COMESA 2018 | Page 19

SPECIAL REPORT T he global economy has seen some signifi cant neo- protectionist sentiments emerge in many parts of the world recently. The European Union (EU) experienced the now infamous Brexit last year (2017) and is still struggling to fi gure out how to settle the dust while preventing severe potential fallout in trade and investment relations between the UK and EU member country. In another part of the world, after 2016, the USA ushered in Donald Trump’s America First foreign policy, which intended to seriously clamp down on the “very bad deals” that reportedly disadvantaged US businesses. The foreign policy included a recent escalation of tariffs on imported commodities like iron and steel from China. In retaliation, China slapped a hefty 25 percent tariff on US pork imports and also escalated tariffs on US fruits, nuts and wine. After the fi rst strike and the counterstrike, a fully fl edged trade war between the two global economic powerhouses seems quite imminent. Despite the odds, regional integration in Africa is deepening, and COMESA, as always, is a trailblazer at setting the pace towards fulfi lling the African Union’s Agenda 2063. With 19 members, a combined import trade value of over $169 billion in 2016, and an estimated population of 505 million inhabitants (2017), COMESA represents a sizable market with rising incomes. The bloc spans a land area of 11.2 million km 2 endowed with a large portion of the world’s natural resources. COMESA has been championing regional integration and free trade since 1984 when it was first formed as the Preferential Trade Area. Over the years, the Regional Economic Community (REC) has developed and implemented a strong legal framework and dynamic regional regulations. It has garnered political will through the Heads of State and Government providing direct oversight of its affairs. It has also established robust regional institutions (including a Secretariat in Lusaka, Zambia) along with a range of policies, programmes and interventions for trade, investment and the free movement of persons and commodities. The REC remains as resolute as ever about fostering African regional integration. It has set itself up as a haven for trade and investment opportunities in the continent. In 2015, COMESA took a landmark step towards continental free trade. It joined forces with the 15-member State SADC and the fi ve-member State EAC to establish a Tripartite Free Trade Area (TFTA). The TFTA brought together 26 countries who committed to trading on duty-free and quota-free terms amongst themselves, subject to Rules of Origin compliance requirements. As of March 2018, 22 member countries – Angola, Botswana, Burundi, Comoros, Democratic Republic of Congo (DRC), Djibouti, Egypt, Kenya, State of Libya, Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Tanzania, Uganda, South Africa, Swaziland, Zambia and Zimbabwe – had signed the TFTA Agreement. Naturally, the TFTA has not been without teething problems. At the political level, these have included the fact that only two countries – Egypt and Uganda – both signed and ratifi ed the TFTA whereas the Agreemen