Free Trade Agreements Nigeria

The world`s largest free trade area since the World Trade Organization has moved closer to reality. Nigeria is Africa`s largest economy and, for a long time, a regional leader, so observers, when he stopped, questioned the reality of the African trading bloc. The SAFCFTA Secretariat will be responsible for coordinating the implementation of the agreement and will be an autonomous body within the AU system. Although it has an independent legal personality, it works closely with the AU Commission and receives its budget from the AU. The Council of Ministers responsible for trade decides on the location of the head office, structure, role and competences. [35] The Assembly of Heads of State and Government of the African Union is the supreme decision-making body. It will likely meet at AU summits. Contains websites and other resources for U.S. companies to get more information on how to use these agreements.

What complicates the negotiations is that Africa was already divided into eight separate free trade areas and/or customs unions, with different rules. [Note 1] These regional forums will continue to exist; The African Continental Free Trade Agreement aims, first, to remove barriers to trade between the various pillars of the African Economic Community and, finally, to use these regional organizations as building blocks of the ultimate goal of an Africa-wide customs union. [21] [30] [31] [32] With Nigeria`s signature, the AfCFTA`s dream of increasing intra-African trade, currently below the volume of the continent`s trade with Europe, has come closer. More than a year of speculation followed after Buhari left the AU`s extraordinary meeting in March 2018, during which the agreement was launched without signature, citing the need for further consultations. Within the country, the debate between protectionism and free trade has been similar to Brexit or the trade war between the US and China. He expands this point by saying: „The bulk of Nigerian trade is oil exports to Asia and Europe, and the percentage of Nigerian non-oil in Africa is relatively very low. By reducing barriers to intra-African trade, the AfCFTA can only improve Nigeria`s trade with its neighbors. Jeremy Cape, a tax and public policy partner at Squire Patton Boggs in London, agrees, saying: „Africa is not doing much on its own and the question is whether the area will lead to the necessary investment in infrastructure or whether it is hampered by the lack of such investment. The purest free trade agreement (FTA) removes all border taxes or barriers to trade on goods. Free trade agreements aim to reduce trade tariffs between Member States. Nigeria has ratified the free trade agreement which will enter into force on 1 January 2021.