African Continental Free Trade Area

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.

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.

Dispute settlement is a central tenet of any economic block as it provides the necessary security and predictability for the state parties. The Architecture of the AfCFTA is reflective of these principles as the AfCFTA Agreement has introduced a rules-based dispute settlement regime which mirrors the WTO’s Dispute Settlement Understanding. The success of the AfCFTA is highly dependent on the effectiveness of the dispute settlement mechanism. In considering the Dispute Settlement Mechanism (DSM) of the AfCFTA this piece highlights the salient features of the DSM and explores some of the challenges that should be anticipated. This piece fronts the argument that the AfCFTA should have diverged from the traditional dispute settlement mechanisms adopted by the WTO. Further, it attempts to answer the question on whether African States will utilize the DSM given the current status quo of the dismal use of the WTO’s DSM.

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.

L'intégration économique régionale entendue comme « un processus qui conduit plusieurs économies distinctes à former un seul espace économique » (Beitone, Cazorla, Dollo, Drai, Dictionnaire de science économique, p. 290) régional représente un enjeu majeur pour le développement des États. Cette intégration économique est organisée en degrés correspondants aux différentes formes d’intégration. L’un de ses premiers degrés d’intégration est appelé la zone de libre-échange (Elsa Tapsoba, Intégration économique et normes internationales du travail en Afrique de l’Ouest (UEMOA) p.18). Celle-ci correspond à la zone dans laquelle est assurée l’abolition des droits de douane et des barrières non tarifaires entre les pays membres d’une communauté avec toutefois une indépendance des politiques tarifaires extérieures. Il existe plusieurs zones de libre-échange à travers le monde telles que L’Accord de Libre Échange Nord-Américain, le MERCOSUR,Partenariat Économique Régional Global (Regional Comprehensive Economic Partnership Agreement en anglais) et la liste n’est pas exhaustive.

The African Continental Free Trade Area (AfCFTA) represents the most ambitious attempt to unify the continent’s markets under a single framework, with the potential not only to expand intra-African trade but also to reposition Africa within the global economy. Can the AfCFTA break Africa’s cycle of dependency and reposition the continent in the global economy? In this paper, we aim to offer an analysis of the impact of persistent colonial institutional practices on development in Africa, and the role of an African Continental Free Trade Area in articulating agency, creating shockproof economies, establishing continental trade corridors, building regional value chains, and finally asserting Africa’s position in the global economy.

The Blog Symposium is therefore a collective intellectual journey across Africa’s diverse regions, from north to south, west to east. It reflects a multiplicity of perspectives, backgrounds, and academic traditions, united by a shared commitment to Africa’s economic integration and transformation. This could have not been possible without the assistance, advise and support of Prof Olabisi Akinkugbe and the whole AfronomicsLaw team. We are grateful for this platform which is making an unprecedented contribution in amplifying African voices in the space of international (economic) law.

In this collaboration between Asser Institute’s Doing Business Right project and AfronomicsLaw, we welcome contributions from scholars working on African international law, African perspectives of international/transnational law, as well as scholars working on business and human rights more generally.