Africa Free Trade Agreement Secretariat

The 12th Extraordinary Meeting of the African Union on the AfCFTA was convened to bring the new agreement into its operational phase, which took place in Niamey on 7 July 2019. [40] [41] “The increase in intra-African trade will boost post-COVID-19 economic development,” Mene said in a previous interview with Africa Renewal. After the Kigali summit, more signatures were added to the AfCFTA. At the African Union summit in Nouakchott on 1 July 2018, five other countries joined the agreement, including South Africa. Kenya and Ghana were the first countries to ratify the agreement and deposit their ratifications on 10 May 2018. [2] Of the signatories, 22 had to ratify the agreement for it to enter into force, and this happened on April 29, 2019, when Sierra Leone and the Sahrawi Arab Democratic Republic ratified the agreement. [7] As a result, the agreement entered into force 30 days later, on 30 May 2019; at the time, only Benin, Nigeria and Eritrea had not yet signed. Outstanding issues such as trade concession agreements and rules of origin are still under negotiation. [When?] The African Continental Free Trade Area (AfCFTA)[9] is a free trade area comprising 28 countries in 2018. [1] [10] [11] [12] It was created by the African Continental Free Trade Agreement between 54 of the 55 nations of the African Union. [13] The free trade area is the largest in the world in terms of the number of participating countries since the creation of the World Trade Organization. [14] Accra, Ghana serves as the secretariat of AFCFTA and was mandated by the President of Ghana, His Excellency Nana Addo Dankwa Akuffo Addo, on August 18, 2020 in Accra and handed over to the AU.

The overall objectives of the agreement are as follows:[20] The African Continental Free Trade Area only entered into force when 22 of the signatory states ratified the agreement, which happened in April 2019, when The Gambia became the 22nd country to ratify it. [67] [68] As of August 2020, there were 54 signatories, of which at least 30 had ratified and 28 had deposited their instruments of ratification. [69] [70] [71] The three countries that have ratified their ratification but have not yet deposited it would be Cameroon, Angola and Somalia[71][72], although Morocco is also documented for ratifying it. [73] [74] He continues to promote the agreement with eloquent sovereignty – with urgency and zeal. Ghana`s Minister of Trade and Industry, Alan Kyerematen, listed the benefits of a free trade area in Africa, including increasing intra-African trade to 52% by 2022, consolidating currently fragmented markets, economies of scale, adding value to Africa`s natural resources and economic diversification. The following institutions were established to facilitate the implementation of the free trade area. As a result of the Phase II negotiations, more committees can be set up on protocols. [38] In 1963, the Organization of African Unity (OAU) was founded by the independent states of Africa. The objective of the OAU was to promote cooperation among African States.

The Lagos Plan of Action of 1980 was adopted by the organization. The plan suggested that Africa should minimize its dependence on the West by promoting intra-African trade. This began with the establishment of a number of regional cooperation organizations in the different regions of Africa, such as the Southern African Development Coordination Conference. This eventually led to the Abuja Treaty in 1991, which created the African Economic Community, an organization that promoted the development of free trade areas, customs unions, an African central bank and a common African monetary union. [21] [22] In addition to the optimism generated by the start of free trade, 36 AU member states have so far deposited their instruments of ratification. Negotiations lasting more than five years culminated in the signing of the trade agreement on March 21, 2018; it entered into force on 30 May 2019; Free trade began on January 1, 2021 after a six-month delay following the COVID-19 outbreak. The largest trading area in the world in terms of participating countries since the creation of the World Trade Organization. Second, the African Free Trade Area represents a decisive step towards the continent`s long-cherished aspirations for regional integration.

In March 2018, three separate agreements were signed at the 10th Extraordinary Meeting of the African Union on the AfCFTA: the African Continental Free Trade Agreement, the Kigali Declaration; and the Protocol on the Free Movement of Persons. The Protocol on the Free Movement of Persons aims to create a visa-free zone in the AfCFTA countries and to support the creation of the African Union passport. [27] At the Kigali Summit on March 21, 2018, 44 countries signed the AfCFTA, 47 the Kigali Declaration and 30 the Protocol on the Free Movement of Persons. Although it was a success, there were two notable resistances: Nigeria and South Africa, Africa`s two largest economies. [28] [29] [30] At this summit, Benin and Nigeria signed the agreement, making Eritrea the only African state that is not part of this agreement. Eritrea has since applied to accede to the agreement. Gabon and Equatorial Guinea also deposited their ratifications at the summit. At the time of launch, 27 states had ratified the agreement. [45] [47] [48] [49] “Tell me where every country is ready in a trade deal at the same time, where every country is ready on the first day?” he asked rhetorically at the January briefing. Eritrea was not part of the original agreement due to the ongoing state of war, but the 2018 Peace Agreement between Ethiopia and Eritrea ended the conflict and the obstacle to Eritrea`s participation in the free trade agreement.

[10] [30] [45] [46] [47] The unrecognized state of Somaliland did not participate in the discussions on the creation of the agreement. As of July 2019, 54 of the 55 African Union states had signed the agreement, with Eritrea being the only country not to sign it. Of these Member States, 27 have deposited their instruments of ratification. [43] [44] Unveiling of the AfCFTA`s online portal on trade in goods, where Member States will exchange trade information and upload their tariff offers for 90% of tariff items. On 21 July 2018, five other countries signed the agreement, including South Africa. We want to make sure that a trader in Ghana can transfer the Ghanaian cedi to a colleague in Kenya who receives Kenyan shillings,” says Mene. Nigeria was one of the last countries to sign the agreement. With 200 million people, Nigeria is the most populous country in Africa and has about the population of the second and third most populous countries, Ethiopia and Egypt, each with about 98 million people. With a nominal GDP of $376 billion, or about 17% of Africa`s GDP, it is just ahead of South Africa, which accounts for 16% of the African economy. Given that Nigeria is such an important country in terms of population and economy, its absence when the agreement was first signed was particularly striking. South African President Cyril Ramaphosa stressed this in a commentary on July 12, 2018, commenting: “The continent is waiting for Nigeria and South Africa. By negotiating with each other, we are able to conserve more resources on the continent.

South Africa then signed the agreement. [52] Even before the pandemic, Africa felt the urgency of greater integration while striving for impressive economic growth, and in some countries it has tried to maintain it. .

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