Africa moves one more step toward an EU-like economic union
Leaders of Africa's largest trade bloc were to discuss a timetable for creating a 20-nation customs union, aiming to make doing business in Africa easier and cheaper.


Tuesday's summit capped a 12-day meeting of the Common Market for Eastern and Southern Africa, known as COMESA, which has been negotiating a customs union since 2005, when leaders set December 2008 as the deadline.
The union would charge a set amount for importing goods into member countries -- proposals include 10 percent on semi-processed products and 25 percent on finished goods. But some countries have expressed fear their economies could be hurt if they implement what would be lower tariffs. Customs revenues are a vital source of income and drops can lead to major budget deficits. COMESA's departing chairman, President Ismael Omar Guelleh of Djibouti, said member states won't have to make costly adjustments because their tariff structures are already similar. He also said the union would lead to more foreign investment and "deeper integration into the world economy." Kenyan President Mwai Kibaki takes over as chairman Tuesday.

COMESA, which was established 12 years ago, represents about 390 million people and has an estimated gross domestic product of $200 billion. The value of trade within COMESA countries rose to $6.3 billion in 2005, from $4.5 billion in 2004, according to the Kenyan Trade and Industry Ministry. COMESA has been a free trade area since October 2000 but to date only 13 of its 20 members have signed on to the free trade area agreement, a signal that implementing a customs union could be a challenge. Other trade blocs, such as the five-nation East African Community, have had to negotiate exemptions to their customs unions to avoid hurting individual nations.

COMESA Secretary General Erastus Mwencha said the bloc also will discuss their talks with the European Union about an existing trade deal that allows 79 African, Caribbean and Pacific nations to export goods to Europe duty-free.

Europeans "must open their markets. For us, we will not open ours for a long time," because COMESA economies are weak compared to the European ones, Mwencha told The Associated Press. COMESA's member countries are Angola, Burundi, Comoros, Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe.


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