FINALLY Africa’s free trade area comprising of 26 countries with a combined population of over half a billion and a combined US$1.1tri gross domestic product (GDP) will be launched in Egypt next June.
The Tripartite FTA will account for half of the membership of African Union, that contributes just over 58 per cent total GDP and 57 per cent of the total population on the continent.
Acting Director of Trade, Investment
and Productive Sector at East African Cooperation Ministry, Mr. Bernard Haule, said the African grand FTA launching will usher in trade in goods at zero tariff among the members who belong to Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and Southern Africa Development Community (SADC).
“Leaders from the tripartite blocs who will include President Jakaya Kikwete as current EAC Chairman, will launch it in Egypt at a summit to be held next June,” Mr Haule said saying negotiations on the subject among the three regional blocs are almost concluded.
Mr Haule said it’s only clauses on movement of business persons and settlement of disputes which are not yet concluded as part of Phase I of the negotiations while Phase II which will involve trade in services and intellectual property rights are yet to start.
“The heads of state will also give a directive on the beginning of negotiations relating to trade in services and dispute settlement mechanism,” he pointed out.
Since 1980, African leaders have been mulling the idea of establishing a grandeur FTA covering all the 52 countries on the continent through regional economic blocs. In 2008, the heads of state and government meeting in Ugandan capital of Kampala agreed to kick-start merging COMESA, EAC and SADC.
The second tripartite summit was held in Johannesburg, South Africa in 2011 which adopted negotiating principles and agreed a roadmap which ended up in a declaration.
Countries that committed to negotiate and later establish the tripartite FTA signed a Declaration Launching Negotiations for the establishment of the Tripartite FTA.
“Out of the 26 countries which make up the combined membership of COMESA, EAC and SADC, 23 countries signed the Declaration,” said Mr Haule.
Madagascar, Eritrea and Ethiopia signed up the Declaration later. Among the envisaged benefits of the Africa FTA include boosting economic growth through trade facilitation, attracting foreign direct investments, encouraging fair competition and harmonizing quality and standards.
“Now our local producers will have a bigger market to exploit, from 45 million people in the domestic market to 150 million in East Africa and over 500 million in Africa, it’s time for our producers to seize the opportunity,” the acting Director of Trade, Investments and Productive Sectors at Ministry of East African Cooperation, said.
[DailyNewsTanzania]