The full implementation of the African Continental Free Trade Area (AfCFTA) agreement on January 1, 2021, is expected to see a reduction in customs duties within Africa, Secretary-General of the AfCFTA Secretariat, Wamkele Mene, has said.
According to him, the implementation of the agreement which will witness a reduction in unwanted trade barriers and subsequently removed, will ultimately result in 90 per cent of goods traded among member countries attracting zero per cent duties.
“When your goods transit borders, or as a service supplier your service crosses borders, you will now be subject to a new set of rules. There will be reduced tariffs on the goods themselves. There will be a new system for adjudicating on the disputes that arise from the trading and cross-border activities.”
“But, ultimately, in 15 years time when the transition period has ended, 90 percent of trade by all African countries that are parties to the agreement will be at zero duties. That is the ultimate objective,” Mr Mene explained.
Speaking in an interaction with journalists in Accra last week, Wamkele Mene explained the AfCFTA agreement will see traders within Africa experience a much more regulated and efficient trade regime backed and administered by law.
Additionally, guidelines governing the operations of customs agencies in Africa would also be transformed to fall in line with the necessities of the agreement.
In a related development, Mr Mene said he has tasked the diplomatic community from member states based in Accra to ensure their various trade councils assemble in Accra before the end of November, to finalize all deliberations needed for the full implementation of the AfCFTA in January 2021.
The AfCFTA Secretariat has targeted January 2021 for the commencement of the implementation of the trade agreement following its postponement on the back of the outbreak of the Coronavirus pandemic.
The continental free-trade area would be the world’s largest economic free trade zone, adjudged by spatial size and population, and is expected to increase intra-African trade from the current 12 percent of total trade by African countries to 52 percent by 2023.
