Aid for Trade in COMESA: Past Experience, Lessons Learnt and the Way Forward
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3. 1. Background to COMESA COMESA is a regional grouping comprising 19 MS namely Burundi, Comoros, Congo DR, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Uganda, Seychelles, Swaziland, Sudan, Zambia and Zimbabwe with: Combined GDP (2005) - US$275 Billion Population (2005) - 390 million Total Trade (2005) - US$160 Billion CTA Briefing No. 3 Can Aid Fix Trade? The New Aid for Trade Agenda
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5. 2. COMESA’s Trade Regime COMESA has a Free Trade Area among 13 of its members and plans to launch a Customs Union in December 2008. The region has clear and streamlined Rules of Origin, trade defence regulations, a regional competition policy ad regulations and a dispute settlement mechanism involving a Court of Justice. It has a trade and development bank and sectoral development institutions. CTA Briefing No. 3 Can Aid Fix Trade? The New Aid for Trade Agenda
6. 3. Trade Policy Regulation and Trade Development COMESA has developed a Free Trade Area premised on rules. COMESA has regulations relating to safeguards, unfair trade and anti- competitive practices; COMESA has developed practical rules of origin which limit trade deflection and maximise legitimate intra-regional trade but are simple to understand and more importantly, to apply. CTA Briefing No. 3 Can Aid Fix Trade? The New Aid for Trade Agenda
7. 3. Trade Policy Regulation and Trade Development cont’d … The region has adopted international trade policy tools including the HS classification and the GATT Valuation Code. COMESA has also adopted trade facilitation instruments including single Customs Declaration document, a carriers licence, the Yellow Card, axle load limits, harmonised vehicle dimensions. These measures and the regional integration efforts have caused intra-COMESA trade to grow at a relatively high rate. CTA Briefing No. 3 Can Aid Fix Trade? The New Aid for Trade Agenda