Africa Free Trade Agreement 2019

While global trade rules are being eroded in other regions, China and the United States are leading to a trade war and influence is strengthening protectionistly in many countries, Africa has the opportunity to create a trade buffer for itself. Since all countries are in a broad negotiating unit, it will have had much more power than before. Intra-African trade was historically low. Intra-African exports accounted for 16.6% of total exports in 2017, compared with 68% in Europe and 59% in Asia, indicating untapped potential. Israel Osorio Rodarte is an economist in the Department of Trade and Regional Integration at the World Bank. He has more than 10 years of experience in international development, including economic diversification, structural change and analysis of the distribution of trade and macroeconomic policies. The beginning of the session: AfCFTA is an opportunity for countries and businesses to help each other in growth, as they have done in other regions. But trade liberalization has the potential to harm the poorest in these countries, hence the importance of adopting a policy of support. Speakers outlined various challenges and solutions.

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] 44 countries first signed the agreement on March 21, 2018. Nigeria was one of 11 African Union countries to avoid signing the treaty. At the time, Nigerian President Muhammadu Buhari said Nigeria could do nothing to undermine local producers and entrepreneurs.

[53] The Nigerian Manufacturers` Association, which represents 3,000 Nigerian manufacturers, welcomed the decision to withdraw from the agreement. [53] Nigeria`s foreign minister tweeted that more internal consultations are needed before Nigeria can sign the agreement. [54] Former President Olusegun Obasanjo said Nigeria`s delay was regrettable. [55] The Nigerian Labour Congress called the agreement a “renewed, extremely dangerous and radioactive neoliberal political initiative”, suggesting that increased economic pressure would push workers to rush into difficult and precarious conditions. [56] In March 2018, representatives of African Union member countries signed the Agreement on the Continental Free Trade Area (AfCFTA).

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