The Council of Ministers responsible for trade in the African Continental Free Trade Area (AfCFTA) has decided that trading under the AfCFTA system will be governed by agreed-upon Rules of Origin, which will cover 88 percent of total tariff lines.
This means that the minimal African content for product to be exported between African countries on the basis of preferences has now been established.
The Chair of the Council of Ministers, Ephraim Patel, said during a press conference to brief journalists on the just concluded 8th Meeting of the Council of Ministers in Accra that once Heads of State agree on a decision, that package provides the framework for trading to commence.
“I am happy to say that this two-year (2020-2021) that we have undertaken and identified more than 850 additional products for which Rules of Origin have been agreed. This package now goes to the Heads of State and if they approve it, that package becomes the basis for trade to commence,” he said.
Mr Patel noted that the move means more jobs, economic opportunities and Africa’s moment for industrialisation, saying “we can’t simply be generators of raw materials for factories of Asia, Europe and the Americas. Africa’s moment for industrialisation is here and now; and this package will take forward that industrialisation initiative.”
Protocols
Additionally, Mr Patel said that there were substantial discussions on investment protocols, competition protocols, Intellectual Property Rights (IPR), digital trade, and women and youth in trade.
“These are the next phase of the African Continental Free Trade Area so we’ve given some guidance to our negotiators on where they need to go on these areas,” he said.
He also said that the important modalities on dispute settlement processes in trading relationship between countries was adopted and concluded.
At the meeting, it came to light that negotiations on trading services are in an advanced stage of completion with 46 member states having submitted their schedules of specific commitments.
The Ministers noted the progress made on Trade Facilitation on the Abidjan-Lagos Corridor and the approach to corridor interventions towards the implementation of the AfCFTA.
They proceeded to congratulate the Directors General of Customs for progress made towards harmonisation of trading documents under the AfCFTA.
The Council of Ministers also congratulated the Government of the Republic of Gabon for successfully hosting the AfCFTA Forum on Special Economic Zones (SEZs) and directed that work on the SEZs Regulations be undertaken by the AfCFTA Committee on Trade in Goods.
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