The African Continental Free Trade Area Agreement Will Be Good For The Economies Of Member Countries

The SAfCFTA secretariat is responsible for coordinating the implementation of the agreement and is an autonomous body within the AU system. Although it has an independent legal personality, it will work closely with the AU Commission and receive its AU budget. The Council of Ministers responsible for trade will decide on the headquarters, structure, role and responsibilities. [35] The African Union Assembly of Heads of State and Government is the highest decision-making body. It will probably meet during the AU summit. [39] The Council of Trade Ministers provides strategic trade oversight and ensures the effective implementation and implementation of the AfCFTA agreement. [39] Economic Integration Forecast Models Forecasting Models General Balances International Trade Agreements Open Economies Structural Adjustment Barriers to Trade Trade Finance Business Trades Unprotected download. Use Adobe Acrobat Reader for free to see this PDF file, during the last lusnch five operational instruments have been activated, which will govern the AfCFTA: “the rules of origin; The online trading forum Monitoring and removing non-tariff barriers; A digital payment system and the African Trade Observatory. [42] A second challenge is the East African Community. Of the six members, only three have ratified the AfCFTA. Given that the regional bloc of the EAC is a customs union and therefore has a common external customs duty (CET), without further ratification of afCFTA by the other three Member States, the integrity of the CET will be problematic.

In principle, rules of origin may limit this problem, but their liberal application will increase bureaucratic overheads and increase the risk of trade diversion (trade being diverted from a more efficient exporter to a less efficient exporter because of the different tariffs applied). This could reduce the benefits of AfCFTA. The more harmonised trade policy in East Africa, the better, as it will facilitate further regional economic integration and pave the way for the final creation of an African customs union, as envisaged in the AfCFTA agreement. The implementation phase of the Continental Free Trade Area (AfCFTA) is expected to begin in less than three months. While the COVID 19 crisis has undoubtedly complicated the situation, the East African region is indeed well placed to implement the AfCFTA. Despite the skepticism expressed by some quarters about the ability of countries to launch the pioneering trade agreement, there is good reason to be optimistic. The agreement was negotiated by the African Union (AU) and signed on 21 March 2018 by 44 of its 55 member states in Kigali, Rwanda. [15] [16] The agreement first requires members to remove tariffs on 90% of goods, allowing free access to goods, goods and services across the continent. [15] The UN Economic Commission for Africa estimates that the agreement will boost intra-African trade by 52% by 2022. [17] The proposal is expected to enter into force 30 days after ratification by 22 of the signatory states. [15] On 2 April 2019, The Gambia became the 22nd state to ratify the Convention[18] and on 29 April, the Sahrawi Republic tabled the 22nd filing of ratification instruments; The agreement entered into force on 30 May and entered its operational phase following a summit on 7 July 2019.

[19] In principle, the implementation of AfCFTA will pave the way for the rapid removal of these barriers to cross-border trade.