Non-Tariffs Barriers a threat to AfCFTA – Economist
Economist and Senior Lecturer at the University of Ghana Business School (UGBS), Dr. Ebo Tuckson, has cautioned African Trade Ministers against the existence of non-tariff barriers on the continent, which could act as a threat to the gains of the African Continental Free Trade Agreement (AfCFTA).
According to him, although the concept of an AfCFTA is very good, the existence of non-tariffs barriers on the continent might hinder its smooth implementation and success.
In an interview with The Ghana Report (TGR), Dr. Tuckson noted that currently there are a lot of non-tariff barriers, hindering trade on the African continent that needs to be dealt with to enable businesses; both local and international, benefit fully from free trade.
“It’s important that, we try to see how best we can bring down those impediments to trade, so that the free trade will have its full potential benefit. I like the spirit of our leaders in trying to come out with a common market that would allow us harness the potential that Africa has to be able to stand other regions of the world in order to become competitive and have an influence on the global market,” he averred.
A recent report from the Organization for Economic Co-operation and Development (OECD) titled ‘Analysis of Non-Tariff Barriers of Concern to Developing Countries’, mentioned lengthy and cumbersome bureaucratic clearance procedures, roadblocks erected by security officials, monopoly power granted to government-owned entities for imports or exports, Sanitary and Phytosanitary Measures (SPS) regulations, and quality standards set artificially high to restrict movements of goods as Non-Tariff Barriers (NTB) factors obstructing intra-Developing Countries trade.
With Ghana hosting the Secretariat of the Continental Free Trade Agreement, it is believed that it is going to provide opportunities for the country to become the main trade facilitation and investment hub in Africa.
The Economist however maintains that for Ghana and Africa as a whole to benefit fully from AfCFTA, governments across the continent must focus their attention on building strong trade infrastructure that would help facilitate trade at a lower cost.
“Trade infrastructure is critical, both soft and hard infrastructure. It’s important that we build the capacity within the continent to make sure that we facilitate trade at a lower cost so that the continent would be an attractive destination for trade,” he stated.
The creation of single continental market for Africa had long been the dream of the founding fathers of most of the major countries on the continent. The Abuja Declaration of 1991 by the Authority of Heads of States of the Organization of African Union, envisioned the establishment of an African Economic Community. One of the building blocks for the establishment of this community was the creation of a Continental Free Trade Area for Africa.
The realization of that vision of a single market did not materialize until the AU Summit of Heads of States and Government in January 2012, which formally endorsed the decision to establish an African Continental Free Trade Area.
Since that decision was adopted, extensive preparations and negotiations have been carried out by member states which finally culminated in the historic AU Summit decision in Kigali on March 21st, 2018, to formally conclude the first phase of negotiations for the Continental Free Trade Agreement.