Accra/Washington: – Africa has implemented the free trade agreement, from the 1st of January 2021, against the background of killer epidemics like Ebola and Coronavirus, terrorism and ethnic conflict. Senior official Wamkele Mene announced that the agreement was active saying ‘African Continental Free Trade Area is not only a trade agreement but important means for the development of the African continent.’ Since the World Trade Organisation formation, this one is known as the largest free trade agreement. Moreover, it has the participation of 54 African countries.
In 2002, the African Union, the African countries’ apex body, presented the concept of a free trade agreement, including all the countries in the continent. After that, the primary plan for the agreement was prepared in 2013. The free trade agreement draft was prepared during the meetings between 2015 and 2018. it included all the African countries. Last year, 44 countries signed the agreement, during a meeting held in March, in Rwanda.
This agreement with an expanse of 1.2 billion population and a GDP of more than $3 trillion will become an important stage in the African continent’s economic development. As per the agreement, all the African countries have to reduce taxes on other African member countries by 90% and free movement of goods and services is the central principle of the agreement. Questions were consistently being raised over the agreement, given the differences and ethnic conflicts between the African countries. Eritrea is the only country, who has refused to join the agreement and 34 countries out of the remaining 54, have officially accepted the agreement.
South African President Cyril Ramaphosa welcomed the new agreement saying that a new chapter in Africa’s trade is starting with this agreement. Whereas, Kenyan lawmaker and former official at the United Nations, Yousuf Hassan praised the agreement saying that this agreement is an important step towards United Africa. It becomes a decisive stage in becoming a global economic power. Senior official Wamkele Mene said that this agreement would hugely contribute to relieving Africa from the colonial economic structure of being an exporter of raw materials.
As per a report by the World Bank, there could be $76 billion to the global economy to implement the African free trade agreement. The World Trade Organisation has predicted an increase of more than 50% in Africa’s internal trade.
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