The African Continental Free Trade Area (AfCFTA) is a landmark agreement that aims to create a single market for goods and services in Africa. It was signed by 54 out of the 55 African Union member states, making it the largest free trade area in the world by number of participating countries. The legal framework governing AfCFTA consists of several key documents that outline the rights and obligations of member states, as well as the institutional arrangements for its implementation.
The main legal document governing AfCFTA is the Agreement Establishing the African Continental Free Trade Area. This agreement sets out the overall objectives and principles of AfCFTA, including the elimination of tariffs on 90% of goods traded between member states, liberalization of trade in services, and cooperation on investment, intellectual property rights, and competition policy. It also establishes a dispute settlement mechanism to resolve any conflicts arising from its implementation.
In addition to the main agreement, there are several annexes that provide further details on specific aspects of AfCFTA. For example, Annex I contains schedules listing tariff concessions for each member state, specifying which goods are subject to tariff elimination and over what time period. This allows for a gradual reduction in tariffs to minimize disruptions to domestic industries while promoting regional integration.
Another important document is the Protocol on Trade in Goods. This protocol sets out detailed rules and procedures for trade in goods under AfCFTA. It covers issues such as customs procedures, rules of origin (which determine whether a product qualifies for preferential treatment), technical barriers to trade (such as product standards and regulations), sanitary and phytosanitary measures (related to food safety), and trade remedies (such as anti-dumping measures). These rules aim to ensure fair competition among member states while protecting consumers’ health and safety.
The Protocol on Trade in Services complements the protocol on goods by addressing barriers to trade in services, such as restrictions on market access and national treatment. It establishes a framework for liberalizing trade in services across Africa, covering sectors such as telecommunications, financial services, transport, and professional services. This protocol also includes provisions on the movement of natural persons (such as business travelers and service providers) to facilitate the provision of services across borders.
To ensure effective implementation and enforcement of AfCFTA, the legal framework also includes institutional arrangements. The Agreement establishes several bodies responsible for overseeing its implementation, including the AfCFTA Assembly (composed of heads of state or government), the Council of Ministers (composed of trade ministers), and the Secretariat (which provides administrative support). These institutions are responsible for making decisions on various aspects of AfCFTA, such as tariff negotiations, dispute settlement procedures, and monitoring compliance with its rules.