Africa: Africa Union Tackles to Non-Tariff Barriers

The African Union has amplified action to tackle non-tariff barriers and increase small businesses’ use of the trade barriers’ Africa, tool through its new online platform, according to Africa Union.

The African continent is about to become the world’s largest free trade area. If not addressed, non-tariff barriers may slow down this effort. Although the negative impact of non-tariff barriers on intra-regional trade is recognized, so far there has been limited success in addressing them.

“The success of the Africa Continental Free Trade Agreement depends in part on how well governments can track and remove non-tariff barriers,” said Ambassador Albert Muchanga, the African Union Commissioner for Trade and Industry. A new campaign to spotlight and remove non-tariff barriers in intra-continental trade launches.

The trade easier campaign aims to promote the uptake and use of the African Union’s trade barriers Africa, a non-tariff barriers reporting mechanism tool.

The tool, developed by the African Union in partnership with United Nations Conference on Trade and Development, supports efforts to make continental trade easier and less costly by helping African businesses report such barriers and supporting their elimination with the help of governments.

Non-trade barriers slow down the movement of goods and costs importers and exporters billions of dollars annually. They also stand in the way of the success of the African Continental Free Trade Area. “If we want the Africa Continental Free Trade Agreement to thrive, we have to ensure operational barriers are dropped and businesses and traders, especially small ones; don’t suffer from undue limitations placed on them as they try do the basic thing that makes economies work – trade.”

Every day many African traders and businesses face barriers to trade. From quotas to excessive import documents or unjustified packaging requirements, these barriers are a big hindrance to trade between African countries and make it complicated and expensive to move goods across the continent.

Regulatory and procedural barriers include customs operations and border documentation requirements, rules of origin documentation and pre-shipment inspections. Other trade barriers come in the form of transport regulations, sanitary and phytosanitary measures and technical barriers to trade.

The application of trade-related regulations to ensure consumer health, protect the environment and safeguard national security is legitimate, but disproportionate restrictions or cumbersome enforcement of trade regulations can stifle trade and amount to non-trade barriers and should therefore be addressed. The use of non-trade barriers for protectionism goes against the principles of African integration.

According to a United Nations Conference on Trade and Development report, if these barriers are removed, the African economy could gain 20 billion USD, much more than the 3.6 billion USD it could recover by eliminating tariffs. The United Nations Economic Commission for Africa estimates that the Africa Continental Free Trade Agreement has the potential to boost intra-African trade by 52.3 percent by eliminating import duties and could double trade if non-trade barriers are also reduced.

The trade barriers Africa platform focuses on identifying non-trade barriers and eliminating them. Trade related complaints that are reported can be monitored by government officials in each country and by the dedicated non-trade barriers coordination unit at the Africa Continental Free Trade Agreement Secretariat.

The non-tariff barrier coordination unit is responsible for verification of complaints. Once complaints are verified, officials in the countries concerned are tasked with addressing the issue within set timelines prescribed by the Africa Continental Free Trade Agreement.

The trade barriers Africa online tool also makes it possible for African businesses to play an active role in removing obstacles to continental trade by reporting non-tariff barriers online and having them resolved through the mechanism outlined in Annex 5 of the Africa Continental Free Trade Agreement’s Protocol on Trade in Goods.

More than 600 reported barriers have been resolved through existing portals at the regional economic community level. The Africa Continental Free Trade Agreement- Non-tariff barriers online tool builds on these successful regional portals, helping the entire continent boost efforts to break down non-tariff barriers.

Micro, small and medium-sized enterprises, informal traders, youth and women business operators play a crucial role in African trade but are disproportionately impacted by non-tariff barriers due to their limited resources and access to information.

To raise awareness on the reporting mechanism among African micro, small and medium-sized enterprises, and encourage the micro, small and medium enterprises to use the platform, the trade easier webinar series has been organised and starts on 29 September 2020.

The virtual roadshow of discussions around the continent kicks off in East Africa, through Southern and Central Africa and ends in West Africa. It brings African businesses together to share their real-life experiences and accounts on non-tariff barriers to trade.

The webinar series also seeks their suggestions for trading easier across the continent, with a focus on how the trade barriers Africa platform can make a difference.

The trade easier campaign encourages African business people to visit the trade barriers Africa platform and make their trade challenges known to the authorities so that the challenges can be resolved.

“If micro, small and medium enterprises can more easily report barriers to trade to national and continental authorities and get them resolved, we are already closer to unlocking Africa’s real trade potential and that of the Africa Continental Free Trade Agreement,” the African Union’s Dr. Oswald Chinyamakobvu said.