Abstract
Article XXIV of the General Agreement on Tariffs and Trade (GATT) lays down the legal principles with which regional trade agreements have to conform. Based on these principles, WTO members have the mandate to determine the legality of Regional Trade Agreements (RTAs) under the GATT. Article XXIV permits both regional and bilateral preferential trade agreements leading to the formation of customs unions and free trade areas, and seeks to integrate them in the multilateral trading system envisioned for the world. SADC is an RTA created under this Article. Notwithstanding the controversies surrounding the provisions and interpretation of Article XXIV, this paper seeks to establish the extent to which the SADC Protocol on Trade and free trade area comply with WTO rules. An analysis of selected Article XXIV provisions and the SADC Trade Protocol provisions will be undertaken in trying to establish this compliance.
Highlights
Some World Trade Organisation (WTO) Members argue that the Enabling Clause is not appropriate to deal with RTAs which take the form of either a customs union or an free trade areas. (FTAs) which should be covered by Article XXIV
The obligation for notification has not been complied with in a systematic manner by WTO Members and Crawford37 notes that; While the wording of GATT Article XXIV suggests that an RTA should be notified before the entry into force of the RTA, notifications are generally received after entry into force, in some cases months or even years after
As part of the Uruguay Round, WTO members agreed to the Understanding on the Interpretation of Article XXIV of the GATT 1994, which inter alia provides that a reasonable period of time shall be construed as not more than 10 years, without a full explanation of why a longer period of time is required in the interim agreement
Summary
List of abbreviations and acronyms ACP – African, Caribbean and Pacific Group of States BLNS- Botswana, Lesotho, Namibia and Swaziland CRTA- Committee on Regional Trade Agreements CTG- Council on Trade in Goods EPA- Economic Partnership Agreements EU- European Union FTA- Free Trade Area GATS- General Agreement on Trade in Services GATT- General Agreement on Tariffs and Trade MFN- Most favoured Nation ORC- Other Regulations of Commerce RTA- Regional Trade Agreement SADC- Southern African Development Community SAT- Substantially All Trade WTO- World Trade Organisation
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