African Union Urges Concrete Action as Regional Trade Integration Hits Hurdles

African countries should translate their regional integration projects into real action on the ground, especially given today’s rapidly evolving landscape of international trade regulation, African Union (AU) trade ministers said following a 4-5 December conference in Addis Ababa, Ethiopia.

The AU’s call for sustained momentum in Africa’s regional integration comes amid reports about delays in the launching of the Tripartite FTA (TFTA), a 26-country trade bloc spanning the continent’s three main Regional Economic Communities, namely the East African Community (EAC), the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA).

The TFTA negotiations started in 2011 and the free trade bloc, once operational, has been envisaged by the AU as a stepping stone for a planned Continental FTA (CFTA), which they aim to launch in 2017.

Tripartite FTA delayed amid criticism

The launch of the TFTA was expected to take place this month during the Tripartite Summit of Heads of State and Government in Sharm El-Sheikh, Egypt.

Among the difficulties pointed out were the harmonisations of differential rules of origin across the continent, the lowering of trade costs, the strengthening of trade and productive capacities through regulatory reforms, trade facilitation, and infrastructure development.

Efforts to renew AGOA on track

Africa’s request for the renewal of the US’ African Growth and Opportunity Act (AGOA), which is set to expire in September 2015 unless Washington lawmakers pass new legislation, “is receiving favourable response,” reported Acyl during the discussions.

In this context, AU trade ministers encouraged African countries to increase their trade capacity so as to be able to fully benefit from the scheme.

Addressing the US as the preference giver, they further called for a review of the eligibility criteria to facilitate participation in AGOA by all beneficiary countries.