Comesa devises mechanism for trade
The Common Market for Eastern and Southern Africa (COMESA) has worked out a mechanism that will ease the free movement of goods for cross border traders, its Secretary General, Erastus Mwencha, disclosed here.
He told ZANIS in an interview Thursday that cross border traders with goods valued at less than 500 USD would not be required to produce certificates of origin for the clearance of goods at border posts in the sub-region.
The provision would work well as long as Customs officers at check points are able to identify goods brought across borders from COMESA member countries, he said, while admitting that cross border traders had been facing problems because not all goods could moved without verifying rules of origins.
He added that it was also a cost for some traders that conduct their business along the borders to move around offices to obtain certificates of origin. However,member countries are also working on a mechanism to remove requirements such as visas for traders entering member countries.
He pointed out that such a move would require the region to compile a database for all traders to ensure that only genuine traders benefit from the service.
Early this week the Cross-border Traders Association (CBTA) in Zambia complained that the non-implementation of trade protocols among COMESA and the Southern Africa Development Community (SADC) countries was affecting their trade.
CBTA Acting Chairperson Celeste Mwanakisi said the association was saddened that there was lack of implementation by member countries on some of the signed protocols.
He told ZANIS traders were still facing problems with Customs authorities in some COMESA member countries that had joined the Free Trade Area (FTA).
Meanwhile, Mwencha also disclosed that COMESA had reiterated that rules of origin requirements under the Economic Partnership Agreement (EPA) of the European Union (EU) should be addressed so that countries could take full advantage of benefits from the opening of the EU market next year.
He said currently some countries in the region that have access to the EU market under its “Everything But Arms (EBA)” arrangement have not benefited fully in accessing the market.
Mwencha said the rules of origin under the Lome Agreement are more relaxed as compared with those that apply under the EBA as it is difficult for products from the region to meet requirements because of the lack of a wide manufacturing base.
Rules of Origin are requirements used to ensure that producers in developing Africa, Caribbean and Pacific (ACP) countries benefit from access to EU markets so that the ACP countries do not simply become a transit channel for exports from third countries with no benefit to the local industry.
However, he diclosed that the Eastern and Southern Africa (ESA) countries will next month convene a meeting to look at the issue of rules of origin under the EPA of the European Union.
The meeting, to be held in Malawi, is intended to address some of the concerns on the rules of origin required under the EPA negotiations.
He also said the offer by the EU to remove quota and tariff limits into its market by January next year will expand the market for ACP countries. The offer was good news to the region as it also complies with the World Trade Organization (WTO) rules on trade.
The EU last week announced its proposal to remove all remaining quota and tariff limitations on access to the EU market for all ACP countries as part of the EPA negotiations.
The offer covers all products, including agricultural goods like beef, dairy, cereals and all fruit and vegetables except for rice and sugar that will require a phase-in period.
Mwencha says that member countries will have to take into consideration a number of issues before opening up their markets. Although the reciprocity arrangements under the EPA was incompatible with WTO rules, ACP countries will need to carry out assessments on the impact of opening up their markets.
Source
He told ZANIS in an interview Thursday that cross border traders with goods valued at less than 500 USD would not be required to produce certificates of origin for the clearance of goods at border posts in the sub-region.
The provision would work well as long as Customs officers at check points are able to identify goods brought across borders from COMESA member countries, he said, while admitting that cross border traders had been facing problems because not all goods could moved without verifying rules of origins.
He added that it was also a cost for some traders that conduct their business along the borders to move around offices to obtain certificates of origin. However,member countries are also working on a mechanism to remove requirements such as visas for traders entering member countries.
He pointed out that such a move would require the region to compile a database for all traders to ensure that only genuine traders benefit from the service.
Early this week the Cross-border Traders Association (CBTA) in Zambia complained that the non-implementation of trade protocols among COMESA and the Southern Africa Development Community (SADC) countries was affecting their trade.
CBTA Acting Chairperson Celeste Mwanakisi said the association was saddened that there was lack of implementation by member countries on some of the signed protocols.
He told ZANIS traders were still facing problems with Customs authorities in some COMESA member countries that had joined the Free Trade Area (FTA).
Meanwhile, Mwencha also disclosed that COMESA had reiterated that rules of origin requirements under the Economic Partnership Agreement (EPA) of the European Union (EU) should be addressed so that countries could take full advantage of benefits from the opening of the EU market next year.
He said currently some countries in the region that have access to the EU market under its “Everything But Arms (EBA)” arrangement have not benefited fully in accessing the market.
Mwencha said the rules of origin under the Lome Agreement are more relaxed as compared with those that apply under the EBA as it is difficult for products from the region to meet requirements because of the lack of a wide manufacturing base.
Rules of Origin are requirements used to ensure that producers in developing Africa, Caribbean and Pacific (ACP) countries benefit from access to EU markets so that the ACP countries do not simply become a transit channel for exports from third countries with no benefit to the local industry.
However, he diclosed that the Eastern and Southern Africa (ESA) countries will next month convene a meeting to look at the issue of rules of origin under the EPA of the European Union.
The meeting, to be held in Malawi, is intended to address some of the concerns on the rules of origin required under the EPA negotiations.
He also said the offer by the EU to remove quota and tariff limits into its market by January next year will expand the market for ACP countries. The offer was good news to the region as it also complies with the World Trade Organization (WTO) rules on trade.
The EU last week announced its proposal to remove all remaining quota and tariff limitations on access to the EU market for all ACP countries as part of the EPA negotiations.
The offer covers all products, including agricultural goods like beef, dairy, cereals and all fruit and vegetables except for rice and sugar that will require a phase-in period.
Mwencha says that member countries will have to take into consideration a number of issues before opening up their markets. Although the reciprocity arrangements under the EPA was incompatible with WTO rules, ACP countries will need to carry out assessments on the impact of opening up their markets.
Source