COMESA Agreement between African countries ✍️ Professor: Fikri Kabbashi, Al-Amin Al-Arabi
The COMESA Agreement started as a preferential trade area aimed at establishing a free trade area among member states and evolved into a customs union and then a common market, culminating in the Common Market for Eastern and Southern Africa (COMESA) Agreement on 29 June/1998, and customs exemptions began to be applied to imports from the rest of the member countries from 17 February 1999, based on the principle of reciprocity for goods accompanied by a certificate of origin approved by the competent authorities of each country. On 31/10/2000, 9 COMESA Member States signed the agreement to establish a free trade area, including: (Egypt / Kenya / Sudan / Mauritius / Zambia / Zimbabwe / Djibouti / Malawi / Madagascar), and Rwanda and Burundi joined on 1/1/2004, where these countries grant full exemption from customs duties imposed on imports traded between them, provided that such products are accompanied by a COMESA certificate of origin and the benefits provided for in the agreement, which are as follows:
1. The population of COMESA Member States is 380 million people and therefore represents a significant market and outlet for many Egyptian products.
2. Benefit from mutual exemptions, as eleven countries have joined the COMESA Free Trade Area and these countries grant total exemption to their imports from other countries. According to the Egyptian state, it is possible to benefit from the import structure of the member states, as these countries are willing to import many products in which Egypt has a significant advantage in production. At the top of the list are rice and food products. , household appliances, dried onions, ceramics, sanitary ware, medicines, then car tires, aluminum products, iron and steel, textiles and footwear.
3. It is clear from the production structure of the Member States that they are countries dependent on the export of important raw materials and commodities such as copper, coffee, tea, raw hides, cattle meat, sesame, maize and tobacco.
4. Benefit from financial assistance provided by the African Development Bank and other international financial institutions in the area of developing exports to African countries.
6. The Agreement provides for the creation of an advanced system for the exchange of information within the Member States.
6. Further gains result from what is included in the agreement in the field of industrial and agricultural cooperation, as well as in the field of transport and communications.
The current status of tariff reductions implemented in COMESA is as follows:
1. Egypt, Kenya, Sudan, Mauritius, Zambia, Zimbabwe, Djibouti, Malawi, Madagascar, Rwanda and Burundi shall grant each other total exemption from customs duties, fees and other charges having similar effect on goods and products originating in COMESA.
2. Uganda, Eritrea and Comoros: apply an 80% reduction on their imports from COMESA countries
3. Ethiopia: It applies a 10% customs reduction in customs duties imposed on its imports from COMESA countries.
4. Seychelles and Democratic Republic of Congo: They do not grant any customs reductions.
5. Swaziland: It does not apply any customs exemptions and is granted a grace period on the grounds that it is conducting studies on the effects of its accession to the Free Trade Agreement, taking into account its association with the Southern African Customs Union (SACU).
6. Angola recently suspended its membership in the organization.
7. Libya signed its accession to COMESA at the Tenth COMESA Heads of State Summit in June 2005.
The Egyptian state is considered the most active country compared to other African countries, as the Egyptian exports benefiting from the exemption are as follows:
1. All Egyptian goods exported to the Member States shall benefit from total exemption from all customs duties, taxes and other charges having similar effect in accordance with the reduction rates approved by each country and on the basis of the principle of reciprocity.
2. There are no exceptions except for the States of Sudan, Kenya and Mauritius, as the State of Sudan submitted on 23/05/2001 a negative list (which includes 58 goods whose import from Egypt is not permitted except after payment of the full fees). Sudan also reserves certain products excluded from the application of the exemptions. These products are sugar, flour, cigarettes, fresh water, sauces, jams, fruit juices, biscuits, sweets, tahini, vegetable oils, soap, cotton yarn, cotton textiles, mixed textiles, medical cotton, ready-made garments, knitwear, leather shoes, plastic shoes, cloth shoes, sponge shoes and paints (except paints (ships, automobiles), matches, tires (except tractor tires, agricultural equipment, wheels, engines, forklifts and separate machines), wet and dry batteries, plastic bags, perfumes, cosmetics, zinc plates, reinforcing bars, toy cars, wicker, sheet metal, Zoe, refrigerators, water conditioners, electric wires, cables, cardboard boxes and cases, doors and windows made of cement, wood and aluminum. And office furniture. Egypt does not maintain any negative list except with the State of Sudan, so the excluded products are chickpeas, cotton textiles, mixed textiles, ready-made garments and knitwear. The most important Egyptian exports to COMESA countries are construction materials such as iron and steel, cement, chemicals and pharmaceuticals, the most important of which are paper and human medicines, food industries, sugar, oils and fats, rice, fruits and vegetables, some engineering products, the most important imports from COMESA countries to Egypt, coffee and tea, oily fruits, sesame, live animals and copper.
