TAILIEUCHUNG - Deepening Regional Integration to Eliminate the Fragmented Goods Market in Southern Africa

Bespoke (or custom made products) have always symbolized the epitome of luxury. It is quite common that a designer who has been successful in capturing the heart of a buyer is asked to make another bespoke piece. One such one–off piece was designed by Ravi Chawla5 . He designed a 7 foot high idol of Srinathji, which was the result of several visits to the temple at Udaipur, thousands of hours of exquisite craftsmanship and the best of materials which gave the luxury look to the idol. The result – a proud owner family and a blank cheque. In case. | Deepening Regional Integration to Eliminate the Fragmented Goods Market in Southern Africa Ian Gillson November 2010 Africa Trade Policy Notes Note 9 Introduction This note summarizes new studies that identify the most restrictive barriers to regional goods trade in Southern Africa. It also illustrates the costs associated with these barriers using information gathered from some of the largest firms engaged in cross-border trade. The note concludes by providing practical policy recommendations to deepen regional integration in the goods market and increase competitiveness. A recent and important trend in global trade has been the proliferation of regional trade agreements RTAs and Southern Africa is no exception. Regional integration efforts in Southern Africa such as COMESA SADC and SACU have all sought to liberalize trade between countries so as to increase bilateral trade flows diversify exports by overcoming the limits of small markets and deepen specialization through achieving economies of scale. Harnessing regional integration more effectively for both goods and services would help all countries lower their cost base thereby enhancing global competitiveness. For the smaller Southern African countries regional integration also offers the prospect of improved access to neighboring markets as well as the potential to attract greater SADC-orientated FDI. In some of these countries . Lesotho greater exploitation of the regional market is critical to reduce reliance on exports of a single product to a single market . clothing to the United States under AGOA . For the larger countries especially South Africa regional integration offers opportunities to enhance the sustainability of existing exports . light manufacturing on world markets by lowering costs through specialization within the context of integrated regional value chains. However while Southern African countries have largely succeeded in increasing their trade with the rest of the world more than

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