By Chancy Namadzunda, AfricaNews reporter in Lilongwe, Malawi

Kingdom of Swaziland King Swati II handed over the Common Market for Eastern and Southern Africa (COMESA) chairmanship to Malawi President Professor Bingu wa Mutharika amid vast challenges the body is facing to transform itself into a more vibrant single market.

King Swati II, in his final address as chair cited the global financial challenges which have affected many countries as the main contributor to never ending economic problems within the COMESA community.

“The sad part is that the impact of the crisis has affected our social programs geared towards meeting the Millennium Development Goals (MDG),” he said.
With a wide membership of 19 African countries, the trade bloc has a combined population of 425 million people with an average Gross Domestic Product (GDP) of $450 billion.

He called upon member states to unite and shape their positions and find a lasting solution their problems.

THE TRIPARTITE FREE TRADE AREA

King Swati II said following the launch of the tripartite free trade area, investors are strategically locating in COMESA countries in order to take advantage of the forthcoming market.

The COMESA-EAC-SADC countries already have a combined GDP of about $859 billion and a population of over 581 million people. The existing regional FTAs have already assisted exponential trade growth in the region.

The 2009-2010 period saw a 24 percent growth in intra-regional trade. The Tripartite FTA will provide a seamless economic space of this magnitude, which should support higher volumes of trade and investment, and assist the achievement of important social economic development objectives in the region, especially wealth creation for all the people, and peace.

The Tripartite FTA will assist the 27 countries to more closely integrate in promoting a coherent policy space and in coordinating better the trade regulatory framework.

“As a tripartite, we have a strong voice in the international community and we are in a better position to address the challenges facing our region,” said King Swati II.

To spur growth, president Mutarika said COMESA's current strategy is economic prosperity through regional integration.

With its 19 member states, a population of over 389 million and annual import bill of around US$32 billion with an export bill of US$82 billion, COMESA forms a major market place for both internal and external trading. Its area is impressive on the map of the African Continent covering a geographical area of 12 Million (sq km).

The Malawi leader also called upon the regional block to establish a robust regional science and technology park which will be a centre of excellence for the region.

“We need to enhance our quest for food security such as the Comprehensive Africa Agricultural Development Programme (CAADP) and those being implemented by our own specialized agency, such as the alliance for Commodity Trade in Eastern and Southern Africa (ACTESA).

“To complement this, entire member states need to join the tripartite free trade area to strengthen and make it more effective which in turn will propel the region to become more productive and competitive,” said Mutharika

Among other benefits, Preferential Trade Area with lower tariffs applied to intra-regional trade originating in member countries than to extra-regional trade. A Free Trade Area in which no tariffs are levied on goods from other member States whilst each member State applies its own regime of tariffs to goods imported from outside the region.

COMESA Secretary General Sindiso Ngwenya said the tripartite strategy consists of design and implementation of the FTA that involves the preparation of a draft agreement and the negotiation of the implementation modalities, a regional industrialisation programme which is being developed and the introduction of measures to facilitate movement of business persons across the region among others.

“With a GDP of $1 trillion, intra-tripartite exports increased from $7 billion in 2000 to $27 billion in 2008, imports from $9 billion to $32 billion in the same period and with high investment returns,” he said.

The Tripartite FTA negotiations were launched with signing of the declaration on June 12 2011 with a preparatory period of six months and negotiations to be finalised in 36 months.

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