African Continental Free Trade Area

From Wikipedia
African Continental Free Trade Area
free trade area, agreement
Inception21 March 2018 Edit
Facet ofAfrican Continental Free Trade Agreement Edit
Short nameAfCFTA Edit
LocationAfrica Edit
Point for tym insyd2018 Edit
Official websitehttps://au-afcfta.org/ Edit

De African Continental Free Trade Area (AfCFTA)[1] be free trade area wey edey encompass most of Africa.[2][3][4] Dem establish am insyd 2018 by de African Continental Free Trade Agreement, wey get 43 parties den another 11 signatories, wey emake am de largest free-trade area plus ein number of member states, after de World Trade Organization,[5] den de largest as we dey talk for population den geographic size wey edey span 1.3 billion manners across de worlds second largest continent.

De agreement wey come found AfCFTA dem broke am by de African Union (AU) den sign am by 44 of ein 55 member states for Kigali, Rwanda on 21 March 2018.[6][7] Dema proposal come into after 30 days of ratification by 22 of de signatory states.[6] Insyd 29 April 2019,[8] de Saharawi Republic make de 22 deposit for instruments of ratification, wey dem carry de agreement into effect for May 30; ego enter ein operational phase as edey follow a summit for 7 July 2019,[9] den officially dem start am for 1 January 2021. AfCFTA ein negotiations den implementation dem oversee am by a permanent secretariat wey dey insyd Accra, Ghana.[10][11]

Under dema agreement, AfCFTA members be commit say dem go eliminate tariffs for most goods den services for a period of 5, 10, or 13 years, wey edey depend on de country ein level of development or ein nature of products.[10] Dema general long-term objectives dey include creating a single, liberalized market; reduce barriers give dema capital and labour wey ego facilitate investment; develop regional infrastructure; den establish continental customs union.[12] De overall aims wey AfCFTA dey carry be increase for socioeconomic development, reduce poverty, den make Africa more competitive for de global economy.

Insyd January 13, 2022, AfCFTA dey take a major step towards ein objective plus de establishment of de Pan-African Payment and Settlement System (PAPSS) wey dey allow payment plus companies wey dey insyd Africa gonna be done for ein local currency.[10]

Dema History[edit | edit source]

Dema Background[edit | edit source]

For 1963 insyd, de Organization of Africa Unity dem establish am by de independent state for Africa. De OAU dey aim say ego promote cooperation give African states. De 1980 Lagos Plan of Action wey dem adopt am by de organization. De plan dem suggest be say Africa go minimize ein reliance for de West as dem dey promote intra-African trade. Dis dem start as dem dey create number of regional cooperation organization give different regions for Africa, wey de Southern African Development Coordination Conference. Dis lead am go Abuja Treaty insyd 1991, wey dem create de African Economic Community, ebe organization wey dey promote development for free trade areas, customs unions, African Central Bank den African common currency union.[13][14]

Insyd 2002, de OAU dem change am wey e cam turn African Union (AU) wey eget one of ein goals be say ego accelerate de "economic integration for de continent".[15] Dema second goal be "coordinate den harmonise de policies between dema existing den future Regional Economic Communities for de gradual attainment give objective for de Union."[16]

Dema Negotiations[edit | edit source]

For de 2012 African Union summit for Addis Ababa, leaders for Africa agree say dem go create a new Continental Free Trade Area by 2017. At de 2015 AU summit for Johannesburg, de summit agree say edey start ein negotiations. Dis come start plenty of ein ten negotiating sessions wey etake place for over ein next three years.[13][17]

Dema first negotiation forum dem do am insyd February 2016 den do dema eight meetings wey until de Summit insyd March 2018 for Kigali. From February 2017, de technical working groups go organize four meetings, wey de technical issues wey dem discuss den implement insyd de draft. On March 8-9, 2018 de African Union Ministers of Trade Union Ministers of Trade approved de draft.[18]

2018 Kigali Summit[edit | edit source]

Insyd March 2018, insyd dema 10th Extraordinary Session for de African Union on AfCFTA, three separate agreements wey dey signed: de African Continental Free Trade Agreement, de Kigali Declaration; den de Protocol on Free Movement of Persons. De Protocol give de Free Movement for Persons wey dey seek say dem go establish visa-free zone within de AfCFTA countries, den support de creation for African Union Passport.[19] At de summit insyd Kigali on 21 March 2018, 44 countries go sign de AfCFTA , 47 sign de Kigali Declaration, den 30 sign de Protocol for Free Movement for People. While emake successful, wey two notable holdout: Nigeria den South Africa, de two largest economies insyd Africa.[20][21][22]

One complicating factor insyd de negotiations be dat Africa gey already dem divide am into eight separate free trade areas den/or customs unions, each plus different regulations. Dese regional bodies wey continue go exist; de African Continental Free Trade Agreement initially dey seek say ego reduce trade barriers between de different pillars wey African Economic Community, den eventually use regional organisation as dema building blocks for de ultimate goal for an Africa-wide customs union.[13][22][23][24]

Declaration signed at de 2018 Kigali Summit[25]
Country Signed By AfCFTA Consolidated Text

(signature)

Kigali Declaration Free Movement

Protocol

Algeria Prime Minister Ahmed Ouyahia Yes Yes No
Angola President João Lourenço Yes Yes Yes
Central African Republic President Faustin Archange Touadéra Yes Yes Yes
Chad President Idriss Déby Yes Yes Yes
Comoros President Azali Assoumani Yes Yes Yes
Djibouti President Ismaïl Omar Guelleh Yes Yes No
Equatorial Guinea Prime Minister Francisco Pascual Obama Asue Yes Yes Yes
Eswatini Prime Minister Barnabas Sibusiso Dlamini Yes Yes No
Gabon President Ali Bongo Ondimba Yes Yes Yes
Gambia President Adama Barrow Yes Yes Yes
Ghana President Nana Akufo-Addo Yes Yes Yes
Ivory Coast Vice President Daniel Kablan Duncan Yes No No
Kenya President Uhuru Kenyatta Yes Yes Yes
Lesotho Prime Minister Tom Thabane No Yes Yes
Mauritania President Mohamed Ould Abdel Aziz Yes Yes Yes
Morocco Prime Minister Saadeddine Othmani Yes No No
Mozambique President Filipe Nyusi Yes Yes Yes
Niger President Mahamadou Issoufou Yes Yes Yes
Republic of the Congo President Denis Sassou Nguesso Yes Yes Yes
Rwanda President Paul Kagame Yes Yes Yes
Sahrawi Arab Democratic Republic President Brahim Ghali Yes Yes No
Senegal President Macky Sall Yes Yes Yes
Seychelles Vice President Vincent Meriton Yes Yes No
South Africa President Cyril Ramaphosa No Yes No
Sudan Prime Minister Abdalla Hamdok Yes Yes Yes
Tanzania Prime Minister Kassim Majaliwa No Yes No
Uganda President Yoweri Museveni Yes Yes Yes
Zimbabwe President Emmerson Mnangagwa Yes Yes No

Drafting of further protocols[edit | edit source]

Negotiations go continue for insyd 2018 plus Phase II, wey edey include policies for investment, competition den intellectual property rights.[26] Insyd January 2020, AU Assembly negotiations dem see am as dem conclude am.[27] Dem expect de draft for January 2020 AU Assembly.[28]

Dema Institutions[edit | edit source]

Dem establish de following institutions say ego facilitate de implementation of de free trade area. For ein Phase II negotiations, dem go establish plenty committees as dem dey use dema protocols.[29]

De AfCFTA Secretariat go be responsible for dema coordination for de implementation give de agreement den dem go be autonomous body wey dey insyd de AU system. Ego gey independent legal personality buh ego work plus de AU Commission den esan go receive ein budget from de AU. De Council of Ministers go be responsible for trade wey dem go decide de location for ein headquarters, ein structure, ein role den ein responsibilities.[26] De Assembly of de African Union Heads of State den Government be ein highest decision-making body. Ebe likely say dem go meet during de AU Summits.[30] De Council of Ministers who be responsible for Trade de provide strategic trade policy oversight den esan dey ensure say dem implement den enforce de AfCFTA Agreement.[30]

Dem establish plenty committees for trade insyd goods, trade insyd services, rules of origin, trade remedies, non-tariff barriers, technical barriers to trade den on sanitary den phytosanitary measures. Dispute resolution rules den procedures dem still dey negotiate am, buh dem go add designation for de dispute resolution body. De Committee for Senior Trade Officials dey implement de Council's decisions. De Committee be responsible for ein development for de programs den action plans wey dem implement am for de AfCFTA Agreement.[30]

Dema Implementation[edit | edit source]

De AfCFTA see say dem go implement am in phases, den some of de future phases still dey under negotiation.[24] Phase I dey cover trade insyd goods den trade for services. Phase II dey cover intellectual property rights, investment den competition policy. Phase III dey cover E-Commerce.

At de 2018 Kigali summit, areas of agreement wey dey find be trade protocols, dispute settlement procedures, customs cooperation, trade facilitation, den rules of origin. Dem san gey agreement say dem go reduce tariff for 90% for all goods. Each nation dey permit 3% goods from dis agreement.[17] Dis be part of de Phase I of de agreement, wey dey cover goods den services liberalization. Some of de Phase I dey issues dey remain as dem dey negotiate say ego include de schedule de tariff concessions den other specific commitments.[17][24]

De 12th Extraordinary Session for de African Union on AfCFTA be call am to launch de new agreement as dem come operate de phase, wey dem host am for Niamey on 7 July 2019.[31][32] For de launch, five operational instruments wey dey govern de AfCFTA wey dem activate am: "de rules of origin; de online negotiating forum; de monitoring den elimination of non-tariff barriers; a digital payment system; den de African Trade Observatory."[33]

Phase II den III negotiations dem expect am to be initiate am by all AU member countries den hold am in successive rounds. Insyd February 2020, de AU Assembly of Heads of State den Government decide say de Phase III dem go begin am immediately de conclusion of Phase II negotiations, wey dem initially schedule am to conclude insyd December 2020.[17][24] Buh, dema deadline delay sake of de COVID-19 pandemic in Africa, den new date be (December 31, 2021) be de new set deadline for de conclusion for Phase II den III negotiations. De AfCFTA officially buh largely symbolically launch am for January 1, 2021.[34]

Dema Membership[edit | edit source]

Among de 55 AU member states, 44 sign de African Continental Free Trade Agreement (wey dem consolidate text), 47 sign de Kigali Declaration den 30 sign de Protocol on Free Movement of People for de end of de 2018 Kigali Summit. Benin, Botswana, Eritrea, Guinea-Bissau, Nigeria den Zambia be among de 11 countries wey no sign dema initial agreement.[35] After de 2018 Kigali Summit insyd Nouakchott on 1 July 2018, South Africa (de second largest economy of Africa), Sierra Leone, Namibia, Lesotho den Burundi join de agreement.[36] Insyd February 2019, Guinea-Bissau, Zambia den Botswana san join. Kenya den Ghana be de first nations wey ratify de agreement, depositing dema ratification on 10 May 2018.[37]

Of de signatories, 22 need am to deposit de instrument of ratification for de agreement for am to come into effect, den dis occur am 29 April 2019 wen both Sierra Leone den de Sahrawi Arab Democratic Republic de agreement.[38] As a result, de agreement come into force 30 days later on 30 May 2019. At dis point, only Nigeria (de continent ein largest economy), Eritrea den Benin no sign de agreement.

President of Nigeria Muhammadu Buhari no dey feel say he go join de AfCFTA, he dey fear say ego hurt de Nigerian entrepreneurship den local industries,[39] den ein decision dem no praise by ein local groups wey edey include de Manufacturers Association of Nigeria[40] den de Nigeria Labour Congress.[41] De Nigerian government make dema mind say dem go talk plus de private sector if dem go agree,[42] sake of de key concern say dem go agree or dem go prevent am sake of anti-competitive practices lyk dumping.[43] Insyd July 2019, just months afta dem re-elect am into ein new term, Buhari agree say he go adhere to de Africa free trade at dema 12th extraordinary session of de assembly of de union on AfCFTA.[44]

At de same meeting, Benin san commit wey dem come sign de agreement, leaving Eritrea as de only of de 55 African Union Member States wey no sign up to de deal.[32][45][46] Formally, Eritrea no be part of de initial agreement sake of de ongoing state of war, buh de 2018 peace agreement between Ethiopia den Eritrea come end de conflict den de barrier for Eritrean participation insyd de free trade agreement.[2][22][47][48][49][50]

As of May 2022, dem gey 54 signatories wey 43 (80%) gey deposite for dema ratification instruments.[51][52][53] Additionally, one country (Somalia) plete ein domestic ratification, buh no get dema deposit ratification plus de depository by May 2020.[54][55] Eritrea be de only AU member state wey no gey sign de agreement by 2019.[47]

Ratification Status of African Nations[56]
Country Signed Date of Signing Ratified Date of Ratification Deposited Date of Deposit
Algeria Yes March 21, 2018 Yes June 7, 2021 Yes June 23, 2021[57]
Angola Yes March 21, 2018 Yes October 6, 2020 Yes November 4, 2020[58]
Benin Yes July 7, 2019 No No
Botswana Yes February 10, 2019 Yes Yes
Burkina Faso Yes March 21, 2018 Yes May 27, 2019 Yes May 29, 2019[59]
Burundi Yes July 2, 2018 Yes June 17, 2021 Yes August 26, 2021
Cameroon Yes March 21, 2018 Yes January 31, 2020 Yes December 1, 2020
Central African Republic Yes March 21, 2018 Yes April 9, 2020 Yes September 22, 2020
Cape Verde Yes March 21, 2018 Yes November 13, 2020 Yes February 5, 2022
Chad Yes March 21, 2018 Yes June 29, 2018 Yes July 2, 2018[60]
Ivory Coast Yes March 21, 2018 Yes November 13, 2018 Yes November 23, 2018
Comoros Yes March 21, 2018 Yes Yes
Republic of the Congo Yes March 21, 2018 Yes February 7, 2019 Yes February 10, 2019
Democratic Republic of the Congo Yes March 21, 2018 Yes January 28, 2022 Yes February 23, 2022
Djibouti Yes March 21, 2018 Yes February 5, 2019 Yes February 11, 2019
Egypt Yes March 21, 2018 Yes February 27, 2019 Yes April 8, 2019[61]
Equatorial Guinea Yes March 21, 2018 Yes June 28, 2022 Yes July 2, 2019[62]
Eritrea No No No
Eswatini Yes March 21, 2018 Yes June 21, 2018 Yes July 2, 2018[60]
Ethiopia Yes March 21, 2018 Yes March 23, 2019 Yes April 10, 2019[63]
Gabon Yes March 21, 2018 Yes July 2, 2019 Yes July 7, 2019[62]
Gambia Yes March 21, 2018 Yes April 11, 2019 Yes April 16, 2019
Ghana Yes March 21, 2018 Yes May 7, 2018 Yes May 10, 2018[64]
Guinea Yes March 21, 2018 Yes July 31, 2018 Yes October 16, 2018
Guinea-Bissau Yes February 8, 2019 Yes August 31, 2022[65] Yes August 31, 2022
Kenya Yes March 21, 2018 Yes May 6, 2018 Yes May 10, 2018[64]
Lesotho Yes July 2, 2018 Yes October 20, 2020 Yes November 27, 2020
Liberia Yes March 21, 2018 No No
Libya Yes March 21, 2018 No No
Madagascar Yes March 21, 2018 No No
Malawi Yes March 21, 2018 Yes November 1, 2020[66] Yes January 15, 2021[67]
Mali Yes March 21, 2018 Yes January 11, 2019 Yes February 1, 2019
Mauritania Yes March 21, 2018 Yes January 31, 2019 Yes February 11, 2019[68]
Mauritius Yes March 21, 2018 Yes September 30, 2019 Yes October 7, 2019
Morocco Yes March 21, 2018 Yes February 24, 2022 Yes April 18, 2022
Mozambique Yes March 21, 2018 No No
Namibia Yes July 2, 2018 Yes January 25, 2019 Yes February 1, 2019
Niger Yes March 21, 2018 Yes May 28, 2018 Yes June 19, 2018[69]
Nigeria Yes July 7, 2019 Yes December 3, 2020[70] Yes December 5, 2020[71]
Rwanda Yes March 21, 2018 Yes May 25, 2018 Yes May 26, 2018[72]
Sahrawi Arab Democratic Republic Yes March 21, 2018 Yes April 27, 2019 Yes
São Tomé and Príncipe Yes March 21, 2018 Yes May 28, 2019 Yes April 30, 2019[73]
Senegal Yes March 21, 2018 Yes March 12, 2019 Yes June 27, 2019
Seychelles Yes March 21, 2018 Yes July 8, 2021 Yes September 15, 2021
Sierra Leone Yes Yes April 19, 2019 Yes April 30, 2019
Somalia Yes March 21, 2018 Yes No
South Africa Yes July 2, 2018 Yes January 31, 2019 Yes February 10, 2019[74]
South Sudan Yes March 21, 2018 No No
Sudan Yes March 21, 2018 No No
Tanzania Yes March 21, 2018 Yes January 17, 2022 Yes January 27, 2022[75]
Togo Yes March 21, 2018 Yes January 9, 2019 Yes April 2, 2019
Tunisia Yes March 21, 2018 Yes September 7, 2020 Yes November 27, 2020
Uganda Yes March 21, 2018 Yes November 20, 2018 Yes February 9, 2019[76]
Zambia Yes February 10, 2019 Yes January 28, 2021[77] Yes February 5, 2021[78]
Zimbabwe Yes March 21, 2018 Yes April 25, 2019 Yes May 24, 2019[79]

Oda AU member states[edit | edit source]

Eritrea no sign sake of tension wey between dem den Ethiopia, buh as of 2019, as dem follow de 2018 Eritrea-Ethiopia summit, de AU Commissioner for Trade den Industry dey expect say Eritrea go eventually sign de agreement.[47]

Dema Human right assessment[edit | edit source]

July 2017 United Nations Economic Commission for Africa report talk say de CFTA go help fight poverty den inequality as edey bolar for de continent top as ego change plenty insyd Africa economies. Dem san talk say ebe lyk ego help make African Union go achieve ein Agenda 2063 den de Sustainable Development Goals. De document dem target say ego tackle human rights as edey de negotiation insyd.[80][81]

According to de Food den Agriculture Organization, dem recognize de intersection wey dey de gender, agriculture, den trade, say ebe critical say ego ensure say dem implement de AfCFTA ein address de nuance den vary de challenges dat women plenty tyms dey face.[82] Ebe vital say dem go operationlise de AfCFTA agreement wey ego ensure say de future trade policies, practices den regulation wey go promote gender equality den empower women den girls for de African continent, especially in support of women to make dem seize new opportunities as de AfCFTA present for de agriculture insyd.[82]

Implementation for de agreement dat no be inclusive for women wey fi result in widening gender gap by negatively affect women-led micro, small or medium-sixed enterprises den those who dey rely on de informal trade (wey dey include cross border) for dema livelihoods.[82]

San see[edit | edit source]

  • ASEAN Free Trade Area
  • Caribbean Community (CARICOM)
  • Central European Free Trade Agreement
  • Common Market for Eastern and Southern Africa
  • Commonwealth of Independent States Free Trade Area
  • Comprehensive and Progressive Agreement for Trans-Pacific Partnership
  • Council of Arab Economic Unity
  • Free trade agreement
  • Free-trade area
  • Free trade areas in Europe
  • Market access
  • Single African Air Transport Market
  • Rules of Origin
  • Tariffs
  • Tourism in Africa
  • Tripartite Free Trade Area

References[edit | edit source]

  1. ↑ Loes Witschge (March 20, 2018). "African Continental Free Trade Area: What you need to know". Al Jazeera.
  2. ↑ 2.0 2.1 "African states agree massive trade bloc". BBC News. March 21, 2018. Retrieved March 21, 2018.
  3. ↑ "Africa Set to Agree $3 Trillion Trade Bloc, Without Key Economy". Bloomberg.com. March 21, 2018. Retrieved March 21, 2018.
  4. ↑ AfricaNews. "Forty-four countries sign historic African Union free trade agreement | Africanews". Africanews. Retrieved March 21, 2018
  5. ↑ Justina Crabtree (March 20, 2018). "Africa is on the verge of forming the largest free trade area since the World Trade Organization". CNBC.
  6. ↑ 6.0 6.1 "Forty-four African countries sign a free-trade deal". The Economist. March 22, 2018.
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  9. ↑ "AfCFTA Agreement secures minimum threshold of 22 ratification as Sierra Leone and the Saharawi Republic deposit instruments". African Union. April 29, 2019.
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  17. ↑ 17.0 17.1 17.2 17.3 Signé, Landry; van der Ven, Colette (May 2019). "Keys to success for the AfCFTA negotiations" (PDF). Brookings. Retrieved July 8, 2019.
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  61. ↑ "Egypt is 18th AfCFTA ratification instrument depositor". April 8, 2019. Retrieved January 10, 2020.
  62. ↑ 62.0 62.1 "Gabon, Equatorial Guinea submit AfCFTA ratification to AU". Archived from the original on July 7, 2019. Retrieved January 10, 2020.
  63. ↑ "Ethiopia deposits instruments of ratification of AfCFTA". Retrieved January 10, 2020.
  64. ↑ 64.0 64.1 "Kenya and Ghana deposit instruments of African Continental Free Trade Area ratification". Retrieved January 10, 2020.
  65. ↑ Lusa. "Guinea-Bissau: Country is 44th member of African Continental Free Trade Area". Macau Business. Retrieved January 24, 2023.
  66. ↑ "Malawi Ratifies AfCFTA after Submitting Instruments of Ratification". Retrieved February 22, 2021.
  67. ↑ "Malawi deposits AfCFTA ratification to AU". January 15, 2021. Retrieved February 22, 2021.
  68. ↑ "Deposit of the instrument of Ratification of the AfCFTA Agreement by Mauritania". Retrieved January 10, 2020.
  69. ↑ "Niger deposits its instrument of ratification of the Agreement on the AfCFTA". Retrieved January 10, 2020.
  70. ↑ "Nigeria has ratified Africa's historic free trade agreement—but its land borders remain closed". November 12, 2020. Retrieved November 14, 2020.
  71. ↑ "Nigeria becomes 34th country to ratify AfCFTA agreement". December 5, 2020. Retrieved February 22, 2021.
  72. ↑ "Rwanda becomes third country to ratify A.U. free trade pact". May 27, 2018. Retrieved January 10, 2020.
  73. ↑ "African Union ECOSOCC". Facebook. Retrieved January 10, 2020.
  74. ↑ "President deposits SA's AfCFTA instrument of ratification". Retrieved January 10, 2020.
  75. ↑ Tanzania Embassy in Ethiopia [@tanzaniainaddis] (January 17, 2022). "Ambassador deposits instrument of accession" (Tweet). Addis Ababa. Retrieved January 26, 2022 – via Twitter.
  76. ↑ "Uganda deposits its instrument of ratification of the Agreement on the AfCFTA". Retrieved January 10, 2020.
  77. ↑ "Zambian cabinet approves ratification of African free trade agreement". October 27, 2020. Retrieved February 22, 2021.
  78. ↑ "Zambia is latest country to ratify the African Continental Free Trade Area (AfCFTA) agreement". February 8, 2021. Retrieved February 22, 2021.
  79. ↑ "Zimbabwe's National Consultative Forum on the African continental free trade area slated for 19 June". Archived from the original on August 14, 2019. Retrieved January 10, 2020.
  80. ↑ Report: the Continental Free Trade Area (CFTA) in a human rights perspective. UN Economic Commission for Africa. July 2017. ISBN 9783958618596. Retrieved June 6, 2020.
  81. ↑ "Building a Sustainable and Inclusive Continental Free Trade Area - Nine Priority Recommendations from a Human Rights Perspective" (PDF). UN Economic Commission for Africa. July 2017. Archived from the original (PDF) on July 19, 2018. Retrieved June 6, 2020.
  82. ↑ 82.0 82.1 82.2 Seizing the opportunities of the African Continental Free Trade Area for the economic empowerment of women in agriculture. Accra: FAO. 2021. doi:10.4060/cb6966en. ISBN 978-92-5-135021-8. S2CID 244712893.
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