by Xie Meihua Liu Ying
KAMPALA, Oct.22 (Xinhua) -- The leaders of the
members of the East African community (EAC),the Common Market for Eastern and
Southern Africa (COMESA) and the Southern African Development Community (SADC),
after a one-day summit, have agreed here to further deepen and widen cooperation
and coordination in all sectors with an ultimate goal to form a super trade
bloc.
The leaders have also shown their strong political will and pledged their commitment to the realization of the integration, saying the economic integration will benefit every member of the three blocs.
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(L-R) Acting President of South Africa, Kgalema Motlanthe, Rwanda President Paul Kagame, Uganda President Yoweri Kaguta Museveni, Kenya President Mwai Kibaki, and President Jakaya Kikwete of Tanzania, attend the official opening of the First COMESA-SADC-EAC Tripartite Summit on Oct. 22, 2008. The East African community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) kicks off its first tripartite summit in Kampala, Uganda, Oct. 22, 2008. (Xinhua Photo) Photo Gallery>>> |
The proposed establishment of a single market among
them will surely have profound positive effects on the integration in the
African continent. However, there will be no easy path ahead for them to realize
the dream.
At the summit, the leaders talked a lot on how to
coordinate and harmonize their trade arrangements which is seen as a must before
they launch the proposed trade bloc.
Among the three blocs, the EAC has a functioning
customs union. COMESA has planned to launch its own customs union by the end of
this year. Meanwhile, the SADC is preparing to set up a customs union in 2010.
The EAC's free trade area is fully in force. COMESA
is making progress toward a free trade area. The SADC formally launched its free
trade area in August this year.
So the three blocs have to remove the tariff barriers
and agree on common rules of origin to expand their economic and trade
cooperation and integration.
"If we have the harmonization of policies we should
not have a problem under the Economic Partnership Agreement (EPA)," John
Mugerwa, executive secretary of Uganda's National Secretary for the tripartite
summit, told Xinhua in a recent interview.
Multiple membership is also seen as a big hurdle in
the process of the economic integration of the three, which the leaders
attending the summit have reached a consensus to address.
The EAC is already a customs union but it shares four
members with COMESA and one member with the SADC, said a document from the three
communities.
Five of SADC members are also members of the Southern
African Customs Union (SACU).There are 10 countries in the region which are
already members of customs unions but all of them are also involved in the
negotiations that are aimed at establishing alternative customs unions to the
one they currently belong to.
Further, COMESA and the SADC have seven members in
common that are not part of a customs union but are all involved in preparing
customs unions for both COMESA and the SADC.
The integration process will also be hampered if the
three blocs do not invest heavily to improve the poor infrastructure in most of
the members.
The current road, railway, port networks used by
these African countries were built by the colonialists and they do not link with
each other. After their independence, the African countries have lacked
necessary resources to repair, update, expand and connect the transport systems.
The rich foreign countries have been reluctant to
invest in the infrastructure sector in Africa due to the quite unstable
situation in the continent.
South African Finance Minister Trevor Manuel said
early this year in a seminar that poor infrastructure has remained a severe
impediment to more rapid growth and power reduction in Africa.
"Some of the handicaps affecting African economies
are a legacy of colonialism -- railways and roads leading from the interior to
the coasts but not between contiguous countries," the finance minister said.
"Today Africa's transport costs, local, national and
international, are around twice as high as those for a typical Asian country.
Shipping a car from Japan to Abidjan costs 1,500 U.S. dollars, whereas moving it
from Abidjan to Addis Ababa costs 5,000U.S.dollars," he pointed out.
Despite these challenges, all the members have seen
integration as a imperative.
"There is no other way except to work together.
Integration is a global phenomena," Julius Onen, deputy secretary general of ESC
in charge of programs and projects on the tripartite summit, told Xinhua in a
recent interview.
"Whether it is in Europe, whether it is in America,
whether it is in Asia, that is a world of integration. Your immediate
opportunity is your immediate neighbor and that potential is tremendous," Onen
added.