ABSTRACT
The maritime cabotage framework in the European Union is described generally as the best illustration of an effective liberal maritime cabotage approach. Normally, all vessels regardless of flag, ownership, and place of build or nationality of crew can engage in the coastal trade and services of a liberal maritime cabotage nation. Generally, states adopt liberal maritime cabotage policies to promote economic development by encouraging competition. A liberal law is as advantageous in the maritime sector as it is in other sectors of the economy in countries with effective institutional and functional infrastructural facilities. Maritime cabotage was eventually liberalized in the European Union by Council Regulation 3577/92 and applies throughout the European Economic Area. The draft maritime policy states that the economic growth and development of South Africa is tied inextricably to the simultaneous growth and development of the African region. The protectionist maritime regulation was deregulated gradually between 1984 and 1994 during economic reform in New Zealand.
