Free Trade Agreement In Nigeria

A mechanism for resolving international trade disputes and consumer rights in several jurisdictions, with different legal systems, needs to be addressed. Nigerian President Muhammadu Buhari signed the pioneering agreement at the African Union (AU) summit in Niger. Given that the Nigerian government continued to consult with local business groups in the second half of 2018, one of the main concerns was whether the agreement adequately prevented anti-competitive practices such as dumping. [59] At the close of 2018, former President Olusegun Obasanjo said the delay was “regrettable” and stressed the lack of trade in goods between African countries, the difficulties in getting from one African country to another, and the colonial legacy of these restrictions on Africa`s growth. [60] The government steering committee responsible for the consultation process is expected to release its report on the agreement in January 2019. [61] ABUJA, Nov 12 (Reuters) – Nigeria has ratified its membership of the African Free Trade Area, due to be launched in January, the government said, after initial reluctance to join the bloc, for fear of suspending local industries dumping non-African countries. To this end, AfCFTA members have committed to establishing disciplines in the area of trade in goods, including the obligation to abstain from quantitative restrictions, the status of the most favoured (reciprocal) nation (MFN) and various annexes aimed at streamlining border procedures with rules of customs cooperation and mutual assistance, facilitation of trade , transit facilitation and transit and non-tariff barriers. Jeremy Cape, Squire Patton Boggs` tax and policy partner in London, agrees: “Africa does not act much on its own, and the question is whether the region will lead to the necessary investments in infrastructure or whether it will be hampered by the absence of these investments.” The 12th African Union extraordinary meeting on AfCFTA was convened to bring the new agreement into its operational phase, which was held in Niamey on 7 July 2019. [40] [41] According to a 2014 African Development Bank study, only 16% of African countries` international trade is between African countries. On 7 July, Nigeria became a signatory to the African Continental Free Trade Area (AfCFTA), with President Muhammadu Buhari signing the agreement at an African Union (AU) meeting in Niger. Nigeria was not the only major economy to be cautious – South Africa did not sign at first, but it did a few months later. Buhari decided to wait until after the 2019 parliamentary elections, for which he had to consolidate his support on the ground.

After winning, he turned to afCFTA and had to revive the economy and was the only one of the continent`s 54 countries not to be part of the agreement because of the conflict with Ethiopia.

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