African Continental Free Trade Agreement And Nigeria
Posted on December 1, 2020
The FG announced on Wednesday that the Federation`s Attorney General would prepare the agreement to give the president`s approval, as the FEC had agreed to ratify it. ABUJA (Reuters) – Nigerian President Muhammadu Buhari has signed the free trade agreement with a $3 trillion free trade agreement on Africa, a spokesman confirmed on Sunday. With its entry into force, AfCFTA intends to create an internal market for goods and services in Africa. By 2030, the continent`s market size is expected to be 1.7 billion people, with more than $6.7 trillion in cumulative consumer and business spending – when all African countries join the Agreement. But despite these prospects and Nigeria`s positive attitude towards the outside world, the country continues to put a big red flag on free trade hopes across the continent. In order to facilitate the implementation of the free trade area, the following institutions have been set up. As a result of the Phase II negotiations, additional committees may be set up through minutes.  He adds that the two countries are now at peace and that Eritrea has asked the AU to conclude the agreement with them. 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 perimeter of the AfCFTA is important.
The agreement will reduce tariffs between Member States and cover policy areas such as trade facilitation and services, as well as regulatory measures such as hygiene standards and technical barriers to trade. Full implementation of AfCFTA would transform markets and economies across the region and boost production in the services, manufacturing and raw materials sectors. Several committees have been established for trade in goods, trade in services, rules of origin, trade policy measures, non-tariff barriers, technical barriers to trade, and health and plant health measures.  Dispute resolution rules and procedures are still being negotiated, but should also include the appointment of a dispute resolution authority.  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.  Nigeria has ratified the free trade agreement that enters into force on 1 January 2021. This is an important step for the ambitions of the African Continental Free Trade Area (AfCFTA), as Nigeria is considered not only one of the continent`s largest economies, but also the most populous country. To this end, AfCFTA members have committed to establishing disciplines in the area of trade in goods, including the obligation to abstain from quantitative restrictions, the status of the most favoured (reciprocal) nation (MFN) and various annexes aimed at streamlining border procedures with rules of customs cooperation and mutual assistance, facilitation of trade , transit facilitation and transit and non-tariff barriers. It also estimates that the implementation of AfCFTA will lead to an increase in intra-African trade of about 60% by 2022. Francis Anatogu, secretary of the National Action Committee for AfCFTA, said the agreement would reduce the erosion of the naira, which has suffered since 2016 from exports of goods and services made in Nigeria, and would weigh on the naïah compared to other currencies.
Indeed, Africa will benefit even more from trade diversification and value chain growth than through a single free trade agreement. Most African exports are raw materials: agriculture and mineral products, with about 70% of the value added outside the continent. The limited value-added is partly the result of trade agreements that penalize processed products from Africa in favour of raw materials.