COMESA Agricultural Trade in the COMESA Region Mark Pearson COMESA Secretariat Lusaka - Zambia.

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Presentation transcript:

COMESA Agricultural Trade in the COMESA Region Mark Pearson 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 m GDP- $170b Area- 13m km 2 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 Optimism Despite 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.