Intra-African trade is currently only 16%, compared to 19% in Latin America, 51% in Asia, 54% in North America and 70% in Europe. Given that the global economy is booming due to the COVID 19 pandemic, the creation of AfCFTA`s huge regional market is a great opportunity to help African countries diversify their exports, accelerate growth and attract foreign direct investment. MAN President Frank Jacobs told Nigerian media that the country`s private sector had not been consulted on afCFTA and warned that the deal could kill Nigerian industry and fuel unemployment. He said the government needed to explain its plan to protect 10% of the products and enforce the rules of origin provision. The strongest safeguards are «trade remedies,» including a measure allowing countries to apply anti-dumping duties on imports below their fair value, to offset the impact of duties on imports subject to unjustified subsidies. A third question is how to conduct future trade negotiations with third parties. Faced with the consequences of a possible exit from the African Growth and Opportunity Act (AGOA) in 2025, Kenya has already begun negotiations for a free trade agreement with the United States. The UK, which wants to conclude new trade deals after leaving the European Union, is also moving closer to a number of countries in the region. Kenya-U.S.

The free trade agreement was particularly controversial, but perhaps wrongly: in principle, it does not prevent East African countries from negotiating with third parties. However, for the reasons outlined above with respect to the rules of origin, it is preferable to avoid totally different approaches in negotiations with third parties. South Africa, Sierra Leone, Namibia, Lesotho and Burundi have since signed afCFTA at the 31st African Union Summit in Nouakchott. [50] Since July 2019, 54 states have signed the agreement. [51] Beyond the effects of the pandemic, there is also the continent`s existing commercial architecture to overcome. Today`s regional trade agreements «show narrow trade patterns, depend on primary products and have a low level of intermediate trade,» said William Amponsah, a trade expert quoted by the United Nations. In fact, intra-African trade is dominated by a handful of countries that sell a handful of products. Although this situation is improving, there remains a problem that a simple increase in intra-African trade would not solve.