429 The persistence of some Non-Tariff Barriers (NBTs) and other discretionary policies that are, in general, a hindrance to intra-regional trade within the COMESA Region is another challenge that Ethiopia should address. Technical Barriers to Trade (TBTs), which include stringent requirements for packaging, marking, and labelling that create unnecessary barriers to intra-regional trade, should also be addressed. Box 6: The Potential Benefits of the COMESA Free Trade Area Ethiopia is a founding member of the Common Market for Eastern and Southern Africa (COMESA). COMESA is a preferential trading area (PTA) with 20 member states stretching from Libya to Zimbabwe. COMESA was formed in December 1994, replacing a Preferential Trade Area in existence since 1981. Nine of the twenty member states formed a free trade area (FTA) in 2000, with Rwanda and Burundi joining the FTA in 2004, and Comoros and Libya in 2006. COMESA is one of the pillars of the African Economic Community. A free trade area is defined as a grouping of countries which agree that goods produced in these countries can be traded without payment of customs duties or charges. Descriptions of goods eligible for duty treatment are agreed in a set of Rules of Origin. The countries also agree to eliminate all Nontariff Barriers (NTBs) to trade among them. 430 The CRM also noted that Ethiopia has signed 14 Bilateral Trade Agreements (BTA) with both developed and developing countries. Six of these agreements are with African countries, namely, Kenya, Algeria, The Sudan, Libya, Nigeria, and Equatorial Guinea. At the time of writing this report, negotiations on BTA with South Africa and Israel were underway. Commendably, bilateral treaties with the Sudan and Djibouti have resulted in a 0% tariff charge applied to goods originating in the two countries. This is a crucial step towards encouraging trade but it is important that any contradictions arising from these bilateral agreements are addressed. 431 At the regional level, Ethiopia is a founding member of the Sana’a Forum, together with the Republic of the Sudan and Yemen. The Transitional Government of Somalia has also acceded to the Sana’a Forum. According to information availed to the CRM, the Sana’a Forum was established to promote economic integration and peace and stability in the region. 432 The Mission also learnt that Ethiopia is negotiating signing the Economic Partnership Agreements (EPAs) with the European Union under ESA. COMESA has cautioned member states on the EPAs. Major international and African organisations have also sounded caution on the development impact of the EPAs (Box 7). - 173 -