Pan African Trade Agreement

What complicates matters further is that Africa was already divided into eight separate free trade zones and/or union unions, with different regulations. [Note 1] These regional bodies will continue to exist; The African Continental Free Trade Agreement aims firstly to remove barriers to trade between the various pillars of the African Economic Community and, finally, to use these regional organizations as building blocks of the ultimate goal of an African-wide customs union. [21] [31] [32] Let us therefore recall that there are no regional free trade agreements, because there are not, quite rightly, many dynamic and diversified economies – from the point of view of capitalist development – that produce goods to move freely from Port Louis to Tunis. Indeed, average GDP growth over the decade was mainly used by export-sized raw materials, which needed to be processed outside Africa. This is also reflected in the 12 to 15 per cent of intra-African trade [16]. The agreement establishing the African Continental Free Trade Area (AfCFTA) was negotiated from 2016 to 2018. At the 10th Extraordinary Summit of African Union (AU) Heads of State and Government held in Kigali, Rwanda, March 10, 2018. At the summit, 44 AU member states signed the agreement and others signed it later. By February 2020, 54 of the AU`s 55 member states had signed the AfCFTA agreement. In addition, the free trade area, in its „investment” dimension, helps to bring labour markets into competition. A competitive or attractive labour market is a labour market where, among other things, the cost of labour is considered relatively low by capital and where the obligations of employers and the social protection of proletarians are reduced as much as possible. Thus, states that claim to build solidarity Africa will at the same time compete for the most attractive labour market to offer less flexibility than that offered by Ethiopia to Chinese companies that have moved there in response to the growing demands for wage increases in China [24]: the absence of a national minimum wage, working hours reminiscent of the early 19th century in Europe (up to 14 hours a day, 7 days a week).