The Economic Partnership Agreement for Eastern and Southern Africa (ESA) Council of Ministers has hit a deadlock over the implementation of the most favoured nation (MFN) clause, which is critical to the launch of the Comesa Customs Union (CU) slated for Sunday next week. ESA has stated that the MFN clause which favours certain developed Countries trading with COMESA member states be reviewed or excluded in its application to all developing Countries as it contravenes the World Trade Organisation rules that provide for South to South Cooperation. But Zambia’s Commerce and Industry Minister Felix Mutati has urged COMESA to unblock the deadlock on the conditions of the MFN clause if the Launch of the Customs Union was to succeed. Mr Mutati who is also the Chairperson of ESA was speaking in an Exclusive Interview with ZANIS in Zimbabwe’s Resort Town of Victoria Falls. He said the member states must unite and come up with a common stance that is comprehensive and support regional Integration. “Time has come for us to conclude and implement the Economic Partnership Agreement (EPA) as we have been discussing and far to long hence the need to conclude quickly to alleviate the Poverty levels in our various Countries” Said Mr. Mutati. He said Zambia’s exports to the European Union (EU) rose to US$5 billion , indicating the country’s significant economic development. Mr. Mutati called for the removal of all trade barriers between COMESA and the European Union. The European Union is the biggest importer of Zambia’s none traditional products, such as vegetables and flowers, hence the need to conclude the implementation of the Economic Partnership Agreement. Some Member States who are massively exporting to Asian Countries have strongly objected to the implementation of the MFN clause saying the MFN would injure the bilateral relationship exiting with these Countries. Others were agreeable to the implementation of the clause saying it would improve trade among the member states.[quote] Meanwhile Mr Mutati has revealed that a quarter of Zambia economic growth was as a result of the intra COMESA trade. He said COMESA was the bridge of the International Markets and urged member states to work towards achieving the regional integration through the Customs Union. He added that 70 % of Zambians growth was generated through exports with COMESA. 19 COMESA member states are expected to launch the CU on Sunday at a Summit under the theme Consolidating Regional Economic Integration Through Value Addition Trade and Food Security. ZANIS
The idea of customs is good but LT you needed to explain the meaning of MFN in your reporting for us to understand hwy there seem to a deadlock over it.
MFN is most favoured nation we know that but you are right that it need further explaination what is the actual meaning in this context of a favoured nation Europe is compriesed of many nation…
Yes, LT should have explained what most MFN means
#2,From my understanding MFN is a clause that COMESA wants implemented that allows certain developing countries to have exclusive trade with COMESA members. For instance you have mentioned that Europe has many nations but COMESA may only favor for example Spain, France, Germany etc but not all to do trade with their member states. So in this case Spain, France, Germany are most favored.
contd. however if for instance Spain is trading exclusively in certain commodities with Zed, and then a third party comes in say Zimbabwe, then zambia should have the obligation, under the MFN, to treat Zimbabwe, a developing country the same way it treats Spain as a trading partner.
The MFN clause merely caters for the interests of EU member countries ,that trade with COMESA member countries. Not countries like China, india etc again an indication of pure selfishness .
This has been a long standing contentious issue among COMESA countries , the question is why reach a stalemate ? Can we make decisions that will favour African development not EU.
We are giving up alot in the EPA yet the EU are giving us what they have to give up in a few yrs time under the WTO anyway. With or without an EPA, Zambia’s exports are not affected because we are able to export under the everything but arms initiative. To date apart from the sugar issue, Zambia has not done a comprehensive cost benefit analysis and all these negotiations are merely assumptions!
Dalisto, good morning, If the MFC is as you have explained it, then it can actually be injurious to certain COMESA countries who import, say, from other EU countries or elsewhere, other than from those you have mentioned. I think hence the stalemate. From my opinion, the MFC seems to favour the EU and does not have COMESA interests at heart. I dont know really, am just thinking aloud. However, on the other hand, its important that all COMESA countries come up with one stance over this issue so that trade does not suffer.
#9 ba Moze g/morning, I just used those countries as examples, just to try to explain my point.
this is a complicated policy to implement.
# 8, you seem to understand the subject matter at hand. To add my view, MFN is simply the Import Duty applicable to World Trade Organisation (WTO) members. Now, as COMESA launches its CU, it will implement a Common External Tariff (CET) which, according to my understanding does not agree with some terms negotatited under the EPAs, to some extent. The MFN varries according to bilateral/multilateral agreement(s) a particular country/tradingblock is/has engaged in.
Ba LT why haven’t you reported on the pact between PF and UPND?
African countries must unite and come up with a common stance that is wide an for regional synergy its high time thr implement the Economic Partnership Agreement (EPA) and call for the removal of all trade barriers between COMESA and EU and create a deal of win win situation.VIVA Mutati.
This can only be Zambian-English: “hit a deadlock”!! Wooow!!!
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