(MENAFN- KNN India) 44 African Union member countries out of 55 enters African Continental Free Trade Area agreement
New Delhi, Mar 24 (KNN) In a bid to boost intra-Africa trade, 44 African countries have signed African Continental Free Trade Area (AFCFTA) agreement at African Union Summit, in Kigali Rwanda.
African Union which comprises of 55 member state, out of which 10 member states did not sign the agreement.
The objective behind holding this summit is to take AU's 2063 project to new heights for closer African integration.
Further 27 member states also signing a commitment for the free movement of persons.
With a potential to bring over 1.2 billion people together into the same market, African leaders signed the agreement that is predicted to boost intra-African trade.
It will be the biggest trade agreement since the formation of the World Trade Organization in 1995, if it becomes successful.
With reduction in barriers to trade like removal of import duties and non-tariff barriers, African countries hope to boost intra-continental trade.
The AFCFTA could improve trade between African countries, which in according to 2016 estimates accounted for only 10%.
Nigeria, one of Africa's largest economies and the most populous, declined to sign the agreement.
Commenting on Twitter, Nigeria's President Buhari said: "We will not agree to anything that will undermine local manufacturers and entrepreneurs, or that may lead to Nigeria becoming a dumping ground for finished goods."
South Africa, which is also one of Africa's largest economies, did not sign the agreement, in support of this President Ramaphosa stated his commitment to the agreement and said 'once the necessary legal processes were undertaken the president did sign the Kigali agreement on the establishment of the AFCFTA.
Albert M. Muchanga, AU commissioner for Trade and Industry, said "the other countries will come on board. We're very certain about that."
Jean-Louis Billon, VP of AfroChampions, a private sector group backing the initiative, said "There (are) too many barriers within the African continent and the only way for us to get to real development in the future is to boost trade and industry relations." (With inputs from a media report) (KNN/YV)
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