(Photo Courtesy of Ministry of Industry and Foreign Trade )
Madagascar has to discuss ratifying the Sharm El-Sheikh tripartite agreement with the private sector, according to the country’s Minister of Commerce and Consumption Hean Rabesahala.
The minister said there is a long way to go for ratification, and he does not know how long it will take for this to occur. Talks have to take place, first, with the private sector before submitting to the parliament.
Rabesahala added that Madagascar holds annual expos for Egyptian products, with an Egyptian expo set to take place next month Madagascar to sell Egyptian products. Madagascans, as consumers, are interested in Egyptian products especially carpets, dairy products, home supplies and food products.
He said Madagascar will regulate the COMESA summit in October to discuss the bloc’s states issues.
Madagascar is interested in the tripartite agreement, which was signed in Sharm El-Sheikh during the 7-10 June meeting, to move to the global market. Madagascar is a bigger market and consumer, and will take advantage of new products. Consumers will benefit from such a Free Trade Area (FTA), according to the minster.
Rabesahala hopes to have a common trade market, as found in the EU, to have a big market of states, especially as Africa has one of the biggest markets in the world.
“Madagascar is one of the biggest players in the region; however, we work to strengthen our exports to face bigger markets, as our state has been isolated for too long due to its nature as an island,” he added.” We expect to strengthen the trade exchange between Egypt and Madagascar in different products as it may double, especially after activation of the tripartite agreement.”
According to applicability of unifying the rules of origin, Rabesahala said that Madagascar can do it after negotiations with the private sector. He added that Madagascar needs to strengthen its private sector first, as well as increase the state’s local products and exports, to be able to play in the market before ratifying the agreement.
“One of the barriers of trade with other countries is the distance, as the flight from Madagascar to Sharm El-Sheikh took 20 hours. Madagascar had some discussions with the private sector to gain some solutions to these problems. Therefore, the state works on making use of its location as an island to have marine roads through the Nile to Madagascar,” Rabesahala said.
Madagascar is one of Africa’s emerging economies and is a member of COMESA, SADAK, WTO and UNCTAD. Total Egyptian exports to Madagascar amounted to $7.04m, with imports from Madagascar to Egypt amounting to $2.38m. The trade volume between the two countries is valued at $9.43m, in the first quarter (Q1) 2015. The trade balance achieved a surplus of $4.66m after the movement of exports and imports stopped for three years between 2012-2014, according to the Ministry of Industry and Foreign Trade.
