Working Paper

A quantative assesment of COMESA customs union

Abstract

The member countries of the Common Market for Eastern and Southern Africa
(COMESA) had agreed to launch a customs union by December 2008 under which a
common external tariff (CET) would have been imposed on all goods and services
imported from outside COMESA. Even though the creation of the COMESA customs
union was not achieved, it could have been a decisive step towards bolstering
economic growth and alleviating poverty in the region. Not withstanding the failure to
create a COMESA customs union, the welfare impacts of customs union are
ambiguous. In addition, the welfare impacts of the customs union on the individual
COMESA member countries are not well understood. It is therefore important to
undertake studies that generate information on the welfare impacts of the imposition
of a CET within the COMESA region.