Bridges Weekly Trade News Digest • Volume 6 • Number 1 • 16th January 2002
News From The Regions: Africa
US preferential tariffs renewed
In light of "continued progress towards a market-based economy in the region," the US on 31 December announced a 12-month continuation of preferential tariff rates for goods from 35 countries in sub-Saharan Africa. The status was granted under the African Growth and Opportunity Act, which the White House said offers important opportunities in fighting poverty and fostering development. As required by the legislation, this annual determination signifies which countries are making continued progress toward a market-based economy, the rule of law, free trade, economic policies that will reduce poverty, and protection of workers’ rights. Among those countries included are: Cameroon, Chad, Eritrea, Ethiopia, Gabon, Ghana, Kenya, Mali, Namibia, Rwanda and Sierra Leone.
COMESA makes trade advances
On 4 January, the Common Market for Eastern and Southern Africa (COMESA) issued a report saying its Free Trade Area (FTA) set up in 2000 has achieved some success, with preliminary trade figures for the first six months of 2001 and the last four months of 2000 indicating that trade has grown by more than 20 percent in the region. The Lusaka- based regional trade grouping said in a press release that if this trend was maintained and sustained, 2002 is likely to see a significant increase in volume of trade among FTA countries and between FTA countries and the rest of the member states that are preparing to join the FTA in 2002. Only nine of the 21 member states of COMESA are currently part of the FTA and several members have, however, pledged to join the FTA in 2002.
COMESA public relations officer Mweusi Karake said one significant element is that none of the original nine members has reported significant negative impacts on their economies as a result of the FTA. The current members of COMESA are: Angola, Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe.
Egypt & India discuss future trade agreement
On 12 January, Egyptian Foreign Trade Minister Youssef Boutros Ghali began talks with Indian officials on a preferential trade agreement between the two countries, including means to free up investment in the software sector. Ghali said the agreement aims at expanding bilateral trade, particularly in commodities that do not compete locally in both countries.
"President Approves Tariff Preferences," USTR, 2 January 2002; "Regional FTA achieves some success: COMESA," XINHUA, 4 January 2002; "Egypt, India start talks on preferential trade agreement," ARABIC NEWS.COM, 12 January 2002.