Highlights:- * Selected Countries in the Eastern and Southern African region sign an EPA with the European Union * ‘More still outstanding before a full ESA-EU Economic Partnership Agreement is signed – says COMESA chief * ‘EPAs should connect people’ - Minister Mutati * Enhancing regional integration in the Eastern and Southern Africa and Indian Ocean region * RCTG Scheme Rollout in September 2009

1. newsletter
1
Issue #217 -4th September 2009
Issue #126 Friday 19 October 2007 newsletter
Selected Countries in the Eastern and Southern African region
sign an EPA with the European
Union
T
he European Union has
signed an interim Economic
Partnership Agreement
(EPA) with four countries from the
Eastern and Southern Africa regional
grouping (ESA). These countries are
Mauritius, Seychelles, Zimbabwe and
Madagascar. Zambia and Comoros
have indicated they will sign at a later
date. The agreement was signed in
Grand Baie, Mauritius, by EU Trade ESA Ministers, EU Ministers, COMESA SG and European Commision officials after the signing in Mauritius
Commissioner Catherine Ashton and Commissioner Ashton said “We now Trade Hon. Dr Arvin Boolell, Hon.
Swedish deputy trade minister Gunnar have the foundation to build a more Chakanaka Bimha Deputy Minister of
Wieslander on behalf of the EU on comprehensive trade partnership Industry and Commerce were joined
29th August 2009. Ministers from the that will support the ESA region’s by other Ministers from Comoros and
four ESA countries signed on behalf of work to build diverse and sustainable Ambassadors from the ESA region.
their governments. Zambian Minister economies.
of Commerce, Trade and Industry Felix This agreement brings a diverse Commissioner Ashton met the
Mutati was present at the signing region together under a single trade Ministers and heads of delegation
as ESA Chair. Common Market for arrangement with the EU, tailored to and they discussed elements of this
Eastern and Southern Africa (COMESA) the specific needs of the region and comprehensive trade partnership,
Secretary General Mr Sindiso Ngwenya recognising its diversity.” which would cover issues like services,
was also present at the signing. investment, agriculture, technical
Mr Ngwenya said “The challenge we standards, trade facilitation and trade-
The deal offers the ESA countries that face between now and the signing related rules. Discussions covered key
signed the agreement immediate of the full ESA EPA is to introduce issues such as protection for infant
and full access to EU markets (with the economic component, through industries and export duties and both
transition periods for rice and sugar), improved market access, development sides agreed to press forward with
together with improved rules of origin. and deeper regional integration and negotiations without delay.
ESA countries will open their markets to make EPAs a true partnership,”.
gradually over the next 15 years, with The trade and development
a number of important exceptions The Ministers from ESA who included partnership
reflecting their development needs. Mauritian Minister of Foreign Affairs,
Regional Integration and International All imports from the countries that
This bulletin is published by the COMESA Secretariat Public Relations Unit but does not necessarily represent views of the Secretariat.
Contact Address : COMESA SECRETARIAT, COMESA Center , Ben Bella Road www.comesa.int
P.O. Box 30015, 260 1 229 725, 260 1 225 107
www.comesa.int, e.COMESA@comesa.int

2. ‘More still outstanding before a full ESA-EU Economic Selected Countries in the
Partnership Agreement is signed – says COMESA chief Eastern and Southern
African region sign an EPA
T
2
he Secretary General of the armaments. ACP countries signing EPAs
Common Market for Eastern and will also have duty-free quota-free market with the European Union
Southern Africa (COMESA) Mr access into the EU, once the transition from page 1
Sindiso Ngwenya has called on the period for rice and sugar are over, but this signed the interim EPA have benefited
European Commission to be more is on a reciprocal basis. EPAs, therefore, from duty and quota free access to the
accommodating and conclude an do not, and will not, provide improved EU since 1st January 2008 (with short
Economic Partnership Agreement (EPA) market access into the EU market for transition periods for rice and sugar).
which will be easily accepted covering all LDCs unless there are improvements
These countries will now liberalise
key areas that are dear to the Eastern and in Rules of Origin and unless the 80%
Southern Africa (ESA) region. market access provided to the EU by ESA their markets to EU imports over the
EPA countries, coupled with safeguard next 15 years, gradually removing
“The challenge that we face between measures, ensure that EU imports do not tariffs on between 80% and 98% of
now and the signing of the full ESA EPA is lead to a destruction of the existing and imports from the EU depending on
to introduce the economic component, future production capacities of ESA EPA
the country.
through improved market access, countries.
development and deeper regional
integration and to make EPAs a true “Perhaps the biggest failure of the Among the products excluded from
partnership. If we cannot do this we will negotiations in market access is the liberalisation are sensitive agricultural
not be able to take advantage of the full failure to negotiate new development- and manufactured products such
potential of EPAs,” Mr Ngwenya added. friendly rules of origin. For a start, the as milk, meat, vegetables, textiles,
accumulation rules currently being
footwear and clothing.
He pointed out that to him, the most applied under interim EPAs only allows
important outcomes of EPAs were for accumulation between the countries
supposed to be deepening and that have signed the interim EPA. So Other regional countries like Djibouti,
strengthening regional integration, firms based in East Africa that imported Ethiopia, Eritrea, Malawi and Sudan
improving market access into the EU, or raw materials from outside of East Africa, are involved in ongoing negotiations
at least having equivalent access to that including the DR Congo and Zambia,
for the more comprehensive
enjoyed under Cotonou, whether EPA are now no longer able to export the
is signed or not, having a development final product to the EU duty-free as the regional agreement and may
component that would address supply product no longer conforms to EPA rules join the agreement later. As Least
side issues and improving trade in services of origin, although it did under Cotonou Developed Countries they have duty
and trade related issues. Regrettably not and before interim EPAs, and nothing in free access to EU markets under
much has been done to make these the production process has changed,”
the EU Everything But Arms trade
outcomes a reality. Ngwenya said.
arrangement and do not need to
“Let me begin with the objective of He revealed that from the work done so submit a market access offer to sign
deepening regional integration. In this far in preparation of the COMESA-East the agreement and benefit from
area, we have failed miserably. No one can African Community and SADC Tripartite its development cooperation and
say that the EPA process has deepened FTA, it has become abundantly clear fisheries provisions while negotiations
or strengthened our regional integration that the Lome or Cotonou-style rules
towards the more comprehensive deal
process,” Ngwenya pointed out. of origin are difficult and expensive to
Although the EU is an important market, implement and are poor trade promotion continue.
there is a need to distinguish between instruments.(find the full speech by the Secretary General
market access for they Least Developed on www.comesa.int) Background: EU - ESA Trade in Goods
Countries (LDCs) and market access for UPCOMING EVENTS In 2007 total EU imports from the
developing countries. 7th to 10th Sept 2009 Inaugural Meeting of the ESA group were approximately Euros
COMESA Task Force on the Customs Union
3.17billion, comprising mainly textiles
Mr Ngwenya took time to give a detailed 14th to 15th Sept 2009 High Level Meeting
account of the current scenario. All LDCs between the Eastern and Southern Africa and clothing, sugar, fish products, raw
are eligible for Everything-but-arms which – Indian Ocean region and the European cane sugar, coffee, tuna and copper.
is a generalized System of Preference Commission in Lusaka Last year, EU exports to the ESA Group
scheme that provides non-reciprocal 16th to 18th Sept 2009 WTO/COMESA
consisted mostly of mechanical and
duty-free quota-free market access Seminar on the Doha Development Agenda
and the COMESA Customs Union: Victoria electrical machinery and vehicles and
into the EC for all LDC products except
Falls, Zimbabwe totaled Euros 4.3billion
www.comesa.int

3. ‘EPAs should connect people’ - Minister Mutati
T
he chairperson of the 3
Eastern and Southern Africa
(ESA) group Minister Felix
Mutati says Economic Partnership
Agreements should be about
connecting people and moving
them from a state of despair to
hope.
Minister Mutati was speaking at the
signing of the Interim Economic
Partnership Agreement (EPA)
between the European Union and
Zimbabwe, Madagascar, Mauritius
and Seychelles.
“An EPA should be about
connecting people, making a
difference in their lives and creating
COMESA SG Ngwenya with the ESA Chair Felix Mutati
the independence that they need.
Its not about the high table, its group Zambia is going to align presidency if only that output will
for that person on the ground. itself with what Nelson Mandela be the EPA fully signed. Portugal
It should be about making a said, you lead from behind make we know you add your weight
difference, providing relief. Moving sure that the flock is going in the that Africa needs to move ahead.
despair and hopelessness to hope right direction do not be the first Lets not exchange mare words
and respecting that the destiny one to harvest let the flock harvest because the fisherman out there
of the region and Africa is in our first and that Zambia is going to and the harvestor doesn’t know
hands. Only us can make a change. lead from behind as chair of the words what they knows is just pure
So we dont only find the EPAs ESA group and let the flock harvest survival so lets be practical, lets
as abstract things, we define the first,’” make a difference to humanity,
EPAs as a thing that must match lets be remembered that we once
our people going forward. In our Zambia did not sign the EPA but walked this earth and not that we
effort to move forward, we believe assured the delegates that it will once discussed this earth. I know it
that regional solidarity is critically mobilize other ESA countries and can be done. Today is not the end
important that we need to move sign before the end of this year. of the road, it is just the beginning
together in unity to conclude this The Minister said he will engage in or perhaps the most difficult
journey together,” he pointed out. intensive consultations with other potion of the road. And Catherine,
He reiterated that the ESA region is ESA countries have find the best as I said when we first met, you will
facing several challenges that must way to move the region forward by never walk alone.ESA and EC are
be addressed before a full EPA is signing the Interim EPA. connected at the head. We fall and
signed with the Europeans. rise together and in that regard we
“Sweden the chair of the have no choice. There is no surgical
“Nobody should be left behind commission you need to deliver solution to disconnect us from the
and this is why as chair of the ESA an output at the end of your hip,” Minister Mutati said.
www.comesa.int

4. Enhancing regional integration in the Eastern RCTG Scheme
and Southern Africa and Indian Ocean region Rollout in
September 2009
M
4
T
inisters from Eastern and Its objectives are to agree on way
he Third Meeting of the
Southern Africa and the ahead to improve alignment
Council of Surety on the
Indian ocean (ESA-IO) between national strategies and
Regional Customs Transit
region will meet chief executives the process of deepening regional
Guarantee ( RCTG) Scheme ,
of regional organizations and integration, and, to better harness EU
popularly known as the RCTG
high officials from the European support and aid delivery in general
CARNET, held from 18-20 August ,
Commission to discuss and agree for regional integration namely
enhancing support to regional through the ESA-IO 10th European 2009 in Harare , Zimbabwe , decided
integration. The meeting will be held development fund and the EC that the RCTG CARNET be rolled
on 14th to 15th September 2009 in regional Aid for Trade(AfT) packages. out in Kenya , Uganda , Rwanda
Lusaka. and Burundi with effect from 15th
The Meeting will also be an September 2009 . The meeting
IGAD Executive Secretary Mr opportunity to strengthen the also decided that Djibouti ,DR
Mahboub Maalim who is also Chair partners’ political dialogue in Peace Congo ,Ethiopia , Malawi , Sudan
of the Inter-Regional Coordinating and Security and Democratic and Zimbabwe should finalize the
Committee (IRCC) and on behalf Governance both under Article 8 preparations and implemented the
of the other member regional of the Cotonou Agreement and scheme in January 2010 .
organizations of the IRCC which are in relation to Partnerships 1 and 3
COMESA, EAC, IOC and SADC and Mr of the Joint Africa – EU Strategy. The COMESA CARNET is a customs
Stefano Manservis, Director General Discussions will also be held on the transit regime designed to facilitate
of Development at the European economic and financial crisis, food the movement of goods in transit
Commission in Brussels have called prices and security ad potential EU in the COMESA region by providing
for a High Level Meeting between response mechanisms. Last but not adequate security of guarantee
the Eastern and Southern Africa – least a key point in the meeting will to the transit countries to recover
Indian Ocean (ESA-IO) region and be to agree on the process for the duties and taxes should the goods
the European Commission. mid-term review of the ESA-IO 10th in transit be illegally disposed of for
The meeting will regroup the EDF Regional Strategy Paper with home consumption in the country
Ministers from the ESA-IO ACP ideas to reshape more efficiently the of transit. Under the RCTG Scheme,
States responsible for cooperation way to deal with EU funding in the only one bond- RCTG CARNET will
with the European Union, country context of its support to regional be issued and thus doing away with
high officials including those from integration. the current practice under which
the International Trade , Chief a bond is required to be issued
Executives from the member The European Commission has for every country in which the
regional organizations of the IRCC, made available a grant envelope goods are in transit. RCTG CARNET
the African Union, EU Presidency of EUR 645 million to the ESA-IO therefore facilitates the movement,
and High officials from the European region under the 10th EDF for clearance and release of transit goods
Commission, as well as observers the 2008-2013 period. The EU and thereby reducing the cost of
from other regional organisations Aid for Trade Strategy specifies a guarantees, collateral amount, and
and international cooperating concrete target of increasing EU transit time. It makes movement and
partners. trade related assistance to EUR 2 clearance of transit goods simple,
billion per year by 2010 as well as cheaper and faster. RCTG CARNET
The theme of the meeting is a general commitment to step up is a passport for merchandise it the
“Enhancing delivery on the ESA- development finance for the wider region.
IO regional integration agenda”. AfT agenda.
www.comesa.int