WTO

With 22 ratifications now guaranteed, the African Continental Free Trade Agreement, (AfCFTA), will soon enter into force. Once in force, its efficacy will depend on the political will to implement it as well as its enforcement mechanisms. The AfCFTA’s Protocol on Rules and Procedures on the Settlement of Disputes establishes a WTO-like Dispute Settlement Mechanism with Panels and an Appellate Body.

Although practically difficult to achieve, a World Trade Court or this sort may also remove the feeling of guilt from African officials when dragging their fellows to a regional trade dispute settlement forum. Understandably, the political tensions among the AMU states concerning the Western Sahara, which has paralyzed the organization for decades now, may have prevented them from attempting to solve the matter intra-regionally.

Despite the existing EAC legislation, citizens continue to face challenges to movement of goods and persons across the borders. The ability of EAC citizens to enforce these trade commitments has been grossly underused, and such disputes have been referred to diplomatic means for resolution. It can only be hoped that moving forward, more persons will seek legal redress for such disputes.

The last two decades has seen Intellectual Property, (IP), increasingly regulated by bilateral and regional free trade agreements, (FTAs), rather than through multilateral forums like the WTO. This trend is evidenced in trade between China and African countries, which is dominated by bilateral trade agreements.

Since TRIPS is extremely flexible on the PBRs regime to be adopted, they should obtain guidance from other balanced international instruments such as ITPGRFA. Further, they can obtain vital lessons from states such as India.

The utility of trade remedy measures has been questioned, particularly due to their negative impact on the domestic market. This is particularly so because the price effect these measures have is primarily borne by consumers in the domestic market. Where the targeted products are intermediate or capital products, increased prices would adversely impact industrialization and development by the imposing country. Thus trade remedy measures may have counterintuitive consequences.

The creation of a single continental unit is meant to allow the formation of larger economies of scale and enhance the region’s specialization in agricultural and industrial production. However, the reduction or even elimination of tariffs will not be enough to reach the AU’s objective of doubling the existing level of intra-African trade, as significant and continent-specific challenges lie ahead.

Hopefully, a sweltering sun in Africa has not caused AU experts to see mirages of intra-regional finance. Providing for intra-African investments in the current context of the continent is like offering classes on how to make planes to students living in countries that cannot yet make cars: Virtually all the real action takes place elsewhere. Instead of negotiating a chapter on investment, delegates must prioritize a chapter on how AU members can build their capacity to engage in deeper economic relations, especially on how to leverage FDIs in natural resources to develop adequate infrastructure for intra-African investment.

Thus, for purposes of AfCFTA sustainability, AfCFTA implementation mechanisms should: integrate inclusive and participatory decision-making process; retain policy space for national interests; and extend AfCFTA benefits to all society groups—women, youth, people with disabilities, and Micro, Small and Medium Enterprises (MSMEs)—without comprising the sustainability of environmental resources.

Africa is currently at a risk of reaching the zenith of bilateralism/regionalism in terms of the number of regional trade agreements (RTAs) present in the continent. Yet the advantages of close economic integration have not yet been adequately witnessed in African Regional Trade Agreements (RTAs). Moreover, it is generally the case that each African state is a member to at least two or more RTAs. This has created the quintessential spaghetti bowl on the continent.