SADC: Economists raise alarm over free trade area
SABC News | August 18, 2008
Economists raise alarm over Free Trade Area
SADC leaders have hailed the FTA as a major breakthrough
Economists have warned of economic pain and even job losses in the short-term because of the historic Southern African Development Community (SADC) Free Trade Agreement (FTA) signed in Johannesburg yesterday.
The agreement sees the establishment of a regional common market of more than 247 million people, where goods and services will move freely without tariffs. However, some economists say many companies will not survive the opening of the flood gates and they say it will lead to job losses.
SADC leaders have hailed the FTA as a major breakthrough.
Besides goods moving freely across the region, the agreement will also see faster economic growth and job creation throughout the region. Regional trade in agricultural products and other processed goods are expected to pick up immediately and consumers stand to benefit handsomely from lower prices resulting from increased competition.
Ironically, Zimbabwe also joined the FTA, even though it has very little to offer the region from its collapsed economy. On the other hand, Angola, the Democratic Republic of Congo and the Seychelles have decided not to join until they put their economic houses in order.
