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African Union Launches $2.5 Trillion Free Trade Area, Set for 2020 Implementation
Monday 15 July 2019, by
On July 7 and 8, 2019, the Summit of African Union Heads of State was held at the Niamey Congress Palace, the capital of Niger. No less than 31 Heads of State participated in the implementation of the agreement on the creation of the Continental Free Trade Area (CFTA).
The "operational phase" of the agreement, which aims to implement the continental strategy, should be able to bring together 55 countries, with a human potential of 1.2 billion inhabitants and a combined Gross Domestic Product (GDP) of $2.5 trillion.
According to a statement by the African Union spokesperson to Agence France-Presse, "we will have to define a timetable, so that each member can play its role in the preparation of the Market, and we have set the date of July 1, 2020 for this event", adding: "This is not final. The Foreign Ministers have given their agreement, and we can logically expect that of the Heads of Government".
Several important points should be raised at this summit, including the reduction of customs duties from mid-2020, the establishment of a nomenclature specific to goods manufactured in Africa, competition laws between countries, as well as arbitration mechanisms in disputes.
The Continental Free Trade Area aims to boost intra-continental trade, attract maximum investors and increase trade activities between African countries by 60% by 2022.
According to Jacky Selez, from the Center for Security Studies, "Africa is experiencing good trade dynamics with the international market, but not internally", adding that "the CFTA is supposed to be a prerequisite for industrialization processes".