AfCFTA Troubleshooting Commercial Matters
Even though the United States is not a party to the African Continental Free Trade Area (AfCFTA), there are several ways that U.S. companies operating on the Continent could raise concerns about trade and investment issues that are covered by legal provisions in the AfCFTA.
Dispute Settlement:
For the most serious and systemic matters, the AfCFTA creates a Dispute Settlement Mechanism (DSM), which is modeled on the World Trade Organization’s Dispute Settlement Understanding. The AfCFTA also has a Protocol on Rules and Procedures on the Settlement of Disputes to regulate the processes under the DSM. The Dispute Settlement Body (DSB) in this system was formally launched in 2021. The DSB can, at a State Party’s request, establish Dispute Settlement Panels and an Appellate Body. Complaining parties must first attempt to resolve matters amicably through consultations. If there is no resolution from those consultations in 60 days, the Complaining Party informs the DSB, which then composes a panel from a pool of international trade law experts. The findings of the panel can be appealed to the Appellate Body.
Individual companies, including U.S. traders and investors on the Continent, do not have the ability to initiate a dispute settle claim themselves in this system. Only the governments of AfCFTA State Parties can initiate a claim. Therefore, companies would need to persuade the host government of the country in which they are operating to initiate consultations and/or a claim regarding the matter of concern.
Trade Remedies:
The AfCFTA Protocol on Goods has an Annex on Trade Remedies. If a U.S. company operating on the Continent has been affected by the dumping of goods or subsidized imports by other AfCFTA State Parties, it may request that host country authorities conduct an investigation. Where the findings of that investigation support such an action, host governments may impose anti-dumping duties, countervailing measures, or safeguard measures.
Regular Committee and Council Meetings under the AfCFTA Governance Structure:
The AfCFTA establishes various technical committees to assist with the implementation of the AfCFTA. These committees and the governing structures above them (the Committee of Senior Officials, the Council of Ministers, and the Assembly (Heads of State)) are all mechanisms in which AfCFTA countries monitor the implementation of the agreement and represent their country positions on trade matters. The technical committees include Trade in Goods; Trade in Services; Investment; Competition Policy; Intellectual Property Rights; Women and Youth in Trade; and Digital Trade. Again, companies would need to work with host governments to raise specific systemic issues of concern in these state-to-state structures.
AfCFTA Implementation Review Mechanism (AFIRM):
The AFIRM creates another way that AfCFTA State Parties will review one another’s implementation of the agreement and systemic impediments to intra-African trade and investment. Established in June 2024, and inspired by the WTO Trade Policy Review mechanism, the AFIRM is conceived as a monitoring, evaluation, and reporting tool that will assist Senior Trade Officials in tracking the implementation of the AfCFTA.
As part of this process, AfCFTA State Parties will be reviewed once every five years. The Parties will issue a Self-Assessment Report and the AfCFTA Secretariat will draft a Compliance Assessment. This process presents another opportunity for the private sector to provide feedback regarding gaps in implementation. Individual AfCFTA State Parties will be able to formally submit specific questions about trade and investment practices and the countries being reviewed will need to formally respond.
Non-Tariff Barrier Monitoring Mechanism:
The AfCFTA also created an online NTB Reporting, Monitoring, and Eliminating Mechanism at https://tradebarriers.africa/. State parties and economic operators in Africa can use this mechanism to report an obstacle encountered when trading goods across intra-African borders. For example, this could include excessive delays in customs clearance, ad hoc fees at the border, cumbersome document requirements, or restrictive product standards and regulations. Active complaints from any party can be viewed at https://tradebarriers.africa/active_complaints. This mechanism is meant to troubleshoot more transaction-specific, individual trade concerns. Please see CS Ghana’s market intelligence report on the NTB Monitoring Mechanism for more details.
For more information about Africa’s regional integration and to formulate your strategy for doing business in this context, please contact: U.S. Commercial Service Ghana at Office.Accra@trade.gov, Tel: +233-(0)30-274-1870, www.trade.gov/ghana-contact-us. See our further reporting on AfCFTA.