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Report cautions over Zambia,s dual SADC, COMESA membership

Report cautions over Zambia,s dual SADC, COMESA membership
By Joan Chirwa
Friday May 23, 2008 [04:00]

ZAMBIA's dual membership in SADC and COMESA may become difficult to maintain as the two regional economic blocs move towards the customs unions, the 2008 African Economic Outlook report has stated. The report released this week, noted that Zambia trades more with the Southern Africa Development Community (SADC), although progress towards a customs union is more advanced within the Common Market for Eastern and Southern Africa (COMESA).

“As SADC and COMESA are both moving towards customs unions, Zambia’s double membership may become difficult to maintain. Zambia trades more with SADC,” the report stated. “The government also considers the benefits from hosting the COMESA secretariat in its decision about membership.”

COMESA is expected to launch its customs union by December this year, while SADC is set to come up with a Free Trade Area (FTA) this year and a customs union later in 2010.

The formation of the customs union will result in all members having a single currency, although it is not yet clear how countries maintaining dual membership would operate under such a system.

For both exports and imports, the SADC is Zambia’s main trading partner, followed by Asia, which has increased its share significantly over the past decade.

COMESA accounts for around 10 per cent of trade.
Trade with the EU is imbalanced with 18 per cent of imports but only 10 per cent of exports.

There is also significant informal trade, for example in agriculture but also in small-scale mining.

Meanwhile, COMESA has reaffirmed the need for the completion of minimum requirements before the launch of the customs union on December 8, 2008.

During the second extra-ordinary meeting of the Council of Ministers held in Nairobi last week, COMESA member states noted that the customs union was a major milestone in the deepening of the integration process of regional economic bloc.

COMESA member states also requested the bureau of the Eastern and Southern Africa (ESA) council to continue engaging the European Commission in ensuring that there was no trade disruption to ESA countries that had initialled the interim Economic Partnership Agreements (EPAs).

Meanwhile, the COMESA Council of Ministers has appointed Sindiso Ngwenya as interim secretary general of the regional economic grouping until the 13th COMESA Heads of State Summit is held.

Labels: COMESA, SADC

posted by MrK @ 3:16 AM