“The eighth WTO Ministerial Conference held in December 2011 adopted a waiver to enable developing and developed country members to provide preferential treatment to services and service suppliers of least developed country members for a period of 15 years.
LDCs in our region should spare no time in utilising this services waiver while it lasts,” said Mr Sindiso Ngwenya, Secretary-General, COMESA during the opening of the 31st Meeting of the Intergovernmental Committee held in Kampala, Uganda on 15 November 2012.
Mr Ngwenya underscored the importance of the multi-lateral trading system and its contribution to trade policy both at national and regional levels. He also emphasised the need to comply with the multilateral level rules as they inform negotiations at regional level.
He further informed delegates that the US government had extended the third country fabric provision to 30 September 2015 and plans were underway to ensure the extension of this provision beyond 2015 as well as to synchronise its expiration with that of the African Growth and Opportunity Act (AGOA).
Currently 12 of the 19 COMESA member states have been designated as eligible for AGOA benefits and the third country fabric provision, which allows for global sourcing of fabric which can then be used to make clothing and apparel for export to the US on a duty free basis.
Mr Ngwenya noted that, “This provision was due to expire on 30 September 2012 while the overall AGOA expires on 30 September 2015.”
Delegates were further informed that the Tripartite process is on course with legal and institutional structures for negotiations in place. The Tripartite Free Trade Area (TFTA) pillars were agreed upon at a meeting in Sandton, South Africa in 2011 and include; market integration, infrastructure development and industrialisation. In addition, member states have exchanged trade and tariff data to assist in the TFTA negotiations.
Mr Ngwenya reiterated COMESA’s mandate, which has largely been premised on the promotion of trade among member states and more specifically trade liberalisation and trade facilitation.
He emphasised the need for cooperation with trading partners outside the region for the benefit of all countries. In this regard, delegates were informed of ongoing talks by the Joint Study Group (JSG) between COMESA and India to negotiate a COMESA-India Comprehensive Economic Partnership Agreement that may lead to a Free Trade Area.
Mr Ngwenya added, “It is therefore imperative for this meeting to pronounce itself on the issue of transposition and make recommendations to Council on the appropriate approach to take regarding the COMESA Customs Union.”
Despite these great achievements, Mr Ngwenya expressed dissatisfaction with the rate of implementation of decisions at the national level.