The united states and comesa signed a trade and investment framework agreement tifa on 29 october 2001. The purpose of the article is to analyse how formation of the comesa customs union affects the current state of multiplicity of membership in southern and eastern african countries. Common market for eastern and southern africa wikipedia. African regional trade agreements as legal regimes african regional trade integration has grown exponentially in the last decade. Swazilands trade in comesa is under derogation or a waiver. In is in the process of becoming a common market with the implementation of a common external tariff and customs union in 2004. Implications of the comesa free trade area and proposed. This paper examines in detail the prospects and challenges for trade expansion in the two most prominent arrangements in eastern and southern africa. Trade agreements in the sugar industries of east and southern africa presentation 1 the common market for eastern and southern africa comesa sugar in comesa problems and perspectives 2 the southern african development community sadc sugar in sadc the sadc sugar cooperation agreement perspectives appendixes table 1 sugar balance in comesa. Jurisdiction under arbitration clauses and special agreements.
Kubatana archive comesas customs union and benefits for. At present, comesa operates a free trade area fta among fifteen of its member states, burundi, the comoros, djibouti, egypt, kenya, libya, madagascar, malawi, mauritius, rwanda, seychelles, the sudan, uganda, zambia and zimbabwe. The customs union is the first regional integration milestone and critical foundation of the east african community eac, which has been in force since 2005, as defined in article 75 of the treaty for the establishment of the east african community. Botswana, lesotho, namibia, south africa and eswatini formerly swaziland. In 2009 comesa was transformed into a customs union. The common market for eastern and southern africa comesa is a free trade area with. A customs union cu involving free trade amongst the member states but with a common external tariff cet according to which every member state applies the same tariffs on goods from outside the region. Common market for eastern and southern african countries. The democratic republic of congo joined the comesa fta in december 2015.
Comesa was formed in december 1994, replacing a preferential trade area which had existed since 1981. The agreement for the establishment of the preferential trade area pta for. The common market for eastern and southern africa comesa is a free trade area with twentyone member states stretching from tunisia to eswatini. Finally, the results from both the fta and customs union implementation are clear that trade diversion will not take welfare gains away. Sep 14, 2009 tni meets with sindiso ngwenya, secretary general of the common market for eastern and southern africa comesa, to discuss the muchanticipated launch of the customs union and the signing of the interim epas. Comesa is the first african economic community to have in place a free trade area, which was established in october, 2000, the third in the world after the european union and the north american free trade agreement.
Comesa virtual trade facilitation system cvtfs is a software application that integrates all trade facilitation instruments, including the yellow card and the comesa regional customs guarantee rctg scheme, otherwise known as the carnet, under one online platform. Customs agreement between the government of the union of south african and the territories of basutoland, swaziland, and. It has to be noted that trade agreements within comesa, because of its organic links to the. The comesa council of ministers in february 2014 adopted the comesa policy on biotechnology and biosafety that takes into account the sovereign right of each member state.
Currently, there are eight recognized regional economic communities recs. This study provides a quantitative assessment of the potential impacts of a comesa customs union, particularly of having intra comesa trade liberalization and of imposing a common external tariff cet against third countries. Comesa mauritius chamber of commerce and industry mcci. Comesa organization which stands for common market for eastern and southern africa has 19 member states, namely. This paper analyses the effects of the comesa eacsadc tripartite free trade agreement tfta on the south african economy using a global computable general equilibrium cge model. Article xxiv territorial application frontier traffic customs unions and freetrade areas 1. The comesa treaty has 338 pages it advocating varieties of areas including establishing free trade area, removal of all traffic and nontraffic customs union, free movements of capital and investments, its strategy can be summarized. Hence, intra comesa trade has grown at an average of 7% with higher inceases reflected between intrafree trade area states. It is a partial form of economic integration that offers an intermediate step between freetrade zones which allow mutual free trade. Trade agreements in the sugar industries of east and southern. No need to rush into comesa customs union the herald. Prospects and challenges for regional trade integration.
Even though the sadc customs union has not yet been established, it is possible to point to other regional examples to show the impacts of cooperation on customs and trade. To understand the goals single customs union and the areas of cooperation of the comesa eacsadc tripartite agreement. Secretary general of comesa, chileshe mpundu kapwepwe and the head of the european union delegation to zambia, ambassador alessandro mariani signed the agreement. A protocol for the establishment of the east african community customs union was signed by the three east african heads of state on 2 march 2004 in arusha, tanzania. Members hope the customs union will strengthen economic integration and eventually lead to a single currency. A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff. Egypt is party to the following regional agreements. Challenges and opportunities in inside southern african trade. The impact of revenue and imports on zimbabwe after comesa cet. While fta gives good outcomes, the customs union must be preferred. This agreement aims to gradually establish the continental free trade area as well as custom union by 2028. The mcci is a dynamic actor in the socioeconomic development of mauritius and offers professional services for business operations, trade, import, export, economic perspectives, tax refund, arbitration, mediation and networking. Customs union, a trade agreement by which a group of countries charges a common set of tariffs to the rest of the world while granting free trade among themselves. For agreements between two countries, between a bloc and a country, or between two blocs, see list of bilateral freetrade agreements.
Implications of the comesa free trade area and the. In the absence of a clearly defined external tariff for comesa we proceed by assuming that the external tariff will be similar to that currently being applied by the east african customs union eac deflated by the current. Estimating the impact of comesa customs union on zimbabwe using tariff reform simulation tool article pdf available in african journal of business management vol. International sugar organization, sugar year book, 2000. The 105yearold customs union agreement between the member states. The comesa trade facilitation programme ctfp aims at deepening regional integration, improving inclusive regional economic growth and enhancing competitiveness of the comesa region. Dec 14, 2018 as a customs union, sacu negotiates on merchandise trade matters as a bloc. Third, it is clear from the study that comesa seems better off with a customs union. Aug 14, 2018 council regulations governing the comesa customs union, 2009 pdf, 69 kb comesa customs union list of sensitive products, 2011 pdf, 603 kb common market customs management regulations, 2009 pdf, 648 kb comesa common tariff 2017 version hs chapters 124 pdf, 2.
Common market for eastern and southern africa comesa is one of the eight building blocks regional economic communities recognized by the african union au for the establishment of continental free trade area cfta. The common market for eastern and southern african countries comesa has nineteen members. In 2004, rwanda and burundi joined the free trade agreement and increased the membership size to 11. This waiver recognizes swazilands unique position of belonging to sacu and hence, her technical challenges regarding extending reciprocal trade preferences to the comesa member states. The comesa customs union officially was launched on the 8th of may 2009 in zimbabwe. Southern african customs union sacus trade and tariff. The common market for eastern and southern africa comesa is the largest regional economic organization in africa, with 19 member states and a population of about 390 million. East african community eac close afrika mashariki road p. The new southern african customs union agreement t he john bristow, frank flatters, clark leith, geoff west andauthors would like to thank fahrettin yagci for the many useful comments, of course the usual disclaimer applies and any. The european union with its 28 member countries is an example of a customs union. Sadc is currently implementing the sadc trade protocol stp, which aims to achieve a free trade agreement fta by 2008 and a customs union cu by 2010. Progress and challenges for implementation of the common market for eastern and southern africa policy on biotechnology and biosafety. Agadir agreement, comesa agreement, european unionegypt association agreement, gafta, egyptturkey free trade agreement, and numerous free and preferential trade agreements with individual arab countries. This came as a followup to the free trade area fta launched in october 2000.
Industrial policy in the southern african institute for. Southern african development community customs union. The objectives of the subject comesa eacsadc tripartite agreement are the following. Industrial policy in the southern african customs union past experiences, future plans institute for. Potential impact of comesa customs union on zambias 2010 imports and revenue 41. Implications of the comesa free trade area and proposed customs union. Customs union agreement between the governments of the republic of south africa, the republic of botswana, the kingdom of lesotho and the kingdom of swaziland acceded to by the republic of namibia on 6 july 1990. The comesa treaty clearly highlights the role of statistics in the integration monitoring process. Among other things, comesa member states have agreed on the need to create and maintain. Comesa also launched its customs union in june 2009 which is yet to be. South africa and botswana, lesotho, namibia and swaziland blns distributes revenue collected on import duties and excise based on a number of criteria.
Revenue effects for comesa countries of moving to an fta, cu. The europeans were the first to undermine sacu by signing a trade and development cooperation agreement with south africa when they signed the tdca agreement without sacu countries being in. Comesa common market for east and southern africa crp common revenue pool. The customs union is a principal component of the european union, since its establishment in 1958 as the european economic community. In the event the national treasury employees union is certified as the exclusive representative of any additional bargaining units within cbp after the effective date of this agreement, the parties may, by mutual agreement, automatically cover such units by the terms of this agreement. Sugar agreement the sadc protocol on trade includes special agreements for products or industries from the region that are sensitive to external market forces, including. A common market cm with free movement of capital and labour, considerable harmonisation of trade, exchange rate. All books of account of the common market and all monetary instruments. Comesaeacsadc tripartite free trade area agreement. Progress and challenges for implementation of the common. Challenges for regional trade integration padamja khandelwal. Comesa has a free trade area, with 19 member states, and launched a customs union in 2009.
Agadir agreement, comesa agreement, european union egypt association agreement, gafta, egyptturkey free trade agreement, and numerous free and preferential trade agreements with individual arab countries. Customs union has not yet been established as envisaged with the establishment of the sadc freetrade agreement in 2008. Acp countries african countries agreement angola botswana burundi comesa and sadc comesa fta comesa sadc common external tariff comoros complementarity index customs procedures customs union deep integration democratic republic dependence on trade developing countries djibouti eastern and southern egypt epas eritrea exports finished goods. As part of this renewed momentum, the common market for eastern and southern africa comesa has scheduled the launching of a comesa customs union by december 2008. Consisting of 26 member countries, the comesa eacsadc tripartite is accelerating economic integration for the people of the eastern and southern african region. List of multilateral freetrade agreements wikipedia. The objectives of comesa among other things, comesa member states have agreed on the following. The mauritius chamber of commerce and industry serves and promotes the interest of the business community. Mfn tariffs are what countries promise to impose on imports from other members of the wto, unless the country is part of a preferential trade agreement such as a free trade area or customs union.
In addition, the leaders endorsed the establishment of the comesa task force on the customs union for. The sacu agreement, 2002 recognises the need for the customs union to. To understand the goals single customs union and the areas of cooperation of the comesaeacsadc tripartite agreement. The much anticipated common market for eastern and southern africa comesa customs union cu has been launched at the th comesa heads of state and government summit amid controversy after.
Customs unions are established through trade pacts where the participant countries set up common external trade policy in some cases they use different import quotas. The committee was briefed by the department of trade and industry dti on the ratification of the agreement establishing a tripartite free trade area tfta amongst the common market for eastern and southern africa comesa, the east african community eac and the southern african development community sadc. Burundi comoros congo dr djibouti egypt eritrea ethiopia. Agreement of heads of state and government of the comesa region on 21st. Common market for eastern and southern africa comesa. Comesa, eu sign 48 million trade facilitation programme. There are no tariffs or nontariff barriers to trade between members of the customs union and unlike a free trade area members of the customs union impose a common external tariff on all goods entering the union. The comesaeacsadc tripartite free trade area new regionalism and lessons from the eu book july 2016 with 401 reads how we measure reads. Estimating the impact of comesa customs union on zimbabwe using tariff reform simulation tool. The provisions of this agreement shall apply to the metropolitan customs territories of the contracting parties and to any other customs territories in respect of which this agreement has been accepted under article. Pdf the implications of the formation of a customs union on revenue and welfare of a country are ambiguous and depend on a number of factors. The presentday comesa began as the preferential trade area for eastern and southern africa pta signed in 1982. The impact of the comesaeacsadc tripartite free trade.
The agreement is aimed at developing and expanding trade in products and services. The eu also has a separate customs union with turkey sharing a common external mfn tariff toward third countries, and the eu has a number of ftas not customs unions with other countries including colombia, egypt, korea, mexico, and south africa. The southern african customs union sacu is a customs union among five countries of southern africa. Comesa trade and market integration united nations. Revenue effects for comesa countries of moving to an fta. Comesa established a free trade area in 2000, setting the stage for the reduction of tariffs amongst member states. It has a free trade agreement fta, which entered into force in may 2008, with the european union free trade association efta states norway, switzerland, lichtenstein and iceland. From the time of the launching, member states agreed on a threeyear transitioning period to domesticate the customs management regulations, common external tariff and the common tariff nomenclature that would gradually form the customs union. This is a list of multilateral freetrade agreements, between several countries all treated equally. A customs union was subsequently launched by comesa in 2009. Comesa is one of the pillars of the african economic community. The comesa treaty builds on an earlier preferential trade agreement and is aimed at creating a common market in eastern and southern africa. Customs union a customs union maybe defined as a merger of two or more customs territories into a single customs territory, in which customs duties and other measures that restrict trade are eliminated for substantially all trade between the merged territories.
Welcome to the sacu website southern african customs union. A full free trade area guaranteeing the free movement of goods and services produced within comesa and the removal of all tariffs and nontariff barriers. The objectives of the subject comesaeacsadc tripartite agreement are the following. Regional integration has been seen in africa as a means of encouraging trade and securing economies of scale. Sacu means the southern african customs union secretariat means the. Pdf estimating the impact of comesa customs union on. The executive support unit maintains and establishes good working relations with the international donor community and all cooperating partners with a view to getting support and mobilizing resources. Comesa free trade agreement, then implementing a customs union in comesa and subsequently moving to an epa with the eu. Pdf a gtap model analysis of ethiopiacomesa free trade. A customs union under which goods and services imported from non comesa countries will attract an. The republics of rwanda and burundi joined the customs union in 2008 and started applying its instruments in july 2009.
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