Historically, African leaders had worked in alliance to apprehend their freedom from European colonialism. However, political unity alone did not bring the likely bond among African countries since Africa needs economic integration as well.
African Union (AU) and its predecessor, Organization of African Unity (OAU) have been working relentlessly to realize the dream of economic unity among African countries. It has been working toward creating African Continental Free Trade Area (AfCFTA), a common market for Africans.
The press release from the Ministry of Trade and Industry forwards the reason countries involve in different trade negotiations. The negotiations are thought to reduce poverty, and unemployment, avoid trade imbalance, and create price competition among producers.
In addition, the negotiations help gain the expected income from trade, ensure development, and use the world trade custom. They will enhance free trade among the countries, as to the ministry.
The Ministry of Trade and Industry (MoT) disclosed that phase one of the AfCFTA which is one of the African Flagship Project is being ratified by most of the African countries. It is a fast speed negotiation, according to the
ministry.
Ato Mussie Mindaye, Multilateral Trade Relation and Negotiation Director at the MoT, told The Ethiopian Herald that African leaders have signed Abuja Treaty in 1991 to realize the Lagos Plan of Action which is the start of move toward the economic unity.
As to Mussie, AU is working to realize the Lagos Action Plan which was projected to build economic integration among African countries. The treaty aimed at establishing economic tie among African countries. It is to build common market for Africans and, eventually, create African Economic Community (AEC) by 2028.
The document from the ministry depicts the necessary phases to be undergone for the establishment of the common market. There are six rounds that need to be accomplished before the realization of the market. Of the six phases, phase one is to be accomplished soon. The rest five phases are to be completed within the left ten years, according to the document.
Intergovernmental Authority for Development, Common Market for East and Southern Africa, East African Community, Community of sub-Saharan States, Economic Community of Central African States, South African Development Community, and Arab Maghreb Union are the pillars as a building block for the establishment of the AEC, learnt from the document.
Mussie mentioned that a total of 52 African countries have signed the negotiation. The only 3 countries left unsigned are Nigeria, Tanzania, and Eritrea. Out of the 52 countries, about 18 have ratified the convention, whereas 9 of them have deposited to the AU, according to the director.
According to the director, Ethiopia, on her part, is on the verge of ratifying the convention. The council of ministers has approved the document prepared by the Ministry of Trade and Industry and sent to the House of Peoples Representatives (HoPR) for final ratification. After ratification, the document will be deposited to the AU, as to him.
After the establishment of the AfCFTA, AU will formulate a customs policy that rules the member countries. One of the policies is the customs policy which applies similar tariff rate in the countries. And, this would result in fair trade among the countries, as to Mussie.
Availability of wide market, accessibility of various goods and services with better price, occurrence job opportunity, and reduction of conflict and disparity would be the positive impact of the negotiation, whereas, reduction in the income of the government, restriction of flexibility of trade policies, and the competition among industries would be the potential negative impact of the negotiation, pointed out Mussie.
Dr. Costantinos Berhutesfa, Former Chairperson of the AU Anti-Corruption Board; Senior Policy Advisor at UN in New York and Chairman Lem Ethiopia, told that the outcome of the economic integration of Africa is significant. Thus, it has insignificant adverse effect on our local producers, as to him.
The Doctor reaffirmed that creating common market for Africa has multitudes of significances. This market would save African cities, in general, and Addis Ababa, in particular, from being a dumping place for used and low quality commodities from other continents. Thus, it would reduce environmental pollution, as to the Doctor.
Kassahun Mamo, Communication and Promotion Manager at Addis Ababa Chamber of Commerce (AACCSA), mentioned that various investors are knocking the door of our country from around the world. This is, perhaps, the result of the reform being undertaken by the government, he explained.
Kassahun added that the authorities in the trade sector need to work in union. There are institutions that should synchronize among one another. They have to work in coalition to the trade in our country, as to him.
Woizero Mesenbet Shemkute, President of the AACCSA, also assured that the government has vowed to make all the necessary actions to enhance the domestic and international trade including policy revision and amendment.
The inaugural of common market for Africans helps the continent stand firm both politically and economically. The market would bring positive impacts to our country as well. It will save the continent from being a dumping place, according to the scholars.
The Ethiopian Herald February 23/2019
BY GETAHUN LEGESSE
