WORLD TRADE WT/MIN(98)/ST/74
18May1998
ORGANIZATION(98-2084)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA
Statement Circulated bytheHonourable Enoch Kavindele,
Chairman oftheCouncil ofMinisters
(AsanObserver)
Itisagreat honour andprivilege formetostand before suchanaugust gathering. Istand
before yourepresenting 350million people oftheCommon Market forEastern andSouthern African
States (COMESA).
COMESA isaregional economic grouping of20Southern andEastern African States which
havecome together primarily toraisetheliving standards oftheirpeople bytransforming thesocial
andeconomic structures oftheircountries collectively. These structures include tradeandinvestment
regimes, fiscal andmonetary policies andthegeneral economic orientation frompredominantly public
toprivate-sector dominated economies.
COMESA Member States aim:
- Toattain sustainable growth anddevelopment oftheircountries bypromoting amore
balanced andharmonious development ofproduction andmarketing structures;
- topromote jointdevelopment inallfields ofeconomic activity andthejointadoption
ofmacroeconomic policies andprogrammes aimed atfostering closer relations among
themselves;
- tocooperate inthecreation ofanenabling environment forforeign cross-border and
domestic investment, including thejoint promotion ofresearch andadaptation of
science andtechnology fordevelopment;
- tocooperate inthepromotion ofpeace, security andstability among theMember
States inorder toenhance economic development intheregion; and
- tocooperate instrengthening relations between theCommon Market andtherestof
theworld.
Inthisrespect, COMESA 'saspirations andthose oftheWorld Trade Organization (WTO)
areidentical inmany areas. COMESA asaregional economic grouping deposited itsTreaty with
WTO inaccordance withArticle XXIV oftheGATT Agreements.
COMESA iswilling tocooperate withtheWTO onneweconomic partnerships thatgenuinely
address allfactors foreconomic growth, inparticular theacceleration ofindustrial growth inWT/MIN(98)/ST/74
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developing countries, development oflocalmarkets through regional integration, development ofthe
necessary financing facilities andfinally theintegration oftheregional economic block intothe
multilateral trading system.
COMESA hasemerged asoneofthemost successful regional economic cooperation and
integration groupings inAfrica intheareaoftrade. Economic integration isfounded oncooperation
among itsmembers inallfields ofeconomic development enhanced byincreased competitive
advantage ofenterprises intheregional market.
Atregional level therefore COMESA isaddressing themajority oftheissues orrules
embodied intheWTO Agreements. There isalotofcommon ground between regional organizations
andthemultilateral organization WTO. There iswide scope forcooperation between WTO and
regional organizations inmeasures designed tomake developing countries gainanincreasing share
oftheworld trade andintheintegration ofregional trading blocs intotheglobal economy.
Demands onCOMESA togetinvolved inmultilateral negotiations byproviding advisory
services toitsmembers arehigh. COMESA willbeproactive indiscussions onissues inthebuilt-in-
agenda which provide aframework forfuture negotiations.
Africa 'sdeclining share ofworld trade from 5percentin1985 toabout 2percentin1996
isdisturbing. Further decline would entrench chronic balance-of-payment deficits resulting in
contracting economies, increasing unemployment andother undesirable economic factors. The
Common Market forEastern andSouthern Africa (COMESA) provides thenecessary economic
machinery andpolitical framework fordampening andeven holdthedecline inAfrica 'sshare of
world tradethrough strengthening thecompetitiveness ofenterprises intheregional market. Particular
focus isplaced ondeveloping private enterprises byundertaking reforms necessary toremove barriers
inthenational andregional economies. COMESA hascovered considerable ground inthisarea
through itsstrategy ofpromoting regional integration through trade andinvestment.
Torealize theobjectives ofCOMESA, theorganization hassince 1984 conceived and
developed awide-range ofprogrammes. Theorganization hasmade significant strides initsquest for
greater economic integration. Some ofthenotable achievements are:
Thereduction andeventual elimination oftariff barriers onCOMESA originating products
Thetrade programme hasscored notable success. Alltheconventional non-tariff barriers
have been eliminated inmost oftheMember states. Reduction oftariffs onCOMESA
originating products hasreached averyadvanced stage. Therange oftariff reduction bythe
majority oftheMember states isfrom60percentto80percent. Theregion isfastmoving
intoafreetrade area.
Establishment ofCommon external Tariff andCustoms Union
Thiswould require COMESA totakealeadroleinnegotiations forfurther tariff reduction
inWTO onbehalf ofitsMember countries infuture.
Simplification andharmonization ofcustoms documents, rules, regulations, procedures and
general cooperation inallcustoms matters andactivitiesWT/MIN(98)/ST/74
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Programmes fortrade financing andpayments throughout thePTATrade andDevelopment
Bank, theCOMESA Clearing House andtheCOMESA Reinsurance Company
These programmes facilitate bothregional andinternational trade oftheMember States.
Specific programmes onthedevelopment andpromotion ofintra-and extra-COMESA trade
Market research isbeing done onproducts ofexport interest tomany enterprises. The
products ofthisresearch aresupply anddemand surveys. Buyers/sellers contact promotion
meetings areundertaken, atrade information network wasestablished asisoperational in47
business sector organizations intheregion.
Theimplementation oftheabove trade facilitation programmes gohand inhand withother
complementary programmes inTransport andCommunication facilitation, Industry, Energy andthe
development ofAgriculture andTourism.
These programmes arenowhaving aconsiderable impact onintra-COMESA trade. Between
1985to1996intra-COMESA tradehasbeengrowing atanaverage of14.1percentcompared totrade
withthirdworld countries, which hasbeengrowing atanaverage growth rateof7.2percent.
Ifthese result oriented programmes ofCOMESA arecomplemented byglobal efforts
providing forfavourable market access conditions ofproducts fromAfrica aswellassupport ofmore
elaborate programmes ofCOMESA andother regional organizations, thedeclining trend ofAfrica 's
share inworld trade could bestopped ifnotreversed.
However, being ayoung economic grouping comprising almost exclusively Least-Developed
Countries, wewillfrom timetotimerequire thesupport ofcooperating partners, bilateral and
multilateral institutions suchastheWTO.
Inthiscontext, Itaketheliberty torefertothree important pronouncements bytheWTO:
- Firstly, theDecision onMeasures InFavour ofLeast-Developed Countries;
- secondly, theSingapore Ministerial Declaration adopted attheFirst Ministerial
Conference inSingapore in1996; and
- thirdly, theComprehensive andintegrated WTO Plan ofAction fortheLeast-
Developed Countries, alsoadopted attheFirstMinisterial Conference inSingapore
on13December 1996.
Allthree pronouncements recognize thespecial status ofLeast-Developed Countries and
reaffirm theglobal commitment totakepositive action aimed at:
(a) Improving thecapacity ofLDCs torespond toopportunities offered bythenew
trading system;
(b) enhancing conditions forinvestment andproviding predictable andfavourable market
access conditions forLDCs 'products; and
(c) fostering theexpansion anddiversification ofLDC exports tothemarkets ofall
developed countries.WT/MIN(98)/ST/74
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TheWTO PlanofAction fortheLeast-Developed Countries further emphasizes theurgent
needforhuman andinstitutional capacity building bothinthepublic andprivate sectors ofLDCs.
TheGuidelines forWTO Technical Cooperation must, therefore, notonlymaintain LDCs as
priority beneficiaries butmust beseen, inapractical manner, tofulfil thespirit underlying the
commitment ofthePlanofAction onthismatter.
Similarly, provisions formarket access elaborated inthePlanofAction urging developed
country Members ofWTO toexplore possibilities ofgranting duty-free access forexports ofLeast-
Developed Countries needserious follow up.
AsLDC members ofWTO, wearekeenly awaiting theimplementation ofprovisions for
WTO Members toextend, unilaterally andonanautonomous basis, market access benefits toleast--
developed country suppliers. Wearealsoawaiting theadoption bydeveloped WTO Members of
preferential policies andliberalization undertakings inorder tofurther facilitate access totheirmarkets
forLDC exports asenunciated inthePlanofAction.
COMESA believes thatvarious provisions forspecial anddifferential treatment should be
interpreted inapractical wayandmade operational. Theprovisions arekeyingiving developing
countries timetoenhance thecompetitiveness oftheir economies. Measures taken atnational or
regional level toenhance competitiveness canonlybeeffective inalesscompetitive environment
which isoffered bythevarious provisions forspecial anddifferential treatment.
Itisforthesame reason thatCOMESA supports theproposal thatthetime-frame forthe
implementation ofagreements incases where developing countries experience difficulties with
compliance should beextended.
Theissue ofsubsidies needtobeexamined fordeveloping countries withaviewtolevelling
theplaying field. COMESA isconcerned thatsubsidized products from some countries withsound
financial resources findtheirwayintotheCOMESA market while theCOMESA members because
offinancial constraints, religious adherence toeconomic reform programmes aswellascompliance
with GATT rules nolonger subsidies exports. This iseroding thepreferences ofregional
organizations.
COMESA welcomes theestablishment oftheCommon Trust Fund forfinancing joint
ITC/UNCTAD/WTO Integrated Technical Assistance Programme forLDCs andother African
countries aswellastheUNDP Initiative forCapacity Building onTrade andDevelopment. These
areimportant initiatives toenhance human resource development andcapacity building intrade
support institutions.
COMESA believes however thatforthese initiatives tohave thedesired impact, regional
organizations should beinvolved intheirexecution.
Regional organizations have networked andareworking closely with theChambers of
Commerce andIndustry, Trade Promotion Organizations aswellasother business sector organizations
intheregion tocreate atrade andinvestment environment andregulatory frame aswellasbuild
capacity ontrade support services. Cooperation ofallthese institutions isnecessary forthesuccess
oftheinitiatives.
Ifurther wishtourgetheWTO, ITCandother agencies tocollaborate withourSecretariat
todevelop capacity building programmes aimed ataddressing theregion 'ssupply-side needs andWT/MIN(98)/ST/74
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facilitating thediversification andexpansion ofexport structures soastobetter respond tomarket
access opportunities presented under thisrule-based trading system.
Iamconvinced, thatonce theissues enumerated above areaddressed, theconcern of
marginalization soeloquently expressed andsoadeptly addressed atthelastMinisterial Conference
would beresolved toaverylarge extent.
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