| AU Summit agrees on Continental Free Trade Area by 2017 |
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At the 18th African Union Summit, held from 30 January – 1 February 2012 in Addis Ababa, African leaders agreed on the introduction of a continental free trade area (CFTA) by 2017. Discussions at the summit, entitled “Boosting Intra-Africa Trade” were overshadowed by the election of a new AU chairperson — an attempt that ultimately failed to get through. Ahead of the summit, civil society organisations (CSOs) had warned that it would be detrimental if the meeting was dominated by the elections to the detriment of key issues, such as trade. "Electing new commissioners and chairpersons should not overshadow the real development challenges on the continent, which can be addressed through improving and boosting intra-Africa trade,” said Michael Orwa from the State of Africa Union Coalition. The elections of a new AU chairman resulted in a deadlock, after Gabon’s former foreign affairs minister Jean Ping failed to win two-thirds of the 54 votes needed. The election had to be postponed to the next summit, held in 6 months’ time. Amid the turbulence surrounding the election process, African leaders endorsed a road map to set up a CFTA by 2017. As a first step, all AU members are expected to be members of sub-regional free trade areas by 2014. In a second step, those regional groupings are to be consolidated, leading to the launch of the CFTA by 2017. “Our aim is to get a simplified trade regime, which will make our life easier, and boost not only trade but also development in our country and improve life of ordinary people in cities and villages”, said Augustine Tawanda, Secretary General of Zimbabwe Cross Border Traders Association. Through the elimination of tariffs on trade between AU member states, the FTA is expected to not only foster intra-African trade but to improve Africa’s competitiveness on a global level. Members of the African Women Development and Communication Network pointed to the crucial role women are to play in this process. “Business women have a huge impact in urban and rural areas in Africa and have already started cross-border trade. Neglecting them or ignoring their impact will be a big mistake”, stated Dinah Musindarwezo from FEMNET The summit also saw the discussion of on-going conflicts that are shattering the continent. African leaders should “play a more important role in solving regional issues” UN secretary-general Ban Ki-moon said. Participants raised concerns that the considerable increase in economic growth currently experienced by a number of AU countries could be significantly undermined by humanitarian disasters and hostilities. One key conflict discussed was the oil-dispute between Sudan and South Sudan. “Without access for the international community we see what could emerge as a major humanitarian crisis for the continent, and a preventable crisis that the African Union has to address” warned Princeton Lyman, the US special envoy to Sudan. The summit marked the inauguration of the new AU headquarters that were sponsored by China. Another country that has offered financial assistance to the AU is Iran. Iranian foreign minister Ali Akbar Salehi announced that Iran will provide £60m in aid over the next three years. With its biggest funders Egypt and Libya facing financial difficulties, the AU welcomed the offers presented. Sources:  |