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The African Union (AU) Commission called for addressing non-tariff barriers to realize the main aspirations of the African Continental Free Trade Area Agreement (AfCFTA).
In a statement released on Sunday, the AU said the African continent is on the verge of becoming the world’s largest free trade zone. But that effort could slow down if non-tariff barriers are not addressed.
According to the AU, although the negative impact of non-tariff barriers on intraregional trade is recognized, “so far there has been limited success in addressing them.”
“The success of the AfCFTA depends in part on how well governments can track and remove non-tariff barriers,” Albert Muchanga, AU Commissioner for Trade and Industry, was quoted as saying in a statement from the AU.
Amid the urgent need to remove non-tariff barriers for the success of the continental free trade agreement, the AU has launched a new campaign to highlight and eliminate non-tariff barriers in intracontinental trade launches this week.
According to the AU, the “Easier Trade Campaign” plans to promote the acceptance and use of the African Union’s trade barriers platform, a notification mechanism tool for non-tariff barriers, it was noted.
The tool, developed by the AU in partnership with UNCTAD, supports efforts to make continental trade easier and less costly by helping African businesses report such barriers and supporting their removal with the help of governments. he pointed.
Noting that non-tariff barriers slow down the movement of goods and cost importers and exporters billions of dollars annually, the AU also emphasized that non-tariff barriers “stand in the way of the AfCFTA’s success.”
“If we want the AfCFTA to prosper, we have to make sure that operational barriers are removed and that businesses and traders, especially small ones, do not suffer from undue constraints placed on them as they try to do the basics that make economies work. : trade, “Muchanga said.
The UA, however, emphasized that trade barriers require bold solutions.
“Every day many African traders and businesses face barriers to trade. From quotas to excessive import documents to unjustified packaging requirements, these barriers are a major barrier to trade between African countries and make it difficult and expensive to move goods across the continent, “AU said.
According to the AU, regulatory and procedural barriers include customs operations and border documentation requirements, rules of origin documentation, and pre-shipment inspections.
According to a UNCTAD report, if these barriers are removed, the African economy could earn US $ 20 billion, far more than the US $ 3.6 billion it could recover by removing tariffs.
The United Nations Economic Commission for Africa (UNECA) also estimated that the AfCFTA has the potential to boost intra-African trade by 52.3 percent by eliminating import tariffs and could double trade if non-barriers are also reduced. tariffs.
The AfCFTA, which was launched in March 2018 in Rwanda’s capital city Kigali, has so far accumulated 54 signatories, offering new hope and continental joy in terms of boosting intra-African trade and ultimately facilitating development and expansion. industrialization of Africa.
