Buhari inaugurates committee to look into the African Continental Free Trade Area Agreement
The President made this known in a statement which he issued on Twitter on Monday, October 22, 2018.
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![Governor Bassey Otu [CrossRiverWatch]](data:image/svg+xml;charset=utf8,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20width%3D'100'%20height%3D'100'%20data-ring-placeholder%3D'1'%3E%3C%2Fsvg%3E "Governor Bassey Otu [CrossRiverWatch]")
The President made this known in a statement which he issued on Twitter on Monday, October 22, 2018.
Nigeria, South Africa, Zambia, Tanzania, Burundi, Eritrea, Botswana, Lesotho and Namibia refused to sign the African Continental Free Trade Area Agreement (AfCFTA) during the 18th Extraordinary Session of the Assembly of AU Heads of State and Governments in Kigali, Rwanda on March 21, 2018 due to certain concerns.
Some experts are of the opinion that it will deepen poverty in Africa, as tariffs on goods will be eliminated, a source of annual revenue that amounts for about $4.1billion.
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Other argues that the benefits of the agreement may not spread equitable among member nations.
Obasanjo blasts Buhari, others
Following their refusal to sign the agreement, former Nigerian President, Olusegun Obasanjo criticised the African presidents who refused to sign the trade pact, saying their excuse is ‘mere flimsy excuse and criminal.
He said "It is criminal for any African leader to talk of not understanding what we are going to sign (Free Trade Agreement in Africa) and afford not to be here."
“I am surprised that any African leader at this point in time will be talking about either not understanding the Continental free trade area or not to support what we’re going to sign. I see that as criminal.
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“The signing and implementation of the (AfCFTA) will enable a shift from dependence on assistance to increased trade.
“The establishment of the Free Trade Area will result in the establishment of a market of over one billion two hundred million people, with a combined gross product of over three trillion dollars.”
“That is where our salvation lies, trading amongst ourselves and consequently developing our economies. The agreement will inspire a change a perception of the continent by the rest of the world."
Need for proper study
According to Buhari, there needs to be a proper study of the AfCFTA to understand the true impact of this agreement on Nigeria and Nigerians.
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The President also said “We cannot go back to the days of signing agreements without understanding and planning for the consequences of such actions.”
“Nonetheless, we are determined to break away from the past practice of committing Nigeria to treaties without a definite implementation plan to actualize the expected benefits while mitigating the risks,” he added.
Buhari also said that the concerns raised on the AfCFTA by stakeholders include:
1. Abuse of rules of origin,
2. Smuggling arising from difficulties in border controls,
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3. Un-quantified impacts of legacy preferential trade agreements;
4. Low capacity and capabilities of local business to conduct international trade,
5. Cost of finance,
6. Insufficient energy; and
7. Transport logistics infrastructure.
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About the AfCFTA
According to the African Union, the objectives of the AfCFTA are to:
1. Create a single continental market for goods and services, with free movement of business persons and investments, and thus pave the way for accelerating the establishment of the Continental Customs Union and the African customs union.
2. Expand intra African trade through better harmonization and coordination of trade liberalization and facilitation regimes and instruments across RECs and across Africa in general.
3. Resolve the challenges of multiple and overlapping memberships and expedite the regional and continental integration processes.
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4. Enhance competitiveness at the industry and enterprise level through exploiting opportunities for scale production, continental market access and better reallocation of resources.
The idea was first came up during the 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union, which held in Ethiopia in 2012.
The first draft agreement was however signed in 2018 in Rwanda, during the 18th Extraordinary Session of the Assembly of AU Heads of State and Governments.
The countries that signed the AfCFTA are: Niger, Rwanda, Angola, C.A.R., Chad, Comoros, Congo, Djibouti, The Gambia, Gabon, Ghana, Kenya, Mauritania, Mozambique, Cote'd'Ivoire, Seychelles, Algeria, Equatorial Guinea.
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Including: Morocco, Swaziland, Benin, Burkina Faso, Cameroon, Cape Verde, D.R.C, Guinea, Liberia, Libya, Madagascar, Malawi, Mali, Mauritius, South Sudan, Uganda, Egypt, Ethiopia, Sao Tome and Principle, Togo and Tunisia.
According to President Buhari, the Committee has 12 weeks to produce a clear roadmap for Nigeria as it relates to the AfCFTA.
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