COMESA

Agricultural Trade in the COMESA Region

Mark Pearsonmpearson@comesa.int COMESA Secretariat

Lusaka - Zambia

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

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.

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.

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.

Agricultural Trade -Reason for OptimismDespite all this reason for optimism:

- Realisation 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.