The AfCFTA is a Lightning Rod for Regional Integration and Free Trade

Kenya - 13 December 2019

Trade topics: Regional Integration

This paper looks at the construction of tariff band structure and linear cut of the AfCFTA countries. AfCFTA symbols a different landmark on the road to deeper regional integration and the pursuit for well-built and prolonged growth, which the extensive nature will transform businesses especially small and medium-sized enterprises (SMEs), traders and consumers because of the removal of tariffs, and non-tariff barriers by 2025 for developing countries ,2030 for LDCs and 2045 for the six countries. The agreement commits countries to removing tariffs on 90 percent on inclusion list after 5 and 10 years for the non LDCs and LDCs in that order, while the remaining 10 percent of sensitive items to be phased out after 10 and 13 years for developing and non LDCs respectively on 7% for sensitive list and 3% for exclusion list. Thus the AfCFTA may make global trade regime either to become stronger or to remain under attack from a membership of 55 less one (Eritrea) highly diverse countries of Africa. Further, the AfCFTA aims to preserve existing regional economic communities as building blocs. With regard to disposition toward trade liberalization COMESA and SADC countries show much more likelihood and stand to liberalize faster than the ECCAS, UMA and ECOWAS countries. This can be done through an equal annual reduction of 20 percent to all tariffs above 5 percent over 5 years for the developing countries and 10 percent equal annual deductions for 10 years for LDCs.

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