This follows an agreement reached by the regional leaders during the 27th Summit of the Heads of States held 16-17 this August in Lusaka, Zambian capital.
Antonio Fernando, who was speaking during a meeting with the business community and civil society to announce the decisions taken by the summit concerning regional integration, said that regional leaders noted that trade liberalization has already reached the level of 85 per cent in most of SADC member countries.
As for those countries that are yet to reach this level, Fernando said that he was sure that they would by the end of 2007, and therefore all is set to declare that Free Trade Area is already in place in the region.
By saying that the Free Trade Area will be in place in August 2008, explained the minister, doesn't necessarily mean that all requirements are going to be met just on that date, as the process is already being implemented gradually even though some countries are still lagging.
"For instance, the South African market has already reached 100 per cent while other countries are at still around 70, 80 or 90 per cent. What is certain is that most of the countries will reach the target of 85 per cent by August 2008", stressed the minister.
Cerina Mussa, national director for foreign relations with the Ministry of Industry and Trade (MIC) said that those products benefiting from duty exemption would still have to be certified as manufactured within the SADC region.
The Mozambican government has placed consultancy studies on regional integration and these can accessed on its website www.mic.gov.mz, in which interested parties may obtain information on a meeting with international consultants to be held in Maputo on the second week of September.
This meeting seeks to gather different views of the businesses community and other interested parties on regional integration and explain any doubts arising by the current process.
"This will enable Mozambique to draw its position that will be delivered to the extraordinary meeting of SADC Council of Ministers that will take place in October 2007".
Antonio Fernando, said that adherence to the Free Trade Area is on a voluntary basis despite being a must. Therefore, this is one of the main reasons Angola and Democratic Republic of Congo (DRC) will not join the Free Trade Area at his stage.
Angola, according to the minister, "despite having signed the protocol has demanded some time, claiming that the country is still rebuilding its infrastructures that have been destroyed during the long civil war, while DRC did not even sign the protocol".
As for Mozambique, Fernando said that the country has already entered the non-return stage. However, the minister warned that despite the current country's economic growth rates, which are way above the region, Mozambique still has to broaden its tax base to offset the loss revenue.
In parallel, Antonio Fernando said that the government is also committed in improving the business environment to make the best of its comparative advantage in the areas of ports, natural gas, agriculture and tourism.
"Thinking in these difficulties the Mozambican government has set as its major challenges development of infrastructures including roads and bridges over the Zambezi, Limpopo and Incomati rivers, improve water supplying systems, power generation and telecommunications", said the minister.
"Of course that we are not yet satisfied", acknowledged Fernando.
The process o regional integration also includes a Customs Union by 2010.
SOURCE: AIM
