At the recent GCCA Africa Cold Chain Conference held on August 24, Lesley Wentworth, managing director of Tutwa Consulting Group, shared valuable insights on the potential of the African Continental Free Trade Area (AfCFTA) in enhancing imports and exports of perishables. This is Part 2 of a five-part series.
Wentworth continued her presentation by detailing the progress made under the African Continental Free Trade Area (AfCFTA), particularly focusing on the completed Phase One protocols and the ongoing developments in Phase Two.
Phase one protocols
The protocol on trade in goods has largely been finalised, alongside the trade in services protocol. These agreements address familiar issues such as non-tariff barriers, tariff reductions, and sanitary and phytosanitary regulations, as well as rules of origin.
For the trade in services, the key sectors identified by the African Union and its partners include communications, financial services, tourism, and transport. This phase incorporates various related agreements and regulations, including:
- Most favoured nation status
- Transparency and disclosure clauses
- Special and differential treatment provisions
- Rights for governments to regulate their sectors
- Emphasis on mutual recognition
- Anti-monopoly and anti-competitive measures
- Safeguards for balance of payments
While these terms may seem complex, they reflect common practices in global trade negotiations, drawing from best practices established by the World Trade Organization (WTO).
A critical aspect of the negotiations was the protocol on dispute resolution. Initially, there was contention over allowing disputes between investors, but ultimately, the agreement focused on state-to-state resolution. This approach may be revisited for potential flexibilities in the future.
Phase two developments
Moving into Phase Two, the protocols currently under negotiation include investment, intellectual property rights, competition policy, digital trade, and a specific focus on women and youth in trade. Wentworth expressed pride in representing these groups, highlighting the presence of youth representatives.
Recent advancements in this phase include the adoption of the e-commerce protocol in February and the women and youth in trade protocol in March of this year. These developments signify a vibrant and responsive approach to trade dynamics on the continent.
Wentworth emphasised that the AfCFTA is more than a mere free trade agreement; it encompasses all aspects of doing business across Africa. The interdependence of the protocols means that understanding how they interact is vital for their successful implementation.