17 - 23 May 2001
Issue No.534
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Al-Ahram Weekly On-line 17 - 23 May 2001 Issue No.534 |
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Africa comes to Cairo
Next week's COMESA summit in Cairo provides a golden opportunity to iron out differences and settle trade disputes, writes Gamal Nkrumah
A summit of the Common Market of Eastern and Southern Africa (COMESA), opening on 22 May, is the first to take place in Egypt, which joined the regional economic grouping in June 1998. Participants are expected to make a strong plea for closer regional economic cooperation. The subject of trade will top the agenda but political and security matters will also be discussed, as peace and stability are widely regarded as prerequisites for trade and economic development.
Egypt, with over 66 million people by far the largest country in COMESA, has one of the most industrially advanced and dynamic economies of the vast region. From the Egyptian point of view, COMESA countries constitute a market where Egyptian exports can thrive. Pharmaceuticals, foodstuffs, textiles and footwear constitute the major Egyptian exports to COMESA countries. But Egyptian manufacturers hope to sell a wider range of commodities in the near future.
Since its inception, improving access to markets has been a priority for the group, but the issue has emerged as a serious stumbling block to closer economic cooperation between COMESA member states. Tensions concerning market access erupted and a row ensued among COMESA countries when some East and Southern African states accused Egypt of selling them commodities that originated in non-COMESA countries. Kenya, for example, charged that Egypt sold it Australian wheat and flour. Such protracted disputes between Egypt and other COMESA member states over the origin of goods threatened to sour relations just before the first COMESA summit to be held in Egypt.
As of the beginning of May, Egyptian diplomatic missions in COMESA member states are now obliged to endorse trade certificates of origin to facilitate the trade of goods to and from Egypt. COMESA certificates of origin are to be issued by member states to ensure that exported commodities actually originated from the country exporting the goods in question. There have been complaints about frequent delays in obtaining clearance for goods destined for Egypt.
Though growing at a rate of 20 per cent, intra-COMESA trade barely topped the $4 billion mark in 2000. But member states' hopes of increasing the volume of mutual trade were boosted with the establishment of the COMESA free trade area last October.
COMESA member states hope to avoid trade disputes which might disrupt the flow of trade, but obstacles remain . Last Thursday, Kenya's Minister of Trade, Tourism and Industry Nicholas Biwott said at an opening of a new export processing zone that the Kenyan government is "set to progressively impose conditions to discourage importers of second-hand clothing, wheat, and maize flour into COMESA countries." Biwott warned that trade in second-hand clothing hurt Kenya's textile and garments industry. Kenya's sugar farmers made similar complaints, claiming that Kenya is flooded with cheaper imports from COMESA countries at the expense of local industry.
Producers of agricultural and consumer goods in a number of less economically developed COMESA countries increasingly complain that they do not benefit from remaining in the COMESA free trade area. Indeed, Tanzania pulled out of COMESA altogether last year and there are fears that other countries might follow suit. Even in Zambia, where COMESA is headquartered, commercial farmers recently voiced concern about the organisation facilitating market access for cheaper imported agricultural products at the expense of higher priced local produce.
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