NTBs hinder growth of intra-Comesa import trade

What you need to know:

  • Similar products competing for the same market within the Common Market for Eastern and Southern Africa (Comesa) have been singled out as one of the non-tariff barriers (NTBs) largely responsible for low intra-regional trade.
  • The goods traded most between Comesa member states are tea, cement, pharmaceuticals, edible oils, chemicals, petroleum products, steel products and grains.

Despite the adoption of Comesa regulations on non-tariff barriers last December, intra-regional import trade between members is declining.

Similar products competing for the same market within the Common Market for Eastern and Southern Africa (Comesa) have been singled out as one of the non-tariff barriers (NTBs) largely responsible for low intra-regional trade.

Trade statistics show that in 2014 imports from Comesa regions increased to $202 billion from $173 billion recorded in 2013. In the same period, intra-Comesa exports slightly increased by two per cent from $9.9 billion to $10.1 billion.

On the other hand, intra-Comesa imports dropped by four per cent from $11 billion to $10.6 billion.

COMPARISON

Experts said that although there is a slight increase in intra-Comesa trade, this is still very low compared with other regions. In 2013, the Association of Southeast Asian Nations recorded 25 per cent intra-regional trade between its members.

“Low intra-regional trade is partly due to similar products competing for the same market within the member states,” said Raymond Mpundu, Zambia’s Deputy Minister of Commerce, Trade and Industry, at the 35th meeting of Comesa Intergovernmental Committee in Lusaka, Zambia on December 3. 

Mr Mpundu challenged the bloc’s governments to address bottlenecks in intra-regional trade, such as supply side constraints and NTBs.

The goods traded most between Comesa member states are tea, cement, pharmaceuticals, edible oils, chemicals, petroleum products, steel products and grains.

But the adoption of Comesa regulations on NTBs last December is one of the initiatives taken to consolidate intra-regional trade. The regulations build up on existing mechanisms for reporting non-tariff barriers.