SADC deals with trade in services through various protocols, including protocols on communication, transport, energy, education, tourism, finance and investment, and a draft protocol on the movement of persons. The Finance and Investment Protocol covers investment, taxation, exchange control policies, central bank cooperation, payment systems, banking regulation, development finance institutions, non-banking financial institutions, and stock exchanges. The SADC Services Protocol models the WTO GATS and includes six priority sectors for negotiations: communication, construction, energy, financial, tourism, and transport services. Negotiations are ongoing using a request-offer approach but there have only been a few offers so far.

1. Liberalization of Trade in Services in SADC
Trade and Regulation on Services in Africa
Addis Ababa, 5-6 June 2013
Presentation by
Markus Jelitto, SADC Trade in Services Advisor
mjelitto@sadc.int

2. SADC deals with Services through a
host of legal instruments…
Protocol on
Communication,
Transport, Mete
orology
Protocol on
Energy
Protocol on
Education
and Training
Protocol on
Development
of Tourism
Draft Protocol
on Facilitation
of Movement
of Persons
Protocol on
Finance and
Investment
Protocol on Trade in Services

3. Finance and Investment Protocol –
coverage
• Investment
• attainment of macroeconomic convergence;
• co-operation in taxation and related matters;
• co-operation and coordination of exchange control policies;
• harmonisation of legal and operational frameworks (of central
banks);
• co-operation on payment, clearing and settlement systems;
• co-operation in the area of information and communication
technology amongst central banks;
• co-operation and coordination in the area of banking regulatory and
supervisory matters;
• co-operation in respect of development finance institutions;
• co-operation on non-banking financial institutions;
• and co-operation in SADC stock exchanges.

4. SADC Services Protocol - snapshot
• Communication Services,
• Construction Services
• Energy-related Services
• Financial Services
• Tourism Services
• Transport Services
Long incubation period (2000-2012)
Modeled largely on the WTO GATS (4
Modes, MFN, Market Access, National Treatment, Positive
List approach, excludes Procurement)
Negotiations on liberalization of six priority sectors
ongoing (2012 -2015 Request- offer method)

5. State of play in the negotiations
• Five sets of requests
(Lesotho, Mauritius, South
Africa, Swaziland, Zambia)
• 2 offers (Seychelles, Swaziland)91
80
33 33 27 21 19 17 16 12
34
5 3 1
Number of GATS Commitments (and SADC offers)

6. Comparison with state of play in other
Tripartite RECs
• EAC most advanced– but facing difficulties
with Movement of Persons, and
implementation of other commitments
• COMESA started in 2010, similar approach to
SADC – more ambitious with regard to
outcome
• Tripartite: Services to be addressed in 2nd
phase of the negotiations, only Movement of
Business Persons addressed in 1st Phase

7. Why negotiations?
• Efficiency enhancing reform can largely be
carried out domestically
• …and through regulatory reform (international
benchmarks, regional
cooperation/convergence of standards)
• Domestically, negotiations serve to lock in
existing reform, and to create a counter-
weight to powerful incumbent suppliers

8. Some Observations
• Generally low ownership by stakeholders -Trade
and Line Ministries
• Mixed response from private sector – some
liberalization requests, but more protective
instincts
• Most sectors are relatively open in most
countries, but general perception that this has
lead only to limited competition, little improved
access
• Emerging empowerment policies can be a
significant stumbling block