Ethiopian Prime Minister Dr. Abiy Ahmed
The Assembly of African Union Heads of State and Government held its 35th Ordinary session and was the first to be held in person since the Covid-19 pandemic at the AU Headquarters in Addis Ababa Ethiopia.
The opening session was marked with calls for continued African solidarity in addressing the impact of covid-19 on the continent and the urgent need to address the emerging scourge of coup d’états and the threat of terrorism.
The Ethiopian Prime Minister Dr. Abiy Ahmed, whose country hosts the AU Headquarters called on the leaders to collectively make the effort to boost Intra-Africa Trade on the Continent.
“Our continental free trade agreement holds the greatest promise of effectively realizing continental integration and development, importation of increase intra-Africa trade, free movement of people and investment and self-reliance is a beacon for Africa’s renaissance.
In the state of depending solely on trade out of Africa our collective effort to boost intra-Africa trade will protect us from the fluctuations of global economy, economic and political change,” he said.
He equally highlighted the potential of the tourism sector on the continent under the continental market.
“The potential for continent-wise tourism remains untapped. It is part of aspiration five of agenda 2063 which seeks to create an Africa with a strong cultural identity, common heritage, values, and ethics,” he added.
Dr. Ahmed advocated that the more Africans know each other as a continent, the more they will be able to resist forces that divide and undermine them, whilst expressing hope in the future of young people on the continent.
He indicated that the continent of 1.3 billion people with a substantial percentage of them young and dynamic will drive Africa’s prosperity and set forth its agenda in 2063.
The Prime Minister of Ethiopia however took exception to the fact that seven decades after the formation of the United Nations, Africa remained a junior partner without meaningful input or role in the system of international governance and called for reform of the UN to reflect current global realities with equitable representation.
“It is the right time to reform and revitalize the United Nations system to reflect current global realities and ensure that it’s a more representative and equitable body,” he indicated.
Wamkele Mene reveals that African heads of states approve continental trading with 87.7pct Rules of Origin negotiated
Secretary-General of the AfCFTA Secretariat, Wamkele Mene, has met with the Egyptian Minister of Trade and Industry to reveal that African heads of states have agreed at the AU Summit that the continent commences trading at the 87.7% currently negotiated rules of origin.
According to the AfCFTA boss, the heads of states expressed excitement about the level of work done by the Council of Trade Ministers.
Mr. Mene said with 87.7 percent on rules of origin convergence, the continent was ready to start trading.
“We can’t keep delaying and going back-to-back so as much as they recognize that we’ve made very good progress with the rule of origin but they said please don’t keep coming back to ask for more time.
However, they did agree to an extension of six months to conclude the remaining areas of rules of origin that is textiles and trading, automobiles as well as sugar and oil, and so on. So, we have now a new mandate to conclude by June before the mid-year coordination summit in July,” Mr. Mene said.
6th AU-EU Summit commit to boost continental economic integration
The 6th African Union-European Union Summit has been held in Brussels with the vision to consolidate a renewed Partnership for solidarity, security, peace, and sustainable economic development and prosperity for citizens and for future generations of both AU and EU member states.
The two continental bodies agreed on enhanced access to the digital and data economy while boosting digital entrepreneurship and skills, sustainable growth, and decent job creation by investing in the establishment of youth-owned businesses in Africa.
The summit also discussed transport facilitation and efficiency of connected transport networks through human development, notably through scaling up mobility and employability of students, young graduates, and skilled workers.
Both the AU and the EU agreed to boost regional and continental economic integration, particularly through the African Continental Free Trade Area while acknowledging that existing trade agreements between the EU and some African countries have contributed to the strengthening and deepening of trade and economic development between the two continents.
The two bodies agreed to work gradually towards the progressive and mutually beneficial integration of the respective continental markets.
Lawyers of state-owned enterprises schooled on ICC’s arbitration and dispute resolution
As Africa prepares to commence Trading under the Continental Free Trade Agreement, it will inevitably give rise to potential disputes concerning the rights and obligations under the AfCFTA Agreement.
The Protocol on Dispute Settlement establishes a mechanism for the amicable resolution of such disputes.
In accordance with that Protocol, aggrieved State Parties can request that a dispute be resolved by a panel.
Currently, only State Parties can request such dispute resolution. Private parties from State Parties can petition the appropriate institutions in their governments to launch an action if they consider their rights have been affected. Third Parties can, if the disputing parties agree, also be heard and make written submissions during the adjudication process.
Before a matter can be heard by a panel, State Parties are obliged to first hold confidential consultations to find an amicable solution. If an amicable solution is not achieved, the Dispute Settlement Body will establish a formal
The panel, composed of 3 to 5 persons selected from an Indicative Roster of Panelists to adjudicate the dispute.
Parties to the dispute may appeal a panel report to the Appellate Body, i.e., the AfCFTA tribunal of the final instance.
The Secretary-General of the AfCFTA says the Continent has succeeded in operationalizing its Dispute Settlement Mechanism.
“Dispute settlement mechanism and operationalizing it is very important, we want to express a commitment to Africans, to African business people that we’re committed to the rule of trade law, where a dispute arising in the context of trade, cross-border trade the AfCFTA rules will be applied and the dispute settlement mechanism and its operationalization is specifically for that purpose so it’s a tremendous success,” he said.
Approximately 20 percent of international disputes are resolved under the ICC Rules, as disputes with states and state-controlled entities. When it comes to Africa the percentage is even higher because the state and state agencies are involved in international trade and projects where inevitably disputes arise.
He added: “What Ghana can learn from others is basically the process they should always be involved and hire good counsel to ensure that the council, the state council is properly prepared to manage the proceedings and basically to understand from the beginning that the process being involved is very critical.”
The International Chamber of Commerce’s International Court of Arbitration is the leading dispute resolution court in the world hence its interest in building the capacity of governments in that area.
The ICC believes that training lawyers of governments and SOEs of Ghana adequately position the state to secure a robust and resilient economy in the wake of the AfCFTA.
AfCFTA, WCO join forces to operationalise trade liberalisation
The African Continental Free Trade Area (AfCFTA) Secretariat and the World Customs Organisation (WCO), have signed a memorandum of understanding (MoU) aimed at operationalizing the tariff schedules and ensuring additional free and efficient movement of goods in Africa.
The MoU was signed in Brussels, Belgium, Wamkele Mene, Secretary-General of the AfCFTA Secretariat, and the Secretary-General of the WCO, Kunio Mikuriya.
The AfCFTA Secretariat and the WCO are united in their shared goal of increasing prosperity in Africa through the liberalization of trade on the Continent.
This MoU represents the next logical step for the two organizations as they work to reduce barriers to trade across Africa by connecting Customs systems, populating the AfCFTA Tariff Book, and providing capacity building for Customs officials and administration.
The collaboration is set to capacitate the AfCFTA with technological systems that would allow standardization of data and connectivity of Customs systems and a developed AfCFTA E -Tariff-Book.
It will help to enhance the skills and expertise of Customs officials in operationalizing the AfCFTA; the migration of all AfCFTA Member States to HS 2022; and the effective start of trading using the AfCFTA Tariff Book.
