EAC states told to pull out of COMESA, SADC
The Guardian | 2006-06-02
EAC states told to pull out of COMESA, SADC
By Adam Ihucha, Arusha
EastAfrican countries have been implored to pull out their individual membership from the Common Markets for Eastern and Southern Africa (COMESA) and South Africa Development Community (SADC) and choose the suitable one to re-join it as an EAC bloc.
’’Kenya and Uganda would have to give up membership in Comesa, while Tanzania will have to give up its membership in SADC, and join only one trading bloc, an EAC bloc and not as individual state,’’ a member of EA Legislative Assembly (EALA), Mohamed Abdallah Zubedi (Kenya), said when debating the EAC 2006/7 budget proposals.
The EALA member said with Libya and Comoro joining the Free Trade Area (FTA) of the Common Market for Eastern and Southern Africa, the continent’s largest economic group, it was pertinent for EAC countries to join it as an economic bloc, for them to have bargaining power.
Available records indicate that the joining of the two countries brings the number of the FTA member countries to 13 out of the total 19 member states in COMESA.
’’From my point of view, there was the need for EAC countries to renegotiate new economic arrangements particularly after the inauguration of the Customs Union,’’ Zubedi said, explaining the EAC bloc has a chance to renegotiate arrangements with trading blocs like Comesa and SADC, even after the partner states ditch out the latter at individual capacity.
Currently, the EAC countries are scattered in two economic blocs Tanzania belongs to SADC, while Kenya and Uganda belongs to Comesa, the move which, the EA regional economic guru say it complicates even the operations of the EA Customs protocol.
They argue that in the absence of proper implementation of rules of origin, Tanzania may import at preferential rates from SADC, repackage the products and export the same to the community, thus escaping duties, and vice versa for Kenya and Uganda.
With regard to EAC Customs Union and the envisaged EAC common market, the EALA member said from the business point of view, the two programmes are viable in terms of economic ventures.
’’We are not saying the EAC partner states should take their entire budget and inject them to the EAC, but the respective finance ministers should look for alternative funds for the community.’’
He said that even the European Union (EU), doesn’t get its funds direct from the member states, and urged the EAC to borrow a leaf from it, at least in terms of funding the regional body.
’’The EAC budget, which increases at about USD one million annually� I am not sure whether we can make the EAC common market to be operational� as a matter of fact, a common market is a big exercise indeed, though it is very simple in writing it,’’ Zubedi said, amid applause from the floor.
