21. The African Continental Free Trade Agreement (AfCFTA)
- Author:
- Michael Asiedu
- Publication Date:
- 05-2018
- Content Type:
- Policy Brief
- Institution:
- Global Political Trends Center
- Abstract:
- On 21 March, 2018, 44 African heads of state and government dignitaries signed a historic African Continental Free Trade Agreement (AfCFTA) at the 10th Ordinary Session of African Union (AU) Heads of State Summit held in Kigali, Rwanda. The AfCFTA is the largest free trade area since the World Trade Organization (WTO) was established in 1995. The Session was under the theme: “Creating One African Market,” and falls under AU’s Agenda 2063 Initiative. The AfCFTA is also one of the biggest free-trade areas with regards to the number of countries, thus, encompassing 1.2 billion people with over $4 trillion in combined consumer and business spending should the remaining 11 AU member countries join the Agreement (Signe, 2018). The AfCFTA would additionally become effective 30 days subsequent to ratification by the legislative houses of at least 22 African countries; countries that signed the Agreement have 120 days for its ratification. This paper seeks to outline the significance of the Agreement, its aims, challenges and the continuous work needed to sustain it going forward with potential impact it may have on third country agreements with AU member countries.
- Topic:
- Treaties and Agreements, Economy, Tariffs, Free Trade, and African Union
- Political Geography:
- Africa