Expanded trade pact boosts region: Davies

Johannesburg - A trade agreement between various southern and east African countries has significant economic potential as the countries have a combined gross domestic product of $624bn, Minister of Trade and Industry Rob Davies said on Thursday.

"The economic potential for the T-FTA (trilateral free trade agreement) is considerable, as it combines a market of 26 countries with a combined GDP (gross deomstic product) of $624bn and a population of approximately 700 million people," Davies told a seminar at the University of Western Cape.

South Africa will host a tripartite council and summit in June, which is to pave the way for the establishment of a trilateral free trade agreement  between the East African Community, the Common Market for Eastern and Southern Africa, and the Southern African Development Community.

An integrated, large regional market will attract foreign investment and enhance intra-African trade, Davies said.

"In the context of markedly improved growth prospects for Africa alongside intensifying global competition for Africa's resources and markets, the need to enhance access to African markets is more urgent," he said.

"The T-FTA is an important initiative in accelerating regional integration efforts, aimed at ensuring that African countries trade with each other on terms at least as favourable as other competitors."

Davies said South Africa was committed to a development-focused trade strategy that would benefit "developing and least developed" countries.