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Africa Region Working Paper Series No. 83 Rules of Origin and SADC: Abstract Rules of origin are a key factor determining whether trade agreements meet their objectives. In the case of SADC, the rules go beyond their function of preventing transshipment of products from third countries, to protect existing industries from increased intra-regional competition. Rather than facilitating development through trade, the SADC Trade Protocol replaces transparent and declining tariff barriers in important sectors with complex and more restrictive input sourcing requirements that will diminish trade, increase transactions costs, reduce flexibility of producers and make the region a less attractive place to invest. This paper discusses how a movement towards simple and transparent rules of origin, which are easier to administer and with which it is easier to prove compliance, is likely to stimulate regional integration and facilitate the growth of companies that are able to compete effectively on global markets.Full
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