Free Trade Agreement Nigeria

With Nigeria`s signature, AfCFTA`s dream of increasing intra-African trade, currently below the continent`s trade volume with Europe, has taken a step forward. To date, 30 of the 55 African Union states have signed and ratified afCFTA. Only Eritrea is not yet obliged to sign, according to Tralac, a trade law organization based in South Africa. (Report by Felix Onuah Letter from Chijioke Ohuocha Schnitt by Mark Heinrich) In March 2018, three separate agreements were signed at the 10th African Union extraordinary meeting on AfCFTA: the African Continental Free Trade Agreement, the Kigali Declaration; and the protocol on the free movement of people. The Protocol on the Free Movement of Persons aims to create a visa-free zone within AfCFTA countries and to support the creation of the African Union passport. [27] At the Kigali Summit on 21 March 2018, 44 countries signed the AfCFTA, 47 signed the Kigali Declaration and 30 signed the protocol on the free movement of persons. Although a success, there were two remarkable holdouts: Nigeria and South Africa, the two largest economies in Africa. [28] [29] [30] In responding to a trade problem with unilateral border closures, Nigeria is at odds with the AfCFTA provisions on which it committed just a few months ago. Removing import duties could potentially boost intra-African trade by more than 50%, while a reduction in non-tariff barriers will double the volume of trade, notes the Economic Commission for Africa (ECA). The African Continental Free Trade Area only came into force when 22 of the signatory countries ratified the agreement, which took place in April 2019, when The Gambia was the 22nd country to ratify it. [67] In August 2020, there are 54 signatories, of which at least 30 have ratified and 28 have tabled their ratification instruments. [69] [70] [71] The three countries that have ratified their ratifications but have not yet tabled are Cameroon, Angola and Somalia,[71] although Morocco is also ratified.

[73] [74] The African superpower, Nigeria, has signed an agreement to strengthen trade between African countries. What complicates matters further is that Africa was already divided into eight separate free trade zones and/or union unions, with different regulations. [Note 1] These regional bodies will continue to exist; The African Continental Free Trade Agreement aims firstly to remove barriers to trade between the various pillars of the African Economic Community and, finally, to use these regional organizations as building blocks of the ultimate goal of an African-wide customs union. [21] [30] [31] In 1963, the Organization of African Unity (OAU) was founded by the independent states of Africa. The aim of the OAU was to promote cooperation between African states. The 1980 Lagos Action Plan was adopted by the organization. The plan proposed that Africa minimize its dependence on the West by encouraging intra-African trade. It began with the creation of a number of regional cooperation organizations in different parts of Africa, such as the Conference on the Coordination of Southern African Development.

Finally, in 1991, this led to the Abuja Treaty, which founded the African Economic Community, an organization that encouraged the development of free trade zones, customs union, an African Central Bank and a common African monetary union. [21] South Africa, Sierra Leone, Namibia, Lesotho and Burundi have since signed the AfCFTA at the 31st African Union Summit in Nouakchott. [50] Since July 2019, 54 states have signed the agreement. [51] “This is essential, as services account for about 60% of Africa`s GDP and, for example, services account for 30% of world trade in 2014….