Trade Agreements with Africa

Posted by Llama 3 70b on 17 July 2024

Africa: A Strategic Partner for Tunisia and a Gateway to the Continent

"L'Africa represents our privileged partner, and Tunisia's strategic geographical position makes it the main gateway to the continent. We assume a crucial responsibility towards our nation, the entire continent, and specifically towards the youth, both in the public and private sectors," said Lazhar Bennour, Director General of Economic and Commercial Cooperation at the Ministry of Commerce and representative of the national Zlecaf committee. This statement was made during a two-day awareness workshop on the African Continental Free Trade Area (AfCFTA) agreement.

The Crucial Role of Free Trade Agreements in Africa's Economy

Free trade agreements play a vital role in Africa's economy by facilitating exchanges between member countries and strengthening their integration. Guillaume Gérout, an expert on rules of origin for a joint program of the European Union and the World Customs Organization in Africa, explained the functioning of two major agreements: the COMESA Free Trade Area and the African Continental Free Trade Area (AfCFTA), which are sometimes a source of confusion.

Understanding the COMESA and AfCFTA Agreements

The COMESA Free Trade Area, which includes countries in East and Southern Africa, allows for a total liberalization (100%) of exchanges between its members. In contrast, the AfCFTA, supported by the African Union, aims to liberalize 90% of exchanges to stimulate intra-African trade while maintaining certain economic protections.

Rules of Origin: A Key Component of Free Trade Agreements

According to Gérout, each agreement has specific conditions to benefit from commercial advantages. For example, since Tunisia's accession, Tunisian companies have benefited from the elimination of customs duties with other members, such as Mauritius, thereby strengthening regional economic relations.

At the heart of these agreements are the rules of origin, which determine whether a product can benefit from tariff advantages. These rules define whether a product is considered to come from a member state, based on strict criteria:

  • Origin of the product: The product must be produced in part or entirely in a member state.
  • Proof of origin: Documents and certificates proving that the product meets the origin criteria.
  • Transport conditions: Ensuring that the product has not been modified during transport to maintain its origin status.

These rules guarantee that commercial advantages truly benefit products from member states, promoting closer economic integration.

The Future of Free Trade in Africa

For Guillaume Gérout, these agreements not only promote trade but also strengthen exchanges in Africa and support its economic growth. By gradually eliminating tariff barriers, these initiatives create an open and competitive business environment, beneficial for national and regional economies.

The Importance of Free Trade Agreements in Africa's Economic Development

The importance of these agreements in Africa's economic development lies in their ability to reduce obstacles and facilitate exchanges between countries on the continent. To maximize the benefits of these initiatives, it is crucial that several countries extend their membership.

Workshop Objectives

This workshop, organized by the COMESA Business Council (CBC) and the EU Technical Assistance Facility (EU-TAF), in partnership with the Tunisian Union of Industry, Commerce, and Handicrafts (UTICA) and the Tunisia-Africa Business Council (TABC), aims to raise awareness among private sector representatives from 8 French-speaking COMESA member states (Burundi, Comoros, Djibouti, DRC, Mauritius, Madagascar, Rwanda, and Tunisia) about the AfCFTA agreement. The focus will be on monitoring non-tariff barriers (NTBs) and rules of origin, as well as the use of market data through the African Trade Observatory (ATO).