Govt welcomes the launch of FTA

Government has implored local producers and manufacturers to take advantage of the recently launched SADC Free Trade Area (FTA) to produce goods of high quality which will compete favorably in the region.

Commerce, Trade and Industry Permanent Secretary, Davison Chilipamushi says the launching of the FTA will increase trade and create a larger market hence business houses must increase domestic production in order to be competitive.

Mr. Chilipamushi said this in an interview with the Zambia News and Information Services (ZANIS) in Lusaka today.

He charged that the FTA will have no immediate effect on the country’s revenue collection as only 85 percent of goods produced in the region will be exempted from duty.

Mr. Chilipamushi explained that the remaining 15 percent has been reserved for sensitive products that might affect the countries local market hence it will be dealt with in the coming years.

He said the Zambian government has welcomed the SADC FTA as it will as it will among others create greater business opportunities, consumers and producers will have access to cheaper inputs and goods, employment creation and there will be higher regional imports and exports.

“We already have in place a COMESA FTA and now with the launching of the SADC FTA, Zambian producers must take advantage and produce more for selling to other countries in the region,” Mr. Chilipamushi said.

And in a related development, the Cross Boarder Traders Association Chairman has welcomed the launching of the SADC Free Trade Area.

Chairman General, Celeste Mwanakisi told ZANIS in an interview that the introduction of the FTA in the SADC will increase trade and regional integration.

Mr. Mwanakisi noted that the FTA will increase the trading ground adding that traders will be able to expand their business.

He also announced that the Common Market for Eastern and Southern Africa (COMESA) secretariat will this month launch the Simplified Trade Regime (STR).

Mr. Mwanakisi explained that the STR will allow small scale traders to have preferential trade without paying tax.

He appealed to governments in the SADC region to also introduce the STR in the region to enable small scale traders expand their businesses.

“The COMESA STR will be launched soon and this will entail that those who trade within the range of US$ 500 will be paying tax in COMESA member countries,” Mr. Mwanakisi said.

Meanwhile, the Zambia Consumer Association (ZACA) says the SADC FTA will enable consumers to have access to a variety of goods at a cheaper price.

Executive Director, Muyunda Ililonga said ZACA welcomes the launching of the SADC FTA as it has been long over due.

Mr. Ililonga said the movement of goods and services will be improved adding that the onus is on the manufactures to improve the quality of their products.

“You see South Africa is one of the biggest growing economies in the SADC region hence Zambian consumers will now have access to a variety of goods from that country at cheaper prices,” Mr. Ililonga said.

The Southern African Development Community (SADC) Free Trade Area (FTA) was launched on Sunday, 17th of August, 2008 by South African President Thabo Mbeki.

The Launch of the FTA is supposed to lead to the establishment of a customs union by 2010, common market by 2015 and the creation of a monetary union by 2016.

Only 11 countries in the 14 nation SADC agreed to the pact which the region hopes will boost trade and investment opportunities as well as create jobs.

FTA will exempt 85 percent of trade from tariffs and aims to fully liberalize by 2012.

ZANIS/YK/AM/ENDS.