PAN AFRICAN PARLIAMENT RESOLVES TO EXPEDITE THE RATIFICATION OF THE AGREEMENT ON AFRICAN CONTINENTAL FREE TRADE AND PROTOCOL ON FREE MOVEMENT OF PERSONS

The Pan African Parliament at the Sixth Ordinary Session of the Fourth Parliament in May 2018 resolved to initiate advocacy activities to expedite the signature, ratification, domestication and implementation of the Agreement Establishing the African Continental Free Trade Area (CFTA) and the Protocol to the Treaty Establishing the African Economic Community Relating to Free Movement of Persons, Right of Residence and Right of Establishment. 

PAP also urged their parliamentarians to popularize the CFTA to the members of their respective national parliaments and communities in order to promote national ownership of benefits of the CFTA and the Protocol on Free Movement of Persons in the socio-economic development of Africa. PAP further resolved to work in collaboration with National Parliaments and their members to urge their respective Governments, where applicable to sign, ratify, domesticate and implement the CFTA and the Protocol on Free Movement of Persons.

PAP adopted the resolution following a report by its Permanent Committee on Trade, Customs and Immigration which had earlier held a workshop to create  awareness and strengthen the capacity of members of the Pan African Parliament on the provisions and various benefits of the CFTA and Free Movement of Persons especially in the socio-economic development of Africa.

It noted with concern, the huge income irregularities and deepening poverty levels which have lent fertile ground for social, economic and political instability, clandestine migrations and the use of unemployed and marginalized youth by armed and terrorist groups.

The Negotiation Process for the CFTA had begun in June 2015 by the AU Heads of State and Government and culminated in 44 African countries signing the CFTA in Rwandan capita Kigali in March 2018 to enable the long-awaited economic integration and movement of goods and persons across member states in the continent. The free trade agreement was first introduced in January 2012 during the 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union, held in Addis Ababa, Ethiopia. The member states adopted the decision to establish the Continental Free Trade Area by 2017.

Regrettably, eleven (11) countries failed to sign the agreement for various reasons. They include two of the largest economies in the continent, South Africa and Nigeria as well as Benin, Botswana, Burundi, Eritrea, Guinea-Bissau, Lesotho, Namibia, Sierra Leone and Zambia.

The CFTA is meant to create a single continental market for goods and services; enhance free movement of business persons and investments; enhance competitiveness at the industry and enterprise level through exploiting opportunities for full-scale production.

Specifically, it will eliminate tariffs on Intra-Africa trade of goods and services and create a single continental market with free movement of business people. Intra-Africa trade currently stands at about 16 percent of the continent’s total, compared with 19 percent in Latin America and 51 percent in Asia. The agreement could increase this by half, the United Nations Economic Commission for Africa estimates. Joined together, the continent’s combined GDP would be almost the size of the Germany’s, which would give Africans a stronger voice in global trade negotiations, according to AU Commission Chairperson Moussa Faki Mahamat. It will also bring together the 1.2 billion African population with a combined gross domestic product (GDP) of more than $3 trillion.

Meanwhile, Ghana, Kenya and Rwanda made history as the first countries out of the 44 states to ratify the Co ntinental Free Trade Agreement, having submitted their instruments of ratification ahead of the 180 days deadline for the landmark agreement to come to force, with or without the 11 countries that did not sign the Agreement. A minimum of 22 ratifications are required for entry into force of the Agreement.