[ad_1]
Released on December 9, 2020 via The Nation – AFREXIMBANK has established a $ 1 billion African Continental Free Trade Agreement (AfCFTA) Adjustment Facility to help member states adjust to the new trade regime and sudden losses in tariff revenue as a result of its implementation.
AfCFTA is an example of regional and preferential trade agreements that are concluded around the world, including the Regional Comprehensive Economic Partnership (RCEP) between the member states of the Association of Southeast Asian Nations (ASEAN) and Australia, China, Japan and Korea. from the south. and New Zealand.
India was supposed to be a party to the deal, but withdrew, highlighting the fact that progress is rarely smooth.
The bank said it will provide supplemental financing to help governments continue their investment and trade facilitation programs and meet tax obligations as their economies adjust to AfCFTA trade reforms.
In addition, Afreximbank and the African Union (AU) have developed the Pan African Payment and Settlement System (PAPSS), a mobile application for businesses.
Afreximbank said the export potential of intra-African trade is more than 84 billion dollars, which if harnessed would bring total intra-African trade to 231 billion dollars.
He said the elimination of tariffs and non-tariff barriers through the implementation of the AfCFTA should allow more official trade between countries with surplus and deficit, and reduce the levels of smuggling.
Afreximbank’s $ 3 billion pandemic trade impact mitigation mechanism provides much-needed liquidity support for overdue trade payments. It is helping member countries whose tax revenues are tied to specific export sectors to manage sudden revenue declines as a result of collapsing global demand and commodity prices.
Copyright © 2020 Vintage Press Limited. Provided by SyndiGate Media Inc. (Syndigate.info)
DISCLAIMER: This content is provided to us “as is” and without editing by a third party provider. We cannot vouch or guarantee the accuracy of the information provided in this article by the third-party provider. We do not endorse the views or opinions included in this article.
