African countries are still working to align on crucial components of the African Continental Free Trade Area (AfCFTA) agreement, with significant disagreements remaining on the rules of origin—particularly for the textile and apparel sectors. Experts warn that these unresolved issues carry important policy implications for regional trade and could delay the full realization of AfCFTA’s potential.
Persistent Non-Tariff Barriers and Policy Gaps
At a recent East African Business Council (EABC) forum in Nairobi, stakeholders expressed concern over persistent non-tariff barriers (NTBs) that continue to obstruct trade flows within the continent.
“There is emergence of new non-tariff barriers from the ports, borders to the final destination. This needs to be eliminated to support better recovery post-COVID,” said EABC Executive Director John Bosco Kalisa.
Experts also pointed to delays in tariff liberalisation, as well as slow progress in reaching consensus on trade in services, competition policies, intellectual property rights, and e-commerce guidelines.
Progress Achieved, but Implementation Remains Slow
Despite these challenges, progress has been made. The framework agreement establishing the AfCFTA, along with protocols on trade in goods and services and dispute settlement, have been agreed upon and adopted. Additionally, elements such as trade facilitation, transit trade, and customs procedures are in place.
However, intra-African trade remains low at 15%, far behind regions like the European Union, where it stands at 67%. The continent’s leaders and trade experts emphasize that resolving these outstanding issues is crucial for unlocking Africa’s full trade potential and achieving the goals of economic integration envisioned under the AfCFTA.
