ZCZC
BCN-29
NIGERIA-AFRICA-TRADE-ECONOMY
Nigerian president urged to sign African trade deal
ABUJA, June 28, 2019 (BSS/AFP) – A special government panel has
recommended that President Muhammadu Buhari sign Nigeria up for a landmark
African free trade agreement, ahead of a key meeting of African leaders.
The panel was formed by Buhari in March last year to assess the impact of
the African Continental Free Trade Agreement(AfCTA), after Nigeria abruptly
pulled out of signing the deal adopted by a majority of African nations.
“Our reports shows that, on balance, Nigeria should consider joining the
AfCFTA”, the panel’s chair, Desmond Guobadia, said in a statement to the
president Thursday, after submitting the report.
The trade deal “provides immense opportunities for Nigeria’s manufacturing
and service companies to expand to Africa”, Guobadia said.
The panel however recommended Buhari delay “liberalising” and ratifying
the deal which would open Nigeria’s markets to the continent, in order to
manage the agreement’s “negative impacts.”
“AfCFTA is not without major risks”, it said, warning that the deal could
lead to increased smuggling and abuse of ‘rule of origin’ labels on products.
“The risk is that it will provide incentive for traders to disguise goods
imported from outside the continent as made-in-Africa goods”, the report
warned.
The continental pact which formally came into force last month represents
an ambitious African Union(AU) plan that seeks to integrate and boost intra-
African trade.
Nigeria had been a key backer of the plan for several years yet suddenly
pulled out last March, days before other African countries endorsed the
document at a summit in Rwanda.
Calling for more time to address concerns from business and labour unions,
Buhari instead formed a panel to engage industries across the country on the
impact of the deal on Nigeria.
“Our position is very simple, we support free trade”, Buhari said, “as
long as it is fair and conducted on an equitable basis”.
Ahead of an AU summit of African leaders in Niger Republic next week, the
AfCFTA will again be on the agenda with Nigeria widely expected by industries
and labour unions in Nigeria to at least partially adopt the agreement.
The report “will form part of the consideration in our decision on the
next steps on the AfCFTA”, said Buhari.
BSS/AFP/HR/1355