The much anticipated Common Market for Eastern and Southern Africa (COMESA) Customs Union (CU) has been launched at the 13 th COMESA Heads of State and Government Summit amid controversy after member countries from East Africa requested for more time to conclude consultations.
ZANIS Reports that the Heads of State from East Africa under the guidance of Uganda President Yoweri Museveni told the summit that they were not ready to join the Union and needed more time in which to consult among themselves.
Mr. Museveni said the leaders could not commit to the CU as they haven’t concluded negotiations over the implementation of the zero tariff plan among themselves.
He also added that the absence of one member of the East Africa Community (EAC ) , Tanzania made it impossible for them to make a good decision on the matter as they wanted to move with one voice.
The outspoken Uganda leader also called on COMESA to include the development of the Central Corridor which runs from Tanzania, Kigali and Uganda to the North to South corridor as major blocks for economic development
However, Mr. Museveni urged other leaders to go ahead with the launch and requested that the EAC be given three years transition period in which to allow it conclude their consultations.
“In principal we are not against the launch of the Customs Union but want to consult further on the implementation of the zero tariff plan” He said.
And speaking during the launch, Zimbabwean President Robert Mugabe who is also the new COMESA chair said the reservations raised by the East African Countries will not prevent other Countries from signing the Union.
He said the leaders in COMESA have in the last five years been planning and dreaming about the launch of the CU adding that time has come for the Investors World wide to take the region seriously.
He added that COMESA boosts of a vibrant market of over 400 million people whose economic pillar currently lies on trade and Investment.
” We have talked about it, and now by launching the Customs Union, we demonstrate for all to see that we are walking the talk, we want to say it loud and clear and be heard by our stakeholders.” said a seemingly jubilant Mugabe.
COMESA also launched the Regional Payment and Settlement System (REPSS) which will facilitate the implementation of the 24 hour regional payment system for importers and exporters of goods and services within the Region.
.”We are launching the REPSS , we have a lot of support of the banks, exporters and importers and all who are involved in the production sector” He said.
He added that the exporters and importers that will be using the facility in the region , will be using two currencies, the Euro and the United States Dollars through the Central bank of Mauritius.
The launch of the COMESA CU will see member states that join the union adopting an agreed Common External Tariff (CET) to be charged to third parties. The agreed CET rates are zero percent on capital goods, zero percent on raw materials, 10 percent on intermediate goods and 25 percent on finished goods.
Others.
The policy will also determine revenue sharing amongst the union’s members.
The summit is also expected to review the various agreements entered into at the tripartite summit held in Kampala , Uganda , in October last year between COMESA, the east African Community and the Southern African Development Community.
With its 19 member states, a population of over 389 million and annual imports valued at 32 billion dollars and exports of 82 billion dollars, COMESA forms a major market place for both internal and external trading.
Since the launch of its FTA, there has been an increase of intra-COMESA trade of $734 million dollars in 1985 to $7,6 billion dollars in 2006.
The regional integration programme for COMESA member states established a Free Trade Area (FTA) in October 2000 and aimed to establish the customs union by December 2008, a monetary union by 2015 and a COMESA community by 2025.
ZANIS
typical of african leaders,no agenda.just enjoying showcasing at useless summits.
This could be a good move but lets see it implemented though it now seems to me like its a southern African Union as the East aftcan community have asked for more time. I belive this could bring good results.
This is a step in the right direction and potentially good for increased trade among these countries. Currently Africa needs more trade among member states than aid from the so called donors with external conditions unbefitting local needs. Less dependence on donors more autonomy and Africa governments becoming accountable to their people and not donors. But I am worried that Eastern African countries are still dragging their feet and have asked for three more years! This is a pointer to me they are not interested, perhaps not seen the business sense out of it for the East African block of countries.
“African”
I think this is a good move. So much planning has taken place. Time for action now. Museveni and his people can take all the time they want to ‘consult’. We are in a hurry to develope.
This can be a good step in the right direction ladies and gentlemen. But let this union be messed up by country representatives and analysts with ultirio motives…. i say so looking at how this new development has been misinterpreted.
Blocks and Groups of trading partners even from the day Imemorial have been known to do well,lets support this new idea, but limit the commodities to taxed to prevent some of our secret economic weapons.
Thanks for your contributions on this site, i believe TOGETHER WE CAN DO IT
One thing I fail to understand is “why adopt the US Dollar and Euro as the currencies for the Regional Payment and Settlement System (REPSS) ?” Is there no African currency that we can adopt? I would propose the Rand. (I know RSA is not a member. Big deal. Are USA and the EU members?). After all the Rand has already established itself as a convertible and stronger regional currency. Let us in the same breadth convince RSA and Bots to join the bloc. The EAC must get serious. We don’t need excuses. Every hand to the plough. If Africa is to gain ground, we must seriously and slowly (umhh – fast I mean) move away from the dependence syndrom. UNITED WE STAND DIVIDED WE FALL. 400 million Africans in one common market is no joke only if we genuinely unit and present a united front. EPO…
Botswana and South Africa wanted SADC to be turned into a regional trading block. Zambia has been looking towards COMESA for the simple reason that it is headquatered in Zambia. The East Africans are interested in reviving the East African Community. Honestly a lot of players are pulling in different directions. Todate Zambia cannot increase its sugar exports to East Africa despite having a comparative lower production cost because the Kenyans have closed their market to their fellow COMESA members. Their argument is that they dont want their local industry to be killed off. What is annoying is Zambia agreed to the Kenyan opt out.
Trading blocks arer good but there are always winners and losers. How does Zambia intend to win? In what ways is Zambia going to be better off – ie manufacturing, commerce, tourism etc. Basically job creation and general uplift of people’s living standards.
Would anyone on this blog know, please?
We are getting closer.Prepare.
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