities or supply chain disciplines; and  Producing abroad or offshore disciplines. 47