The AfCFTA has been officially operational since 2021, but negotiations are still ongoing to ensure its effective implementation on the ground. Meeting his counterparts from the continent in Washington, Joe Biden wants to see the USA play a more active role in the project.
The United States will be stepping up its cooperation with African countries to implement the African Continental Free Trade Area (AfCFTA). Washington has just signed a memorandum of understanding with the organisation's secretariat general on the sidelines of the US-Africa Leaders' Summit, which began on Tuesday 13 December.
The MoU establishes an annual high-level dialogue between the United States and the AfCFTA Secretariat. It also outlines quarterly meetings of technical working groups to tackle shared issues and explore opportunities linked to the development of intra-African trade. These groups will include representatives from the AfCFTA Secretariat, the US Department of Commerce, and other stakeholders, creating a platform for exchanging information on best practices.
Katherine Tai highlighted the significance of this partnership, stating: "The Biden-Harris administration recognizes that today's trade challenges cannot be met without Africa's contribution and leadership, and our support for the AfCFTA is an integral part of that. This MoU is the result of a year of hard work and negotiations to commemorate the importance we attach to the AfCFTA. It stems from a mutual desire to develop a sustainable partnership between the United States Government and the AfCFTA Secretariat."
She also emphasized the strategic importance of Africa, noting: "The future is Africa - for the United States and the global economy."
The AfCFTA was officially launched in January 2021. The agreement commits African nations to removing customs duties on 80% of goods produced within the continent. The ultimate goal is to establish a common market of 1.3 billion consumers, facilitating the free circulation and trade of goods to foster economic growth and development among member countries.
Credit: Agenceecofin