“Uganda has not yet joined [Comesa] since we are going through a transition period where issues are being sorted by other sections of government in this case Ministry of Trade,” said Ms. Allen Kagina, the commissioner general of Uganda Revenue Authority (URA) in Kampala.
 
Estimates indicate that exports amongst the 26 Comesa countries increased from US$7 billion in 2000 to US$27 billion in 2008 while imports grew from US$9 billion in 2000 to US$32 billion in 2008.
 
If all countries that signed FTA were implementing it, trade would be growing much faster in the region whose intra-trade volume in 2008 was US$15.2 billion.
 
A free trade agreement is where member countries of a trade bloc mark an area eliminating tariffs, import quotas, and preferences on most (if not all) goods and services traded between them.
 
However, the International Monetary Fund (IMF) says free trade areas are costly as they lead to increased revenue losses by governments.
 
But Malawi Confederation of Chambers of Commerce and Industry (MCCCI) advised authorities in the country to consider making decisions that will give local manufacturers wider market options.
 
MCCCI president Mathews Chikankheni said its members target a larger market and it would be better if government sensitised the industry on new development surrounding free trade areas in the region so that more manufacturers are aware of their export options.
 
Chikankheni said wider markets would be beneficial for local businesses and the economy since many companies are hunting for growth options which have potential to increase Malawi’s exports earnings.
 
Comesa’s main focus after being established in the early 1990’s was to form a large economic and trading unit capable of overcoming some of the barriers faced by individual states so that by the year 2000, all internal trade tariffs and barriers were removed.
 
On the other hand there is a tripartite free trade agreement (FTA) roadmap, instituted in 2008, comprising of EAC, Comesa and the Southern African Development Community (Sadc) whose main benefit is to establish a larger market with a single economic space. 
 
But the Malawi government has been reluctant to adopt the free trade area for fear of losing revenue generating bases.
 
IMF Senior Resident Representative for Uganda Thomas Richardson concurred with this stand saying revenues not collected from free trade area can be used for infrastructure development such as road and rail networks including boosting electricity and water supply entice more investors.
 
The tripartite FTA is intended to cover all 26 countries under Sadc, EAC and Comesa and the trend was ignited by the free trade area initiatives of the three organisations.