Still on African Free Trade Area

While intra-African Trade can bring economic benefits to member states, there should be broad consultation and participation to avoid the pit-falls of past trade agreements. There are already as many as eight Regional Economic Communities (RECS) in Africa including the oldest, Economic Community of West African States (ECOWAS).

Given the challenges facing these RECs, are the advantages assigned to the new African Continental Free Trade Agreement (AfCFTA ) real or as usual promissory? Can AfCFTA really ensure success integration when indeed the RECs have not really delivered industrial development, agricultural growth and services? I think the development of Regional value chains should first be encouraged at the regions to first replace through import substitution and ensure linkages with all sectors. Trade, (sorry fair trade!) is the means to development, not the end itself. Therefore any genuine trade pact must necessarily foster growth; create mass decent jobs and development. For Nigeria to further reduce import duties to 90%, as envisaged by ACFTA will fuel cheaper imports smuggled goods that would overrun domestic markets of local products. Domestic high production costs have undermined competitiveness, perpetuating in turn deindustrialisation, unemployment and income poverty. What are the implications of the ACFTA, for existing ECOWAS treaty, and its notorious Common External tariff (CET) and the contentious new-colonial Economic Partnership for Africa (EPA)? President Buhari must initiate a trade summit and its impact on job creations in Africa. Who funds the implementation of ACFTA and the Customs Union? Whatever the outcomes of such deliberation, ACFTA should allow Nigeria the domestic policy space such that the current policy objectives of job creation and industrialisation as contained in the Economic Recovery and Growth Plan (EPRG) and Nigeria Industrial Revolution Plan (NIRP) are not jeopardized. Twice beaten by WTO and bilateral trade deals of dubious values, Africa must be endlessly shy of new trade deals.