REGIONAL 2 5 INDIC ATIVE STRATEGIC DEVELOPMENT PL AN The success of this depends on the effective implementation of the trade protocol by all Member States of the WTO, the AGOA and the Cotonou Agreements should be taken into account. especially with regard to elimination of tariff and non-tariff The other challenge is in developing new policies barriers that takes into consideration the specificities of and strategies that would target vulnerable groups such different Member States. These are to be accompanied by as the rural and urban poor, small businesses, informal appropriate rules of origin, which will encourage the operators and women to ensure that they take optimum utilisation of regional resources and allow forward advantage of the policies. and backward linkages in the various production chains. Measures have also been taken to harmonise customs rules and procedures. These coupled with 3.2.3 INDUSTRY internationally acceptable standards, quality, accreditation and metrology as well as harmonisation of sanitary 3.2.3.1 and phytosanitary measures are expected to enhance Review of Current Policies and Strategies intra-SADC trade. As far as services are concerned, a legal Current policies and strategies being pursued in the framework will be adopted to ensure compliance with region focus on export promotion, promotion of industrial international commitments made by SADC Member States. linkages, efficient import substitution, improvement of the investment climate, facilitation of imports of essential 3.2.2.3 goods, regional human development, enhancing Challenges for Trade Policies and Strategies industrial support services, equitable distribution of The key challenge for SADC is to establish a Common industrial activity and adopting flexible market oriented Market within a reasonable time frame in order to exchange rates. increase the percentage share of SADC trade in the world market. This will only be possible, when Member States 3.2.3.2 comply with the decisions agreed within the framework Evaluation of Current Policies and Strategies of the SADC Trade Protocol and to speed up These policies are in line with the strategic objectives of implementation bearing in mind the underlying harmonising principles and objectives of the protocol. This also maintaining a conducive environment for both local and entails compliance with and implementation of WTO foreign investment; development of deliberate policies for obligations as well as taking advantage of preferences industrialisation; and the development of economic and provided under the Cotonou Agreement and the Africa social infrastructure. SADC industrial policies and Growth Opportunity Act. strategies have to a limited extent contributed to the sound macroeconomic policies and It would be essential therefore to address the supply development of industry in the region. There is need side constraints as well as competitiveness of industry therefore to ensure a balanced and mutually beneficial with regard to production and to cushion the impact of industrialization in the region with focus on the promotion the international tariff reduction on the development of of industrial linkages and efficient utilisation of regional the smaller, landlocked and less developed members of resources for the creation of productive employment SADC. opportunities across the region. As SADC moves into higher levels of integration such as the customs union, the issue of overlapping 3.2.3.3 membership of SADC countries in a number of other Challenges in Current Polices and Strategies regional bodies and the conflicting obligations arising The industrial sector needs to withstand the challenges thereof should be addressed urgently. A resolution on of globalisation, which range from competitiveness to this issue would strengthen SADC's position as a industrial and product diversification, productivity, building block of the African Union. The challenges technology transfer and research and development. This posed by globalisation especially within the framework can only be achieved with an overall improvement in