COMESA EAC SADC Tripartite Trade Area to come into force 25th July, 2024

COMESA-EAC-SADC Tripartite Trade Area to come into force 25th July, 2024

Written on 23 July 2024. Posted in Trade

East African Community Headquarters, Arusha, Tanzania, 23^rd July, 2024: The COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) Agreement, will come into force on 25^th July, 2024 following the attainment of the required threshold. For the Agreement to take effect, at least 14 out of the 29 Member/Partner States needed to deposit their Instruments of Ratification.

The entry into force of the Agreement follows the depositing of Instrument of Ratification by the Republic of Angola on 25^th June, 2024, bringing the total number of the Instruments of Ratification deposited to 14, the number required for the Agreement to enter into force.

This update was announced during the 37th Tripartite Task Force Meeting, which took place on 20^th July, 2024 on the sidelines of the 6^th African Union Mid-Year Coordination Meeting in Accra, Ghana.

The meeting was attended by the Chief Executive Officers (CEOs) of the three Regional Economic Communities (RECs); H.E. Elias Mpedi Magosi, Executive Secretary of the Southern African Development Community (SADC) and Chairperson of the Tripartite Task Force; H.E. Veronica Nduva, Secretary General of the East African Community (EAC) and H.E. Chileshe Mpundu Kapwepwe, Secretary General of the Common Market for Eastern and Southern Africa (COMESA).

During the meeting, H.E. Magosi, the Executive Secretary of SADC and current Chairman of the Tripartite Task Force, said that the Member/Partner States that have deposited their Instruments of Ratification include Angola, Botswana, Burundi, Egypt, Eswatini, Kenya, Lesotho, Malawi, Namibia, Rwanda, South Africa, Uganda, Zambia and Zimbabwe. These countries together accounted for 75% of the Tripartite GDP in 2022.

H.E. Magosi also informed the meeting that on 20^th June, 2024, the Republic of Djibouti notified the COMESA Secretariat that it had ratified the Agreement.

The SADC Executive Secretary recalled that the Tripartite Summit of Heads of State and Government decided on 22^nd October, 2008 to establish a Tripartite Free Trade Area (TFTA) among the COMESA, EAC and SADC blocs.

"The objective of establishing the COMESA-EAC-SADC FTA was to enhance market access, address the issue of multiple memberships and further the objectives of cooperation, harmonisation, and coordination of policies among the three Regional Economic Communities (RECs)," he said.

The 29 Tripartite Member/Partner States represent 53% of the African Union's membership, more than 60% of continental GDP ($1.88 trillion), and a combined population of 800 million.

The Executive Secretary of SADC also committed to continuing engagement with the Tripartite Member/Partner States that have yet to ratify the Agreement.

"We urge the Member/Partner States to mobilize resources and support the implementation interventions, including setting up the necessary implementation structures," he said.

The Tripartite framework is based on three pillars: Market Integration, which involves trade liberalisation through the creation of a Free Trade Area and arrangements for the movement of business persons; Infrastructure Development, which focuses on enhancing connectivity and reducing business costs; and Industrial Development, which aims to create a supportive environment by improving regulatory and legal frameworks, adding value, diversifying industries, increasing productivity and competitiveness, and implementing programmes for structural change.

On her part, the EAC Secretary General, H.E. Veronica Nduva, highlighted the need to consolidate the Tripartite FTA through the Agreement's implementation, to harness potential benefits, preserve gains and strengthen the participation of Member/Partner States in the AfCFTA.

"The fact that we have reached the required ratification threshold of 14 ratifications, developed modalities for implementing the Tripartite Agreement, finalised most aspects of the Rules of Origin, continued with engagements on tariff offers and developed the Tripartite Protocol on Competition Policy demonstrates that the Member/Partner States are committed to the process," she said.

H.E. Nduva reaffirmed the EAC's commitment to continue playing its part towards operationalising the Tripartite Agreement and maximising the opportunities it offers.

H.E. Nduva further informed the meeting that the EAC was continuously engaging EAC Partner States that are yet to ratify the TFTA Agreement.

"The United Republic of Tanzania reported that it was in the process of ratifying the Agreement, while the Republic of South Sudan reported that it had begun the process of signing and ratifying the Agreement," she added.

H.E. Chileshe Kapwepwe, the Secretary-General of COMESA, expressed appreciation for the efforts that have achieved the required number of ratifications for the Tripartite FTA.

"To support the AfCFTA, we must ensure the Tripartite works effectively. I urge the Tripartite RECs to lead the work under their respective pillars to avoid duplication of efforts," said H.E Kapwepwe.

H.E Kapwepwe added that the COMESA Secretariat is leading the Market Integration Pillar, SADC Secretariat is leading the Industrialisation Pillar while the EAC Secretariat is leading the Infrastructure Pillar.

H.E. Kapwepwe also called for a careful examination of progress and strategising to upscale implementation levels, ensuring that benefits are realised by stakeholders in the Tripartite Member/Partner States.

Progress has been made with the online Non-Tariff Barrier (NTBs) reporting and elimination mechanism being under implementation by 25 Tripartite Member/Partner States.

The meeting concluded with an agreement on a roadmap for launching the TFTA's entry into force at the 4^th Tripartite Summit of Heads of State and Government, planned for later towards the end of the year.

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