Comesa wants to Finalise Framework on Trade In Services
COMESA Member States were urged to finalise the Regional Framework on Trade in Services in order to guide liberalisation of services provision in the region. Acting Secretary General Ambassador Nagla EL-Hussainy made this call at the official opening of the meeting of legal experts on the Legal frame work on Trade in Services that took place early ( Tuesday 20th Feb) this week at the COMESA Centre, Lusaka Zambia.
Ambassador Nagla EL-Hussainy said that it would be better for the region to forge closer relations in this sector so as to move forward with other activities related to trade in services. “ My expectation is that this meeting will finalise the framework that will guide services liberalisation in our region so that we can move forward with other activities in this area” Said the Acting Secretary General.
“The COMESA region has covered substantial ground in the liberalisation of goods as witnessed by the attainment of Free Trade Area status beginning in the year 2000. A customs union in the COMESA region is planned to be launched in December this year. In like manner, the region needs to progress in the liberalisation of trade in services to complement achievements in the trade in goods sector” Ambassador EL-Hussainy added
She challenged member States to carefully examine each of the articles of the framework for which agreements have not been reached to ensure that the outcome is good for the region. She expressed hope that Member States have had sufficient domestic consultation that will allow the delegates to arrive at the needed framework.
“You will recall that last year a similar meeting was held here in Lusaka at which it was hoped that the regional framework for trade in services would be finalised. However, due to the need for further national consultations expressed by some delegations on such issues as application of the MFN principle and whether this document should be referred to as an “Agreement” or a “Regulation”, it was not possible to finalise the document. It is my fervent hope that the necessary consultations have been undertaken and that during this meeting, the regional framework for trade in services will be finalised” appealed the Acting Secretary General.
Speaking at the same function, Zambian Commerce, Trade and Industry, Permanent Secretary, Mr Davidson Chipamushi called upon flexibility that would allow the attainment of the framework. “Article V of the General Agreement on Trade in Services provides for deeper services liberalisation for countries entering into economic integration agreements provided that such agreement has substantial sectoral coverage and provides for the absence or elimination of substantially all discrimination. It is important that flexibilities of the General Agreement on Trade in Services form an integral part of this regional process so that the region can benefit from provisions relating to trade in services” pointed out MR Chipamushi.
The PS reminded the audience of the importance of trade in Services for the regional economy. It account for 45% of GDP in low-income countries, 55% of GDP of middle-income countries and 70% in high income countries. “Given such significance, it is important that our region accords the services sector the attention that it deserves” he concluded. COMESA region has made tremendous stride in liberalisation Trade in goods but the service sector, with the exception of Air Transport Liberalisation, has lagged behind due to the failure to come up with an appropriate framework that is satisfactory to all.