Business Maverick: African Trade Deal to Push Ahead Even If Another Virus-Wave Hits

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An Africa-wide free-trade agreement is unlikely to face any further delays even if a second wave of coronavirus infections hits the region, according to the deal’s top official.

“If the pandemic continues into 2021, we will develop the necessary public-health protocols to continue and to push on with the implementation of the African Continental Free Trade Area,” Wamkele Mene said in an interview at the Bloomberg Invest Global virtual conference on Tuesday.

While the agreement entered into force legally last year, commerce due to have started on July 1 has been delayed as the pandemic set back negotiations to lay the foundation for trade in goods, including tariff concessions. When fully operational by 2030, it could be the world’s biggest free-trade zone by area, with a potential market of 1.2 billion people and a combined gross domestic product of $2.5 trillion.

Nigeria, the continent’s biggest oil producer, has yet to ratify the deal because of concerns about trans-shipments, where goods could enter the free-trade zone from countries that are not party to the agreement, Mene said.

 

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