Based in Lusaka (Zambia), COMESA is the successor organisation to the regional Preferential Trading Area (PTA), and came into force on December 8, 1994. COMESA has now 19 members: Burundi, Comoros, Democratic Republic of Congo (DRC), Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe. Eight members of COMESA, i.e. DRC, Madagascar, Malawi, Mauritius, Seychelles, Swaziland, Zambia and Zimbabwe are also members of the Southern African Development Community (SADC).
COMESA is Africa’s largest economic community with a total population of around 430 million and an estimated combined GDP of US$ 447 billion. The main goals of COMESA are to eliminate the structural and institutional weaknesses of member states and to promote political stability and sustained economic development.
COMESA-EAC-SADC Ministerial Tripartite Meeting was held in Lusaka on May 13, 2011. The meeting looked at proposals aimed at streamlining trading arrangements among member countries and discussed proposed modalities of establishing a single market by way of a Grand Free Trade Area – combining the Free Trade Areas of COMESA, EAC and SADC and thus presenting a large market with a combined population of 580 million for promoting and attracting both cross border and international investment.
The organisation is now pursuing other integration objectives such as establishment of a Customs Union, liberalisation of visa facilities for the COMESA citizens and introduction of COMESA wide telephone system to provide cheaper and direct telecommunications facilities among member countries. Future COMESA goals include achievement of macro-economic convergence, harmonisation of policies in energy, agriculture, free movement of services, free right of residence by 2014 and establishment of an Economic Community by 2025.
COMESA-India Trade: The COMESA exports are dominated by petroleum products (around 70%) followed by cotton (around 10%). On the other hand, major COMESA imports from India are refined petroleum products, rice, pharmaceuticals, steel etc. India-COMESA trade has reached US$ 7.8 billion in 2010 from US$ 4.1 billion in 2006. Although it is nearing close to achieving the objective of doubling India-COMESA trade by 2010 as envisaged in India-COMESA Action Plan of 2006, it is still way too short of the huge potential. India’s offer to provide unilateral preferential market access for exports from 34 LDCs in Africa would give a further boost to India-COMESA trade.
INDIA-COMESA RELATIONS
India signed an MOU for long-term economic and technical cooperation with the COMESA in February 2003. A COMESA ministerial delegation visited New Delhi in October 2006 for the first ministerial level meeting. The meeting decided an Action Plan primarily in the area of capacity building including deputation of experts under ITEC to COMESA Secretariat in the areas of industrial development, Drugs and Pharmaceuticals, ICT and energy. Our energy expert completed his one year deputation with COMESA Secretariat on 20th June 2009 and submitted a report on “COMESA Integrated Energy Planning Strategy”. The Action Plan also envisages cooperation in trade, SMEs, science & technology and agriculture.
As part of the continuing engagement between India and Africa on an institutional basis, the second meeting of Secretary Generals of the African Regional Economic Communities [RECs] was held in New Delhi between 08-09 November 2011. A two member delegation headed by the Secretary General of COMESA attended the meeting. The representatives of the RECs met with several Ministries and agencies of the Government of India who are engaged in implementing jointly agreed programme and projects. A cross-section of Indian investors and entrepreneurs met with the delegates to discuss opportunities in their region, to learn about the growing market size.
The Exim Bank has been providing credit lines to PTA Bank and these credit lines have been utilised by the private sector in sourcing machinery and equipment from India in various COMESA countries. It will become easier for the Indian companies to increase their exports to the COMESA states if India and COMESA could enter into a Preferential Trade or a Free Trade Arrangement. Government of India has proposed setting up of a joint Study Group (JSG) to examine the feasibility of a Free Trade Agreement (FTA) / Preferential Trade Agreement (PTA) between India and COMESA. COMESA has welcomed the initiative.
COMESA is Africa’s largest economic community with a total population of around 430 million and an estimated combined GDP of US$ 447 billion. The main goals of COMESA are to eliminate the structural and institutional weaknesses of member states and to promote political stability and sustained economic development.
COMESA-EAC-SADC Ministerial Tripartite Meeting was held in Lusaka on May 13, 2011. The meeting looked at proposals aimed at streamlining trading arrangements among member countries and discussed proposed modalities of establishing a single market by way of a Grand Free Trade Area – combining the Free Trade Areas of COMESA, EAC and SADC and thus presenting a large market with a combined population of 580 million for promoting and attracting both cross border and international investment.
The organisation is now pursuing other integration objectives such as establishment of a Customs Union, liberalisation of visa facilities for the COMESA citizens and introduction of COMESA wide telephone system to provide cheaper and direct telecommunications facilities among member countries. Future COMESA goals include achievement of macro-economic convergence, harmonisation of policies in energy, agriculture, free movement of services, free right of residence by 2014 and establishment of an Economic Community by 2025.
COMESA-India Trade: The COMESA exports are dominated by petroleum products (around 70%) followed by cotton (around 10%). On the other hand, major COMESA imports from India are refined petroleum products, rice, pharmaceuticals, steel etc. India-COMESA trade has reached US$ 7.8 billion in 2010 from US$ 4.1 billion in 2006. Although it is nearing close to achieving the objective of doubling India-COMESA trade by 2010 as envisaged in India-COMESA Action Plan of 2006, it is still way too short of the huge potential. India’s offer to provide unilateral preferential market access for exports from 34 LDCs in Africa would give a further boost to India-COMESA trade.
INDIA-COMESA RELATIONS
India signed an MOU for long-term economic and technical cooperation with the COMESA in February 2003. A COMESA ministerial delegation visited New Delhi in October 2006 for the first ministerial level meeting. The meeting decided an Action Plan primarily in the area of capacity building including deputation of experts under ITEC to COMESA Secretariat in the areas of industrial development, Drugs and Pharmaceuticals, ICT and energy. Our energy expert completed his one year deputation with COMESA Secretariat on 20th June 2009 and submitted a report on “COMESA Integrated Energy Planning Strategy”. The Action Plan also envisages cooperation in trade, SMEs, science & technology and agriculture.
As part of the continuing engagement between India and Africa on an institutional basis, the second meeting of Secretary Generals of the African Regional Economic Communities [RECs] was held in New Delhi between 08-09 November 2011. A two member delegation headed by the Secretary General of COMESA attended the meeting. The representatives of the RECs met with several Ministries and agencies of the Government of India who are engaged in implementing jointly agreed programme and projects. A cross-section of Indian investors and entrepreneurs met with the delegates to discuss opportunities in their region, to learn about the growing market size.
The Exim Bank has been providing credit lines to PTA Bank and these credit lines have been utilised by the private sector in sourcing machinery and equipment from India in various COMESA countries. It will become easier for the Indian companies to increase their exports to the COMESA states if India and COMESA could enter into a Preferential Trade or a Free Trade Arrangement. Government of India has proposed setting up of a joint Study Group (JSG) to examine the feasibility of a Free Trade Agreement (FTA) / Preferential Trade Agreement (PTA) between India and COMESA. COMESA has welcomed the initiative.
No comments:
Post a Comment