Ouestafnews – The African Continental Free Trade Area (Zlecaf), an initiative of the African Union (AU) which aims to create an inter-African common market to increase the competitiveness of its members, is slow to materialize. In this interview with Ouestaf News, conducted by email, Professor Malick Sané, director of the Commercial Policy Laboratory (Lapacom) at Cheikh Anta Diop University in Dakar, points out the strategic and economic reasons why hold certain States.
Ouestaf News – The Zlecaf came into force on May 30, 2019. Where is its implementation?
Malick Sané – The operationalization of Zlecaf began in July 2021 due to the effects of the Covid-19 pandemic on global economic activity in general and economic activity in Africa, in particular. Since then, implementation has continued with the entry into force of certain provisions concerning trade in goods and services while continuing negotiations on rules of origin, intellectual property, investments, etc.
However, only a few countries are involved (South Africa, Cameroon, Ivory Coast, Senegal) while others are still waiting for various strategic, economic, commitment and slowness reasons. process, etc.
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Ouestaf News – You say that the implementation is continuing, can we have one or two examples of concrete initiatives that allow the public to see what the Zlecaf is in reality?
M. S – As of June 2024, the status of ratifications of the Zlecaf agreement shows that 54 of the 55 member states of the African Union (AU) have signed the agreement and 47 of them have signed it. have ratified.
46 tariff offers on trade in goods were verified in accordance with the agreed liberalization modalities.
The agreed rules of origin (criteria for determining the country of origin of a product, editor’s note) represent approximately 92.4%. The 7.6% of the same rules still remain pending, in particular the rules linked to the textile, clothing and automobile sectors.
The terms, conditions and qualifications (tariff concessions) under which goods can be imported under the Zlecaf are also not fully implemented (…). There remain 10% of the categories of these tariff concessions to be finalized.
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Ouestaf News – A test phase had been announced. What are the results?
M. S – I cannot answer this question which assumes numerical information that I do not hold. This should be discussed with the Zlecaf Secretariat.
Ouestaf News – Are there various concerns that are slowing down this process?
M. S – Yes. For economic concerns, countries are still subject to the effects of the Covid-19 crisis, the Russo-Ukrainian war, the slowdown in global economic activity, etc. Concerning the political side, the current period is favorable to protectionist overtones which favor domestic activities and national priorities to resist, in particular, the effects of the global economic crisis. And for the legal aspects, we can retain the internal procedures of ratification and implementation, as well as the continuation of negotiations on numerous subjects.
Ouestaf News – Could you provide us with an illustration of a subject under negotiation in order to support what was mentioned previously?
M. S – For the points which are still under negotiation, we can cite the textile and clothing sectors as well as automotive products. Key sectors where rules of origin have yet to be finalized.
The general rule for the automotive sector, for example, requires 40% African content and no more than 60% inputs from outside the continent (value of non-originating materials -VNOM).
On digital trade, member states agreed to develop an annex on rules of origin which will define the criteria for determining African origin. (…).
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Ouestaf News – How will existing regional trade agreements (ECOWAS, SADC, Comesa, etc.) coexist with Zlecaf?
M. S – In principle, this should not cause any problems. Indeed, within the framework of the Abuja Treaty establishing the African Economic Community (AEC), Africa is divided into large regions, each implementing regional trade agreements consistent with the continental integration project. Thus at the Zlecaf stage which constitutes the first stage of a process leading to the creation of a single continental currency, cohabitation should not suffer from major difficulties if the various regional trade agreements (RTAs) respect the ECA implementation process.
Ouestaf News – There is resistance from certain states to ratify the agreement. What are their arguments?
M. S – These arguments are based on a failing commitment of certain countries to the benefits of regional economic integration, the fear of the non-competitiveness of national companies compared to companies from large African economies, internal procedures and the absence of consensus among stakeholders. internal, from a lack of belief in the beneficial effects of regional integration. In short, the absence of political will.
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Ouestaf News – How to convince these still reluctant countries?
M. S – An effective and successful implementation of Zlecaf seems to me to be the best argument to convince the most reluctant countries. Nevertheless, awareness and popularization of the positive effects of continental integration must be maintained and strengthened.
Ouestaf News – Will this lack of unanimity not be an obstacle to achieving the expected objectives?
M. S – No. In terms of regional economic integration, all the countries likely to participate are neither at the same level of commitment, nor driven by the same political will, even less by the desire to deepen regional economic integration. This is the case all over the world at the level of the various regional trade agreements (RTAs). Integration leaves room for maneuver for countries. This was the case of Great Britain which did not want to move towards the single currency of the European Union (the euro) and which had stopped at the stage of the Economic Union before its exit with the BREXIT (which marks the withdrawal of the United Kingdom from the European Union, Editor’s note).
The main thing is that the leading countries on the African continent can believe in integration through unfailing commitment, as France and Germany have done with the European Union. Compliance with the directives is, in this case, a determining element in the implementation of the Zlecaf.
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