The Manufacturers Association of Nigeria (MAN) on Wednesday strongly supported the Federal Government’s refusal to sign the agreement establishing the African Continental Free Trade Area (AfCFTA).
The body frowned at the contents of the agreement, noting that it will lead to gross unemployment in the country as most manufacturing companies in the country will be made to die a quicker death.
President of the association, Dr. Frank Jacobs, said MAN would not support FG’s adoption and ratification of the agreement establishing the African Continental Free Trade Area (AfCFTA) until issues of market access and enforcement of rules of origin are addressed.
He said the private sector and other stakeholders were never consulted for inputs before Nigeria’s position was presented at the meetings of the African Union-Technical Working Group on CFTA in the build-up to AfCFTA negotiation by Nigeria.
The AfCTA is expected to create a trade bloc of 1.2 billion people with a combined gross domestic product (GDP) of more than $2 trillion. The agreement commits countries to removing tariffs on 90 per cent of goods and to liberalize services.
Addressing journalists yesterday, Jacobs explained that the issues of market access that allows only 10 percent of products to be protected as well as government’s enforcement mechanism in the area of enforcement of rules of origin need to be clearly defined before local producers can support the agreement.
Noting that MAN is not oblivious of the benefits inherent in installing a continental trade agreement like AfCFTA that could improve intra-African trade and enhance economic growth and sustainable development, Jacobs said that Nigeria’s national interest should however be the primary consideration in the decision to sign-on to such an arrangement.
He urged the government to set in motion a process that will enable all stakeholders on the international trade value chain in Nigeria to quickly review the text of the draft AfCFTA agreement and come up with comments on areas that are not in the best interest of the Nigerian economy and sectors.
