Scope of the African Continental Free Trade Area – [Part B (2 of 4)] – The AfCFTA Protocol on Trade in Services and associated Annexes
Overview of the Protocol on Trade in Services
We would like to kick this off by drawing your attention to Preamble by Member State representatives of the African Union (AU) on the Protocol on Trade in Services where we are informed of the AU’s determination to establish a continental framework of principles and rules for trade in services to boost intra-African trade in line with the objectives of the African Continental Free Trade Area (AfCFTA). This determination for the need of such a continental framework is evident in Article 3 (of the Protocol in Trade in Services), where it describes the two-fold principal objective of the protocol i.e. to first provide service-oriented support to the objectives of the (Continental Free Trade Area) Agreement and secondly, to create a single liberalised market for trade in services.
The Protocol on Trade in Services means the supply of services which can be further clarified as follows as defined in Article 1 of the Protocol:
- Supply of service from the territory of one State Party into the territory of any other State Party
- Supply of service in the territory of one State Party to the service consumer of any other State Party
- Supply of Service by a service supplier of one State Party, through commercial presence in the territory of any other State Party
- By a service supplier of one State Party, through the presence of natural persons of a State Party in the territory of any other State Party.
Specific Objectives of the Protocol on Trade in Services
In fulfilling its two-fold principal objective, the Protocol on Trade in Services has defined a series of specific objectives all to support the objectives of the AfCFTA. These specific objectives defined in Article 3 (of the Protocol on Trade in Services) are as follows:
- Enhance the competitiveness of services through economies of scale, reduced business costs, enhanced continental market access, and an improved allocation of resources including the development of trade-related infrastructure;
- Promote sustainable development in accordance with the Sustainable Development Goals (SDGs);
- Foster domestic and foreign investment;
- Accelerate efforts on industrial development to promote the development of regional value chains;
- Progressively liberalise trade in services across the African continent based on equity, balance and mutual benefit, by eliminating barriers to trade in services;
- Ensure consistency and complementarity between the liberalisation of trade in services and the various Annexes in specific services sectors;
- Pursue services trade liberalisation in line with Article V of the GATS (General Agreement on Trade in Services) by expanding the depth and scope of liberalisation and increasing, improving and developing the export of services, while fully preserving the right to regulate and to introduce new regulations;
- Promote and enhance common understanding and cooperation in trade in services amongst State Parties to improve the capacity, efficiency and competitiveness of their services markets; and
- Promote research and technological advancement in the field of services to accelerate economic and social development.
References (Ref.)
- Agreement Establishing the African Continental Free Trade Area – African Union
- Protocol on Trade in Services
- Compiled Annexes to the establishment of the Continental Free Trade Area
- https://www.wto.org/english/res_e/publications_e/ai17_e/gats_art5_jur.pdf
Useful Links (UL)
- Agreement Establishing the African Continental Free Trade Area – African Union
- Protocol on Trade in Services
- https://www.africa.undp.org/content/rba/en/home/sustainable-development-goals.html
- https://theblueoceanstrategist.com/the-six-stages-of-the-buyer-experience-cycle-stage-six-is-disposal/