New Telegraph

Report: AFCFTA threatens intra ECOWAS trade

With the African Continental Free Trade Area (AfCFTA) deal expected to kick off next year, the ongoing dispute between Ghanaian and Nigerian traders, which is involving their respective governments as well, is now threatening to curb intra ECOWAS trade volumes as a whole as manufacturers and traders in West Africa’s two largest economies have started looking to importation sources and export markets in other parts of Africa, according to a report by “goldstreetbusiness. com.”

The report said that until now, goods manufactured in ECOWAS member states could be exported to other members of the subregional grouping without import duties being charged whereas exports to countries in the rest of Africa have been subject to import duties.

This has made intra-ECOWAS trade preferable to trade between ECOWAS members and the rest of Africa. It however noted that the impending commencement of the AfCFTA will remove this cost advantage. “Even though geographical proximity will supposedly still give commerce within the sub region price advantages, in practice the deep problems in actually implementing the ECOWAS trade protocols are convincing both importers and exporters to seek alternative duty free markets elsewhere around the continent once AfCFTA commences at the beginning of next year,” the report stated. Gbenga Obideyi, Director of Trade at the ECOWAS Secretariat, warned that “the Af- CFTA agreement may have far reaching implications for the ECOWAS trade objectives, including the Common External Tariff and the ECOWAS Trade Liberalization Scheme” as attention turns from intra ECOWAS trade to wider pan African trade

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