African Continental Free Trade Area Agreement Upsc

Eritrea has not signed due to tensions with Ethiopia, but after the Eritrea-Ethiopia summit in 2018, the AU Commissioner for Trade and Industry expects Eritrea to sign the agreement. [93] The African Continental Free Trade Area only entered into force when 22 of the signatory states ratified the agreement, which was done in April 2019, when The Gambia was the 22nd country to have ratified it. [67] [68] By August 2020, there are 54 signatories, of which at least 30 have ratified and 28 have deposited their instruments of ratification. [69] [70] [71] The three countries that have ratified their ratifications but have not yet deposited are Cameroon, Angola and Somalia[71][72], although Morocco is also documented as ratified. [73] [74] Africa is India`s main economic partner with nearly 10th of our global trade. Before it was “discovered” by the West, Africa had a flourishing land trade. Subsequent colonialism and mercantilism destroyed domestic trade routes and replaced them with an ecosystem where Africans had better ties to their foreign “mentors” than to each other. With the AfCFTA, Africans are only seeking to correct this historical distortion. Nigeria was one of the last nations to sign the agreement.

With 200 million people, Nigeria is the most populous country in Africa and has about the population of the second and third most populous countries in Ethiopia and Egypt, each of which has a population of about 98 million. With a nominal GDP of $376 billion, or about 17% of Africa`s GDP, it is just ahead of South Africa, which accounts for 16% of the African economy. Given that Nigeria is such an important country in terms of population and economy, its absence was particularly striking when the agreement was first signed. South African President Cyril Ramaphosa stressed this in comments on July 12, 2018, commenting: “The continent is waiting for Nigeria and South Africa. Trade between us will allow us to keep more resources on the continent. South Africa then signed the agreement. [52] In 1963, the Organization of African Unity (OAU) was established by the independent states of Africa. The objective of the OAU was to promote cooperation among African States.

The Lagos Plan of Action of 1980 was adopted by the Organization. The plan suggested that Africa minimize its dependence on the West by promoting intra-African trade. This began with the establishment of a number of regional cooperation organizations in the different regions of Africa, such as. B the Southern African Development Coordination Conference. This eventually led in 1991 to the Abuja Treaty, which founded the African Economic Community, an organization that encouraged the development of free trade areas, unions, an African central bank and a common African monetary union. [21] [22] The 12th Extraordinary Meeting of the African Union on the AfCFTA was convened to bring the new agreement into its operational phase, which was held in Niamey on July 7, 2019. [40] [41] Most AU member states have signed the agreement. Initially, Benin, Botswana, Eritrea, Guinea-Bissau, Nigeria and Zambia did not sign the agreement. [63] Nigerian President Muhammadu Buhari was particularly reluctant when it harmed Nigerien entrepreneurship and Nigerian industry.

[64] On July 7, 2019, Nigeria and Benin committed to signing free trade in Africa at the 12th Extraordinary Session of the Trade Union Assembly on ACFTA; Eritrea is the only nation among the 55 member States of the African Union that has not signed the agreement. [65] [66] [41] Since then, Sierra Leone, Namibia, Lesotho, Burundi and South Africa have signed the AfCFTA at the 31st African Union Summit in Nouakchott. [50] As of July 2019, 54 states have signed the agreement. [51] It can also identify different African transnational companies intended to play a greater role in a future continental common market and to cooperate strategically with them. . . .