South Africa is currently only trading with seven of the 54 signatories of the African Continental Free Trade Area (AfCFTA) – Algeria, Cameroon, Egypt, Ghana, Kenya, Rwanda and Tunisia.
On closer inspection, it begs the question: what reduction in duties can importers expect when trading under the AfCFTA agreement?
The unfortunate answer is that it may not be what was expected.
First and foremost, it must be considered that, unlike the Southern African Development Community agreement, where all duties are reduced to zero, AfCFTA allows, for the most part, only a reduction in the rates of duty.
Textiles and textile articles falling within Chapters 50 to 64 of the Harmonized Customs Tariff are, at this stage, excluded from any tariff concessions and similarly, there is no benefit for the automotive industry.
- Read the rest of this column here: “AfCFTA and the benefits for South Africa.”
