Trade Policy

In 2000, the African Growth and Opportunity Act (AGOA) was enacted with a bold promise to serve as the bridge connecting Sub-Saharan Africa (SSA) to the U.S. market. AGOA was designed to offer unilateral, duty – free access to over 1800 products in the U.S., in addition to the more than 5,000 products that are also eligible for duty-free access under the Generalized System of Preferences (GSP) program, to catalyze export-led growth, attract foreign direct investment and accelerate industrialization across Africa. As AGOA was set to lapse in 2025 and following several negotiations for the Agreement’s extension to December 2028, today the verdict is mixed, and the economic landscape tells a complicated story. In this blog, I argue that the question before African policymakers is no longer whether AGOA is renewed, but what the repeated cycle of lapse and extension reveals: that a unilateral preference regime, however long its runway, cannot substitute for the regional integration, rules-of-origin harmonization, and mid-stream industrial capabilities that only Africans can build for themselves.

The AfCFTA serves as the map for African trade and economic development, its mandate charging the continent toward an economic utopia. Yet its digital protocol, with a core scope built around diversity and vulnerable populations, excludes 90 percent of Africa's economic engine : the informal sector. This exclusion is further compounded by the language exclusion informal enterprises face, where digital platforms and AI systems meant to power digital trade have yet to incorporate indigenous languages, stifled by a data drought that is decades in the making. This paper argues that the interaction of the Digital Trade Protocol and its Rules of Origin Annex leaves informal cross-border traders without a clear, proportionate route to digital trade benefits, and that unequal African-language AI capacity turns the Protocol's promise of legal inclusion into practical exclusion.

As 166 trade ministers converge on Yaounde for the World Trade Organization's Fourteenth Ministerial Conference (MC14), they confront a defining choice: deliver substantive reform or preside over the multilateral trading system's gradual irrelevance. Africa's decision to host this conference at such a critical juncture carries profound symbolic and substantive weight—particularly for the continent's 1.4 billion people and the world's poorest economies whose prosperity depends on rules-based, rather than power-based, international trade.

The News and Events category publishes the latest News and Events relating to International Economic Law relating to Africa and the Global South. Every week, Afronomicslaw.org receive the News and Events in their e-mail accounts. The News and Events published every week include conferences, major developments in the field of International Economic Law in Africa at the national, sub-regional and regional levels as well as relevant case law. News and Events with a Global South focus are also often included.

The recent tariff wars, ignited by President Trump after he returned to the White House in January 2025, have raised several important questions for Africa, especially in the arena of trade and tariffs and their impact on the continent’s economic development. Such questions include, among others: What will define Africa’s place in the global trading system over the next generation? Can trade and tariff regimes accelerate inclusive development, or do they reproduce structural inequalities? How should African economies navigate an era of shifting global power, contested multilateralism, and renewed protectionism? What forms of trade governance will define the future of development across the continent and beyond?

The African Continental Free Trade Area (AfCFTA) is the world’s largest free trade area in terms of the participating countries since the formation of the World Trade Organization (WTO). The AfCFTA Agreement brings together 55 African Countries who are contracting member states to the 8 existing Regional Economic Communities in Africa, including the newly formed Alliance of Sahel States (former members of ECOWAS). As of September 2024, 54 of the 55 AU member states have signed the AfCFTA Agreement and 47 have ratified the Agreement. The AfCFTA aims to create a single market for trade in goods and services and allow free access to tradeable commodities across the continent. Although the AfCFTA is not fully operational, meaningful commercial trading has been envisioned through the Guided Trade Initiative (GTI). The GTI is a pilot project that tests the operational, institutional, legal and trade policy environment of the AfCFTA.

Fireside Chat on Trade Policy and Regional Integration: Trade Policy Is Not Just for Policymakers The session was a fireside chat titled "Trade Policy Is Not Just for Policymakers", facilitated by Mishael Wambua, Component Lead at GIZ Support Programme for Africa Continental Free Trade Area (AfCFTA). He discussed the importance of fostering an awareness of trade policy and regional integration in Africa.

L’harmonisation des règles douanières au sein de la ZLECAF est réelle et salutaire. Elle est une réalité puisqu’elle repose essentiellement sur la réduction des droits de douane des Etats membres de la ZLECAF. Cette réalité se manifeste non seulement par l’existence de réelles politiques d’harmonisation des règles douanières mais aussi par un domaine assez précis de l’harmonisation de ces règles. En revanche, l’harmonisation des règles fiscales est éprouvée pour deux raisons : d’abord, l’on note l’absence de politique favorable à l’harmonisation des règles fiscales au sein de la ZLECAF ; ensuite, l’on note l’absence de mesures de coopération entre la ZLECAF et les autres espaces communautaires africains au sein desquels s’est déjà effectuée l’harmonisation fiscale. Pour atteindre l’objectif d’harmonisation des règles fiscales, il est souhaitable qu’une politique d’harmonisation fiscale particulière soit menée au sein de la ZLECAF, laquelle pourrait s’appuyer sur celle déjà menée au sein de l’UEMOA, de la CEMAC.

La mondialisation a créé une interdépendance entre États sur plusieurs plans, notamment sur le plan économique. Cela s’est traduit par la conclusion d’accords économiques visant à faciliter et à multiplier les échanges commerciaux entre États. Toutefois, cette multiplication des échanges commerciaux a aussi révélé de nouveaux défis, qui semblent tout aussi importants que les retombées économiques, tels que la protection des droits de l’homme, la protection de l’environnement, etc. Cette prise en compte de l’environnement apparaît comme un élément indissociable du développement socio-économique et, de ce fait, chaque accord international devrait accorder une place primordiale à la question environnementale. C’est le cas pour certains accords tel que l’Accord économique commercial global (AECG), conclu entre l’Union Européenne et le Canada, qui a davantage mobilisé sur les questions liées à l’impact environnemental du libre-échange que sur ses retombées économique.

The African Continental Free Trade Area (AfCFTA) has the potential to grow beyond just reducing tariffs. Its success depends on the movement of people, not just goods. Africa needs to develop a shared continental identity, which can ultimately lead to a more integrated free trade area. The African Union recognized this when it created the 2018 Protocol on the Free Movement of Persons, which has experienced slower rates of adoption and ratification (Hirsch, 2021). The free movement of individuals is considered crucial for achieving the objectives of the AfCFTA and promoting regional integration. Lessons from other regional integration models, such as the European Union, may provide valuable insights into overcoming challenges and advancing the free movement agenda. These examples highlight that trust, cultural exchanges, and familiarity are crucial to a better integrated African free trade Area.