The African Continental Free Trade Area came into force May 30, though negotiations continue on exactly how the FTA will operate, according to press reports. The agreement legally took effect at midnight, but the countries that have signed it have up until July to work out the details of how it will work, according to the Kenya-based East African. That’s when leaders from the AfCFTA countries will hold a summit where the launch of the “operational phase” of the agreement will be announced, said a report on the Nigerian Vanguard website. Until then, negotiations continue on issues like rules of origin, tariff concessions and non-tariff barriers, Rwanda-based The New Times said in a report. Then, after the July 7 summit, member countries will enter phase two of negotiations on investment, competition policy and intellectual property rights, The New Times report said.
Lebanon recently imposed a 2 percent tariff on all imports until 2022 except for “pharmaceuticals, electric cars, and raw materials for industrial and agricultural products,” according to a May 30 report from the Hong Kong Trade Development Council. Lebanon also announced a 10 percent tariff rate will apply to 20 products that include certain foods, clothing and “industrial components” that are “deemed as being ‘dumped’ onto the Lebanese market,” the report said. Other products included under the 10 percent tariff are “flour, dairy products, detergents, furniture, leather shoes, bulgur, electrical machinery, aluminium profiles, clothes, wafers and biscuits, vehicle bodywork, metal pipes, confectionary and gums, marble and granite tiles,” HKTDC said. The tax, placed on products the country believes are “being imported in large quantities at prices lower than those produced locally” will be subject to the tariff for five years, the report said. The move was made after a May 22 Lebanese Cabinet meeting, HKTDC said. The report said the tariff increase was intended to reduce trade imbalances and spur local production. Lebanon’s Industry Minister Wael Abu Faour said “this will protect the Lebanese manufacturing sector, contribute to lowering trade deficit and revive a large number of industries," according to the report.
Turkey recently amended its customs regulations to end a de minimis exemption for low-value goods imported by mail or express courier. The exemption, which previously allowed goods valued at less than €22 ($24.55) to enter duty-free, is being abolished entirely, according to an alert from Turkish law firm BTS & Partners that was posted by Mondaq. The decree, which was published May 15, also amended restrictions on importation of mobile phones carried by passengers. The changes take effect 15 days after publication, i.e., May 30, according to an unofficial translation.
India’s Commerce Ministry is attempting to “strengthen” trade ties with Africa, according to a May 8 report by the India Brand Equity Foundation. India spoke with its embassies in 11 African countries in early May to discuss buyer-supplier “matchmaking,” Indian “trade exhibitions” in Africa and “frequent visits of policy makers, chamber of commerce and investors for familiarization with local business.” The Ministry is looking for an “effective export strategy” to “engage the Indian business community in Africa” and “instill greater confidence amongst trade partners,” the report said.
The African Continental Free Trade Area looks set to take effect in July during the next African Union Summit, according to a report in The East African. A total of 22 countries must ratify the agreement and submit their instruments of ratification, and 20 have done so, while another two have ratified but not yet submitted the paperwork. “The AfCFTA brings together a continental single market, which is expected to increase intra-African trade by 52 per cent come 2022, remove tariffs on 90 per cent of goods, liberalise services and tackle other barriers to intra-African trade,” the report said.
Namibia will launch a new customs and tax agency in October as part of a broader trade facilitation effort underway in the country, according to a report in the Namibia Economist. The new Namibia Revenue Agency (NAMRA) "aims for faster clearance times for legitimate trade and increased transparency in regulatory processes and decision-making,” said Acting Customs Commissioner Thandi Hambira, according to the report. Namibia will also create a “Customs Information Centre,” which will “offer online declaration of cargo to be accessed from the clients office as well as pre-arrival processing for perishables, medicaments, ship spares” along with other goods, she said. “Although the client reserves freedom of transit, container inspections at client, importer and exporter premises will also be carried out.” NAMRA will replace the Customs & Excise and Inland Revenue departments in the Ministry of Finance, the report said.
Algeria revised its list of goods subject to temporary safeguard duties, removing a 30 percent tax on tree nuts, according to an April 25 report from the U.S. Department of Agriculture' Foreign Agricultural Service. The change, made April 21, is expected to expand the U.S. export market for nuts, peanuts, butter and dried fruits, USDA said. The move comes less than a month after Algeria announced it was lifting a 2018 import ban on about 850 products and replacing it with temporary safeguard duties (see 1904160013). USDA has called tree nuts a "key" U.S. export to Algeria, which has imported an average of $33 million worth of U.S. tree nuts over the 2009-2017 calendar years.
Algeria recently lifted an import ban it imposed in 2018 on about 850 products, replacing it with temporary safeguard duties on more than 1,000 food and industrial goods, according to an April 12 notice from the U.S. Department of Agriculture's Foreign Agricultural Service. About 60 percent of those goods are food products, the notice said, with most of them being “processed and high value products.” While many of the goods U.S. exporters send to Algeria -- including “bulk and intermediate commodities” such as wheat, barley, corn, rice and soybeans -- are not included on Algeria’s temporary safeguard list, the list does include “tree nuts,” a “key” U.S. export to Algeria, the notice said. Algeria imported “an average of $33 million of tree nuts (almonds, walnuts and pistachios) from the United States” over the 2009-2017 calendar years, the notice said. The safeguard duties list shows “tree nuts are subject to 30 percent additional tax [i.e., the safeguard duty] to be added to the existing 30 percent custom duties plus the 19 percent of Value-Added Tax (VAT),” the notice said.
The U.S.-Egypt Trade and Investment Council discussed the need for Egyptian labor reforms, and the U.S.'s desire that Egypt improve intellectual property protection, implement the World Trade Organization Trade Facilitation Agreement and that Egypt strengthen its border enforcement. The readout of the meeting, provided by the Office of the U.S. Trade Representative late April 12, said the two countries are looking to promote greater reciprocal market access for agricultural and industrial goods. "In this vein, the United States and Egypt are collaborating on the development of scientific, risk-based food safety practices consistent with international guidelines of the Codex Alimentarius Commission," USTR said. The U.S. praised Egypt for relaxing domestic ownership requirements for express shipping companies and Egypt's decision to accept U.S. motor vehicle safety standards. Between the Generalized System of Preferences and Qualifying Industrial Zones programs, about $1 billion of Egyptian exports to the U.S. enter duty free, USTR said.
A new single market covering most of Africa is now set to take effect, but several roadblocks remain in the way before full implementation, according to an alert from the British law firm Freshfields. The Gambia became the 22nd country to ratify the agreement April 2, triggering the 22-country threshold for the agreement coming into force 30 days after all 22 ratifications are filed with the African Union. The planned single market and eventual customs union has been signed by 52 African countries, although the largest economy in Africa, Nigeria, declined to join. Despite some optimism surrounding the agreement, which reportedly could double trade within Africa if tariffs are eliminated and non-tariff barriers are reduced, there’s still some work to be done. A schedule of tariff concessions still needs to be developed, as do annexes on trade in services, among other parts of the agreement. The remaining portions are “expected to be concluded by 2020,” the alert said.