Harmonize investment and retail trade laws to end trade tensions: GUTA urges the AfCFTA Secretariat



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The President of the Ghana Merchants Union Association (GUTA), Dr. Joseph Obeng, is concerned about possible trade tensions between the respective signatories of the single continental trading market if their existing trade and investment laws are not harmonized. respective economies.

“We have no idea about customs procedures and infrastructure to facilitate duty-free trade, this is concerning, especially when customs procedures are at the heart of this single market agreement,” he told Charles Ayitey in Market Place.

The 54 countries that have joined the single market have individual trade and investment laws.

Ethiopia, for example, banned foreign investment in its financial sector, a possible violation of the AfCFTA rules. Ghana also prohibits foreign retailing in its local market, another violation of the AfCFTA rules.

“As a result, the secretariat could see a number of legal challenges from countries on behalf of their corporations,” added Dr. Jospeh Obeng.

Meanwhile, the Ghana International Trade Commission (GITC) has asked for patience even as the AfCFTA Secretariat completes negotiations on common tariffs, trade and investment laws.

“Rome was not built in a day. It was better that this single market initiative had been implemented now than to delay it for resolvable issues like this. Patience is what we need from the commercial economies and the signatories of this agreement,” he said in Market Place.

The International Monetary Fund in its Staff Discussion Notes published on May 13, 2020 projects that although the implementation of some operational aspects of the African Continental Free Trade Area (AfCFTA) has been temporarily suspended, the agreement would be a very important element for support the post-pandemic. recovery and fostering medium-term economic growth in Sub-Saharan Africa by creating larger and more integrated markets and promoting intracontinental trade.

Importantly, the implementation of the AfCFTA will also reduce uncertainty about trade relations within the continent, which, together with an expanded and more integrated market, would encourage domestic and foreign direct investment and help boost economic activity as the countries emerge from the pandemic.

For the Secretary General of the AfCFTA, 2021 marks a new milestone in the economic history of Africa’s commercial eco-space.

“Today, we are not only celebrating the beginning of a new year, but today we are giving Africa a new beginning, with the start of trade as a free trade area under the AfCFTA,” said Wamkele Mene.

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