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African nations sign largest free trade deal since WTO

The Associated Press//March 21, 2018//

African nations sign largest free trade deal since WTO

The Associated Press//March 21, 2018//

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KIGALI, Rwanda — African leaders on Wednesday signed what is being called the largest free trade agreement since the creation of the World Trade Organization.

The deal creates a continental market of 1.2 billion people, with a combined gross domestic product of more than $3.4 trillion. A major goal is to boost intra-African trade and rely less on the volatility of commodity prices that affect many exports.

The aim is to have agreement, signed by 44 of the African Union’s 55 member states, enter into force by the end of this year, said the chair of the AU Commission, Moussa Faki Mahamat. States now must ratify the deal, but the number of countries needed to put the agreement into force has not yet been agreed upon.

“Our peoples, our business community and our youth in particular cannot wait any longer to see the lifting of the barriers that divide our continent, hinder its economic takeoff and perpetuate misery, even though Africa is abundantly endowed with wealth,” Mahamat said.

Concerns remain. The president of Nigeria, one of Africa’s largest economies, skipped the summit amid trade unions’ objections. “We will not agree to anything that will undermine local manufacturers and entrepreneurs, or that may lead to Nigeria becoming a dumping ground for finished goods,” President Muhammadu Buhari said through his office.

But some of the continent’s strongest and fastest-growing economies, including Ghana, Kenya and Ethiopia, signed the deal. South Africa’s new president has expressed support but his signing was not announced during the event.

 
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