The federal government has expressed readiness to enter into a partnership with the Delta State government with a bid to identify potential products and services available in the South-south state that could be explored and developed for export under the African Continental Free Trade Area Agreement (AfCFTA).
The Minister of Industry, Trade and Investment, Mr. Niyi Adebayo stated this after a two-day tour of the State, urging the Delta government to concentrate effort on the exploration and development of products and services in which it has comparative advantage for export to the larger African market.
He added that AfCFTA is a great window of opportunities for the African countries to grow while trading among themselves.
He explained that the main objective of the agreement is to liberalize trade so that African countries can trade more among themselves, and through it, African economies will be integrated.
Represented by the Director of Trade in the ministry, Mr. Aliyu Abubakar, the Minister while addressing journalists in Asaba, the Delta State capital, on Wednesday June 30, disclosed that Delta State is the sixth state the team had visited to discuss the opportunities that are available in the States, which, according to him, could be tapped and harnessed for the larger African market under the Free Trade Agreement platform.
Addressing the issue of the possibility of converting a country into a dumping ground for substandard and unbranded products, Adebayo clarified that the Agreement provides for compulsory identification of origin of the products from other African countries.
He also explained that the agreement specified an alternative dispute resolution, ADR, mechanism for the settlement of disagreement among countries for the purpose of ensuring peace and mutual benefit.
On how much commitment each trading country is prepared to offer for export, the Minister further explained that most of the participating countries have surrendered 90% of their products for export, adding that the balance 10% is reserve for strategic reasons.
“The main objective of the agreement is to liberalize trade so that African countries can trade more among themselves, and through it, African economies will be integrated.
“We are working with state governments to identify products of comparative advantage to ensure that all the various programmes and initiatives on exports will add value to enable it go into African market.
“I will not speak for Delta but as a state, they have a major stake, products and services that are competitive and they can key into the Continental Free Trade Agreement and export them.
“As regarding the flooding of the market with substandard products, there are mechanisms in place in the agreement. The rule of origin is one of the criteria where participating countries must source their products locally. There is also provision to guide against trans-shipment of products outside African market.
“The participating countries have surrendered 90% of their products for export, while the remaining 10 per cent is left under special and sensitive products that they may wish to keep.
The Minister said the Committee would encourage the processing of raw materials to add value before export, noting that export of raw materials does not present the expected benefit to be derived from the agreement.
On his part, the Secretary of the Committee who is also the Senior Special Assistant to the President on Public Sector Matters, Mr. Francis Anatogu, explained that the African Trade Agreement is meant to grow the African market and economy in the same way the EU is doing in the European market.
Anatogu said that the EU intra-trade is about 65 per cent while Africa, is just about 15 per cent, pointing out that the Agreement is all about growing African trade.
“So, the AfCFTA is about growing trade in Africa. Why we are here is working in every state to develop what they are going to sell in Africa”, he said, adding that apart from the development of the product or services for export, there is the need to address the issue of competitiveness, infrastructure, power, transportation, trade barriers, among others that will provide the basis for engagement in the intra-continental trade.
Speaking on behalf of Delta State, the Chief Economic Adviser to Gov. Okowa, Dr. Kingsley Emu, commended the Committee on AfCFTA for providing the platform for the country to participate.
He explained that the push and pull of demand in an economic environment where there is an off-taker agreement, is obviously a game changer for the private sector, adding that it offers an opportunity for private individuals to explore the larger African market.
Emu also emphasized the capability of the Agreement to generate job opportunities in an unprecedented level across the continent of Africa.
