Ministry Finalizing Continental Free Trade Area Agreement for Ratification by HPR

Addis Ababa May 19/2018 Ministry of Trade announced that it is finalizing the last remaining three protocols of the African Continental Free Trade Area Agreement (AFCFTA) to submit the document to the House of People's Representatives (HPR) for approval. Out of the total seven protocols, the ministry has accepted four and expects to finalize the remaining three to table the whole document to the parliament soon, it was learned. The African Continental Free Trade Area Agreement was signed in March this year by 44 African Union countries, including Ethiopia. The AFCFTA will come into effect 30 days after ratification by the parliaments of at least 22 countries and each country has 120 days after signing the framework to ratify. Kenya and Ghana were the first two countries that ratified the instruments of the agreement on the continental free trade area this month. In an exclusive interview with ENA, AU Trade and Industry Commissioner Albert M. Muchanga said the Union expects Ethiopia to ratify the agreement as it has huge market potential to penetrate on the continental market. “The on-going industrial development, the country’s potential on agricultural products and the thriving manufacturing sector will enable Ethiopia to be competitive in the free trade area,” he stated. In this regard, the African Union is encouraging and aggressively working towards the ratification of the agreement as well as its implementation by member states. Ethiopia’s Prime Minister Abiy Ahmed has assured the readiness of Ethiopia to ratify the agreement while opening the Conference of African Finance, Planning and Economic Development Ministers on Continental Free Trade on May, 14. “Ethiopia is fully aware of the opportunities that the free trade agreement offers and is ready to follow the other African countries for their pioneering role in the ratification of the agreement,” Abiy said. Accordingly, Ministry of Trade (MoT) has been working on the instruments and is left with only three protocols on investment, intellectual property, and market competition. MoT Multilateral Trade Relation and Negotiation Director, Muse Mindaye, said his ministry is holding consultative meetings and discussions with investors and the concerned government institutions to create awareness on the potential benefits of ratifying the agreement. “The improving infrastructural connectivity developments in many African countries is advantageous for us to get market access across the continent and the local community, thereby offering alternative products and prices to the consumer,” he added. Muse noted, however, that strengthening price, product quality and productivity competitiveness of domestic industries is crucial along with the consultative discussions underway. Speaking of the four protocols accepted, the director said: They deal with organizational structure for African Free Trade Agreement, commodities and commercial agreements, service delivery, and conflict management mechanisms. All these have been negotiated in phase one, while in phase two issues concerning investments, patents and fair competition will be dealt with." The African Continental Free Trade aims to bring together 1.2 billion persons with combined Gross Domestic Product estimated at 2 trillion USD. The free trade area is designed to facilitate free movement of goods and services and remove tariffs on 90 per cent of goods, leaving 10 per cent of “sensitive items” to be negotiated at a later date.