Non-Tariff Barriers key to the success or failure of AfCFTA.


A Non-Tariff Barrier is any obstacle to international trade that is not an import or export duty. They may take the form of import quotas, subsidies, customs delays, technical barriers, or other systems preventing or impeding trade. Achieving the stated aim of the AfCFTA, ‘to create one African market’, will require eliminating of such NTBs.

 As we celebrate the launch of AfCFTA , it is critical for both academics and professionals to start assessing the new kid on the bloc. Any criticism should be re4garded as constructive and not a wish list for the failure AfCFTA. As the secretary general of AfCFTA and team are in Ghana, the question is , has enough ground work been done to ensure the smooth implementation of AfCFTA.  Africa looks forward to the elimination of poverty through trade as the intra African trade is expected to increase from the current 15%.

AfCFTA, which in the long-term is still likely to have a markedly positive impact on the intra-African trade of goods and services.  It is vital that expectations of governments and businesses are managed, and that signatories have the patience to deliver a project over what will be a long time period. There will be pressure on the people of Africa as we have both prognosis of success and failure on the continental free trade area. The establishment of the portal for reporting non trade barriers and measures is appositive move which needs a clear procedure and follow up protocol for it to be effective.

The issue with NTBs is not much in the reporting but the change of the procedure and policy on the ground which takes years to be amended and realised by the infringed parties.

The following are some of the NTBs AfCTA needs to address if it is to succeed in the African trade terrain.

 

Sanitary and Phytosanitary Measures-Import and export restrictions put in place to preserve the health of humans, animals, and plants. AfCFTA needs to come up with a solution to challenges surrounding SPS measures which are resulting in delays of cargos across the continent. There are fees payable to both the exporter and importer, including in transit countries which increases the cost of the goods and borne by the final consumer.

Quality check assessments -The requirement by most governments of prior assessment of Cargo increases the costs on the traders. the worrisome part of these checks are being conducted by organisations outside Africa and charges are beyond the reach of many who ends up looking for alternatives. The AfCFTA needs to lobby the governments to have centralised quality check systems which all member states subscribe too. This is will allow African businesses to be certified rather than specific products.  

Customs procedures- one of the biggest setback of African regional is the inherited borders from colonialism. The existing of distinct customs administrations have to balance between trade facilitation and collection of revenue has remained rigid and tilted to the later. Customs processes and procedures being implemented across the region by different countries have resulted in border delays. A good example is the introduction of electronic seals by Zimbabwe to curb transit fraud which has resulted in trucks spending days at its entry point has they wait to be sealed. This has resulted in additional costs for the transporters who have to pay sealing fees and wait for seals which are not readily available in most cases. There is need for harmonisation of customs procedures if AfCFTA is to succeed. There is need for considering single document for transiting despite the number of countries involved. This will see a truck using the same documents from South Africa to Tanzania.

Rules of origin - the criteria needed to determine the nationality of a product – could make or break the African Continental Free Trade Area (AfCFTA). The RoO plays a pivotal role in granting the preferential treatment to products originating from the trade area which is the quintessence of any FTA. There are lessons to be learnt from existing RECs if AfCFTA RoO are to promote and not hinder intra African trade. Rules of origin should be made simple and business friendly for the gains expected from the AfCFTA to be realized.

These are just a few NTBS which needs redress by AfCFTA as we celebrate its launch. Some include border bureaucracies, costly user road charges, inadequate trade related infrastructure among others. AfCFTA secretariat has a daunting task ahead to make the continental free trade area work. It’s a make or break and history will judge us for any failure or success.

 

Levious Chiukira

lchiukira@gmail.com

+263773065062

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