This archive report was first published on 16 July 2019.
Regional standards woes pose non-tariff barrier in Africa push for free trade area ¶
July 16, 2019
Protectionist policies threaten the fresh drive to open markets in Africa, as regional standards woes pose a significant non-tariff barrier in the continent's push for a free trade area.
The African Continental Free Trade Area (AfCFTA) aims to create a single market of over 1.3 billion people, but the differences in standards applied by member states can dampen this noble idea.
For instance, Kenya's milk has had difficulties accessing the Zambian market due to different standards, while the actual sell-by date of Kenyan tea has been a subject of controversy in Sudan.
According to a joint study by the East African Business Council and Botho Emerging Markets Group, AfCFTA and Tripartite Free Trade Area (TFTA) have the potential to transform the operating and commercial environments for East African businesses.
However, the variation of standards in Comesa countries and the continent undermines the region's capacity to trade with itself, says Trade PS Chris Kiptoo.
"The diversity of strengths and weaknesses on the continent demands greater collaboration between countries that belong to the same Free Trade Area," he says.
Comesa Director of Agriculture and Industry Thierry Kalonji attributed bottlenecks on regional trade to a lack of industrial diversification, the existence of non-tariff barriers (NTBs) such as health standards requirements, supply-side constraints, and cumbersome border measures.
"Almost 70 percent of the reported NTBs in the region are constituted by technical barriers to trade (TBTs) and SPS measures," he said.
The AfCFTA attained the requisite ratifications after 22 member states endorsed the agreement to enter into force, which became effective on May 31.
