COMESA'S STR

UNDERSTANDING COMESA'S SIMPLIFIED TRADE REGIME

Common Market for Eastern and Southern Africa (COMESA) is a regional economic community of 21 Eastern and Southern African countries, established in 1981 as a Preferential Trade Area for Eastern and Southern Africa. It aims to promote regional integration through trade and resource development. Scholars argue that the change from PTA to Comesa aims for greater economic growth, development, and regional integration in the 21st century (Gondwe).

Simplified Trading Regime (STR) in COMESA: A Trade Facilitation Initiative

? The STR formalizes informal cross-border trade and addresses challenges faced by cross-border traders.

? It streamlines customs procedures, harmonizes trade documentation, and facilitates smoother trade flows.

? As of August 2023, only 12 COMESA member states have implemented the STR.

? The STR aims to simplify trade processes, reduce bureaucratic barriers, and enhance regional integration (Wang and Gupta, 2021).

? It targets small-scale traders who face significant challenges in cross-border trade, providing easier access to trade procedures and reduced compliance costs.

? The STR applies to goods importing or exporting goods worth US$2000 or less for business or reselling from one COMESA member state to another.

? The goods must meet sanitary and phytosanitary measures, including food safety, plant and animal health regulations, to ensure food safety and reduce disease spread.

Strengths of the Simplified Trading Regime (STR) in COMESA

Streamlined Customs Procedures

? STR streamlines customs procedures to reduce time and administrative burden for cross-border traders.

? Pre-arrival processing mechanisms allow traders to submit customs declarations and documentation in advance, reducing border delays and enhancing trade efficiency.

Harmonized Documentation

? STR promotes harmonization of trade documentation across COMESA member states, simplifying paperwork for cross-border traders.

? Electronic trade documents and platforms, such as electronic certificates of origin and digital trade platforms, facilitate easier and more efficient exchange of trade-related information.

Facilitated Cross-Border Movement

? STR aims to facilitate the movement of goods across borders by addressing non-tariff barriers.

? One-Stop Border Posts (OSBPs) under the STR bring together officials from both bordering countries to conduct joint inspections and streamline processes.

Trade Facilitation Measures

? STR incorporates various trade facilitation measures to simplify cross-border trade processes.

? Single windows and risk management systems are implemented to reduce trade costs and time spent on administrative procedures.

Capacity Building and Training Programs

? STR emphasises capacity-building and training programs for cross-border traders, equipping them with the necessary knowledge and skills to navigate trade procedures effectively.

Public-Private Sector Cooperation in the Simplified Trading Regime (STR)

? The STR promotes public-private sector cooperation to address trade challenges and improve trade facilitation.

? Public-private sector cooperation is a strength of the regime, fostering collaboration between government agencies and private sector stakeholders.

? Trade facilitation committees or task forces are examples of public-private sector cooperation.

Weaknesses of the Simplified Trading Regime (STR) in COMESA

? Limited focus on infrastructure development to support cross-border trade.

? Inconsistent implementation and enforcement of the STR's provisions across COMESA member states.

? Insufficient information and awareness campaigns targeting cross-border traders.

? Limited engagement and involvement of relevant stakeholders, such as traders' associations and civil society organizations, in the design and implementation of the STR.

? The exclusion of these stakeholders from the decision-making process limits their contribution to the design and implementation of the STR.