|
COMESA Agreement |
| The
Establishment of COMESA |
- The Preferential Trade Area PTA Agreement between the
countries of East and South Africa was
signed on December 21st 1981, and entered into force on
September 30th 1982.
- As a result of the success of this agreement the
signatory countries decided to establish the Common Market for
East and South Africa (COMESA). It is considered to be a new
step closer to the African Economic Community.
COMESA Agreement was signed on December 8th 1994, thus
replacing the old PTA Agreement. |
| Duration |
Valid unless the Heads of States and Governments Assembly
decides to terminate it upon the recommendation of the
Ministerial Council. |
| Date Egypt joined
the Agreement |
Egypt became a member in May 1998. |
| Main
Objectives of The Common Market |
Objectives of the common market are:
- To attain sustainable growth and development of member
countries by promoting a more balanced production and
marketing structure.
- To promote joint development in all fields of economic
activity, in addition to jointly adopting macroeconomic
policies and its programs to improve the welfare of the
citizens and encourage close relations between member
countries.
- To co-operate in the creation of suitable environment
for domestic, foreign, and cross border investment.
- To collaborate in strengthening the relations between
the common market and the rest of the world.
- To cooperate in driving peace and security process
between member countries so as to strengthen the economic
development ties in the region.
|
| Member
Countries |
COMESA constitute of 20 countries members as
follows:
Angola, Burundi, Comoros, Democratic Republic of
Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar,
Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan,
Swaziland, Uganda, Zambia and Zimbabwe.
Note that
Tanzania has left the COMESA in September 2000 |
| The
Organizational Structure of COMESA |
The structure of COMESA consists of the following bodies:
- Heads of States and Governments Assembly
- Ministerial Council
- Governmental Committee
- The Committee for the Heads of Central Banks
- COMESA Court of Justice
- Technical Committees
The following organizations are subsidaries to the
COMESA:
- Commercial and Development Bank, current headquarters in
Kenya
- COMESA Clearing House, current headquarters in Zimbabwe
- Commercial Banks Union, current headquarters in Zimbabwe
- COMESA Institute for Leather, current headquarters in
Ethiopia
- Reinsuring COMESA Company, current headquarters in Kenya
|
| Exempted
Goods |
All commodities of member countries origin (with a minimum
local value added of 45% ). |
| * For more details please
visit the site www.comesa.int |
| Procedures to
be adhered to by member countries of
COMESA |
1. To continue applying reduction tariff schedules
stipulated by the PTA Agreement on all products traded between
member countries as follows:
- 60% as of October 1993
- 70% as of October 1994
- 80% as of October 1996
- 90% as of October 1998
- 100% as of October 2000
2. Lieving all non-tariff barriers on imports from member
countries within one year of joining COMESA
3. Establishing a unified custom tariff (customs union) by
2004 |
| Status of Member Countries in lifting tariff on imports
from other member countries |
- Nine countries have achieved a 100% reduction of tariffs
on imports from other member countries. These countries are:
Mauritius, Madagascar, Zimbabwe, Egypt, Malawi, Sudan**,
Kenya, Djibouti and Zambia.
- Burundi has currently achieved a 60% reduction on
tariffs and will further reach 80% reduction on January 1st
2003 and 100% reduction on January 1st 2004.
- Comoros Islands has currently achieved an 80% reduction
on tariffs with an expected further reductions to reach
100%.
- Democratic Congo approved in its 12th cabinet meeting a
tariffs reduction of 70%, but it requested to conduct a
research to assess the impact of losing customs income on
the national budget. It has not yet implemented the 70%
reduction.
- Ethiopia currently applies a 10% reduction on tariffs
and it is studying the effect of further reductions on the
national economy.
- Eritrea currently applies an 80% reduction on tariffs
and has not yet declared further reductions.
- Namibia and Swaziland are currently consulting the South
African Customs Union (SACU) to comply with their
obligations of tariff reduction.
- Rwanda applies 80% tariff reduction since 2001 and will
achieve the agreed upon reduct percentage in 2004.
- Seychelles undertook to apply a 100% tariff reduction as
of June 1st 2001, but has not yet implemented this
reduction.
- Uganda currently applies 80% tariff reduction and in is
studying the effect of further reductions to reach 100%.
|
| Subsidies provided by member countries |
- Opposition of any subsidies that distorts or threatens
to distort competition in the form of preferential treatment
to the producers to encourage the production of a particular
commodity or taking certain steps that would effect
inter-trade between member countries.
- Any member country is entitled to apply a compensation
fee on an imported product from another member country to
counter act direct or indirect subsidy amount imposed on
exports or production of similar product in country of origin
according to the regulations set by the Council.
- Any member country is entitled to apply a compensation
fee on a product from a third country that was imported by
another member country according to the system set by the
Council. |
| Impact of COMESA Agreement |
Tariff were fully lieved as of 31/10/2000 with the
exception of a number of countries with varying degrees of
implementation on a case by case basis as displayed. Member
countries will establish a custom union by 2004, and a
monetary union by 2025.
Transit transport facilitation regulation and easier
movement of goods within the region have resulted in a
reduction of costs by 25%. |
| ** Currently Sudan is not
applying 100% tariff reduction with
Egypt. |
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