Quality Infrastructure and the CFTA

Transcription

1 Quality Infrastructure and the CFTA ARSO General Assembly June 2017 Ouagadougou, Burkina Faso Dr Oswald Chinyamakobvu Senior Techcial Advisor (SPS & TBT) on the CFTA Department of Trade and Industry African Union Commision

2 Presentation Outline What is the CFTA? Objectives of the CFTA Roadmap Status QI in the CFTA Way forward

3 What is the CFTA? The Continental Free Trade Area; Flagship project of Africa s Agenda 2063; Aims to expand intra-africa trade and so expand local industrialization and spur structural transformation of the continent;

4 Objectives of the CFTA According to the adopted Objectives and Principles Guiding the Negotiations for the CFTA document, the objectives of the CFTA are: i) Enhance competitiveness at all levels and more specifically at the industry and enterprise level through exploiting opportunities for scale economies, reducing business costs, continental/global market access and better reallocation of resources including through the development of trade-related infrastructure; Collaboration and promotion of the use of harmonized standards based on international standards, provision of internationally traceable measurement systems and accredited conformity assessment services.

5 Objectives of the CFTA ii) To overcome dependence on exportation of primary products and promote social and economic transformation for inclusive growth, industrialization and sustainable development in line with Agenda 2063; QI to promote sustainable value addition to primary products through provision of appropriate product and management system standards for quality, environment & climate change and energy.

6 Objectives of the CFTA: Cont d. iii) Realize the potential to expand and accelerate the growing diversification and dynamism of intra-african trade including the aim to increase by 50 % trade among African countries by 2022 through better harmonization, coordination and implementation of trade liberalization and facilitation regimes and instruments across RECs and across Africa in general; QI to facilitate trade through cooperation in the areas of technical regulations, standards, metrology, conformity assessment and accreditation in order to eliminate unnecessary and unjustifiable Technical Barriers to Trade.

7 Objectives of the CFTA: Cont d. iv) In the context of Boosting Intra-Africa Trade and realizing the transformational potential of increased trade among African countries, to create a freer market for goods and services, building upon the trade agreements within the regional economic communities and associated commitments and thus pave the way for accelerating the establishment of the Continental Customs Union; REC based QI cooperation mechanisms can be adopted for application at continental level as part of the process for establishing the CFTA and eventually a Continental Customs Union.

8 Objectives of the CFTA: Cont d v) Resolve the challenges of multiple and overlapping memberships and expedite the regional and continental integration processes. The PAQI can play a role in the expediting of regional and continental integration process by facilitating cooperation in the areas of technical regulations, standards, metrology, conformity assessment and accreditation and by coordinating QI capacity building programmes where necessary.

9 CFTA Negotiation Process Roadmap The indicative roadmap for the negotiation and establishment of the continental free trade area envisages the following milestones: a) Decision (January 2012) b) Launch of the negotiations; (June 2015) c) Preparations for the negotiations; d) Negotiation phase; (February 2016) e) Finalization of the CFTA Agreement and Launch of the Continental Free Trade Area; and (December 2017) f) Domestication of the CFTA agreement. (2018 ff )

10 Update on the CFTA: Institutional Framework 10

11 Where we are with the CFTA Process? Seven (7) Negotiation Forum sessions held so far Establishment of 7 technical working groups (TWGs) for development of agreement texts in specialised areas: NTB&TBT; SPS; Trade remedies; Customs Procedures & Trade facilitation; Rules of Origin Trade in Services, and Legal and Institutional Affairs Two (2) rounds of TWG meetings held.

12 Where we are with the CFTA Process? Development of agreement text.. The first phase of the negotiations are covering Trade in Good and Trade in Services; The second phase of negotiations will address Competition policy, Investment and IPR; Trade in Goods Agreement text to be developed by the Negotiating Forum; TWGs to develop the rest of the text as assigned; AUC working with partners have developed the initial draft text which will be the main basis if the final text to be developed.

13 CFTA Architecture first phase I. Agreement on Trade in Goods: a) Tariff liberalization, b) Elimination of NTBs, c) Rules of Origin - RoO, d) Customs Cooperation & Trade Facilitation e) Trade remedies, f) Trade Related Areas: g) Technical Barriers to Trade h) Sanitary and Phytosanitary Measures i) Agriculture, Fisheries and Food Security; j) Dispute Settlement k) Institutional arrangements II. Agreement on Trade in Services: (Priority sectors may be:) a) Transportation (Air, maritime) b) Financial Services (banking, insurance) c) Tourism, d) Energy, etc.

14 Progress so far Enabling instruments adopted (Principles, Rules of Procedure; etc); Draft Agreement text has been developed for consideration by CFTA NF; Chapters on TBT and SPS (standards and quality issues) nearly complete and awaiting endorsement by the NF. Key in these are proposals for how TBT and SPS issues will be addressed under the CFTA; Some key chapters still in early stages rules of origin, trade facilitation, trade remedies, dispute settlement, trade in services, institutional arrangements and others.

15 Progress so far: cont d In the development of the NTBs, TBTs, and SPS sections, the starting point was Situational Analysis and the PAQI Stocktaking document was the main reference document for TBTs; Going forward the QI will play strong role in implementation phase as products start to move around; standards (technical & metrological), conformity assessment, certification, inspection and accreditation should create the objective level playing field for minimization of disputes and conflict; TBT and SPS have strong overlaps in the area of standards development and conformity assessment; Lobby to participate and input at national and REC levels. A good agreement now will prevent complications in implementation later.

16 Way forward Summit (HoS&G) target is to conclude the agreement by end of 2017; President of Niger, H.E. Issoufou Mahamadu, appointed Champion of the CFTA process; Ongoing stakeholder engagement and consultations at continental and national level.

17 Update on the CFTA - Prudence Sebahizi There cannot be a good reason why it is easier for us to trade with Asia, Europe and the Americas, rather than with fellow Africans. Kenya s President Uhuru Kenyatta The CFTA is critical NOT ONLY for its potential benefits, BUT ALSO to mitigate the costs associated with inaction. - UNCTAD 17

18 I AM AFRICAN. I AM THE AFRICAN UNION