African Continental Free Trade Agreement 2019

African Continental Free Trade Agreement 2019

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. Comparative Benefits Economic Integration International Trade Agreements Open economies Trade finance The following institutions were created to facilitate the implementation of the free trade area. As a result of the Phase II negotiations, additional committees may be set up through minutes. [38] “We now have heads of state and government from 54 countries on track for this agreement. It`s a game-changer. There is much more political energy now than ever in integration,” said Arancha Gonzalez Laya, Executive Director of the International Trade Centre (ITC). She spoke at a meeting of the World Economic Forum on Africa, developed with the Platform of the Forum for the Future of International Trade and International Investment. AfCFTA is expected to increase intra-African trade from about 13% currently to 25% or more through better harmonisation and coordination of trade liberalization.

This approach is supported by the single market for air transport in Africa and the protocol on the free movement of persons. The Continental Free Trade Area (AfCFTA) agreement will create the largest free trade area in the world in terms of the number of participating countries. The pact connects 1.3 billion people in 55 countries for a total gross domestic product (GDP) of $3.4 trillion. It has the potential to lift 30 million people out of extreme poverty, but achieving its full potential will depend on the introduction of meaningful political reforms and trade facilitation. Forty-four countries initially 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] EU trade aid supports AfCFTA`s objectives, for example in West Africa, where a EUR 92 million programme aims to increase competitiveness and trade by using regional trade opportunities and creating a safe trading environment for small traders, especially traders.

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