Several committees have been established on trade in goods, trade in services, rules of origin, trade remedies, non-tariff barriers, technical barriers to trade and sanitary and phytosanitary measures. [39] Dispute resolution rules and procedures are still under negotiation, but they will likely include the designation of a dispute resolution body. [35] The Committee of Senior Trade Officials implements the Council`s decisions. The Committee is responsible for drawing up programmes and action plans for the implementation of the AfCFTA Agreement. [39] According to a World Bank analysis, the AfCFTA will provide a common legal framework in policy areas already covered by subregional preferential trade areas such as the Common Market for East and South Africa (COMESA), the East African Community (EAC), the Economic Community of West African States (ECOWAS) and the South African Development Community (SADC), thus reducing market fragmentation through different sets of rules. Trade integration across the African continent has long been limited by outdated border and transport infrastructure and a patchwork of different regulations in dozens of markets. Governments have often erected trade barriers to protect their markets from regional competition, making it more expensive for countries to trade with their neighbouring neighbours than with much more distant countries. There is a strong consensus that the huge infrastructure gap in Africa, including transport and supply infrastructure, needs to be urgently addressed so as not to limit further trade integration. Infrastructure development is also key to addressing the devastating economic impact of COVID-19. South Africa already benefits from the AfCFTA in terms of future growth and trade expansion, due to its existing close ties across the continent and its already well-established production base. Small economies such as Ghana and Côte d`Ivoire also benefit from existing favourable conditions such as open economies, good infrastructure and a favourable business environment.
The following institutions were established to facilitate the implementation of the free trade area. As a result of the Phase II negotiations, more committees can be set up on protocols. [38] A unified market of 1.2 billion people with a combined GDP of $3 trillion is potentially a solid foundation for industrialization. Currently, intra-African exports account for about 17% of total continental exports. Increasing this share is expected to increase value added, contribute to job creation and income growth. Countries that have ratified the AfCFTA agreement appear to have agreed on rules of origin for more than 81% of tariff items. Nigeria was one of the last countries to sign the agreement. With 200 million people, Nigeria is the most populous country in Africa and has about the population of the second and third most populous countries, Ethiopia and Egypt, each with about 98 million people. With a nominal GDP of $376 billion, or about 17% of Africa`s GDP, it is just ahead of South Africa, which accounts for 16% of the African economy. Given that Nigeria is such an important country in terms of population and economy, its absence when the agreement was first signed was particularly striking.
South African President Cyril Ramaphosa stressed this in a commentary on July 12, 2018, commenting: «The continent is waiting for Nigeria and South Africa. By negotiating with each other, we are able to conserve more resources on the continent. South Africa then signed the agreement. [52] As of April 2021, 36 African countries had ratified the African Continental Free Trade Area (AfCFTA) Agreement, and 54 of the 55 African countries had signed the agreement, with only Eritrea not signed. Algeria and Somalia should be the next countries to deposit their instruments of ratification. Countries that have already ratified the agreement include Angola, Côte d`Ivoire, Ghana, Kenya, Malawi, Namibia, Nigeria, South Africa, Uganda, Zambia and Zimbabwe. The first delivery of goods under the AfCFTA took place in early January 2021, and most signatories submitted their proposals for rules of origin. Meanwhile, only three countries – Ghana, South Africa and Egypt – had put in place the necessary customs infrastructure for trade by the start of free trade last January. Nigeria – Africa`s largest economy – signed the AfCFTA on July 7, 2019, becoming the 34th member of the trading bloc.