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AFRICAN UNION COMMISSION Department of Trade and Industry By Hussein Hassan Hussein Head of Industry –AUC Boosting Intra-Africa trade (BIAT) and The Continental.

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Presentation on theme: "AFRICAN UNION COMMISSION Department of Trade and Industry By Hussein Hassan Hussein Head of Industry –AUC Boosting Intra-Africa trade (BIAT) and The Continental."— Presentation transcript:

1 AFRICAN UNION COMMISSION Department of Trade and Industry By Hussein Hassan Hussein Head of Industry –AUC Boosting Intra-Africa trade (BIAT) and The Continental Free Trade Area (CFTA) 7 TH CAMEF, ABUJA - NIGERIA: 27 March 2014

2 Background The January 2012 AU Summit adopted, during its 18 TH Ordinary Session in Addis Ababa, a decision to establish a Pan - African Continental Free Trade Area (CFTA) by the indicative date of 2017. It also endorsed an Action Plan for Boosting Intra-Africa Trade (BIAT). This Action Plan contains seven major clusters aimed at Africa’s sustainable economic growth and development.

3 BIAT Clusters 1)Trade Policy 2)Trade Facilitation 3)Productive Capacity 4)Trade-Related Infrastructure 5)Trade Finance 6)Trade Information and 7)Factor Market Integration

4 CFTA Road Map Completion Regional FTA Processes by 2014 - TFTA (COMESA-EAC-SADC) Consolidation of regional processes into the CFTA between 2015 and 2016 with no roll back on the Acquis Establishment of the CFTA by indicative date 2017

5 CFTA Architecture AU Summit (Commission) High Level African Trade Committee – Heads of State and Chairs of RECs Dispute Settlement Conference of Ministers of Trade (STCs - 2015) Customs Technical Committee CFTA Negotiations Forum African Trade Forum, African Business Council, African Trade Observatory and Monitoring and Evaluation Mechanism

6 CFTA Architecture 1. Operationalization of the CFTA Architecture – Trade Observatory, African Business Council, Africa Trade Forum, Customs Technical Committee – Continental Task Force – CFTA-Negotiating Forum 2. Preparation of the CFTA documents Negotiating Principles, TOR and ROP for the CFTA-NF, CFTA Agreement & Annexes

7 Progress to Date During the 2012 African Conference of African Ministers of Trade (CAMoT), Ministers directed that further consultations be undertaken to Consider the BIAT Draft Implementation Strategy. – Consultations have been undertaken in all the eight RECs and Member States. First Meeting of the Continental Task Force on the CFTA held 17-18 October 2013 to Consider and Adopt Terms of Reference of the Continental Free Trade Area Task Force (CTF) - COMESA, ECCAS, ECOWAS, IGAD and SADC and UNECA and AfDB participated Senior Officials and Extra-Ordinary CAMoT – April

8 Progress to Date Tripartite Negotiating Forum (TTNF) In Uganda in October 2013 Tripartite Negotiating Forum (TTNF) In Namibia in February 2014 – an agreement by the 3 RECs will be signed by June 2014, paving the way for the launch of the FTA. AU Summit, Addis Ababa – January 2014 – HATC Meeting and Decisions COMESA Summit: February, Kinshasa COMESA Business Forum – Egypt: April 2014

9 Meeting of the CTF on CFTA held 17-18 October 2013 Discussed: Consideration and Adoption of Terms of Reference, Rules of Procedure of the CTF Technical issues on CFTA Negotiations Operationalizing the CFTA-Negotiating Forum Consideration of the BIAT Draft Implementation Strategy Pre-negotiations Stakeholder Engagement Strategy for the CFTA Resource Mobilization and Work Program of the CTF on the CFTA

10 Technical Issues Discussed Tariff phase down, trade remedies, non-tariff barriers, sanitary and phyto-sanitary measures, dispute settlement, institutional arrangements, adjustment cost mechanisms. Customs procedures and processes, customs cooperation, harmonisation and simplification of the procedures and documentation, rules of origin, trade facilitation, and transit procedures among others

11 Next Steps Launch CFTA Negotiations in mid 2015 Stakeholder Engagement Activities – Regional Private Sector Dialogue on the CFTA – Workshops for Parliamentarians and Civil Society,etc Capacity Building MS, RECs Current Work –Supported by UNECA

12 Next Steps – The preparation of key draft documents for consultations by stakeholders: Draft Negotiating Principles and Terms of Reference for the CFTA-NF Draft Declaration Launching the Negotiations The Draft CFTA Agreement and its annexes. In addition, technical studies and analytical work to support policy makers in developing positions for the negotiations and to inform the national and regional consultations

13 Next Steps Review of previous studies on the continental CFTA including studies by UNECA, UNDP etc. Perceived Impact Assessments for each member state and AU. Studies on the cost of not having a Continental FTA Empirical studies and situational analysis of existing Africa FTAs to highlight best practices and benefits Sectoral Studies to simulate and identify potential revenue loss and propose possible compensatory policy adjustments Country level Studies for member states on intra Africa trade flows to identify key products and issues of interest for each country Trade in Services Studies to identify potential gains and priority sectors for negotiations

14 DTI Work Plan (2014 – 2017) Aligned to the 2014 – 2017 AUC Strategic Plan – Outcome 2: Expand Agricultural production…developing the Agro-processing and businesses sectors, increase market access and … promotion of smallholder agriculture, sound environment and natural resource management, including climate change; and; – Outcome 3: Infrastructure development and environment for inclusive economic development industrialization, private sector-led intra-African Trade and sustainable utilization of natural resources created.

15 DTI Work Plan 2014 - 2015 Regional Consultative Meetings Capacity building on the CFTA Stakeholder engagement Workshops Co-ordinate and Implement the Work Programme on Commodities/African Commodities Strategy Trade in Services and other TRIs

16 DTI Work Plan 2014 - 2015 Operationalization of the African Business Council and the Trade Observatory Coordinate and Monitor the implementation of the BIAT Action Plan Develop Common Positions on WTO and other negotiations including EPAs Coordinate Trade and Investment Components of Partnership

17 7 TH CAMEF Discussion Points Complementary policy issues: – Investment and Services – Implementation of the BIAT/CFTA – how far will we be? Industrial development – RVCs (Agriculture) infrastructure development How the CFTA affects regional processes Movement of natural persons, Trade facilitation, export taxes, NTBs, RoO, Standards, TBT

18 Expected Results from 7 TH CAMEF A clear Plan of Action (PoA) for Africa’s BIAT Implementation and CFTA Negotiations – Experts from MS/RECs should be organised specifically towards the preparation of the draft key documents. – SUPPORT AU target for the completion of the draft documents and studies towards the 2014 CAMoT (October 2014) – develop a work plan based on 7 TH CAMEF recommendations HATC (CHAMPIONS) requested to operationalize and implement the PoA

19 Thank You


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