Eritrea has negotiated several international trade accords since gaining freedom in 1993. Eritrea has also joined the COMESA, IGAD, and CEN-SAD Regional Economic Unions in Africa. On imports coming from COMESA Participating Countries, Eritrea decreased its MFN taxes by 80%, and it now only levies 20% of the MFN tariff. It’s worth noting that adhering to the full FTA requires 100 percent tariff liberalization and the removal of non-tariff and other complex trade obstacles.
Common Market for eastern and southern Africa
With 19 participating countries and almost 390 million people, the Common Market for Eastern and Southern Africa (COMESA) is Africa’s largest local trade organization. With 19 participating nations, COMESA established a trading bloc and a currency union in 2009. Eritrea signed COMESA in 1994 and has since reaped the perks of all of the treaty’s trade agreements.
As a COMESA member, Eritrea has agreed to the construction and management of a comprehensive trade bloc that ensures open borders for COMESA-produced goods and services, as well as the elimination of all taxes and non-tariff barriers.
The agreement also calls for the gradual reduction and eventual elimination of visa rules, allowing for the free movement of people, services, businesses, and citizens.
In addition, the agreement provided for the gradual establishment of a finance system centered on the COMESA Clearing Corporation, as well as the eventual establishment of a shared financial union with a common currency.
COMESA-US Free Trade Agreement
The US and COMESA negotiated a Trade and Investment Framework Agreement (TIFA) in 2001. The major goal of this trade treaty was to improve economic friendliness and cooperation between countries. It focuses on the difficulties surrounding investment and commerce, as well as possible solutions.
Intergovernmental Authority on Development (IGAD)
Eritrea first joined the organization in 1993, then left in 2007; however, the country rejoined in 2011 and has remained a member.
According to the accord, the agency will be entitled to negotiate for, acquire, and dispose of permanent and mobile property, as well as initiate legal processes.
The agreement’s goals and aims are as follows:
- Develop any further activities that the Member States deem necessary to achieve the Agreement’s goals.
- Facilitate, encourage, and reinforce collaboration in innovation and engineering study, innovation, and implementation.
- Establish and implement the goals of the African Economic Community (AEC) and the Common Market for Eastern and Southern Africa (COMESA);
- Within the scope of sub-regional coordination, mobilize funds for the execution of urgent, short-term, medium-term, and long-term projects;
- Promote sub-regional security and harmony, as well as measures for the avoidance, administration, and settlement of inter-and intra-State disputes through discussion.
- Maintain and enhance a unified and integrated network, especially in the transportation and energy sectors;
- Establish and encourage policies and projects that support sustainable natural resource development and environmental conservation;
- Ensure local food safety and support Member States’ actions to fight water crisis and other environmental crises, as well as their repercussions;
- Create an atmosphere that encourages international, cross-border, and local trade and investment;
- Harmonize commerce, customs, transportation, telecommunications, agricultural, and natural resource policy, and encourage free movement of commodities, services, and workers, as well as the creation of residence.
CEN SAD
CEN-SAD was designated as a Regional Economic Community. Many local and global organizations have signed strategic partnerships with the Municipality in order to promote common and shared activity in the governmental, cultural, economic, and social fields.
The primary goal of this society is to construct a worldwide economic unification centered around the execution of a community growth program that supports member states’ local growth plans and encompasses all aspects of long-term economic growth.
It also intends to eliminate all barriers to member-country integration by implementing essential measures.
