Free Trade Agreement In Nigeria

Muhammad said countries had until December to ratify the agreement, which was delayed after the new coronavirus pandemic made its initial launch date unsustainable. African heads of state and government need to better highlight the link between their commitments under international trade agreements – and in particular within the AfCFTA framework – and their responses to specific trade-related challenges. This will mark the impact of commitments made under international treaties and will help to make the often incomprehensible provisions of a trade agreement appear more concrete. Governments should not wait until July 2020 to begin acting in accordance with the AfCFTA. As has already been said, the agreement does not present new commitments to governments. Rather, it relies on existing commitments and largely reflects WTO provisions. That is why governments are already required to comply with a number of relevant provisions for trade liberalization, such as the MFN principle.B. The purest free trade agreement (FTA) removes all border taxes or trade barriers on goods. The world`s largest free trade area since the World Trade Organization has come closer to reality. The AU says the African Continental Free Trade Area, called AfCFTA, will create the world`s largest free trade area. Given that the Nigerian government continued to consult with local business groups in the second half of 2018, one of the main concerns was whether the agreement adequately prevented anti-competitive practices such as dumping. [59] At the close of 2018, former President Olusegun Obasanjo said the delay was “regrettable” and stressed the lack of trade in goods between African countries, the difficulties in getting from one African country to another, and the colonial legacy of these restrictions on Africa`s growth.

[60] The government steering committee responsible for the consultation process is expected to release its report on the agreement in January 2019. [61] The closure of borders on the African continent is not unusual. Earlier this year, Sudan closed its border with Libya and the Central African Republic and Kenya suspended cross-border trade with Somalia for security reasons. In response to the Ebola outbreaks, Rwanda briefly closed the border with the Democratic Republic of Congo. However, the closure of Nigeria`s borders is different from those previous incidents, as it has been adopted to address trade concerns. It also estimates that the implementation of AfCFTA will lead to an increase in intra-African trade of about 60% by 2022. In addition, afCFTA contains a number of trade provisions that could be used to deal with border smuggling, including provisions to strengthen customs cooperation and facilitate trade. Implementation of these provisions would help reduce the problem of smuggling between Nigeria and Benin. In order to facilitate the implementation of the free trade area, the following institutions have been set up.

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