# **7) CONCLUSION**

This paper has identified the extent to which SADC economies have integrated into the global trading system, focusing on trade policy reform and intra-regional and extra-regional trade flows. The evidence points towards an increase in integration for SADC countries since the early 1990s. MFN tariffs have been reduced, intra-regional trade flows have increased and trade has risen as a share of GDP. Gravity model estimates confirm the finding of increased integration, as measured by trade to GDP ratios. Further, SADC trade is found to be regionalized; intra-regional trade flows are high relative to predictions. Finally, while obstacles to trade are high in SADC countries, these levels are consistent with their low income levels and adverse geography.

The implications are that SADCs trade performance is not particularly bad and its trade policy is not necessarily deficient. This leads one to question whether tradespecific reforms should be a priority. However, many regions continue to implement further reforms so SADC must keep pace. Furthermore, it can be argued that SADC needs to trade _more_ than normal, which requires a trade environment that _exceeds_ benchmarks and doesn‟t just keep pace with them. Given its unfortunate geography, it is especially important for additional technological and institutional impediments to be minimized.

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