By Libby George
LAGOS, Nov 17 (Reuters) - A pan-African free trade zone will
launch on Jan. 1 as planned despite the coronavirus pandemic but
some "innovative" arrangements will be required as not all
customs infrastructure will be ready in time, its
secretary-general said.
The African Continental Free Trade Area (AfCFTA) aims to
bring 1.3 billion people together in a $3.4 trillion economic
bloc that supporters say will boost living standards, encourage
development and make Africa less dependent on trade with other
regions.
Its launch was already delayed from July 1 due to the
pandemic. The AfCFTA's Secretary-General Wamkele Mene said the bloc
would now launch on schedule even if it meant implementing a
system of crediting traders retroactively for lower customs
duties they should begin receiving immediately.
"We have to find innovative ways that are legal but will
also give meaningfulness to the start of trading," Mene told
Reuters in an interview.
This week, the first in-person negotiations since March
resumed in Accra, with an option to attend virtually.
The final sticking points are around rules of origin and
market access, but Mene said it was normal for negotiations to
continue "until the last minute".
Countries are also working overtime, he said, to finalise
customs infrastructure, adding that this was unlikely to happen
everywhere by Jan. 1.
The infrastructure covers everything from legal or
regulatory changes to allow tariffs to drop in line with the
deal to ensuring that customs agents have the correct tariff
schedule at every border.
"We have to be innovative because of COVID-19," he said.
Thirty countries of the 54 who have signed the deal have
ratified it and are full state parties to the agreement.
Nigeria, Africa's largest economy, ratified the deal last
week, but has not yet deposited the instruments of ratification,
the final step required. Mene said once it does, AfCFTA could address any lingering
issues. Nigeria's land borders have been closed to nearly all
trade since last year in an effort to stop smuggling.