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COMESA
Agricultural Trade in the COMESA
Region
Mark Pearson
[email protected]
COMESA Secretariat
Lusaka - Zambia
Angola, Burundi,Comoros,DR Congo,Djibouti,Egypt,
Eritrea, Ethiopia, Kenya,Madagascar,Malawi, Mauritius,
Namibia, Rwanda,Seychelles, Sudan,
Swaziland,Uganda,Zambia, Zimbabwe
Pop. - 340 m
GDP - $170b
Area - 13m km2
Trade - $50b
Agricultural Trade Introduction
- Realisation economic growth depends on trade regional & S-S - and committed to regional trade
liberalisation.
- Increased trade depends on the removal of barriers
to trade (both tariff and non-tariff) and strong rulesbased institution to ensure compliance - RTAs.
- Regional trade potential:- maize (and maize meal);
wheat (and wheat flour); cotton lint (and yarn); tea;
coffee; sugar; dairy produce; meat and meat
products; poultry and poultry products; groundnuts;
soya beans; vegetable oil; etc.
Agricultural Trade Constraints
- Non-Tariff Barriers:- customs documentation, SPS
compliance, standards, origin compliance.
- Government-induced market distortions:- export
bans related to food security; subsidies (low level
loan recoveries, production support in unsuitable
agro-ecological zones, price interference - Zambia imported maize at $227-$290 per MT, distributed to
millers at $180/MT, floor price $125/MT and ban on
exports).
- OECD export subsidies and domestic support:beef, sugar, cotton, maize.
Agricultural Trade Constraints - supply side
- Supply-Side Constraints include:- erratic weather patters and no back-up;
- erratic availability of inputs;
- high cost and shortage of seasonal finance;
- land ownership systems - collateral;
- labour productivity (old and very young and effects
of HIV/AIDS);
- lack of infrastructure in rural areas - roads,
electricity, social infrastructure.
Agricultural Trade -Reason
for Optimism
Despite all this reason for optimism:
- Realisation of the reasons for low levels of trade
and investment and trends are for easing of
customs procedures (except SPS?) and reduced
government interference.
- OECD export subsidies and domestic support? Effects of CAP reform? US Farm Bill - cotton?
Commitment to dev. aspects of DDA? Lamy offer?
- This season pockets of increased supply and higher
regional prices.