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Rabat – When the clock struck twelve and the year 2021 began, Morocco became part of the largest and most exciting free trade agreement to date. January 1 marked the official launch of the African Continental Free Trade Area (AfCFTA), a trading bloc with the potential to rival any other around the world.
Morocco’s new free trade agreement unites 54 African nations, making it the largest free trade agreement in history in terms of the number of member states. Similar to the idea behind the EU, the pact aims to remove trade barriers between African nations and create a new economic partnership in one of the world’s most resource-rich regions.
The new trade agreement “will fundamentally change the economic fortunes of our continent,” South African President Cyril Ramaphosa said in his New Year’s speech. “It is the beginning of a new era of trade between African countries,” he said confidently, adding that Africa will now “realize its great potential from its abundant natural and human resources.”
Promises
The trade deal has the potential to rival large trading blocs such as the EU and the Association of Southeast Asian Nations (ASEAN). AfCFTA will unite 1.2 billion people and a GDP of $ 3 trillion, creating a bloc that could control the economic influence of major nations like India and China.
Morocco’s membership in this continental free trade agreement aims to boost trade between African nations that has historically been remarkably low. African nations tend to export more to the former colonial powers of Europe and the major industrial powers of Asia.
Amid a historic intertwined health and economic crisis caused by the COVID-19 pandemic, Morocco and Africa as a whole have a potential game changer in this new free trade agreement. Few places on earth have so much natural wealth and human resources available. Africa’s population is young, ambitious and increasingly better educated.
The internet has lowered barriers for young people in Africa and enabled many to become part of the global community, despite the physical barriers they encounter at the borders of the West. The future of young Africans lies not in opportunities abroad, but in creating new sustainable opportunities at home.
Obstacles
The launch of the AfCFTA free trade agreement remains, in many ways, a symbol for Morocco and its African partners. Although the UN considers that the bloc has the potential to increase intra-African trade by more than 50%, the practical reality is still developing.
Many African nations, including Morocco, have yet to ratify the free trade agreement. Twenty of a total of 54 members have not yet formalized the agreement. While trade deals with former colonial powers and economic giants like the United States and China dominate the headlines, African governments and the press have often neglected the new African free trade agreement.
For potential competitors to the bloc, this neglect serves as a way to hinder and obscure progress. The sooner all Member States, including Morocco, ratify the free trade agreement, the sooner its economic promises can be fulfilled.
With a fully functional AfCFTA, Africa is truly at the forefront of making history. However, mistrust and diplomatic disagreements could delay important initial breakthroughs that can generate valuable momentum. Genuine mutual efforts towards the realization of the AfCFTA could make 2021 not the year of vaccination campaigns or Brexit, but the year that the world’s richest region joined economically.
Road to prosperity
The AfCFTA was supposed to begin on July 1, 2020. In the midst of a global pandemic, the historic moment was postponed. As the world faces the economic consequences of the pandemic and cases continue to rise, the AfCFTA should become a priority as a possible path to recovery.
Officially, 90% of all African products are now duty free when traded between African partners. However, this status is only enjoyed by nations that have ratified the agreement at the national level. Morocco and other nations that have yet to ratify the free trade agreement should see the agreement as a top priority at a time of economic instability.
Ratifying the free trade agreement means that Morocco can use its large amount of phosphate reserves to help dramatically reduce food insecurity on a continent threatened by climate change. The agreement means that Morocco can benefit from local agricultural exports instead of importing wheat from Eastern Europe.
Also read: AfCFTA: Morocco calls for the strategic pillar of intra-African trade development
The UN Economic Commission for Africa estimates that the new trade deal can generate $ 1.8 billion in welfare gains and help create 2 million new jobs when properly implemented. This new economic activity can reduce economic migration, stimulate both small and large businesses, and help rebalance the relentless foreign exploitation of Africa’s riches.
Once they ratify and fully adopt the historic continental agreement, Morocco and its African partners will finally be able to create what could truly become the end of the colonial era. By making trade more attractive between African nations, the free trade agreement can help develop Morocco and Africa as a whole. The largest free trade agreement in history deserves attention – from the press, governments and citizens alike.
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