1958 &1960 - Meetings of independent African
States agreed to promote economic co-
operation amongst themselves to combat
...
1982 - PTA Treaty, which envisioned its
transformation into a Common Market in 10
years, was ratified.
1993 - Treaty estab...
COMESA Membership
• Angola
• Burundi
• Comoros
• Congo, DR
• Djibouti
• Egypt
• Eritrea
• Ethiopia
• Kenya
• Madagascar
• ...
COMESA AT A GLANCE
Total Area 12.8million sq. km
Population 370 million (1999 est.)
Membership 20 countries
GDP at current...
Aims and Objectives of COMESA
• To generate self-sustaining economic
growth through collective action in all
fields of soc...
Vision of COMESA
To attain a fully integrated and
internationally competitive
regional economic community
with high standa...
COMESA IN 2018
• Single Currency &
Common Central
Bank
• Borderless Region
• Free Mobility of
Factors of
Production
• Comm...
STRATEGY OF COMESA
• Strategy:- regional integration through
trade and investment: creating a
single market for goods and ...
MISSION OF COMESA
• To achieve increased co-operation and
integration in all fields of development,
particularly:-
– in tr...
COMESA in Continental Context
• COMESA was established under the
auspices of Lagos Plan of Action which
seeks to establish...
COMESA in Global Context
• COMESA is notified to WTO as a
Regional Trading Arrangement (RTA);
• COMESA FTA is compatible w...
Common Market 2014
Economic Community
2025
Political Union
Preferential Trade Area (PTA)
1984
Same tariff
on non
m/States
...
COMESA PROGRAMMES
Trade Liberalisation
The main objective of the trade liberalisation
programme is to create a single econ...
Trade Development and Promotion
Programme
Elements:
•Supply and Demand Surveys
•Buyers/ Sellers meetings
•Enterprise-speci...
COMESA FREE TRADE AREA (FTA)
Tariff Reduction commenced on 1st
July, 1984
Original Target Date for FTA
September, 1992
Tar...
COMESA Members in the FTA
• The COMESA FTA was launched
on 31st October 2000.
• COMESA Member States
participating in the ...
Zero tariffs on goods from COMESA Countries.
Goods from non-COMESA dutiable at full national tariff
rates.
No NTBs on COME...
Direct consignment from exporter to
importer and
35% local value added, ex-factory cost; or
25% local value added, ex-fact...
COMESA CD
COMESA Customs Bond Guarantee
ASYCUDA/EUROTRACE
Harmonised System Code
Common Tariff Nomenclature
Common Statist...
Monetary Co-operation
Objective:
To establish a monetary union so as to have
a zone of monetary stability in order to
faci...
Up-dating of information on trade and
investment laws in COMESA;
Harmonising investment codes;
Developing Investor Roadmap...
A. Air Transport Programme
(1) Liberalisation of Air Transport Services
(2) Air Transport Facilitation
(3) Safe Skies Prog...
COMESA INSTITUTIONS
PTA Trade and Development Bank
COMESA Clearing House
COMESA Court of Justice
The COMESA Re-Insurance C...
SECTOR BASED INSTITUTIONS
METTALUGICAL INDUSTRIES
(COMESAMIA)
THE YELLOW CARD INSURANCE.
BUREAU
WOMEN IN BUSINESS (FEMCOM)...
− Intra-COMESA trade has increased from US$
734 Million in 1985 to US$ 5.5 billion in 2003;
−Transport facilitation measur...
COMESA has re-defined its medium-term
strategy as being the promotion of regional
integration through trade and investment...
THANK YOU FOR YOUR ATTENTION
THE END
Internet Site: http://www.comesa.int
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COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA Experience of comesa in intra regional trade

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

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

  1. 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. 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. 3. COMESA Membership • Angola • Burundi • Comoros • Congo, DR • Djibouti • Egypt • Eritrea • Ethiopia • Kenya • Madagascar • Malawi • Mauritius • Rwanda • Seychelles • Sudan • Swaziland • Uganda • Zambia • Zimbabwe
  4. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 24. SECTOR BASED INSTITUTIONS METTALUGICAL INDUSTRIES (COMESAMIA) THE YELLOW CARD INSURANCE. BUREAU WOMEN IN BUSINESS (FEMCOM) PHARMACEUTICAL ASSOCIATION COMESA BUSINESS COUNCIL
  25. 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. 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. 27. THANK YOU FOR YOUR ATTENTION THE END Internet Site: http://www.comesa.int

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