Scope of the African Continental Free Trade Area – [Part A (7 of 9)] – The AfCFTA Protocol on Trade in Goods, associated Annexes and Appendices [Annexes 9 of 9]
Annex 9 – Trade Remedies
One potential victim to International Trade Agreements is Domestic Industries. This is because trade agreements tend to lower the barrier to entry into a domestic market. This is where trade remedies come in as they are actions available to Domestic Governments to act against imports which may be causing material injury to the Domestic Industry. Trade remedies are a series of interventions that can be implemented to act in the interest of the domestic industry without being in breach of the terms of an International Trade Agreement.
The application of trade remedies generally revolve around Anti-dumping, Countervailing and Safeguard measures.
Anti-dumping measures are measures that may be implemented to prevent dumping. Dumping is known as a form of international price discrimination whereby a product is sold at a lower price in the export market compared to its domestic market (Ref-03). The (Continental Free Trade) Agreement in the form of this Annex makes provisions to address dumping that involves a process of seeking a solution with the affected State Parties failing which the State Party can implement safeguard measures. Following an anti-dumping investigation, Anti-dumping duties may be imposed as a sanction against unfair trade.
Safeguard measures are trade remedy measures adopted by a State party in situations where a product being imported into its territory in such increased quantities absolute or relative to its domestic production and under such conditions as to cause or threaten to cause serious injury to its domestic competitive industries (Article 1 of Annex). In addition, to safeguard measures, Countervailing duties may also be imposed following an investigation in accordance with the provisions of relevant World Trade Organisation (WTO) agreements, this Annex and AfCFTA guidelines.
NB! The AfCFTA guidelines mentioned above are still to be adopted as stated in Article 13 of the Annex, however, upon adoption, they will form part of the Annex. Pending the adoption, however, the relevant provisions of the WTO Agreements, national legislation, regional economic communities’ agreements relating to trade remedies may apply where relevant.
Appendices – Trade Remedies
No Appendices relating to this Annex have been published to date. However, in terms of Article 8.3 of the Agreement, provision has been made for such additional instruments in future.
References (Ref.)
- Agreement Establishing the African Continental Free Trade Area – African Union
- Protocol on Trade in Goods
- http://www.itac.org.za/pages/services/trade-remedies
Useful Links (UL)
- Agreement Establishing the African Continental Free Trade Area – African Union
- Protocol on Trade in Goods
- https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/technical-barriers-to-trade
- http://ow.ly/wQRM30rPvhe