African Continental Free Trade Agreement Countries

Yulia Vnukova advises the World Bank in the Department of Trade and Regional Integration (ETIRI). Based on more than a decade of experience, Yulia`s current work focuses on trade policy and regional integration, focusing on macroeconomic and microeconomic analyses of trade, trade and sectoral competitiveness, global value chains and private sector development in emerging countries in Europe, Asia and Africa. By July 2019, 54 of the 55 African Union states had signed the agreement, with Eritrea the only country not to have signed it. Of these Member States, 27 have tabled their ratification instruments. [43] Several committees have been established for trade in goods, trade in services, rules of origin, remedial measures, non-tariff barriers, technical barriers to trade, and health and plant health measures. [39] Dispute resolution rules and procedures are still being negotiated, but should also include the appointment of a dispute resolution authority. [35] The Committee of Senior Trade Officials implements the Council`s decisions. The Committee is responsible for the development of programmes and action plans for the implementation of the AfCFTA agreement. [39] A third question on future trade negotiations with third parties. Faced with the consequences of a possible exit from the African Growth and Opportunity Act (AGOA) in 2025, Kenya has already begun negotiations for a free trade agreement with the United States. The UK, which wants to conclude new trade deals after leaving the European Union, is also moving closer to a number of countries in the region. Kenya-U.S. The free trade agreement was particularly controversial, but perhaps wrongly: in principle, it does not prevent East African countries from negotiating with third parties.

However, for the reasons outlined above with respect to the rules of origin, it is preferable to avoid totally different approaches in negotiations with third parties. Given that the global economy is booming due to the COVID 19 pandemic, the creation of AfCFTA`s huge regional market is a great opportunity to help African countries diversify their exports, accelerate growth and attract foreign direct investment. The political momentum towards africa-wide free trade has strengthened. In March 2018, more than 40 countries signed the Continental Free Trade Area (AfCFTA) agreement. After its full implementation, AfCFTA is expected to cover all 55 African countries, with a total GDP of about $2.2 trillion. This NDS reviews recent business developments in sub-Saharan Africa and assesses the potential benefits and costs of AfCFTA, as well as the challenges of its successful implementation. In addition to increasing trade flows for both existing and new products, AfCFTA has the potential to generate significant economic benefits for African countries. These benefits include increased returns from improved efficiency and productivity through better allocation of resources, increased cross-border investment flows and technology transfers.

In addition to reducing import duties to ensure these benefits, African countries must remove new trade barriers by making their customs procedures more efficient, reducing their significant infrastructure gaps and improving their business climate. At the same time, policy measures should be taken to mitigate the different effects of trade liberalization on certain groups, as resources are redistributed in the economy and activities move to places where costs are relatively lower. The African Continental Free Trade Area only came into force when 22 of the signatory countries ratified the agreement, which took place in April 2019, when The Gambia was the 22nd country to ratify it. [67] In August 2020, there are 54 signatories, of which at least 30 have ratified and 28 have tabled their ratification instruments. [69] [70] [71] The three countries that have ratified their ratifications but have not yet tabled are Cameroon, the New Year