AFRICAN UNION COMMISSION
Department of Trade and Industry
By
Hussein Hassan Hussein
Head of Industry –AUC
Boosting Intra-Africa trade (BIAT) and
The Continental Free Trade Area (CFTA)
7TH CAMEF, ABUJA - NIGERIA: 27 March 2014
Background
• The January 2012 AU Summit adopted, during
its 18TH Ordinary Session in Addis Ababa, a
decision to establish a Pan - African Continental
Free Trade Area (CFTA) by the indicative date of
2017.
• It also endorsed an Action Plan for Boosting
Intra-Africa Trade (BIAT). This Action Plan
contains seven major clusters aimed at Africa’s
sustainable economic growth and development.
BIAT Clusters
1)
2)
3)
4)
5)
6)
7)
Trade Policy
Trade Facilitation
Productive Capacity
Trade-Related Infrastructure
Trade Finance
Trade Information and
Factor Market Integration
CFTA Road Map
• Completion Regional FTA Processes by 2014
- TFTA (COMESA-EAC-SADC)
• Consolidation of regional processes into the
CFTA between 2015 and 2016 with no roll
back on the Acquis
• Establishment of the CFTA by indicative date
2017
CFTA Architecture
• AU Summit (Commission)
• High Level African Trade Committee
– Heads of State and Chairs of RECs
•
•
•
•
•
Dispute Settlement
Conference of Ministers of Trade (STCs - 2015)
Customs Technical Committee
CFTA Negotiations Forum
African Trade Forum, African Business Council,
African Trade Observatory and Monitoring and
Evaluation Mechanism
CFTA Architecture
1. Operationalization of the CFTA Architecture
– Trade Observatory , African Business
Council, Africa Trade Forum, Customs
Technical Committee
– Continental Task Force
– CFTA-Negotiating Forum
2. Preparation of the CFTA documents
• Negotiating Principles, TOR and ROP for the
CFTA-NF, CFTA Agreement & Annexes
Progress to Date
• During the 2012 African Conference of African
Ministers of Trade (CAMoT), Ministers directed
that further consultations be undertaken to
Consider the BIAT Draft Implementation Strategy.
– Consultations have been undertaken in all the eight
RECs and Member States.
• First Meeting of the Continental Task Force on the
CFTA held 17-18 October 2013 to Consider and
Adopt Terms of Reference of the Continental Free
Trade Area Task Force (CTF) - COMESA, ECCAS,
ECOWAS, IGAD and SADC and UNECA and AfDB
participated
Progress to Date
• Tripartite Negotiating Forum (TTNF) In Uganda in
October 2013
• Tripartite Negotiating Forum (TTNF) In Namibia
in February 2014
– an agreement by the 3 RECs will be signed by June
2014, paving the way for the launch of the FTA.
• AU Summit, Addis Ababa – January 2014
– HATC Meeting and Decisions
• COMESA Summit: February, Kinshasa
• COMESA Business Forum – Egypt: April 2014
Meeting of the CTF on CFTA held
17-18 October 2013 Discussed:
• Consideration and Adoption of Terms of
Reference, Rules of Procedure of the CTF
• Technical issues on CFTA Negotiations
• Operationalizing the CFTA-Negotiating Forum
• Consideration of the BIAT Draft Implementation
Strategy
• Pre-negotiations Stakeholder Engagement
Strategy for the CFTA
• Resource Mobilization and Work Program of the
CTF on the CFTA
Technical Issues Discussed
• Tariff phase down, trade remedies, non-tariff
barriers, sanitary and phyto-sanitary measures,
dispute settlement, institutional arrangements,
adjustment cost mechanisms.
• Customs procedures and processes, customs
cooperation, harmonisation and simplification
of the procedures and documentation, rules of
origin, trade facilitation, and transit procedures
among others
Next Steps
Launch CFTA Negotiations in mid 2015
Stakeholder Engagement Activities
–Regional Private Sector Dialogue on
the CFTA
– Workshops for Parliamentarians and Civil
Society ,etc
Capacity Building
• MS, RECs
• Current Work –Supported by UNECA
Next Steps
– The preparation of key draft documents for
consultations by stakeholders:
• Draft Negotiating Principles and Terms of Reference for
the CFTA-NF
• Draft Declaration Launching the Negotiations
• The Draft CFTA Agreement and its annexes.
• In addition, technical studies and analytical
work to support policy makers in developing
positions for the negotiations and to inform
the national and regional consultations
Next Steps
• Review of previous studies on the continental CFTA
including studies by UNECA, UNDP etc.
• Perceived Impact Assessments for each member state and
AU.
• Studies on the cost of not having a Continental FTA
• Empirical studies and situational analysis of existing Africa
FTAs to highlight best practices and benefits
• Sectoral Studies to simulate and identify potential revenue
loss and propose possible compensatory policy
adjustments
• Country level Studies for member states on intra Africa
trade flows to identify key products and issues of interest
for each country
• Trade in Services Studies to identify potential gains and
DTI Work Plan (2014 – 2017)
• Aligned to the 2014 – 2017 AUC Strategic Plan
– Outcome 2: Expand Agricultural
production…developing the Agro-processing and
businesses sectors, increase market access and …
promotion of smallholder agriculture, sound
environment and natural resource management,
including climate change; and;
– Outcome 3: Infrastructure development and
environment for inclusive economic development
industrialization, private sector-led intra-African Trade
and sustainable utilization of natural resources created.
DTI Work Plan 2014 - 2015
•
•
•
•
Regional Consultative Meetings
Capacity building on the CFTA
Stakeholder engagement Workshops
Co-ordinate and Implement the Work
Programme on Commodities/African
Commodities Strategy
• Trade in Services and other TRIs
DTI Work Plan 2014 - 2015
• Operationalization of the African Business
Council and the Trade Observatory
• Coordinate and Monitor the implementation
of the BIAT Action Plan
• Develop Common Positions on WTO and
other negotiations including EPAs
• Coordinate Trade and Investment
Components of Partnership
7TH CAMEF Discussion Points
Complementary policy issues:
– Investment and Services
– Implementation of the BIAT/CFTA – how
far will we be?
•Industrial development – RVCs (Agriculture)
•infrastructure development
 How the CFTA affects regional processes
 Movement of natural persons, Trade
facilitation, export taxes, NTBs, RoO,
Expected Results from 7TH CAMEF
• A clear Plan of Action (PoA) for Africa’s BIAT
Implementation and CFTA Negotiations
– Experts from MS/RECs should be organised
specifically towards the preparation of the draft key
documents.
– SUPPORT AU target for the completion of the draft
documents and studies towards the 2014 CAMoT
(October 2014)
– develop a work plan based on 7TH CAMEF
recommendations
• HATC (CHAMPIONS) requested to operationalize
and implement the PoA
Thank You