However, the principle of variable geometry applies where Member States, upon notification and on a reciprocal basis, lower their tariffs earlier than the systematic linear approach. The phasing down of tariffs to the preferential rate will take place systematically over a transition period. The exclusion list will be reviewed after five years from commencement of trading. * Anti-concentration clause indicates not more than 10% of intra-African imports should be excluded from preferential terms. The latter will not be subject to preferential treatment.Ĭategory A: Goods under preferential trading The protocol recognizes 7% of the tariff lines identified to be sensitive goods and 3% of tariff lines which will be excluded from preferential trade terms subject to negotiation through request and offer mechanism. ![]() The protocol of trade in goods aims to liberalize 90% of tariff lines to be traded under a preferential rate of import and export duty in 10 years. Phase 1: Trade in goods and services, rules and procedures on dispute settlement The status of various provisions under the FTA arrangement include the following: ACFTA aims to create a single market for goods and services, expand intra-Africa trade, resolve the challenges faced in intra-African trade (including overlapping regional economic community membership), create a large investment area and leverage on economies of scale to boost manufacturing competitiveness.Įritrea is the only African country yet to sign the ACFTA agreement. Malawi and Zambia ratified the agreement subsequently, bringing the total number of State Parties to 36. The agreement covers 55 Member States with a population of 1.2 billion people and estimated Gross Domestic Product (GDP) of over US$3.4 trillion.Īs of 1 January 2021, 34 countries had signed and ratified the AfCFTA agreement thereby meeting the legal conditions required for trading under the Free Trade Area (FTA). Commencement of trading follows a series of negotiations resulting from the conception of AfCFTA during the 25th ordinary session of the assembly of Heads of State and Government of the Africa Union on 7 to 15 June 2015 in Johannesburg.ĪfCFTA is the flagship program of Agenda 2063 which aims to boost intra-African trade in goods and services. On 1 January 2021, trading under the Africa Continental Free Trade Area (AfCFTA) was officially launched by the Africa Union in conjunction with the Heads of States. Africa Union launches Africa Continental Free Trade Area: Status of trading among African countries
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