COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA Experience of comesa in intra regional trade

1. 1958 &1960 - Meetings of independent African
States agreed to promote economic co-
operation amongst themselves to combat
fragmented economies and small market size.
1965 - UNECA ministerial meeting in Lusaka
recommended creation of Economic
Community of Eastern and Southern African
States.
1981 - Treaty establishing PTA signed.
History of PTA and COMESA

2. 1982 - PTA Treaty, which envisioned its
transformation into a Common Market in 10
years, was ratified.
1993 - Treaty establishing COMESA signed.
1994 - COMESA Treaty ratified.
Process of Regional Integration a logical,
systematic process from a preferential trade
area to a common market to an economic
community.
History of COMESA ..cont’d

3. COMESA Membership
• Angola
• Burundi
• Comoros
• Congo, DR
• Djibouti
• Egypt
• Eritrea
• Ethiopia
• Kenya
• Madagascar
• Malawi
• Mauritius
• Rwanda
• Seychelles
• Sudan
• Swaziland
• Uganda
• Zambia
• Zimbabwe

4. COMESA AT A GLANCE
Total Area 12.8million sq. km
Population 370 million (1999 est.)
Membership 20 countries
GDP at current prices $180 billion (2002 est.)
Total Exports $ 28 billion (2002 est.)
Total Imports $ 60 billion (2002 est.)
Intra-COMESA trade $ 5.3 billion (2003 est.)
External Debt $130 billion (2000 est.)

5. Aims and Objectives of COMESA
• To generate self-sustaining economic
growth through collective action in all
fields of social and economic activity.
• To create a fully integrated and
internationally competitive region
where goods, services, capital, labour
and persons move freely.

6. Vision of COMESA
To attain a fully integrated and
internationally competitive
regional economic community
with high standards of living of
its people and where goods,
services, capital and labour freely
move across borders.

7. COMESA IN 2018
• Single Currency &
Common Central
Bank
• Borderless Region
• Free Mobility of
Factors of
Production
• Common
Investment Area
• Single Market for
Primary &
Secondary Goods
• Air and Ground
Transport fully
integrated &
liberalised
• Common Border
Posts

8. STRATEGY OF COMESA
• Strategy:- regional integration through
trade and investment: creating a
single market for goods and services
and a common investment area.
• Approach: - open-regionalism i.e.
integrating regionally without
crowding-out the global economy (the
multilateral framework).

9. MISSION OF COMESA
• To achieve increased co-operation and
integration in all fields of development,
particularly:-
– in trade, customs and monetary
affairs;
– in transport, communications and
information;
– in technology, industry and energy;
– in agriculture, environment, natural
resources; and
– Gender development

10. COMESA in Continental Context
• COMESA was established under the
auspices of Lagos Plan of Action which
seeks to establish African Economic
Community;
• COMESA is a building block of African
Economic Community as is ECOWAs, IOC,
SADC and EAC;
• COMESA is the first FTA under the Lagos
Plan of Action and so is a test case of
African integration.

11. COMESA in Global Context
• COMESA is notified to WTO as a
Regional Trading Arrangement (RTA);
• COMESA FTA is compatible with WTO
Enabling Clause and Article XXIV on
regional groupings.

12. Common Market 2014
Economic Community
2025
Political Union
Preferential Trade Area (PTA)
1984
Same tariff
on non
m/States
Free Trade Area 2000
African
Union
Customs Union 2004
Free Trade
among m/State
FTA among
COMESA states
and CET
All attributes of
Customs Union ++
Free movement of
factors of
production
Tariffs among
m/States
reduced – not
eliminated
Free Trade
with EU in
2020
All attributes of CM ++
Single Currency ++
Unified Econ Policies

13. COMESA PROGRAMMES
Trade Liberalisation
The main objective of the trade liberalisation
programme is to create a single economic
space in which there is free movement of
goods, services, capital & labour.
Instruments used include:
Tariff Reduction
Removal of Non-Tariff Barriers to Trade
Rules of Origin

14. Trade Development and Promotion
Programme
Elements:
•Supply and Demand Surveys
•Buyers/ Sellers meetings
•Enterprise-specific assistance
•Trade Fairs and marketing missions
•Strengthening individual chambers of commerce
•Trade Information Network (TINET)
•Seminars on “ Doing Business in COMESA”
•Analysis of production and investment
opportunities

15. COMESA FREE TRADE AREA (FTA)
Tariff Reduction commenced on 1st
July, 1984
Original Target Date for FTA
September, 1992
Target Date for FTA postponed to
October, 2000

16. COMESA Members in the FTA
• The COMESA FTA was launched
on 31st October 2000.
• COMESA Member States
participating in the FTA are:
Burundi
Djibouti
Egypt
Kenya
Madagascar
Malawi
Burundi
Djibouti
Egypt
Kenya
Madagascar
Malawi
Mauritius
Rwanda
Sudan
Zambia
Zimbabwe
Mauritius
Rwanda
Sudan
Zambia
Zimbabwe

17. Zero tariffs on goods from COMESA Countries.
Goods from non-COMESA dutiable at full national tariff
rates.
No NTBs on COMESA goods.
Application of COMESA Rules of Origin.
ELEMENTS OF COMESA FTA
3

18. Direct consignment from exporter to
importer and
35% local value added, ex-factory cost; or
25% local value added, ex-factory cost for
goods of particular economic importance;
or
change in tariff classification; or
60% cif value of imported materials; or
Wholly produced goods.
Provisions of COMESA Rules
of Origin:
4

19. COMESA CD
COMESA Customs Bond Guarantee
ASYCUDA/EUROTRACE
Harmonised System Code
Common Tariff Nomenclature
Common Statistical Rules
Yellow Card Motor Vehicle Insurance
Harmonised Road Transit Charges
Carriers License
Overload Controls
Maximum Vehicle Dimensions
ACIS for Cargo tracking
Trade Facilitation:
5

20. Monetary Co-operation
Objective:
To establish a monetary union so as to have
a zone of monetary stability in order to
facilitate the integration efforts:
Phased Monetary and Fiscal Policies
Harmonisation Programme towards a
common currency issued by a common
central bank in 2025.
Regional Payments System; Africa
commerce exchange.

21. Up-dating of information on trade and
investment laws in COMESA;
Harmonising investment codes;
Developing Investor Roadmaps
Providing information on investment
opportunities
Developing and promoting COMESA as a
Common Investment Area;
Promoting development growth poles.
Investment Promotion

22. A. Air Transport Programme
(1) Liberalisation of Air Transport Services
(2) Air Transport Facilitation
(3) Safe Skies Programme (CNS/ATM
System)
B. Road Transport and Traffic Facilitation
C. Telecommunications Interconnectivity
Transport and communications

23. COMESA INSTITUTIONS
PTA Trade and Development Bank
COMESA Clearing House
COMESA Court of Justice
The COMESA Re-Insurance Company
(ZEP-RE)
COMESA Bankers Association to
promote links among banks
Africa Trade Insurance Agency offers
political risk guarantee
Leather and Leather Products Institute

24. SECTOR BASED INSTITUTIONS
METTALUGICAL INDUSTRIES
(COMESAMIA)
THE YELLOW CARD INSURANCE.
BUREAU
WOMEN IN BUSINESS (FEMCOM)
PHARMACEUTICAL ASSOCIATION
COMESA BUSINESS COUNCIL

25. − Intra-COMESA trade has increased from US$
734 Million in 1985 to US$ 5.5 billion in 2003;
−Transport facilitation measures has cut
transport costs by approximately 25%.
−Supply/demand surveys carried out, and
buyer/seller meetings & trade fairs
organised have generated transactions
worth about US $ 1 billion
Results of Integration

26. COMESA has re-defined its medium-term
strategy as being the promotion of regional
integration through trade and investment;
COMESA is now concentrating its efforts on
consolidating and expanding the FTA and
establishing a Customs Union, while
accelerating investment promotion.
Conclusion:
Where we are going ?

27. THANK YOU FOR YOUR ATTENTION
THE END
Internet Site: http://www.comesa.int