COMESA

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• COMESA

Agricultural Trade in the COMESA Region Mark
Pearson mpearson_at_comesa.int COMESA
Secretariat Lusaka - Zambia
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• 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
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• 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 rules-based 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.
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• 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.
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• 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.
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• Agricultural Trade -Reason for Optimism

Despite all this reason for optimism - Realisatio
n 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.