Costed Action Plan for SADC Industrialization Strategy and Roadmap These are qualitatively very different from the earlier RTAs whose focus was the reduction of trade barriers, primarily through tariff concessions to Member States. In the 21st century trade facilitation is less concerned with the elimination of tariffs and nontariff barriers to trade and more about “deep” regional integration in terms of the movement of services, people, skills, capital, technology and intellectual property. The Action Plan calls for the accelerated implementation of the SADC protocols, as well as the re-alignment of national industrial policies across the region. The policy toolkit should include a review of existing trade, investment and industrial policies, with a view to these being deepened and broadened. This will, among others, entail the more strategic use of tariffs, incentives and industrial financing; targeted foreign direct investment; stronger customs controls; compulsory specifications and standards; and public procurement. 6.4 Investment Policy and Financial and Capital Market Integration An open investment regime is an important part of the policy mix since there will be positive spill-overs where FDI leads to closer interaction between foreign and domestic firms including technological and skill transfers. FDI decisions are often central to value chain participation meaning that governments who wish to enter and upgrade in value chains need to implement investment-friendly policies. Linkages with lead firms are more likely to sustain SME innovation, technology transfer and upgrading than official interventions. Because outsourcing and sub-contracting are key elements of value chain participation, respect for intellectual property rights and patent protection is also essential. Specific measures include: (a) Removal of controls on cross-border financial capital flows (b) Protection of Intellectual Property Rights (c) Harmonization of banking regulations and supervisory requirements (d) Rationalization of interest rates regionally (e) Free movement of portfolio investments across the region. (f) Regional Stock Exchange (g) Regional Venture Capital and Private Equity Funds (h) Regional Development Bank (i) Regional Sovereign Wealth Fund. 6.5 Liberalization of the movement of people and skills Phased measures to enable the freer movement of skills than is currently possible due to immigration, employment and residence restrictions. 48