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