African Continental FTA To Enter Into Force
Lorys Charalambous, Tax-News.com, Cyprus
10 May, 2019
The African Continental Free Trade Agreement (AfCFTA) will enter into force on May 30, 2019, after Sierra Leone and the Sahrawi Republic deposited their instruments of ratification of the agreement.
Under the AfCFTA, tariffs on 90 percent of goods traded between member states will be removed. The agreement will also create a single set of rules for trade and investment among all African countries and is intended to provide legal certainty for investors through the harmonization of trade regimes.
The AfCFTA comprises 55 African countries (of which 52 have signed the agreement). Once in force, it will constitute the largest free trade area globally. The AfCFTA aims to build an integrated market in Africa, covering a market of over one billion people and combined GDP of approximately USD3.3 trillion.
According to the United Nations Economic Commission for Africa, the AfCFTA will increase intra-Africa trade from the current 10-16 percent of overall trade flows to approximately 52 percent by the year 2022.
Besides Sierra Leone and the Sahrawi Republic, the other countries that have deposited their instruments of ratification are: Chad, Congo, Djibouti, Egypt, eSwatini, Ethiopia, the Gambia, Ghana, Guinea, Ivory Coast, Kenya, Mali, Mauritania, Namibia, Niger, Rwanda, Senegal, South Africa, Togo and Uganda.
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