ADDIS ABABA – Ethiopia has a chance to alleviate the impacts of illicit trade when the widely acclaimed regional trade bloc, Africa Continental Free Trade Area (AfCFTA) comes to effect, according to an expert in the field.
According to Getachew Regassa, Secretary- General of Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA), the 35 percent customs duty rate which is relatively higher than neighboring countries, motivates people to engage in illicit trade.
Therefore, there is a need to revise the rate as one of the solutions to address the problem, Getachew added. He further commended the government’s effort to establish a task force against illicit trade.
Ashenafi Dassa, Customs Rule Compliance Head at Ethiopian Customs Commission on his part told The Ethiopian Herald that the commission works to control any contraband trade which is an illicit action in the country.
According to Ashnafi, ‘’One national operation taskforce’’ has been established in the country to control illegal trade through enlarging linkage from the federal level to Keble levels all over Ethiopia.
The taskforce has close to 18 institutions which are concerned bodies on the issue and enabling control and give a decision on illegal traders based on the guide.
The task force is led by Chairman of Customs Commission, Federal police and national chairman of defense force deputy commissioner, and Deputy Secretary of Customs Commission, and 14 other members.
‘’The main objective of establishing operation taskforce is to gain substantial outcome on economic, social, and political affairs of the country.’’ Ethiopia has lost many things during the past many years.
On the other hand, the entering into force of the African Continental Free Trade Area (AfCFTA) is likely to play a decisive role in combating illicit trade due to countries are import 90 percent of the commodities without any customs duties.
The AfCFTA has the ambition, in the final analysis, to establish a continental market. Briefing journalists yesterday, State Minister of Foreign Affairs Hirut Zemene said one of the flagship projects of Agenda 2063 is the African Continental Free Trade Area, AfCFTA.
During its latest Extraordinary Summit of Heads of State and Government in Niamey, Niger The African Union launched the operational phase of the AfCFTA. The launch of the AfCFTA follows the coming into force of the trade area on the 30th of May, after the deposit of the required minimum of 22 ratifications by member states of the AU. Accordingly, the free trade area will be operational starting from July 1, 2020, Hirut said.
With the launch of the operational phase from July 2019, traders across Africa will be able to make use of preferential trading arrangements offered by the AfCFTA, with the understanding that the trade transactions are among the Member States that have deposited the instruments of ratification and those that conform to the provisions on rules of origin governing trade in the AfCFTA. All member states of AU except Eritrea have endorsed AfCFTA, it was learned.
The Ethiopian Herald, July 13/2019
BY MESERET BEHAILU
