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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.