Writes Leo Odera Omolo
PLANS are underway to establish one of the biggest trading blocs in Africa, which will bring together the common Market for East and Southern Africa {Comesa}, the East African Community {EAC and the Southern African Development Community {SADC}.
This was one of the several resolution reached by the Heads of State from East and Southern Africa when they converged in Johannesburg South Africa two weeks ago to thrash out issues ahead of the planned integration.
The existing three African trading blocs made up of 26 countries, with a market of close to 600 million people and with an estimated gross domestic product {GDP} OF USD 860 billion, are pushing for a free trade area.
But according to one participant, drawing the line from the South African meeting, individual blocs have huge tasks ahead of them as the meeting agreed on a raft of agreements.
The three blocs agreed on a three phase roadmap including a preparation phase of between six months to one year from June 2011.
Phase one will have involved negotiations on the trading of goods which would take place for between 24 to 60 months and the last phase will deal with the actual integration
Te officials, however, were unable to set up the time table for the final phase, signaling that “Mega Bloc” could be years away from being a reality.
The first phase required the three Tripartite Free Trade Areas member to disclose their trade agreements with countries within and outside the newly earmarked bloc in the first phase.
Different member countries have varying agreements with similar countries and there is urgent need for harmonization if the 26 countries with a combined gross domestic product of USD 860 were to trade freely amongst themselves.
The East African Community, however, is reported to have agreed that as much as the greater bloc offered a larger market for its goods, it was ahead for its members to belong to more than one bloc and need to agree to the terms of the two blocs for the achievement of the final bloc.
The Kenyan Permanent Secretary to the East African Community David Nalo said during an interview that the most successful of the three blocs might attract more attention leaving the EAC in peril.
“The world market prefers the stronger and bigger bloc with an extended market,” explained the PS.
Nalo, however, added that the blocs would enhance harmonization of tariff among he three member countries. Each of the three blocs has different tariffs therefore its member countries making hard for fast growing extra trade compare with other blocs.”We do more business with outsiders and we are a core market to many of them.”
Ends