An Overview of the elimination of Non Tariff Barriers (EAC,COMESA,SADC) By

1. An Overview of the elimination of Non Tariff Barriers (EAC,COMESA,SADC) By Geoffrey Osoro-Senior Trade Policy Expert COMESA NTBS Training Workshop Port Louis, Mauritius-23rd April, 2009.

2. Introduction The three regional organizations (EAC,COMESA,SADC) have agreed to integrate their economies and two areas where such integration has advanced is • Trade Liberalization • Investment Promotion

3. Introduction Main objective of the trade liberalisation programme is to create a single economic space in which there is free movement of goods, services, capital & labour. Instruments used include: • Tariff Reduction/Elimination • Removal of Non-Tariff Barriers to Trade

4. Introduction Regional experience is suggestive of the fact that as tariffs have been lowered over time, demands for protectionism have emerged in the form of Non Tariff Barriers. Definition Non Tariff Barriers refer to the wide range of policy interventions other than Customs Duties (border tariffs) that affect and distort trade in goods, services and factors of production.

5. Introduction Non Tariff Barriers have therefore become an important trade policy issue today because; • They are capable of restricting trade, • They are unpredictable and persistent • They influence trade patterns and the free movement of goods and services within and across countries and regions. • Add to the cost of the goods traded

6. The argument for -NTBs Non-tariff barriers that restrain trade are typically justified on four Main grounds, namely: • To safeguard health, safety, and security of human beings, animals and plants, and against environmental pollution, generally classified under sanitary and Phyto sanitary (SPS) measures. • To protect home industries and consumers • To safeguard national security • To safeguard against revenue loss. However, such measures when legitimately applied through Notification comprise Non Tariff measures. It is only when applied as protectionist barriers to trade, when such measures become NTBs.

7. Prevalent NTBs The most common sources of regional NTBs are: • Customs Clearance Procedures (Administrative) • Non Tariff fees/Transit fees (Administrative) • Sanitary and Phyto-sanitary Measures (SPS)/Standards (Health safety and environment) • Technical Regulations (Health safety and environment) • Import Regulations -licensing/quotas (Trade Policy) The NTB situation is characterised by great diversity in terms of the specific measures involved, the countries (and borders) where they are applied and the individual commodities affected, amongst other factors.

8. Prevalent NTBS-COMESA

12. Efforts for elimination of NTBs Efforts for the elimination of NTBs can be categorized into four main thematic areas; • Policy • Institutional arrangements / Mechanisms • Modalities • Monitoring and evaluation

13. Policy Issues Treaty provisions. • EAC-Article 75 • COMESA-Article 49 • SADC Article 6 Protocols Council decisions.

14. Institutional arrangements • NTBs Enquiry Points • National Monitoring Committees. • Regional level • Bilateral initiatives

15. Responsibilities-NEPS/NFPS • Informing Secretariat of reported NTBS through application of a common form to be used by importers and exporters • Sensitization of stakeholders on the monitoring and evaluation mechanism and reporting tool including the online system • Implementation of Treaty Articles relating to non introduction of new NTBS. • Facilitating the immediate removal of NTBS by the imposing Countries and submission of the reports on their elimination based on the technical opinion submitted by the COMESA Secretariat. • Facilitating Country missions by the Secretariat to resolve outstanding NTBs in a timely manner

16. Responsibilities-NEPS/NFPS • Providing the Secretariat with trade regulatory requirements for all traded products for dissemination to the business community to assist in identifying NTBs in the course of trading; • Facilitating access to information, including the electronic transmission of information to the business community; • Tracking and monitoring NTBs affecting intra-COMESA trade; • Providing clear guidelines to the business community on the areas identified as NTBs;

17. Responsibilities-NMCS The National Monitoring Committees (NMCS) will be the national institutional structure aimed at facilitating NTB reporting, elimination/reduction, monitoring and feedback to business community. In summary, the NMCs will be responsible for: • Defining the process of elimination • Defining mandate and responsibilities • Confirming deadlines for action • Agreeing on recourse to non-action The National Enquiry Points will be restructured into National Monitoring Committees (NMCs), The NEPs will serve as the secretariat for the NMCs, under which technical assistance will also be factored in.

18. Modalities Provision of technical regulations, standards, SPS and other procedures in addition to clear guidelines to the business community on the areas identified as NTBs. Use of a common form by importers and exporters for reporting NTBs encountered to the Enquiry Points. Its features include; • Company details and Product name (also signifying sector) • Description of the Non Tariff Barrier or other Barriers to Trade encountered when trading in COMESA • Station of occurrence • Date of occurrence Implementation of Road Map (Schedule/matrix) for the elimination of NonTariff Barriers

19. Modalities • Online reporting system others • Analyzing all NTBs reported to the Secretariats and conveying technical opinion on them to the imposing country with recommendation for immediate removal of such NTBs • Undertaking country missions to resolve outstanding NTBs in a timely manner

20. Monitoring and Evaluation • The Trade and Customs Committees/ Trade Negotiating Forum and Council of Ministers meetings/Trade Industry and Invenstment Committee. • National Enquiry Points (NEPS) • The National Monitoring Committees.

21. Common Strategy for NTBs elimination. NTBs have a negative impact on trade expansion efforts of the three regional groupings (SADC, EAC and COMESA), Modalities for a common and holistic approach has been endorsed through the tripartite arrangements involving EAC, COMESA and SADC. Ongoing efforts are directed towards a common reporting format and an online reporting system. .

22. Challenges • Timely response to NTB complaints from member states (Administrative lags) • Imposition of new trade requirements outside the treaty and relevant protocols • Delayed establishment of NEPs and or NMCs • Elaborate dispute resolution mechanism • Implementation of the Road Map for the elimination and relaxation of NTBs. • Utilisation of reporting tool for NTBs • Insufficient budgetary allocation for trade coordination units at country level. • Disharmonised inter-regional co-operation on NTB elimination

23. Challenges • Delayed submission and circulation of notification of resolved NTBS by member states.

24. Recommendations • Compliance with treaty provisions and Implementation of Council decisions (commitment and goodwill from member states). • Re defined roles of Governments in participation in trade. • Establishment and operationalization of National Enquiry Points/NMCs. • Allocation of sufficient budgetary resources for the operations of NEPs/NMCs • Implementation of operational modalities Regional and national action plans (matrices) for the elimination of NTBs of the NTBs Enquiry Points (Consider implementation along the trading corridors). • Establishment of a sustainable inter-regional structure for effective co-operation and harmonization of efforts for addressing NTBs

25. Recommendations Contd.. 5) Establishment of permanent mechanism for expeditious resolution of issues arising from NTBs • Utilisation of the online reporting system 7)collaboration on information exchange among the three RECS • Introduction of an NTBs penalty system 9) Timely submission notification and circulation of resolved NTBS

26. THE END THANK YOU