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Leaders Meet To Discuss Pan-African FTA,
by Robert Lee, Tax-News.com, London
Friday, October 24, 2008
Kgalema Motlanthe, the President of South Africa, has met regional economic
bodies in Kampala, Uganda, to discuss the possibility of creating a Free Trade
Area (FTA) incorporating 26 African states.
President Motlanthe attended a Tripartite meeting in Uganda with the South
African Development Community (SADC), The Common Market for Eastern and Southern
Africa (COMESA), as well as the East African Community (EAC). The aim of the
meeting was to discuss the declared intention of SADC to establish a customs
union by 2010.
The meeting in Kampala considered the possibility of establishing a pan-regional
FTA. For South Africa, the opening up of markets in SADC would provide access
to an additional population of over 200 million people.
Foreign Affairs Director General, Ayanda Ntsaluba, said on Wednesday: "The
general sense in Kampala is that there needs to be some detailed work done to
look at all the elements that will help shape the FTA.”
There would be 26 member states included in the FTA, said the Director General,
adding that their combined Gross Domestic Product (GDP) would amount to about
$650 billion.
"For countries in the SADC region, it is consistent with what the African
Union has advocated with regard to how we should move toward substantive regional
integration.”
"We have always argued that we need to establish strong Regional Economic
Communities (REC), and secondly you must encourage those communities to interact
among themselves as an intermediate step to the creation of an African common
market."
“The RECs are key to implementing regional integration programmes in
trade and economic development including the establishment of the FTA and a
common customs union.”
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