This Is Framingham

This Is Framingham
Life in the ‘ham

Au Continental Free Trade Agreement

September 11th, 2021

As of July 2019, 54 of the 55 African Union states had signed the agreement, with Eritrea being the only country not to sign the agreement. Of these Member States, 27 have deposited their instruments of ratification. [43] [44] The agreement establishing the African Continental Free Trade Area (AfCFTA) entered into force in May 2019. Ultimately, the AfCFTA aims to create a global African market; What is happening at this stage is to launch a series of complex and predictable negotiations that are very long. The outcome of this process will not yet be full free trade in Africa, but it will lead to a reduction in tariffs that will have the potential to boost production and trade and strengthen regional value chains. However, it is too early to discuss a change in the European Union`s trade policy towards Africa or to be a theme for the next German Presidency. Nevertheless, Germany and the European Union should continue to monitor and support the process of establishing the AfCFTA, an important political process with considerable long-term economic potential for Africa. At that summit, Benin and Nigeria signed the agreement, so Eritrea is the only African State not to be part of this agreement; In the meantime, Eritrea has applied to accede to the agreement. Gabon and Equatorial Guinea also deposited their ratifications at the summit. At the time of launch, there were 27 states that had ratified the agreement. [45] [47] [48] [49] In order to achieve concrete results, it will also be necessary to enable the private sector to effectively seize the new opportunities offered by the market. This means market information and often strives to improve the competitiveness of the industry. To attract investment, whether local, regional or from third countries, African countries must continue to improve framework conditions and facilitate trade.

The G20 Compact with Africa (CwA) and the European External Investment Plan (within the framework of the Africa-Europe Alliance) are framework conditions to be used for these support efforts. For Africa, it is important that tariffs for third countries outside Africa are not lower than those for Africa. The aim is to prevent an agreement – for example with Mercosur – from creating trade preferences that penalise intra-African trade. Article 4 of the afCFTA Protocol on the Movement of Goods therefore requires that all preferences granted to third countries under free trade agreements be also granted to African partners under the AfCFTA, in accordance with the principle of reciprocity. The same applies to services. For example, if SACU reduces a tariff for India, it must also offer it to its AfCFTA partners (e.g. B possibly Côte d`Ivoire in the future), provided that African partners are prepared to reduce their own tariffs. “[…] Through the AfCFTA, we have the opportunity to reconfigure our supply chains, reduce dependence on others and accelerate the establishment of regional value chains that will boost intra-African trade and ensure African production capacity for future generations,” he said. . . .

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