Regional Integration In Africa : 44 States Sign Free Trade Accord
The agreement signed in Rwanda gives birth to the world’s largest free trade area and bolsters regional integration.
(Cameroon Tribune) A forty-year-long process of African unity has finally materialised
with the signing of an agreement establishing the African Continental
Free Trade Area (ACFTA) by 44 countries on the continent.
The agreement was signed Wednesday March 21 in an Extraordinary
Session of the Assembly of African Union Heads of State and Government,
hosted in Kigali, Rwanda by the country’s President Paul Kagame who
doubles as Chairperson of the AU. Cameroon’s Minister of Finance,
Louis
Paul Motaze represented President Paul Biya at the gathering.
The adoption of the agreement establishing the ACFTA was followed by
the signing of a Protocol on the Free Movement of Persons, and the
Kigali Declaration; three pacts which President Kagame described as an
expression of African nations’ unity in moving the continent forward.
“The Continental Free Trade Area is the culmination of a vision set
forth nearly 40 years ago in the Lagos Plan of Action, adopted by Heads
of State in 1980. That undertaking led directly to the Abuja Treaty
establishing the African Economic Community in 1991.” he said.
The signing of the agreement gives birth to the world’s largest free
trade area. President Kagame said the promise of a free trade and free
movement is prosperity for all Africans, “because we are prioritizing
the production of value-added goods and services that are ‘Made in
Africa.’ The advantages we gain by creating one African market will also
benefit our trading partners around the world, and that is a good
thing.”
The Chairperson of the African Union Commission, Moussa Faki Mahamat,
for his part, enumerated regional trade accords in Europe and Asia,
noting; “for Africa, after decades of independence, marked by persistent
under-development and a marginal place in the international system, the
terms of the debate are laid down in almost Manichean terms: Unite or
Perish, as Kwame Nkrumah said at the Addis Ababa founding Summit. He
said it was vital to lift barriers that divide the continent, hinder its
economic take-off and perpetuate misery.
The creation of a single continental market for goods and services,
with free movement of business persons and investments according to the
ACFTA, comes along with the founding of the Continental Customs Union
and the African Customs Union.
Africa trades far less with itself than it does with the rest of the
world. Recent statistics show Intra-Africa trade stands at about 16%,
compared with 19% intra-regional trade in Latin America, 51% in Asia,
54% in North America and 70% in Europe.
Going by a United Nations Economic Commission for Africa (UNECA)
estimation, the AfCFTA has the potential to boost intra-Africa trade by
53% by eliminating import duties and non-tariff barriers. UNECA says the
agreement could create an African market of over 1.2 billion people
with a Gross Domestic Product (GDP) of $2.5 trillion.
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