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In 2012, the continent's heads of state and government decided to establish a continental African free trade treaty (AfCFTA) to create a single continental market for African citizens. goods and services in member countries of the African Union. The essence of the treaty is to promote the free movement of businesses, people and investments using a single currency. In this report, Joseph Onyekwere, Deputy Editor-in-Chief, Law and Foreign Affairs and Ngozi Egenuka discuss the pros and cons of the treaty in light of Nigeria's procrastination in signing the agreement as well as the concerns raised by stakeholders . At the first meeting, specifically in June 2015, at the African Union Summit in South Africa, consultations and negotiations for the establishment of the treaty began with the 55 African Union States of Africa. 39, by 2017, the deadline for the adoption of the treaty
many member nations have asked for more time to continue consultations on the potential impacts on their economies, which means that the deadline must be exceeded by reason for this request.
The scope of the treaty covers agreements on trade in goods, services, investment, and dispute settlement rules and procedures, including a series of provisions to facilitate trade, reduce Transaction Costs, Providing Exceptions, Flexibilities and Safeguards The draft agreement was finally signed on March 21, 2018 at the 18th Extraordinary Session of the Assembly of Heads of State and Heads of State. AU government in Kigali, Rwanda.
About 44 of the 55 signatory countries were Rwanda, Niger, Angola, Central African Republic, Chad, Comoros, Congo, Djibouti, Gambia, Gabon, Ghana, Kenya, Mauritania, Mozambique, Côte d'Ivoire and Seychelles. , Algeria and Equatorial Guinea
Other countries: Morocco, Swaziland, Benin, Burkina Faso, Cameroon, Cape Verde, Democratic Republic of Congo, Guinea, Liberia, Libya, Madagascar, Malawi, Mali, Mauritius, South Sudan, Uganda , Egypt, Ethiopia, Sao Tome and Principe, Togo, Tunisia and others
Nine other countries have not signed the agreement: Nigeria, South Africa, Zambia, Tanzania, Burundi, Eritrea, Botswana, Lesotho and Namibia. South Africa reportedly signed the treaty a few weeks ago, leaving eight others, including Nigeria, still weighing the options.
Nigeria indicated that it was delaying the signing of the agreement to broaden and deepen the national consultations, in order to address all concerns. it would not sign any agreement that would not equitably and fairly represent the interests of Nigeria and its neighbors.
The treaty aims to leverage 1.2 billion people on the continent with a combined gross domestic product of more than $ 2 trillion. Some believe that the treaty would have an impact on public revenues and welfare, since the elimination of all tariffs between African countries would erode the cash of trading states up to 4.1 billion dollars per year and worsen poverty, with millions of Africans potentially at risk of famine and death.
Of others, particularly among the poorest economies, are the International Monetary Fund (IMF) estimates that Nigeria is Africa's largest economy with a GDP of $ 405 billion, followed Egypt (332 billion) and South Africa (295 billion US dollars). ). Nigeria, with a population of about 180 million inhabitants, is also the largest market in Africa.
The Nigeria Labor Congress (NLC) launched against the signing of the treaty, warning that it would be "extremely dangerous" as it would open seaports, airports and Similarly, the Nigeria Manufacturers Association (MAN ) also rejected the government's decision to sign the treaty until appropriate consultations and input from all interest groups were received on market access and market access issues. 39; execution. However, a former president, Olusegun Obasanjo, took the opposite position, expressing his disappointment that Nigeria is not among the 44 signatories of the treaty because of its central role in promoting this vision.
President Muhammadu Buhari baderts that Nigeria will be a signatory to the continental free trade agreement only if the national interests of the nation He said: "Trade is important and the terms of trade are important. exchange is important, it is therefore necessary to ensure that our national interests as well as our regional and international obligations are balanced. "
"Accordingly, I have asked the agencies concerned to conduct intensive and extensive consultations across the country on the Continental Free Trade Agreement.
Nigeria is a federation of 36 states plus FCT Abuja, 774 local governments and millions of stakeholders who need to be consulted and listened to, to ensure optimal results
"
Significant progress has been made in these consultations.
The team met key stakeholders in six geopolitical areas. The answers have been varied as one might expect
However, a clear message has emerged that any trade agreement must be both free and fair.
This equity is achievable and we will work on it. "[19659006Itwbadtatedthattheadministrationhadadoptedapolicyofinclusiveeconomicgrowthandwasdeterminedtobeaproblembyreducingthedependenceofmanycountriesoncrudeoil
" To date, we have invested heavily in infrastructure to support our agricultural growth potential.We are also empowering many Nigerian entrepreneurs in the entertainment and education sectors. digital to name just a few, "he said. Consider the countries that have already signed the AfCTA.
He said, "If the decision to sign or not is mine, I will look at the countries that have signed."
The interesting thing about the country The countries that have signed are countries in a city like Rwanda (Kigali), Niger (Niamey) and Ghana (Accra), unlike us where we have cities like Kano, Kaduna, Abuja, Port Harcourt, Lagos and Owerri. Mr. Seni Adio, Nigeria's senior counsel and vice-president of the Business Law Section of the Nigerian Bar Association, said the potential benefits of the FTA are numerous
. He said: "The potential benefits and benefits of AfCFTA are many, including, but not limited to, the creation of a trading block of approximately $ 1.2 billion. of Africans, a volume of exchanges of about 2.5 trillion in 2018 and to foster innovation, competitiveness, specialization and collaboration.
"D & # Others argue that this would encourage the constituent states to invest in infrastructure, in the areas of energy, transport, agriculture, technology, justice and security. quick resolution of disputes, to name only a few
. Not only is it unacceptable, frankly, it is outrageous.
According to Adio, the intensification of competition and pan-African integration will definitely favor meritocracies.
That said, the legal authority has not wasted time in enumerating some of His concerns: "The high cost of manufacturing in Nigeria due to the de minimis (minimum) level of the United States. energy, aggravated by a very poor transport network and, in general, obsolete public infrastructure represents a challenge.
This could also lead to potential dumping of artificially cheap products in Nigeria because of the high population, which means that when sales are aggregated, these actors will realize substantial profits. "
He pointed out that another major drawback of the deal could be on the issue of migration / immigration and the resulting security challenges that it is likely to pose to the already-traumatized security architecture
The SAN added that even though it did not consider it as a matter serious problematic, linguistic and cultural barriers could be a particular challenge
"Distinct from its essence, the case of integration is extremely irresistible. Whatever the problems, they can be solved or, on the contrary, significantly mitigated by the implementation of rules and policies.
"In addition, some aspects of the agreement can be implemented in stages.profession, we should enthusiastically adhere to the agreement because of the business opportunities that it would provide our lawyers and commercial law firms, as well as reinforce the already flourishing and enviable position of Lagos as a destination for the settlement of commercial disputes by arbitration.
It is believed that, having taken his time to weigh the pros and cons, as well as the concerns of the stakeholders, any decision made by the Nigerian government would be in the interest of the country.
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