The regional trade imbalance in Southern African Development Community (SADC) countries has remained in favor of South Africa despite tariff removals.

"In reality, the trade imbalance in our region remains virtually unchanged," South African President Thabo Mbeki told the SADC parliamentary forum held in Johannesburg yesterday.

This was despite the measures taken to implement the 1996 SADC trade protocol that aimed to create a free trade area (FTA), he said.

The 14-member regional bloc aims to establish a FTA by 2008 and a customs union by 2010, a key step towards the regional integration.

Intra-regional trade had increased from 20 to 25 percent of total regional trade in the "six or so" years up to 2003 but it was largely exported manufactured goods from South Africa, the continent's biggest economy. Much smaller volumes were imported into South Africa.

Mbeki said underdeveloped production capacity and inadequate infrastructure in other SADC states and not trade tariffs were behind the imbalance.

"Our country has, as a result of the implementation of our obligation under the SADC trade protocol, already removed duties on over 90 percent of goods originating from SADC countries," he said.

It was important to ensure the dominant South African economy did not further entrench the underdevelopment of other SADC states, Mbeki said.

Programs needed to enable producers to emerge and take advantage of additional market access opportunities. This meant clear guidelines were needed for a free trade area work program, he added.