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					           History of PTA and COMESA
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 COMESA           ..cont’d

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.
        COMESA Membership

•   Angola       •   Malawi
•   Burundi      •   Mauritius
•   Comoros      •   Rwanda
•   Congo, DR    •   Seychelles
•   Djibouti     •   Sudan
•   Egypt        •   Swaziland
•   Eritrea      •   Uganda
•   Ethiopia     •   Zambia
•   Kenya        •   Zimbabwe
•   Madagascar
    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.)
  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 &   • Single Market for
  Common Central
  Bank                  Primary &
                        Secondary Goods
• Borderless Region
                      • Air and Ground
• Free Mobility of      Transport fully
  Factors of            integrated &
  Production            liberalised

• Common              • Common Border
  Investment Area       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.
                                                           Tariffs among
                     Preferential Trade Area (PTA)         m/States
                                  1984                     reduced – not
                                                           eliminated

Free Trade                  Free Trade Area 2000
among m/State

                            Customs Union 2004


 Same tariff                FTA among
 on non                     COMESA states
 m/States                   and CET

                                                   All attributes of
                                                   Customs Union ++
                       Common Market 2014          Free movement of
                                                   factors of
Free Trade                                         production
with EU in
2020
                      Economic Community
                             2025                      African
                                                       Union
  All attributes of CM ++
  Single Currency ++                                 Political Union
  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 Reduction
Removal of Non-Tariff Barriers to Trade
Rules 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:

 Burundi        Mauritius
 Djibouti       Rwanda
 Egypt          Sudan
 Kenya          Zambia
 Madagascar     Zimbabwe
 Malawi
    ELEMENTS OF COMESA FTA


   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.


                                                     3
     Provisions of COMESA Rules
     of Origin:

   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.


                                                 4
Trade Facilitation:

  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               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.
      Investment Promotion
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.
     Transport and communications

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
         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
           Results of Integration

 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
    Conclusion:
    Where we are going ?


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.
THANK YOU FOR YOUR ATTENTION




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

				
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posted:6/5/2010
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