Pressure piles on Ethiopia to lift trade barriers

By ALLAN ODHIAMBO

Comesa states have stepped up pressure on Ethiopia to lift administrative barriers that stifle trade within the bloc.

In a move insiders said symbolised growing frustration over Ethiopia’s restrictive trade practices, a ministerial delegation from partner states of the Common Market for Eastern and Southern Africa (Comesa) last week paid a visit to Addis Ababa for talks with their trade and finance counterparts.

sorghum-comesa
Comesa countries have agreed on a list of products to be covered under the STR programme. including agricultural products such as sorghum. Photo/LEONARD MAGOMBA

“The purpose of the visit was to follow up with Ethiopia on the implementation of Comesa programmes and consult on different policy decisions regarding Comesa integration,” the secretariat said in a statement confirming the trip to Ethiopia.

Though a member of Comesa, Ethiopia has lately found itself at loggerheads with other partner countries over restrictions to its markets.

In the latest incident, Ethiopia has introduced price curbs to tame run away inflation, triggering protest among Comesa partners such as Kenya who vouch for a free market policy.

Ethiopia imposed price controls on about 20 essential commodities, pushing costs of goods down five to 45 per cent and those who violate the rules are liable for up to 15 years imprisonment.

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Late last year, Kenya raised the red flag over Ethiopia’s restrictive trade practices and urged the Comesa secretariat to arbitrate in a dispute over a list of products legible under a special cross-border trading scheme.

Trade permanent secretary Abdulrazaq Ali claimed Ethiopia had failed to honour its pledge to reach a deal with Kenya on a list that would be covered under the Comesa Simplified Trade Regime (STR).

“We therefore wish to appeal to the Comesa secretariat to look into the matter with a view of convening a bilateral meeting to discuss and agree on the list of traded products to be covered,” he said in November.

In the new Comesa STR, traders would be granted simplified certificates of origin to enable them enjoy duty and quota free access as long as their goods appear on a list of agreed products.

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The certificates would be filled in by traders at designated border posts and stamped by customs officials upon verification.

For purposes of health and safety, those carrying chemicals, agricultural foods, plant and animal products would, however, have to report to offices of the ministries of Health, Environment and Agriculture for clearance.

“This is important to guard against the spread of pest and diseases and to protect human lives as well as the environment,” a manual on the STR reads in part.

But only small-scale border traders with consignments valued at $500 or less will be eligible to use these simplified certificates of origin.

Traders handling larger consignments who wish to benefit from duty-free access will be required to use the normal Comesa certificate of origin.

Except for Ethiopia, all countries neighboring Kenya have agreed on a list of products to be covered under the Comesa STR programme.

Read More on : Business Daily

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