Extra-SADC Trade are Flows Predominantly with the Rest of the World

The Members of the Southern African Development Community (SADC) formed a Free Trade Area (FTA) according to the SADC Protocol on Trade in 2008 in order to stimulate trade amongst the 15 Members. However a significant portion of the SADC Region's import/export trade is with the rest of the world and not among the 15 Members of this regional economic community. Since the coming into force of the SADC FTA, trade flows have in deed increased however these trade flows have been with trade partners in other parts of the globe and not among the SADC Members.  

As shown in the charts, even though the European Union continues to be the largest trade partner for the SADC region, East Asia has consistently been the fastest growing trade partner for the SADC region.  East Asia in 2005 was the second largest source of imports for the SADC region at 12,075US$ and with an increase of 140% from 2000. This trend is only likely to increase given that East Asia has a competitive advantage in manufactured products.

SADC export trade was also conducted largely with the EU (24,376US$) in 2005 and East Asia (6,573US$) the same year. However in 2000, SADC exports were predominantly destined for the EU (14,484US$) and NAFTA (3,746US$).  Between 2000 and 2005, SADC exports to the EU increased by over 55% while exports to the NAFTA increased by about 75% and increased by about 163% to East Asia. Data obtained from the SADC..