Launch of a new Treaty of African free trade – The World

The Tripartite Free Trade Area must become a common market uniting 26 of the 54 African countries. Credits: KHALED DESOUKI / AFP

The leaders of 26 African countries are about to sign, Wednesday, June 10, a free trade agreement, which includes Eastern half of the continent and must facilitate the movement of goods and merchandise

The Tripartite Free Trade Area (Tripartite Free Trade Area – TFTA)., or “Tripartite” must become a common market uniting 26 of the 54 African countries. His kicks off in Sharm el-Sheikh resort on the Red Sea, to the summit chaired by the head of the Egyptian state Abdel Fattah al-Sissi. Wednesday “The TFTA will be officially launched” , told AFP the Egyptian Minister for Industry and Trade, Mounir Fakhri Abdel Nour, adding: “we end the formalities. The treaty is ready “.

625 million inhabitants

From Cape to Cairo, in the words of the politician and British mining magnate Cecil Rhodes in 19 ^th century, the “Tripartite” will include South Africa and Egypt, the two most developed economies in the continent and dynamic countries like Ethiopia, Angola, Mozambique and Kenya. But not Nigeria, the first African GDP thanks to oil. All together more than 625 million people and more than 1,000 billion of GDP (900 billion).

But it will be several months before truly embodies the Tripartite . The calendar “dismantling of customs barriers” has not yet been established, has warned Mr. Abdel Nour. To enter into force, the treaty must be ratified within two years by the parliaments of 26 countries.

Thick Borders

“The ultimate goal is to allow easy movement of goods between countries without taxes “ said Peter Kiguta, Director General of the EAC. In more prosaic terms, a manufacturer of pens or household appliances based in the TFTA should easily be able to sell its products in other countries in the region, he said.

In fact, only 12% of trade in Africa between African countries, against 55% in Asia and 70% in Europe.

This is the result of what economists call “the thickness “ borders. It measures the number of documents to be produced for import and export: on average seven to eight customs papers in Africa, against four or five in Europe. And it also takes into account delays and border crossing costs. The “Tripartite” should thus provide a mechanism for identifying non-tariff trade barriers and eliminate them.

The treaty also aims to increase the share of Africa in trade internationally – which currently stands at 2% – developing domestic industries. “This is a strong message, proving that Africa is working on its economic integration, and to create a favorable environment for trade and investment” , had welcomed last week the government South Africa.