Africa Economy: Launch of free trading arrangement to spur China- Africa trade relations

0 Comment(s)Print E-mail Xinhua, November 27, 2014
Adjust font size:

Analysts said on Thursday that a proposed tripartite free trading arrangement to be launched by three African trading blocs next month will have a positive bearing in promoting China-Africa trade relations.

The Common Market for Eastern and Southern Africa (COMESA), the Eastern African Community (EAC) and the Southern African Development Community (SADC) are expected to launch the tripartite free trading arrangement in December.

Once launched, the tripartite free trading arrangement will be the largest economic bloc on the continent and will pave way for the establishment of a continental free trade area in 2017.

Dr. Lubinda Habaazoka, a Lecturer in the School of Business Studies at the Copperbelt University (CBU) said the initiative presents unique opportunities for the enhancement of trade relations between China and member countries of the regional bloc.

"This will good for the enhancement of relations between China and Africa. Instead of negotiating with individual countries, China will be negotiating with a bloc and this is good for business development," he said in an interview with Xinhua.

While acknowledging that the launch of the initiative was long over-due, the analyst said it was appropriate that it was coming at a time when China has emerged as a super economic power house and when African nations are looking to the Asian country for increased investment.

According to him, the launch of the free trading arrangement will allow for the smooth movement of goods and services but member countries are urged to consider free movement of people as well.

He further warned that some industries in some countries may face negative consequences and close due to cheap goods that may be moving throughout the free trade area and urged countries to put in place measures to enhance productivity.

Richard Musauka, country director of Development Partnership International (DPI) Zambia office said the initiative has come at a time when China has invested a lot in improving infrastructure in many countries in Africa.

"This initiative will definitely have an influence on Africa/ China trade relations. Like you know, China has invested a lot in improving infrastructure in Africa and will definitely try to take advantage of this initiative to improve trade relations," he said.

He however said China should help countries in the three regional blocs through technology transfer and training of human resource.

The tripartite free trading arrangement encompasses 26 member states from the three regional blocs, with a combined population of 625 million people and a gross domestic product of 1.2 trillion U.S. dollars. It will account for half of the membership of the African Union and 58 percent of the continent's gross domestic product.

Sindiso Ngwenya, the head of COMESA said in October that the launch of the initiative followed progress made by the three economic blocs in tariff offers and rules of origin which stipulates that imported products should meet 75 percent value addition from the country of origin.

The initiative will particularly benefit the business community due to an improved harmonized trade regime which in turn will reduce the cost of doing business as a result of elimination of overlapping trade regimes.

The launch of the initiative was arrived at following a tripartite sectorial meeting of ministers in Burundi in October. It will be launched during a tripartite summit of heads of state to be held in Egypt next month. Endi

Follow China.org.cn on Twitter and Facebook to join the conversation.
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter