It
is expected to be implemented in 18 months and would be the world's
largest free trade zone in terms of the participating countries.
Forty-four
African countries signed a free trade agreement Wednesday to boost
intra-continental trade.
Known as
the African Continental Free Trade Area, or CFTA, the agreement was
signed at an African Union (AU) summit in the Rwandan capital Kigali,
as part of the 10th Extraordinary Session of the Assembly.
It is
expected to be implemented in 18 months and would create the world's
largest free trade zone based on the number of participating
countries.
"Our
peoples, our business community and our youth, in particular, cannot
wait any longer to see the lifting of the barriers that divide our
continent, hinder its economic takeoff and perpetuate misery,"
said, AU Commission Chairman Moussa Faki Mahamat, according to
Deutsche Welle News.
Nigeria
excused itself from the pan Africa trade deal, citing threats of
strikes from the national trade unions.
African
Union, AU Trade Commissioner Albert Muchanga told Reuters, "They
are still doing national-level consultations and so when they finish
they will be able to come on board."
Trade
within the African continent, between the AU members, stands at a
relatively low 15 percent of the bloc's total commerce, and
continent's enduring poverty has also been attributed to the lack of
commercial transactions.
According
to the AU, the average tariffs across the continent stand at 6.1
percent. The bloc affirmed the African businesses suffer because of
the high taxes when they export to other African countries, more than
when they ship to countries outside of the continent.
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