Seychelles signs agreement for free trade exchanges |24 March 2018
Seychelles stands to benefit greatly after having been one of the 44 African Union member countries to have recently signed an agreement establishing the African Continental Free Trade Area (AfCTA).
Ten (10) of the 55 member states including Nigeria and South Africa have yet to sign the agreement.
Vice-President Vincent Meriton made this pronouncement yesterday during a press conference following his delegation’s mission to Kigali, Rwanda for the 10th Extraordinary Summit of the AU where the document was signed.
The summit took place on March 21 and has been described as an “historic moment” for the African continent.
The AfCTA agreement is a pact that will allow for the establishment of a free trade area between signatories and, if successful, is purported to become the biggest trade agreement since the formation of the World Trade Organisation (WTO).
It is expected to boost Pan-African trade by reducing trade barriers such as duties and has the potential to bring together over 1 billion people into the same market of an estimated total GDP (Gross Domestic Product) of more than 3.4 trillion US dollars.
Vice-President Meriton met local media houses yesterday to provide details of the agreement and how AfCTA will benefit Seychelles.
“This agreement will provide Seychelles with a market of more than 1 billion people. This gives us ample opportunities to sell our products and services with fewer barriers,” VP Meriton said.
For instance, VP Meriton continued, the AfCTA will enable Seychelles to reach the emerging middle-class demographic in Africa with our value-added tuna, which are considered to be of great quality.
He explained that AfCTA will not only provide increased opportunities for imports and exports but also a window of opportunity for the private sector to venture into more innovative and productive businesses with the assurance that they will have markets for their products.
Cillia Mangroo, the principal secretary for trade, who was also present during the press conference, added that Seychelles will gain the ability to increase its manufacturing sector through the development of regional value chains.
All of these will be advantageous to our economy, create new jobs and, hopefully, lower the cost of living.
In regards to the possibility that AfCTA may encourage the entry of sub-standard goods in the country, VP Meriton replied that the government has policies and institutions in place such as the Seychelles Bureau of Standards to prevent the entrance of these types of products on the local market.
He further stated that these existing systems will need to be reinforced and regulatory officers will also have to be trained on how to deal with the change in intra-African trade.
“Free trade does not mean that sub-standard goods will be entering the country. We already do have sub-standard products coming in from countries with which we do not have free trade agreements, so it will be up to the government to have internal policies whereby we can regulate the standards of goods coming in,” Ms Mangroo added.
With AfCTA being a platform on which the private sector can flourish, Mrs Mangroo said that a first series of consultation with the private sector was held prior to the signing of the agreement and the second phase of consultation is in the works.
The second phase of the consultation will focus on which trade areas the local private sector wants to explore and which ones they want preserved.
VP Meriton concluded that the agreement is currently undergoing internal assessment and procedures, and should be submitted to the National Assembly for ratification by the end of this year.
Vice-President Meriton was accompanied at the Summit by David Pierre, Seychelles’ ambassador accredited to the AU, Cillia Mangroo, principal secretary for Trade, and Messrs Marco Larsen and Terry Rose from the department of Foreign Affairs.
