We are not against African free trade deal — MAN

The Manufacturers Association of Nigeria (MAN) says it is not against the African Continental Free Trade Area (AfCFTA) but that certain steps need to be taken by Nigeria before signing the deal.

Frank Udemba Jacobs, president of MAN, said specific attention was not given to the cost and benefit analysis of the agreement and the the sectors/sub-sectors that would benefit or be worse off with the new deal.

Jacobs questioned the justifications for agreeing to the proposed movement of 90 percent of tariff lines to zero duty, adding that the agreement would kill off manufacturing companies in Nigeria if issues like non-tariff charges, incentives, waivers and exemptions currently operational in Nigeria were not considered.

“It is pertinent to mention here that MAN is not oblivious of the benefits inherent in installing a continental trade agreement like AfCFTA, as a continental free trade area could improve intra-African trade and enhance economic growth and sustainable development. However, we hasten to add that Nigeria’s national interest should be the primary consideration in the decision to sign-on to such an arrangement,” Jacob said.

The negotiations on the free trade agreement started in 2012 with an ambitious long-term goal of deepening trade among African Union countries, creating bigger and integrated regional markets for African products and achieving economies of scale among African manufacturers.

Forty out of 55 African leaders ratified the AfCFTA, which is easily the largest trade agreement since the World Trade Organisation (WTO) in 1994.

Nigeria, the lead negotiator and biggest economy in the continent, was absent at Kigali, Rwanda.

Nigeria’s President Muhammadu Buhari earlier scheduled to travel to Kigali to ratify the trade deal but backtracked on the opposition of the Organised Private Sector (OPS) who said they were not consulted.

The trade deal is expected to open up Nigeria to a potential $3.4 trillion opportunity and 1.2 billion consumers.

Critics say Buhari’s action has dented Nigeria’s image in the international community and shows poor organisation among the president’s team.

But MAN says it is only acting to protect Nigeria’s interest and ensure that Europe, which is pushing the Economic Partnership Agreement (EPA), does not have access to the African market through Morocco, which has already signed the EPA and is applying to join the Economic Community of West African States.

He urged government to convene a special meeting of the relevant stakeholders, including experts on trade policy to reconsider the national position on EPA vis-a-vis the AfCFTA especially on tariff lines of products on the sensitive/exclusion list, with a view to ensuring that the EU-EPA is not reintroduced through the AfCFTA’s back door.

Jacobs further said the free trade agreement allowed only 10 percent of tariff lines to be protected, which was a far cry from what was even obtainable in Common External Tariff, another free trade agreement in West Africa.

ODINAKA ANUDU