Increase in non-tariff barriers causing concern in Comesa

The increase of non-tariff barriers  in the $350 billion Common Market  for Eastern and Southern Africa  in the recent past  is causing  concern among some member states.

The countries are  expressing fear that efforts  to establish a  fully functional customs union, launched last year,  in the 12million square kilometre trade bloc may be hampered if the problem is not tackled fast and swiftly.
Numerous meetings held at Comesa headquarters in Lusaka, Zambia, and other cities  in the  region  to solve the problem  has failed to solve the issue.
Even a major resolution by the council of ministers , one of the top decision-making organs in Comesa, that non-tariff barriers  be  removed by March  last year was ignored by as member states came up with new barriers to dodge the declaration.
“Though some non-tariff barriers were  eliminated after the council of ministers’ resolution,  other new non-tariff barriers quickly came up,” says Geoffrey Osoro, senior trade policy  expert at Comesa secretariat.
Some countries are now calling for stiff penalties on those   flouting rules regarding  the indiscriminate use of non-trade barriers.
At a recent Comesa meeting held in Nairobi, last week,  representatives from Uganda,  Zimbabwe,  Burundi and Comoros among others  expressed concern that  non-tariff barriers had become a major hurdle in the  intra-Comesa trade.
Some of the barriers cited are quality inspections, delays in inspection of commercial vehicles, cumbersome  and costly quality inspection procedures and unstandardized quality inspection and testing procedures .
Others are lack of transparency and consistency in customs procedures, high freight and transport charges and wide-ranging health and safety requirements.
Though Comesa secretariat officials do not name the culprits, arguably, every member country  uses a range of non-tariff barriers  regulate goods entering or transiting its territory for reasons like health, environment and security.
“Non-tariff barriers are not bad if applied fairly, because they are needed in  some cases. A government  cannot let anything enter  the country,” says Tasara Muzorori a Senior Trade Officer at Comesa secretariat.
In the modern world, where  diseases and invasive species  can spread from one corner of the world to another  in a matter of  days, countries need  both tariff and non-tariff barriers to protect human health and environment.
Infant industries also need to be protected from competition to allow them to establish themselves and create employment.
It is partly the reason why non-tariff barriers are important  in some cases, and a country can take its case to the council of ministers, which can grant a time-bound permission for their application.
Kenya, for example, was granted a four-year moratorium by Comesa to enable it prepare the local sugar industry for full liberalization by 2012.
However, the concern by the secretariat is that many countries do not seek permission from Comesa to apply certain non-tariff barriers, deemed by others are being discriminative and a hurdle to free trade.
The major reason for their persistent use is the fear, by governments, of losing revenue, given the fact that customs form a major source of revenue.
Rwanda and Burundi, for example,  received  a total $22million as compensation for projected revenue loss as a result of adopting the East  African Community External Tariff, with the former receiving $15.5 million, while the latter  got $6.5million from the Comesa Compensation Fund.
The two states applied to the fund, anticipating revenue losses from the implementation of the EAC lower tariff rates.
According to Comesa Secretary General Sindiso Ngwenya  it was the first decision to be made  under the Comesa Fund for the disbursement of adjustment support.
The Compensation Fund supports economic integration programmes of the East and Southern Africa region by cushioning countries from loss of customs and other tax revenues.
More countries are yet to apply for aid  in cases of revenue loss, and have chosen instead to stick with non-tariff barriers.
To check the problem Comesa secretariat  has formulated penalties, which if approved by member states will see, stiffer penalties coming into force.
But in the meantime, non-tariff barriers will continue to hinder trade in the region.