Africa's biggest trade bloc to launch customs unionAfrica's main trading bloc opens a summit to launch a customs union customs union Trade agreement by which a group of countries charges a common set of tariffs to the rest of the world while allowing free trade among themselves. It is a partial form of economic integration, intermediate between free-trade zones, which allow mutual free trade that will stretch across the continent in a bid to boost regional trade. Under the deal, the 19 countries in the Common Market for Eastern and Southern Africa The Common Market for Eastern and Southern Africa, is a preferential trading area with twenty member states stretching from Libya to Zimbabwe. COMESA formed in December 1994, replacing a Preferential Trade Area which had existed since 1981. (COMESA COMESA Common Market for Eastern & Southern Africa ) will impose the same tariffs on goods from outside the region. Raw materials and capital goods Capital Goods Any goods used by an organization to produce other goods. Notes: Examples of capital goods include office buildings, equipment, and machinery. See also: Capital Expenditure, Disinvestment Capital goods will travel across borders without tariffs, while intermediate products will be taxed at 10 percent and finished goods at 25 percent. Most countries have also lifted visa restrictions on travel within the bloc, with members ranging from tourist hotspot Egypt to some of the world's poorest and most conflict-torn nations, like the Democratic Republic of Congo. The COMESA region is home to 400 million people, with a combined gross domestic product of 360 billion dollars. Leaders hope the union will simplify trade across the region and provide the basis for strengthening integration in the future, eventually leading to a single currency. "The customs union will therefore enable us to grow beyond the free movement of goods and establish the foundations of a single market," Zimbabwe's Prime Minister Morgan Tsvangirai Morgan Tsvangirai (IPA: /ˈmɔ(r)gən ˌtsvaŋgiˈra.i/) (the 's' and the 'v' are coärticulated) born March 10, 1952) is a Trade unionist,Human rights activist, Democrat and President of the mainstream told business leaders ahead of the summit in the resort town of Victoria Falls. "It will offer a more predictable economic environment for both investors and traders across the COMESA region," he said. The launch of the union had been set for May last year, but was twice delayed because of Zimbabwe's political turmoil and to allow more time for the 19 member countries to negotiate the harmonisation of tariffs. Officials say COMESA has already succeeded in increasing trade within Africa, which historically has exported most of its raw materials to rich countries with little commerce within the continent. Kenyan Trade Minister Amos Kimunya said trade within the bloc had increased fivefold fivefold Adjective 1. having five times as many or as much 2. composed of five parts Adverb by five times as many or as much Adj. 1. over the past decade, from three billion to 15 billion dollars. "The COMESA market is now the number one export market for several members states, ahead of traditional export markets such as the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community ," Kimunya said. But some economists doubt that the customs will change Africa's traditional trade patterns. "African states don't trade among themselves," said Bongani Motsa, an economist at the Pan African Advisory Service financial consultancy. "If you look at the trading account Trading Account 1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer. 2. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a , African states trade in primary products which they mostly export to the European Union, and then they import high value products from other international countries." The region will also have to overcome a series of conflicts and internal tensions. Just 10 years ago, nearly half of COMESA members were embroiled em·broil tr.v. em·broiled, em·broil·ing, em·broils 1. To involve in argument, contention, or hostile actions: "Avoid . . . in Congo's conflict. Sudan remains at civil war, while Madagascar saw its elected leader toppled after street protests in March. COMESA comprises Burundi, Comoros, Djibouti, the Democratic Republic of Congo, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe. 
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