Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines

Knowledge Library

The African Continental Free Trade Area - facilitating dispute resolution in Africa

Publish Date: 
13 Mar 2019

If the African Continental Free Trade Area Agreement (AFCFTA) enters into force later this year, it will give member states a mechanism to resolve disputes and promote trade.

AFCFTA needs 22 ratifications before it enters into force.[1] Currently 19 of the 49 signatories have ratified it and a further nine ratifications are expected in 2019. When it comes into force, it will not automatically dissolve and replace other regional trade agreements across the continent. The levels of regional integration between member states of regional trade agreements will remain.[2]

AFCFTA will provide a dispute settlement mechanism between states in accordance with certain rules and procedures. As African states do not generally sue each other, AFCFTA will introduce an alternative dispute resolution process to facilitate consultations and negotiations rather than a strictly judicial procedure. The agreement will do so by establishing a Dispute Settlement Body (DSB) to facilitate disputes between states.

If a dispute arises, in the first instance, states will hold consultations to find an amicable resolution. Any requests for a consultation should be channelled to the other state through the DSB.[3] These consultations will be confidential and without prejudice to the rights of the involved state.[4]

Where consultations fail, the DSB will establish a Dispute Settlement Panel for formal resolution. The DSB (through the Panel) will then make a final and binding decision. This decision can be appealed to the Appellate Body (to be established by the DSB).

Interestingly, state parties to a dispute may mutually and voluntarily agree to refer the matter for conciliation, mediation or arbitration as alternatives to referring it to the DSB. If the parties agree on arbitration, they will need to agree on the arbitration procedures. It is likely that the Model Law by the United Nations Commission on International Trade Law will feature in many of these arbitrations.

The DSB will also keep tabs on state parties’ implementation of their (or the Appellate Body’s) rulings and recommendations. Failing compliance, the DSB may impose temporary measures including compensation and the suspension of concessions.

It appears that only State parties will have the standing to make use of the dispute settlement mechanism in terms of the AFCFTA. It remains unclear by which body a dispute can be referred from the general populace of one of the state parties or by any other interested party should this ever be necessary as currently the SADC tribunal also does not allow any private parties to bring cases to it. The mechanism to settle inter-state disputes is welcomed as it should facilitate trade between member states.

A similar approach could be adopted to the Common Market for Eastern and Southern Africa (Comesa) and the East African Community (EAC) Courts of Justice. They require the exhaustion of all local and possible internal remedies (within a State) before allowing an issue to be ventilated internationally.

We are enthusiastic about the prospects of the AFCFTA. Having such wide-ranging discretion for states to settle disputes through alternative dispute resolution procedures, and not simply a strict judicial process, is likely to facilitate and encourage resolutions and pave the way for further partnerships between states.

By Richard Steinbach, Associate, Norton Rose Fulbright South Africa

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

Articles

Rethinking core aspects of the freight industry

Logistics

A major part of the outstanding amounts owing to freight companies relate to actual disbursements pertaining to VAT and duties.

12 Dec 2024
0 Comments

Cold chain progress is vital for Africa’s food security – GCCA

Logistics

Growing the cold chain on the continent is vital for resilient and sustainable food and healthcare systems.

19 Sep 2024
0 Comments

The Customs Modernisation Programme: an overview

Customs
20 Aug 2024
0 Comments

Take rail asset performance to new heights with AI Onboard

Road/Rail Freight
03 Jul 2024
0 Comments

US$1.5 Trillion Blue Economy potential untapped in Africa

Economy

The OIA summit is working to drive Africa’s Blue Economy, bringing together investors, entrepreneurs, decision-makers and researchers.

21 Nov 2023
0 Comments

SA's only licence printing machine breaks down – again

Africa

The Department of Transport estimates that it will take at least two weeks to fix.

04 May 2023
0 Comments

Risks associated with a House Bill of Lading

Technology
06 Mar 2023
0 Comments

Guide to Booking a Shipping Container: Steps, Tips and Tricks

Imports and Exports

Booking a shipping container: tips, tricks and steps for a smooth process.

12 Jan 2023
0 Comments

Understanding HS Codes and Customs Tariffs in South Africa: A Guide for Importers and Exporters

Customs

This text explains how HS codes and customs tariffs in South Africa classify and tax imported/exported goods for international trade.

12 Jan 2023
0 Comments

What is a Bill of Lading?

Imports and Exports
12 Jan 2023
0 Comments

Global Supply Chain 101: Understanding the Players, Processes, and Evolution of International Trade

Imports and Exports
09 Jan 2023
0 Comments

Tower Cold Chain launches KTEvolution container for pharmaceutical transport

International
10 May 2022
0 Comments
  • More

Filter by Topic

Domestic
Economy
Imports and Exports
International
Logistics
People
Road/Rail Freight
Sea Freight
Technology
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us