Deputy Director-General (DDG) of the World Trade Organization (WTO), Yonov Frederick Agah, has stated that the African Continental Free Trade Area (AfCFTA) holds tremendous potential in boosting intra-African trade.
According to him, this could also pave the way for greater and beneficial integration with the world economy.
DDG Agah revealed this on Thursday, December 3, 2020, in remarks delivered to the annual meeting of the Africa Economic Zones Organization.
“Lowering tariffs and non-tariff barriers, coupled with the improvement of hard and soft infrastructure at the borders will enhance competitiveness and result in lower compliance costs for traders. This will make it easier for businesses across the continent to integrate into global supply chains. It is, however, just a beginning. Much work remains ahead of us”.
DDG Agah stated that trade will play a key role in helping Africa to improve living standards and mitigate the economic impact of the COVID-19 pandemic.
He noted that the successful implementation of the new African Continental Free Trade Area would also play a role in overcoming the crisis and setting Africa on a common path for renewed growth.
DDG Agah stated that the world is in an unprecedented time, with extraordinary challenges resulting from the COVID-19 pandemic. While governments, in all economies, are taking steps to mitigate its impact, trade, no doubt, continues to remain a key part of the solution to protect jobs, ensure a steady income and improve the standards of living of people in Africa.
“Against this challenging environment, the successful implementation of the AfCFTA could help mitigate the economic crisis; and set the continent on a common path for renewed growth”.
He further stated that the WTO welcomes all initiatives to enhance regional integration in Africa and would continue to make contributions to facilitate smoother trade flows across its members. The WTO’s Trade Facilitation Agreement provides a template to benefit trade through reduced administrative burdens, costs, and delays related to border procedures. DDG Agah believes this will significantly contribute to the successful implementation of the AfCFTA.
This pandemic, according to DDG Agah has highlighted the critical need for governments to work, not only with each other but with all stakeholders, in particular, the business sector and wider civil society.
He expressed optimism about the significant role trade policy could play in economic growth and recovery from the current pandemic.
“In the coming months and years ahead, trade policy decisions, as well as other economic policy choices, will determine to a large extent the pace of economic growth and recovery”.
“It is my firm conviction that the activities, projects, and initiatives taken by Africa Economic Zones Organization (AEZO) will contribute to this endeavor by bringing tangible results for African trade and prosperity”.
