african continental free trade area negotiations …...african continental free trade area...
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African Continental Free Trade Area Negotiations and Implementation: State of Play
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Department ofTrade and Industry
Million HabteSenior Expert on Trade in Services
AfCFTA Support UnitAfrican Union Commission
February 2020At 3rd Regional Dialogue on WTO Accession for Africa
AfCFTA should be seen in the context of grand scheme: Agenda 2063THE VISION
Agenda 2063 is founded on the AU vision of “ an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the international arena”.
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FLAGSHIP PROGRAMS IN THE FIRST 10-YEAR IMPLEMENTATION PLAN
i) The Integrated High speed Train Network;
ii) African Virtual and e-university;
iii) African Commodity Strategy;
iv) Annual African Forum;
v) Continental Free Trade Area;
vi) A Single African Airspace;
vii) African Passport and Free Movement of People;
viii) Continental Financial Institutions;
ix) The Grand Inga Dam Project;
x) The Pan African e-Network;
xi) Silencing the Guns;
xii) Outer Space. 3
Department ofTrade and Industry
African Continental Free Trade Area: Recent Developments
Recent Developments on the AfCFTA
Why AfCFTA ?oPopulation size 1.2 billion oGDP USD 3.3 trillion oResource rich but less industrialized o Intra-Africa trade 16-17%o Trade is a powerful tool to tackle povertyoGlobal trade and political reality
Next phases of AfCFTAoCustoms UnionoSingle market oMonetary UnionoAfrican Economic Unity
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Background and rationale for the AfCFTA
All by year 2029 as per Abuja Treaty signed in 1991
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The general objectives of the AfCFTA
create a single market for goods, services, facilitated by movement of persons in order to deepen the economic integration of the African continent
building on the initiatives and developments in the State Parties and RECs
lay the foundation for the establishment of a Continental Customs Union at a later stage
attain sustainable and inclusive socio-economic development, gender equality and structural transformation
resolve the challenges of multiple and overlapping memberships
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Department ofTrade and Industry
African Continental Free Trade Area: Recent Developments
Recent Developments on the AfCFTA
Scope of AfCFTA negotiations and implementation
Phase 1 of the AfCFTA negotiations has covered areas of trade in goods and trade in services. Phase 2 will cover areas of Investment, Intellectual Property Rights and Competition
Policy.Now Phase 3 negotiations to be conducted on e-commerce after 1 year of deliberation
and capacity building The 1st meeting of the AfCFTA-NF was held in February 2016, followed by the 1st
meetings of the STO and AMOT both of which were held in May 2016.
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Department ofTrade and Industry
African Continental Free Trade Area: Recent Developments
Recent Developments on the AfCFTA
AfCFTA Negotiating Institutions between February 2016 and December 2018:12 Meetings of the AfCFTA Continental Task Force;18 Meetings of the AfCFTA NF; 7 Meetings of the STOs; 10 Meetings of AMOT; and4 Dedicated Sessions of Chief Negotiators2 Meetings of Council of Ministers of State Parties. The meetings were also supported by various meetings of the Technical Working Groups (TWGs) and workshops on specific technical areas. On average, 7 TWGs held 5 meetings each with exception of TWG on RoO having held 11 Meetings
so far.Stakeholders Events were organised in Parallel.
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Conduct of Negotiations: Key Meetings and Fora
AfCFTA negotiation and Institutional Framework
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AU S
TC O
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Continental Task Force
Stakeholders Participation Technical Working Groups (TWGs)
AfCFTA-Negotiating Forum (NF)
Committee of Senior Officials
African Union Ministers of Trade (AMOT)
Assembly of Heads of States and Government
AfCFTA Negotiations Support Unit
Department ofTrade and Industry
African Continental Free Trade Area: Recent Developments
Recent Developments on the AfCFTA
Objectives and Guiding Principles for AfCFTA negotiations Adopted;
Modalities for tariff liberalisation were adopted
Modalities for liberalisation of trade in services were adopted;
The Agreement Establishing the AfCFTA together with 3 Protocols were adopted by the AU Assembly on 21 March 2018 in Kigali, Rwanda;
12 Annexes to the Protocols were also adopted;
To date, the AfCFTA Agreement has 54 signatories
29 Member States have ratified it to become State Parties
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Key Outcome of Negotiations - Summary
Department ofTrade and Industry
African Continental Free Trade Area: Recent Developments
Recent Developments on the AfCFTA 10
Nearly 693 million (57% of the African
Population)
$ 1,29 trillion (nearly 40% of African economy)
Department ofTrade and Industry
African Continental Free Trade Area: Recent Developments
Recent Developments on the AfCFTA
Outstanding works to be finalized in coming months
final schedules of Tariff Concessions, Rules of Origin for the AfCFTA and services commitment in the five priority sectorsdismantling of tariffs to start no later than 1 July 2020
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Road Map for Conclusion of Outstanding Work and Phase II Negotiations
2019-2021
2019 Feb
Adoption of the proposed Roadmap
July
Launch of the Operational Phase of the AfCFTA
2020
JanConclusion of Phase 2 and adoption of Legal
Instruments on Investment, IPR and Competition
2021
JuneAdoption Regulatory Frameworks on all
Services Sectors and conclusion of Negotiations on the 7 other Sectors
May
2022
012
Adoption of Schedules of Tariff Concessions and schedules of specific
Commitments
Department ofTrade and Industry
African Continental Free Trade Area: Recent Developments
Recent Developments on the AfCFTA
IMPLEMENTATION OF AFCFTA
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AfCFTA
1. Committee on Trade in Goods;2. Committee on Trade in Services; 3. Sub-Committee on Rules of Origin;4. Sub-Committee on Trade Facilitation,
Customs Cooperation and Transit;5. Sub-Committee on Non-Tariff Barriers;6. Sub-Committee for Technical Barriers to
Trade;7. Sub-Committee for Sanitary and
Phytosanitary Measures; and8. Sub-Committee on Trade Remedies.
AfCFTA National CommitteesAfCFTA Regional Committees
Institutional Framework for Implementation of AfCFTA
Department ofTrade and Industry
African Continental Free Trade Area: State of Play & Recent Developments
By Prudence Sebahizi, Head of AfCFTA Interim Secretariat
Operational Instruments
Establishment of the Secretariat
Appointment of the AfCFTA Secretary General and other necessary staff membersSecretariat be operational no later than 31 March 2020
the 7 July of each year be designated as “the Africa Integration Day”
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Implementation of AfCFTA
African AfCFTAOn-line Negotiation Portal
Department ofTrade and Industry
African Continental Free Trade Area: State of Play & Recent Developments
By Prudence Sebahizi, Head of AfCFTA Interim Secretariat
Pan African Payment and Settlement System (PAPSS)multilateral system for the purposes of transacting, clearing, and settling of payments across AfricaFacilitate intra-African trade Formalize unrecorded trade due to prevalence of informal cross-border trade in Africaan alternative to current high-cost and lengthy correspondent banking arrangements to a unified interoperable, low-cost and risk-controlled payment, clearing and settlement systemReduce pressures of foreign exchange reserves and the costs of intra African trade
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AfCFTA Web/Mobile Application
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