President Muhammadu Buhari has just signed the African Continental Free Trade Area Agreement(AFCFTA)in the Niger Republic Where he is Currently attending The African Union Summit.



Many Nigerians were however not aware of the real meaning, merits and demerits of this Agreement.

Pressmanng.com has taken time to make research and provide you with all you need to know about the Agreement.

MEANING:
The African Continental Free Trade Area(AfCFTA) is a free trade area, outlined in the African Continental Free Trade Agreement among 52 of the 55 African Union nations. The free trade Area is the largest in the world in terms of participating countries since the formation of the World Trade Organisation.

WHAT IS IN THE AGREEMEN?

The agreement was brokered by the African Union(AU) and was signed on by 44 of its 55 member states in Kigali, Rwanda on March 21, 2018. The agreement initially requires members to remove tariffs from 90% of goods, allowing free access to commodities, goods, and services across the continent. The United Nations Economic Commission of Africa estimates that the agreement will boost intra-African trade by 52 percent by 2022. The proposal was set to come into force 30 days after ratification by 22 of the signatory states. On April 2, 2019, The Gambia became the 22nd state to ratify the agreement, and on April 29 the Saharawi Republic made the 22nd deposit of instruments of ratification.

WHEN WILL THE AFCFTA START WORKING?

The agreement went into force on May 30 and will enter its operational phase following a summit on July 7, 2019.

HOW IS AFCFTA GOING TO WORK?

AfCFTA secretariat

The secretariat will be responsible for coordinating the implementation of the agreement and shall be an autonomous body within the AU system. Though it will have independent legal personality, it shall work closely with the AU Commission and receive its budget from the AU. The Council of Ministers responsible for trade will decide on the location of the headquarter, structure, role and responsibilities.

Assembly of the African Union Heads of State and Government

The Assembly is the highest decision-making body. It is likely to meet during the AU Summits.

Council of Ministers responsible for trade

The Council provides strategic trade policy oversight and ensures effective implementation and enforcement of the AfCFTA Agreement.

Committee of Senior Trade Officials

The Committee of Senior Trade Officials implements the Council’s decisions. The Committee is responsible for the development of programs and action plans for the implementation of the AfCFTA Agreement.

Dispute Settlement Body

Its rules and procedures will be laid down in the Protocol on Dispute Settlement, which is to be negotiated.

Committees

Several Committees will be established through protocols to assist with the implementation of specific matters. It is already agreed to establish committees for trade in goods, trade in services, on rules of origin, trade remedies, non-tariff barriers, technical barriers to trade and on sanitary and phytosanitary measures.

Eritrea is the only country that is yet to sign the Agreement

President Muhammadu Buhari was particularly reluctant to join if it hurt Nigerian entrepreneurship and industry. On July 7, 2019 Nigeria and Benin finally committed to signing the Africa free trade at the 12th extraordinary session of the assembly of the union on ACFTA; leaving Eritrea as the only nation out of the 55 African Union Member States to sign up to the deal and to ratify same.

Source: Wikipedia

https://www.pressmanng.com/2019/07/meaning-merits-and-demerits-of-african.html?m=1

Good development. It will definitely help the Continent's Economy. Hope them interpret am wella to baba before he signed sha.

Olanireti:
Good development. It will definitely help the Continent's Economy. Hope them interpret am wella to baba before he signed sha.

im not pleased with your comment at all. It reeks of levity

Nigeria needs to adopt a free trade agreement with the added protection by the law for its states. Then might one be able to set up a cattle ranch in Borno, Taraba or Niger States!

President Muhammadu Buhari was particularly reluctant to join if it hurt Nigerian entrepreneurship and industry.

God bless our darling President Muhammadu Buhari.
We stand with him as he makes the right decisions for our country.
A man after God's heart.

May God continue to give him long life in good health.
Nigeria will be great again.

He wasted a whole year by not signing it..Now ask him what changed in the agreement?Nothing..As in nothing at all..

An APC Stawalrt once told me,politics apart,The only thing he can use Buhari for in his life is to make him his gateman not even his chief security officer.

Great one coming from the administration of His Excellence, President Mohammadu Buhari (GCFR)
This gesture will create a healthy competition across Africa and same time reduce Africa's dependency in foreign products.

The gate is now open for producers and manufacturers to tap into.

Nigeria signs African free trade area agreement

https://www.bbc.com/news/world-africa-48899701

African superpower Nigeria has signed an agreement which aims to increase trade between African countries.

This leaves Eritrea as the only African country not to be part of the trading bloc.

Nigerian President Muhammadu Buhari signed the landmark agreement at the African Union (AU) summit in Niger.

The first step is to cut tariffs for goods from countries within the bloc but the timeframe to do this is yet to be announced.

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The AU says that the African Continental Free Trade Area - called AfCFTA - will create the world's largest free trade area.

It also estimates that implementing AfCFTA will lead to around a 60% boost in intra-African trade by 2022.

Only 16% of international trade by African countries takes place between African countries, according to research by the African Development Bank in 2014.

At the moment some of that intra-Africa trade ranges from fresh fish from the Seychelles to petrol from Angola.

Why is it a big deal that Nigeria signed up?

By Mayeni Jones, Nigeria correspondent

AfCFTA hit a hurdle last year when Nigeria pulled out days before the country was due to sign the agreement.

Nigeria is Africa's biggest economy and has long been a regional leader so, when it stalled, observers questioned if the African trade bloc would ever actually happen.

President Muhammadu Buhari said he needed further consultations in Nigeria.

Since then, the Nigerian Office for Trade Negotiation says it has consulted with 27 groups, including trade unions.

Nigeria has a lot to gain from increasing access to its goods and services to a wider African market. But many of those consulted also feared increased regional integration would lead to unfair competition for jobs and the goods they produce.

With Nigeria signed up, AfCFTA's dream of increasing intra-Africa trade, which currently lags behind the volume of trade the continent does with Europe, is now one step closer.

Now that AfCFTA can offer access to the enormous Nigerian market, they are in a much stronger position to negotiate with regional bodies in other parts of the world.

Why was Eritrea left out?

Eritrea did not participate in the negotiations because of their conflict with Ethiopia,according to the Commissioner for Trade and Industry of the AU Commission Albert Muchanga.

He adds that now the two countries are at peace and Eritrea has asked the AU to go through the agreement with them.

"So over time they are going to come on board" he said.

What are free trade agreements?

Free trade agreements are designed to cut trade tariffs between member countries.

Tariffs are a form of tax, like a border tax.

They are placed on goods coming into a country for a range of reasons, sometimes to try and protect a home-made product.

The purest free trade agreement (FTA) removes all border taxes or trade barriers on goods.

They get rid of quotas too, so there is no limit to the amount of trade you can do.

FTAs also help make a country's exports cheaper and give easier entry to other markets.

They come in all sorts of forms and with different rules but in short, they make trade between countries as liberal as possible and allow for more rules-based competition.



What is Africa's contribution to the quantum of world trade? According to the World Bank, it was 1.5% in 1999 http://web.worldbank.org/archive/AFRtrade/WEB/WB_ASSIS.HTM

This AFCFTA allows goods to move freely, but goods move with people, in order words AFCFTA will allow free movement of people as long as they are able to describe themselves as traders. If Africa's contribution to global trade is less than 2% and this is where all bulk of the money is to be made, what is the value of intra African trade with weak economies, weak manufacturing base, low human capacity, and weak currencies? The answer is that intra African trade is valueless, it is not significant, it is of no value.

We must look therefore at the intrinsic meaning of this agreement, it means that there are no more countries in Africa, it means that the borders have collasped, it means that Africa is no longer a continent, but one single monolithic inconsequential country and economy, where people can now move freely anywhere anytime without any restrictions.

Let us ponder on the meaning of these bolded words The purest free trade agreement (FTA) removes all border taxes or trade barriers on goods. They get rid of quotas too, so there is no limit to the amount of trade you can do. All border taxes are removed ( there cannot be border taxes within the same country), all trade barriers are removed (free movement of people across borders), all quotas removed (anything, anywhere, anytime, anyhow)

Benin can import anything from France, and straightaway dump it on Nigeria, Equatorial Guinea can get anything from Portugal and straight away it is Lagos, Togo can get toxic waste anywhere and send it to Lagos.

No more countries or economies in Africa, WE ARE NOW ONE!

This back and front approach since this trade agreement meeting with African countries, pmb and his minister stand on where it will favour Nigeria manufacturing companies..

What finally change their mind considering the Nigeria manufacturing association meeting and request for Nigeria not to join in signing the agreement because it will favour other countries than Nigeria.

I'm very sure that the dullard doesn't even understand what he signs. #olodopresido

Olanireti:
Good development. It will definitely help the Continent's Economy. Hope them interpret am wella to baba before he signed sha.

Abii ooo

Hmmm




I build websites and I am based in Abuja, see my signature (09011639568) no advance payment

@Pressmanng, you did not get to break it down to the level of where a Nigerian entrepreneur will understand what he/she gets to benefit in terms of tariff waivers if he/she intends to export goods to other African countries.

Manufacturing without cheap constant electricity will make our goods non-competitive in these newly created markets, except we are going to be trading the extractives and agriculture as usual.

Baba howfar, isn't it time we scrapped the monopolies of DISCOs and let each state generate and consume their own power?

The intention behind this African Trade Area is a good one though but I don't see it favouring Nigeria. I think this will make foreign coys in Nigeria relocate to other Business friendly African countries and then send there products here only for sale without paying little or no tariff at all. This might lead to loss of jobs. What the government would have done was first put our infrastructures in place and build Investors' confidence before signing so that they won't relocate. The major reason why foreign investors still invest in Nigeria is just majorly cos of our huge population, that's all.

Benekruku:
Great one coming from the administration of His Excellence, President Mohammadu Buhari (GCFR)
This gesture will create a healthy competition across Africa and same time reduce Africa's dependency in foreign products.

The gate is now open for producers and manufacturers to tap into.

Hello sir

Trust you are fine

Please don't be offended , I have some strong suspicion that you are the same person running the MANNABBQ ACCOUNT

not only is your writing style exactly identical and you use the exact same.manner of punctuation but you also reply yourself with these accounts

Just so you know that goes against nairaland rules

Please if.i am correct do stop it

livebyday:


Hello

Hi

The FG are yet to protects Nigeria traders in just common West Africa.

happney65:
He wasted a whole year by not signing it..Now ask him what changed in the agreement?Nothing..As in nothing at all..

An APC Stawalrt once told me,politics apart,The only thing he can use Buhari for in his life is to make him his gateman not even his cheif security officer.

But unfortunately he's your president

This man don’t know what this will cause, better ask UK

He keeps signing papers and yet nothing is improving

Benekruku:


Hi

Read the rest

That year he refused to sign it, Online supporters hailed him. Now that he has signed, online supporters are still hailing him. What changed between then and now?
Truth is no matter how bad a leader is, there will always be supporters cheering him on

nice one

this one wey baba carry mighty pen so, i hope say him no wetin him de sign because bubu can sign something else like selling us all

illiteratepmb:
I'm very sure that the dullard doesn't even understand what he signs. #olodopresido

You wey go school, what have u achieved in life

What Will A Common Man Stand To Benefit Frm It?

Time to showcase your good handwork. Good idea that will benefits manufacturers of locally made products.


Drabeey was Here

happney65:
He wasted a whole year by not signing it..Now ask him what changed in the agreement?Nothing..As in nothing at all..

An APC Stawalrt once told me,politics apart,The only thing he can use Buhari for in his life is to make him his gateman not even his cheif security officer.

Trump banned Huawei from the US over Huawei's 5g, it's affiliation to the Chinese government, and the potential to pose a threat to USA national security/interest.

Less than a week ago, Trump agreed to lift the ban at G20 summit.

Now my question to you is, what changed? Did Trump just waste precious time in banning Huawei?

You throw insult at Nigeria's president at any slight chance you get but I'm certain you have no clue about governance and it would be a disaster if you were given your family affairs to handle, how much more a ward, local government, state or country.

It's better to stay silent than open your mouth and show the world your foolishness because you're hiding behind a phone.

Be guarded sir.

livebyday:


Hello sir

Trust you are fine

Please don't be offended , I have some strong suspicion that you are the same person running the MANNABBQ ACCOUNT

not only is your writing style exactly identical and you use the exact same.manner of punctuation but you also reply yourself with these accounts

Just so you know that goes against nairaland rules

Please if.i am correct do stop it

dont mind him, he keeps quoting and liking his own comments. The boy is sick