The implementation of the African Continental Free Trade Agreement and its legal effect on Regional Trade Agreements in Africa

Abstract

The African Continental Free Trade Agreement (AfCFTA) will play a crucial role in Africa’s economic future. Apart from being the largest FTA in the world with 55 Member States, AfCFTA is poised to lead a significant shift in the trade landscape on the African continent. Its primary purpose is to form a single market for goods and services by promoting solidarity among African nations. This solidarity is further evidenced in the establishment of regional economic communities (RECs) and regional trade agreements (RTAs) to enhance Africa's unity, integration, and competitiveness. In simple terms, the AfCFTA Agreement looks to achieve its set goals by boosting intra-African trade. The current trade landscape in Africa is best defined as one with vast regional trade regimes. There are eight RECs and many RTAs in Africa. This regional trade regime means that African nations are members of multiple bilateral and multilateral agreements. Despite most RECs taking steps to achieve effective regional integration, these agreements have failed to establish adequate levels of intra-regional trade. Member States still trade more with countries outside their respective regions, and even more with countries outside of the continent than they do with other Member States. The eight RECs are building blocks of the AfCFTA Agreement. As such the AfCFTA Agreement does not seek to nullify all pre-existing RTAs. However, regional agreements contain varying terms and conditions, and the policies entrenched therein will vary between regions and parties. This makes conflict between the AfCFTA and pre-existing RTAs and RECs inevitable. This dissertation analyses how the implementation of the AfCFTA Agreement will affect existing RTAs and RECs. The study begins by explaining the motivation for this study, followed by the history and implementation of the AfCFTA Agreement. It goes on to define Africa’s current trade landscape and the importance of RTAs. It then analyses the possible conflicts and challenges, such as overlapping memberships and legal harmonisation. The dissertation concludes by providing recommendations to address the possible challenges.