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By Eunice Hilda Ampomah, RNG
Accra, July 10, GNA – Mr. Alan Kyerematen,
Minister of Trade and Industry, revealed that Ghana had been selected
by the African Union to be the host country of the free African continent
Trade Area (AfCFTA).
The country, he said, was therefore necessary
to establish a secretariat, adding that the Government had begun the establishment of
Secretariat in Accra, which should be completed by March 2020.
Mr Kyerematen said this at a press conference
information meeting organized by the Ministry in Accra to reveal to the public the
the state of AfCFTA and Ghana's contribution to its development.
He stated that the Secretariat, once established
would enable the country to become Africa's new commercial capital, a
regional trade hub and an epic economic center.
It would also serve as a new gateway to
the continent and promote foreign direct investment because it helps the country to
to serve as an attractive investment destination, he said.
The Minister stated that the Secretariat would also be
attract the major international financial institutions and become the
location for the headquarters of international companies doing
business in Africa and offer Ghanaian professionals the opportunity to make themselves known
recruited to work in the Secretariat.
AfCFTA's other objectives are to open up
new market access opportunities on preferential terms for Ghanaian producers
especially small and medium-sized enterprises (SMEs) and offer the country a
possibility of hosting various regional and continental meetings badociated with
l & # 39; AfCFTA.
AfCFTA is a single market (duty free, quota
free) covering the entire African continent with a total population of 1.2
billion and a combined gross domestic product of nearly three billion dollars.
Fifty-four out of 55 countries have signed
AfCFTA and 27 countries have ratified the agreement.
Mr Kyerematen said that AfCFTA was the most
significant development in Africa since the creation of the Organization
of African unity in 1963 and was considered the flagship project of the
World Trade Organization in terms of the number of Member States.
He explained that the AfCFTA
to increase intra-African trade through better harmonization and coordination of
trade on the African continent.
The agreement, he said, included four
components – the framework agreement incorporating the principles, the guidelines
and negotiation modalities; the Protocol on Trade in Goods with the
appendices; the Protocol on Trade in Services with relevant annexes; and the
Protocol on rules and procedures of work for the settlement of disputes.
He stated that three other protocols including
Investment, competitive policy and intellectual property rights would be
concluded in the second phase of the negotiations.
"The strategic objectives and benefits of
AfCFTA includes the development of regional value chains and the facilitation of
investments; improving access to an enlarged market for SMEs in Africa on
preferential trade conditions; and attract foreign direct investment to Africa
with a strong regional and local content, "said the minister.
AfCFTA, he said, would also facilitate the
the integration of African economies into global markets; significantly improve the
Terms of trade for African countries; improve the benefits for consumers in Africa
by lower prices of goods imported from Africa; and significantly
improve employment opportunities in Africa, especially for young people.
Mr. Kyeremateng said that it was felt that
intra-African trade would increase up to $ 35 billion annually or 52% annually.
cent of here 2022.
The benefits of signing the AfCFTA, does it have
explained, would not come automatically, so an action program for
Intra-African Trade (BIAT) has been approved by African Union Heads of State for
Member States to exploit the benefits.
BIAT would address seven priorities
clusters of trade policies, trade facilitation, productive capacity
(Industrialization), trade-related infrastructure (eg Transport and
Communication), trade finance, trade information and the factor market
L & # 39; s integration.
Speaking of the steps taken by Ghana to
Mr Kyerematen said that the government had introduced the One
District, a factory; Strategic anchoring industries; and a region, a park
Initiatives (industrial parks and special economic zones).
Other steps were the establishment of the
EXIM Bank to improve trade and exports, put in place an economic recovery plan
local industries, initiatives to expand ports, develop SMEs,
improvement of Ghana's commodity exchange and e-commerce
Information.
GNA
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