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

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

COMESA Membership

• Angola

• Burundi

• Comoros

• Congo, DR

• Djibouti

• Egypt

• Eritrea

• Ethiopia

• Kenya

• Madagascar

• Malawi

• Mauritius

• Rwanda

• Seychelles

• Sudan

• Swaziland

• Uganda

• Zambia

• Zimbabwe

COMESA AT A GLANCE

Total Area 12.8million sq. kmPopulation 370 million (1999 est.)Membership 20 countriesGDP 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.)

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.

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.

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

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).

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

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.

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.

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

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 ReductionRemoval of Non-Tariff Barriers to TradeRules of Origin

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

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

COMESA Members in the FTA

• The COMESA FTA was launched on 31st October 2000.

• COMESA Member States participating in the FTA are:

BurundiDjiboutiEgyptKenyaMadagascarMalawi

BurundiDjiboutiEgyptKenyaMadagascarMalawi

MauritiusRwandaSudanZambiaZimbabwe

MauritiusRwandaSudanZambiaZimbabwe

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

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

COMESA CDCOMESA Customs Bond GuaranteeASYCUDA/EUROTRACEHarmonised System Code Common Tariff NomenclatureCommon Statistical RulesYellow Card Motor Vehicle InsuranceHarmonised Road Transit ChargesCarriers LicenseOverload ControlsMaximum Vehicle DimensionsACIS for Cargo tracking

Trade Facilitation:

5

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.

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

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

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

SECTOR BASED INSTITUTIONS

METTALUGICAL INDUSTRIES (COMESAMIA)

THE YELLOW CARD INSURANCE. BUREAU

WOMEN IN BUSINESS (FEMCOM)

PHARMACEUTICAL ASSOCIATION

COMESA BUSINESS COUNCIL

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

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 ?

THANK YOU FOR YOUR ATTENTION

THE END

Internet Site: http://www.comesa.int