The African Continental Free Trade Area (AfCFTA) aims to create a single market for goods and services for almost 1.3 billion people across Africa and deepening the economic integration of Africa. The trade area could have a combined gross domestic products of around $3.4 trillion and intra-Africa export potential of US. 22 billion. If fully implemented the AfCFTA could boost regional incomes by as much as 9 percent—to $571 billion. It could create almost 18 million more jobs, many of them higher-paying and better-quality jobs, with women workers seeing the biggest gains. By 2035, the resulting jobs and income growth could help up to 50 million people exit extreme poverty. However, achieving its full potential depends on significantly policy reforms, trade facilitation measures across African signatory nations and awareness and training on the opportunities especially for the MSMEs.

The AfCFTA plans to reduce tariffs among members and covers policy areas such as trade facilitation and services, as well as regulatory measures such as sanitary standards and technical barriers to trade. The AfCFTA will gradually eliminate tariffs on 90 percent of goods and reduce barriers to trade in services.

As state parties make efforts to reduce the barriers to trade and investment, export sectors that likely to grow the most are textiles and apparel; chemical, rubber and plastic products; and processed foods. In order to unlock these potential gains in trade, investment, and jobs, countries must first successfully conclude the negotiations and implementation of the AfCFTA Protocols must be carried out by each Partner State.

The MSMEs should therefore be positioned to take advantage of all the opportunities and expected gains from the AfCFTA.

Cross Border Trade

• Cross Border Trade refers to movement of goods and services across international borders;
• Cross Border Trade is conducted by; individuals, firms, or countries;
• Cross border trade is categorized into formal and informal trade;
• Formal Cross Border Trade is conducted by legally registered traders/firms who fulfil the customs documentation and procedural requirements to cross the border;
• Informal Cross Border Trade is movement of goods between neighboring countries conducted by unregistered small-scale traders;
• Unrecorded business transaction operating outside the formal economy;
• Cross Border Trade in goods is governed by EAC Customs Union Protocol, whereas, Cross Border Trade in services is administered by EAC Common Market Protocol;

Advantages of Cross Border Trade in the Community

• It is a source of employment and income for traders;
• Cross border trade promotes food security;
• Contributes to GDP growth at national level; and
• Contributes to poverty alleviation.

Dealing with Non-Tariff Barriers (NTBs)

The EAC Elimination of NTBs Act 2017 is a legal framework that provides for elimination of NTBs in the Community. It defines NTBs as “… laws, regulations, administrative and technical requirements other than tariffs imposed by a Partner State, whose effect is to impede trade.”

The Legal mandate to eliminate NTBs in the Community is anchored on:

• Article 75 (1) (c) of the Treaty for establishment of the East African Community;
• Article 13 (1) of the EAC Customs Union Protocol provides ... “each of the Partner States agrees to remove, with immediate effect, all the existing non-tariff barriers to the importation into their respective territories of goods originating in the other Partner States and, thereafter, not to impose any new non-tariff barriers;
• Article 13 (2) of the EAC Customs Union Protocol further provides that “Partner States shall formulate a mechanism for identifying and monitoring the removal of non-tariff barriers.”

NTBs are reported by traders or Partner States to the National Focal Person who coordinates the National Monitoring Committee for elimination of NTBs in a Partner State.

In East African Community, NTBs are eliminated at Technical and Policy Levels

Technical Level

• National Monitoring Committee on NTBs;
• Regional Monitoring Committee on NTBs;
• EAC Time Bound Programme (a mechanism for identifying, reporting and removing NTBs in the Community).

Policy Level

• Sectoral Committee on Trade;
• Committee on Customs;
• East African Standards Committee;
• Sectoral Council on Trade, Industry, Finance and Investment;
• Dedicated Sessions of Permanent Secretaries/ Principal Secretaries/ Under Secretaries and Ministers/ Cabinet Secretaries responsible for EAC Affairs and Trade
• Bilateral Meetings;
• Council of Ministers; and
• The EAC Summit of Heads of State.

Partner States should remove all the existing NTBs and, thereafter, not to impose any new ones.

Standards are a tool for measuring quality, a basis for third party certification, mutual recognition of test reports and quality marks, promoting fair trade, measure against dumping and protection of consumer health safety and environment.

Harmonization of standards, conformity assessment procedures and measurement systems facilitate intra EAC trade, value addition, innovation and private sector competitiveness. Awareness of Standardization, Quality Assurance and Metrology (SQMT) activities is therefore desirable in realizing the desired objectives of the Customs Union, Common Market and forms a basis towards achieving EAC drive to buy East African to build East Africa sustainably.

Awareness, access, knowledge and skills especially by the MSMEs to partake and benefit from SQMT activities is limited and the symposium will provide a platform for creating awareness to various MSMEs sectors on the role of standards and conformity assessments systems in product development unlocking the vast market opportunities for their products nationally, regionally and internationally.