AFRICA'S REGIONAL INTEGRATION AGENDA : Boosting Intra
African Trade and the Establishment of the Continental Free
Trade Area
THE CUSTOMS NEXUS
The First African Union Customs Trade Facilitation Forum
Brazzaville, the Republic of Congo,
19-21 August, 2015
Presentation Outline
1.
2.
3.
4.
5.
6.
Africa's Trade Position and the 2012 Decision
Agenda 2063
The Continental Free Trade Area
The Role of Customs on the CFTA
Action Plan for Boosting Intra African Trade
Trade Facilitation Programs at the AUC
- Implementation of the Trade Facilitation Cluster
- Post Bali Project
6. What Can Trade Facilitation deliver for Africa?
7. The Role of Customs in Trade Facilitation
Africa Trade Position
 Africa remains at 2.7 % of global trade
 Africa Trade more with the rest of the World that it self,
 Intra- African trade @12.3% as compared to Europe-Over 63%
 Informal trade is still significant
 Better terms when exporting overseas (EPAs, AGOA, GSP) whilst
 Africa’s biggest economies trading on an MFN basis
A Myriad of challenges affecting Africa's Trade position, need to:• Addressing supply side constraints and weak productive capacities
• Addressing Infrastructural bottlenecks
• Enhancing opportunities for Intra-Africa Trade through trade information
networks
• Addressing access to finance for traders and other economic operators
• Promoting free movement of people as important ingredient of cross border
trade
• Enhancing trade in services
• Eliminating Trade Barriers through improved trade Facilitation
2012 Summit Decision
 DECISION ON BOOSTING INTRA-AFRICAN TRADE AND FAST TRACKING
THE ESTABLISHMENT OF THE CONTINENTAL FREE TRADE AREA
Endorsed the Framework, Road Map and Architecture for the Establishment
of a CFTA by an indicative date of 2017
Endorsed the Action Plan for Boosting Intra Africa Trade
Development partners to support the implementation of the Action Plan and
the establishment of the CFTA;
Member States supported by the Commission and the RECs to drive the
process of boosting intra-African trade and the CFTA negotiations through
The implementation of activities contained in the Action Plan at the national,
regional and continental levels.
Agenda 2063: The Africa We Want
• A development framework rooted in Pan Africanism & African
Renaissance aimed at the realization of the 21st century as the African
Century
• Based on seven Aspirations: Inclusive growth & sustainable devt,
integration, good governance, peace & security, strong cultural identity,
people driven continent, strong and influential global player
Priority Areas for the First 10 Year Plan
• High Speed Train Network; Establishment of the CFTA; The African
Passport and free movement of people; The Pan-African E-Network;
Implementation of the Grand Inga Dam Project; Implementation of the
Yamoussoukro Decision on the Unification of African Air Space, The
creation of an African Economic Platform.
The CFTA we want
CFTA is One of the flagship programs under the First Ten Year
implementation Plan of the Agenda 2063
 A people centred developmental FTA, that goes beyond tariff
liberalization , but that which increases the choice variables of the
African people
 An FTA that will help to address many of Africa’s most significant
challenges, including: youth unemployment, migration, skills
development,
women’s
empowerment,
industrialization
and
infrastructure development.
 An FTA that will help Africa to strengthen its trade and investment
relations and thereby unleashing its business potential including in its
Services sector.
 An FTA that would help Africa integrate in the global value chains and
strengthen Africa’s geopolitical position vis-à-vis the rest of the world
CFTA progress so far
June 2015 AU Summit Launched the Negotiations
Adopted Decision and Declaration launching the
negotiations
• Endorsed the following documents:
• The Negotiating Principles for the CFTA
• Institutional Arrangements for the CFTA negotiations
• The Terms of Reference for the CFTA-NF
• The Indicative Roadmap for the CFTA negotiations
The First Meeting of the CFTA-NF scheduled for October
2015
Scope of the CFTA
Trade in goods
•
•
•
•
•
•
•
•
•
•
Tariff liberalization,
NTBs,
RoO,
Trade Facilitation
• Customs coop
• Harmonization of Doc
• Transit & Transit
facilities,
Trade remedies,
Standards,
Technical Barriers 2 Trade
SPS
Dispute settlement
Institnl arrangements
Trade in Services
• Transportation
• Telecommunication
• Air, maritime
• Financial Services
• banking,
• insurance,
• Tourism,
• Energy,
Other Issues
• Competition policy
• Intellectual
Property Rights,
• Investment
• Movement of
business persons,
Phase I : Trade in Goods and Services
Phase II: Comp, IPR, Investment
The Role of Customs Administration
in the CFTA process
Customs Administration are core in the effective implementation
and administration of any Free Trade Area.
 Pre-Negotiation Phase:Participation in the Negotiations
• Tariff liberalization,
• Specific Annexes on RoO, Trade Facilitation, Customs cooperation,
Transit & Transit facilities,
Post-Negotiation:
Consistent of determination Rules of Origin Criteria
• Key to conferring origin in an FTA
 Proper and application of Classification and Valuation procedures
• E.g - Crucial in determining Product specific RoO
The BIAT Action Plan & Clusters
 Trade policy
• Effective institutions public and private
• Effective implementation of regional FTAs
 Productive Capacity
• Building the productive capacity
• Trade agreements that work for SMEs
• AIDA, AMV, CAADP
 Trade Facilitation
• Customs – Harmonisation of procedures and documents
• Transit Procedures
• CBM/IBM
Cluster…
 Trade related Infrastructure
• Infrastructure development
• Trade Logistics
• Trade related services
 Market Integration
• Free movement of business persons
• Cross border establishment
 Trade Finance
• Access to trade finance
 Information Cluster
What can Trade facilitation Deliver for
Africa?
 Trade facilitation measures, if well implemented would;
• Benefit consumers who have to contend with higher prices induced by red
tape in imports administration,
• Assist in enhancing Africa's competitiveness due to reduction in compliance
costs, service charges, business opportunity costs, and costs associated with
uncertainty and corruption.
• Enable firms to increase their continental share of trade in goods and services
as a consequence of lower transactions costs.
• Benefit govts by bringing about more efficient control methods, better
resource allocation, and improved trade compliance leading to higher
revenues,
• Improve the investment climate which lead to increase in FDI flows and
ultimately lead to faster economic development,
• Assist in promotion of protection of security, society and human health
through risk management control systems while facilitating legitimate flows of
trade
BIAT Trade Facilitation Cluster Vs the WTO TFA
Program/activity
Output/ target
Link with relevant Articles in the
WTO ATF
 Article 5: Other measures to
enhance
impartiality,
nondiscrimination and transparency
Action(s) Taken this far
 Workshops on Issues of Integrity and
Ethics in Customs which produced a set of
recommendations to the 5th and 6th
Meeting of the AUSCDGCs for further
action.
 A Brazzaville Declaration on Integrity
and Ethics
1
Reduction
Road blocks
of
All
unnecessary
roadblocks are removed
2
Harmonizing and
simplifying
customs
and
transit
procedures,
documentation
and regulations
Number
of
Customs
documents are reduced
Key
Customs
Documents
are
harmonized within RECs
Border operation hours
are harmonized
 Article 1: Publication and
availability of information
 Article 2: Opportunity to
comment, information before
entry into force and consultations
 Article 3: Advance rulings
 Article 4: Procedures for appeal
or review
 Article 7: Release and clearance
of goods
 Article 10: Formalities connected
with importation and exportation
and transit
 Article 11: Freedom of transit
 Seminar on the Revised Kyoto Convention
in 2013. Recommendations of the Seminar
were adopted by the 5th Meeting of the
AUSCDGCs for further action.
Establishment
and
operationalization
of
One
stop
Border
post
(OSBPs)
Integrated border
Management
(Coordinated
border
management)
OSBPs at key border
posts
established
and
border time crossings of
goods are reduced by
50%

 A Field visit by the AU Technical Working
Group on Transit to the Chirundu One Stop
Border Post on the Zambia Zimbabwe
Border.
3
4
Goods
clearance
procedures
simplified
and
clearance
times
reduced
Article 12: Customs
Cooperation
 Article 8: Border agency
cooperation
 Article 10: Formalities connected
with importation and exportation
and transit
 A Draft AU Protocol on Transit was
produced. Work foreseen to be continued
under the CFTA Agreement as an Annex
on Transit
 Statement of Policy on Interconnectivity
for use by Member States
 An AU Roadmap and Strategy for
Interconnectivity
of
Computerized
Customs Clearance and Information
Systems
 Workshops
on
IBM/CBM
with
Recommendations to the AUSCDGCs for
further action
 Development of A Draft AU Border
Strategy
 Workshop on Implementation of National
Single Window with recommendations
DFID Post-Bali Support to the AUC on the WTO TFA
• Development of an overall AUC TFA implementation support
strategy, building on the BIAT Action Plan and other continental
initiatives.
• Design and development of an AU TFA e-platform to monitor
implementation progress and the TA needs of member states and
provide regular TFA-related analysis to the AUC and its structures.
• Development of a viable business dialogue platform to engage with
PSOs and corporates on TFA implementation.
• Mapping on-going and planned TFA-focussed assistance from
bilateral and multilateral development partners.
• Briefing reports on TFA implementation status and donor support in
Africa.
Analysis of Category A notifications by AU MS
Role of Customs in Trade Facilitation implementation
• Good understanding /knowledge of the TF measures and capacity
Building on some specific Articles of the agreement (e.g. Border
agency cooperation, advance Ruling and Customs Cooperation
• Designing Organizational and institutional Frameworks to support
the effective implementation of the TF Measures and the TF
Agreement
• Taking part in the adaption of the existing legal framework (Customs
National and Regional Customs Codes and Management Acts) to be
in line with the TFA Agreement
• Advocating for the accession to the WCO RKC. Crucial to any
Customs Modernization programs
• (Africa 23 out of 52, WCA Region 9 out of 23)
Thank You