How to boost trade in the COMESA region

Despite the preferences offered under the free trade area, intra-Comesa trade remains at a meager 8 per cent of total trade. The Covid-19 pandemic has exacerbated the situation, leading to border closures and disruptions in regional supply chains. In a recent interview with CNBC Africa, Chris Onyango, Director of Trade and Customs at COMESA, shed light on the impact of the pandemic on intra-Comesa trade and the measures put in place to address the challenges. The key theme of the discussion was how to improve intra-Comesa trade and attract more investments into the region. Here are the key points discussed in the interview: Impacts of Covid-19 on Intra-Comesa Trade: Onyango highlighted the significant impacts of Covid-19 on intra-Comesa trade, citing measures taken by member states to contain the spread of the virus. Lockdowns, restrictions on movement, and disruptions in supply chains have all contributed to a slowdown in trade within the region. Measures to Address Challenges: To mitigate the disruptions caused by the pandemic, COMESA implemented guidelines for member states to coordinate and harmonize their responses. An online platform was also developed to share information on the availability of essential goods in the region. Additionally, investments in IT infrastructure and the development of digital trade instruments, such as electronic certificates of origin, were key measures to address non-tariff barriers. Challenges Hindering Intra-Comesa Trade: Onyango acknowledged the prevalence of entities hindering intra-Comesa trade, including operational issues at border points and behind-the-border measures like restrictive domestic legislations and infrastructure deficits. He emphasized the importance of monitoring and resolving these entities to facilitate trade. Potential for Intra-Comesa Trade: Despite the challenges, trade between the 21 COMESA states reached eight billion US dollars in 2020. However, Onyango highlighted the untapped potential for intra-Comesa trade, which could reach 25-30% of total trade with the right investments and infrastructure improvements. Moving Forward: Onyango emphasized the need for member states to invest in IT solutions to support cross-border trade and address infrastructure challenges. He also called for the liberalization of restrictive regulations in the services sector to unlock the full potential of intra-Comesa trade post-Covid-19. The interview concluded with a discussion on the impact of free trade agreements, such as the US-Kenya FTA, on intra-Comesa trade. While the full implications are yet to be seen, Onyango highlighted the importance of negotiating flexible rules of origin to support regional value chains. Overall, enhancing intra-Comesa trade will require a concerted effort from member states to invest in IT, address regulatory barriers, and promote regional economic integration.