What Shoprite and Woolworths can tell us about Non-tariff Barriers

This research paper examines the prevalence and impact of non-tariff barriers (NTBs) within the Southern African Development Community (SADC) region. It argues that while tariff liberalisation has progressed, NTBs—particularly those resulting from poor design and implementation—significantly constrain regional trade and undermine the benefits of the SADC Free Trade Area. The author uses evidence from private sector entities like Shoprite and Woolworths to illustrate the high costs of administrative compliance and border delays, and proposes the creation of a coordinated action plan and a 'naming and shaming' mechanism to accelerate the removal of these barriers.

• Non-tariff barriers (NTBs) are pervasive across the SADC region, with a COMESA survey indicating that roughly 80% of private sector respondents experienced some level of trade barriers and 40% faced 'very severe' NTBs.
• The most significant NTBs in Southern Africa in terms of trade costs are customs administration, transit-related barriers, and corruption at the border.
• Agricultural commodities are disproportionately affected by NTBs, often justified by food security, health and safety, and the protection of local producers; affected goods include sugar, maize, meat, dairy, tea, timber, and seasonal vegetables.
• High administrative costs for complying with Rules of Origin (RoO) and paperwork can undermine the value of tariff preferences. For example, Shoprite spent an estimated ZAR 40 million in 2009 to secure ZAR 93 million in SADC tariff reductions.
• Inefficiencies in regional trade lead to higher retail prices and excessive inventory levels. Woolworths reported that retail prices in non-SACU SADC franchise outlets can be up to 1.8 times higher than in SACU stores due to trade barriers.
• The Tripartite NTB Monitoring Mechanism (NTBMM) has recorded 363 complaints, with South Africa, Zambia, and Zimbabwe being the most-cited countries for imposing NTBs.
• SADC lacks a coordinated action plan or road map for NTB removal, which is a deficiency compared to other regional blocs like the EU or ASEAN.
• The SADC SQAM has harmonised over 100 regional standards, but these are not being adopted at the national level by member states.
• The author recommends a 'vertical' approach to NTB removal, focusing first on 'easy' barriers that have a high impact on trade but low political sensitivity, and suggests a 'naming and shaming' mechanism to enforce compliance.

APA

Charalambides, N. (2013). What Shoprite and Woolworths can tell us about Non-tariff Barriers. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/06/Occasional-Paper-148.pdf

Chicago

Charalambides, Nick. What Shoprite and Woolworths can tell us about Non-tariff Barriers. South African Institute of International Affairs, 2013. https://saiia.org.za/wp-content/uploads/2013/06/Occasional-Paper-148.pdf.

Wikipedia

{{cite report |last1=Charalambides |first1=Nick |title=What Shoprite and Woolworths can tell us about Non-tariff Barriers |publisher=South African Institute of International Affairs |date=October 2013 |url=https://saiia.org.za/wp-content/uploads/2013/06/Occasional-Paper-148.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{charalambides2013what, author = {Charalambides, Nick}, title = {{What Shoprite and Woolworths can tell us about Non-tariff Barriers}}, institution = {South African Institute of International Affairs}, year = {2013}, month = oct, url = {https://saiia.org.za/wp-content/uploads/2013/06/Occasional-Paper-148.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }