The World Trade organisation (WTO) has projected that, African countries could reduce trade costs by 15 per cent if they fully implement the continent’s Trade Facilitation Agreement.
The World Trade organisation (WTO) has educated African countries on how to reduce trade cost on international market by 15%.
A building of the World Trade organisation
The projection is made due to the cost the WTO realized the African continent make on the international trade.
A statement the organisation made indicated that, the current trade costs for developing countries are equivalent to applying an overwhelming 219 per cent tariff on international trade, which the organisation discloses that it is hurting Africa.
African countries seeking to reduce the cost, time and complexity of interregional and international trade in goods has gathered for the First African Forum for National Trade Facilitation Committees in Addis Ababa, Ethiopia, on November 27. The programme will end in November 29, 2018.
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The event, organized by the United Nations Conference on Trade and Development (UNCTAD) and seven partner organizations, aims at the continent as it (Africa) scales up its trade’s easing efforts after the WTO’s Trade Facilitation Agreement entered into force in February 2017.
The continent as well prepares to implement the African Continental Free Trade Agreement (AfCFTA) signed in March 2018.
According to the WTO, “the rate of implemented commitments under the Agreement as of October 2018 stood at 60 per cent” adding that, “but broken down by level of development, a new picture emerges, with developed countries having achieved 100 per cent of commitments, developing countries having achieved 60 per cent of commitments and least developed countries just 22 per cent of commitments.”
The Secretary-General of UNCTAD, Mukhisa Kituyi, adding his voice said the organization has continuously supported Africa’s work on trade facilitation for decades hence calls on stakeholders to help boost international trade for developing countries.
He said, “The culmination of this work is to support the institutions that can make trade work for all, and National Trade Facilitation Committees must become the agents of change to boost international trade for developing countries.”
