Title: the tripartite FTA opportunity for agricultural trade

Taku Fundira

African Agriculture Overview

Agricultures economic contribution: an engine for growth in AfricaA growing awareness to overhaul the agricultural sector in response to changes in the global environment;Common African Agricultural Development Programme (CAADP) managed by the NEPAD Planning & Coordinating Agency (NPCA) in terms of which, member states commit to increasing contributions to agricultural development initiatives.African countries have thus an opportunity to work as a collective and attain the target levels for economic growth and be able to meet the MDGs

Trade at a glance

The underlying factor is that higher economic growths in Africa cannot be realised without significant increases in agricultural productive capacity across the value chain.

Agribusiness development: Issues and Challenges

Agribusiness: - the collective business activities that are performed from farm to fork...According to FAO.... Agribusiness is characterized by raw materials that are mostly perishable, variable in quality and not regularly available.A common characteristic in developing regions is the transition to market driven systems associated with greater reliance on input markets and growth of post-production enterprises.Over the next 2 decades, for job creation and income generation to materialise, there is need for agribusiness in Africa to undergo significant structural transformation and technological upgrading.

Current developments: The COMESA-EAC-SADC Tripartite FTA

Agricultural Policies in the tripartite configuration

COMESA: guided by the COMESA Agricultural policy EAC: guided by the EAC Agriculture and Rural Development Policy (EAC-ARDP)

SADC: guided by the Dar-es-Salam Declaration on Declaration on Agriculture and Food Security.- The SADC is currently drafting a Regional Agricultural Policy (RAP) which defines common agreed objectives to guide, promote and support actions at regional and national levels in the agricultural sector.

Current developments: The COMESA-EAC-SADC Tripartite FTAMarket Access of agricultural products in the tripartite configuration

Elimination of tariff and non tariff barriers to trade;

Issue of sensitive products: how is this a limiting factor to enhancing market access?

tralac currently looking at the issue of sensitive products and how this affects agricultural trade liberalisation.

Current developments: The COMESA-EAC-SADC Tripartite FTAPreliminary analysis: South African exports to the tripartite countriesWith the exception of SACU members and Libya, tariffs still in place;Mauritius (95%); Seychelles (85%); Zambia (83%) and Mozambique (81%) relatively open. The rest still maintain protection in over 60% of the product lines, with Burundi (100%); Rwanda (96%); Zimbabwe (95%) and Sudan (88%). Food, Beverages and Tobacco and Vegetable products still face the highest level of protection, while Chemical products and Raw Hides face the least level of protection.