Trade Agreements & Treaties

Trade agreements and treaties play a crucial role in governing trade activities. These agreements outline the rules, regulations, and frameworks that guide trade within the AfCFTA framework in Nigeria. The trade agreements and treaties governing trade in Nigeria, focusing on the AfCFTA agreement and its implementation protocols, can be found in the AfCFTA Agreements and the accompanying annexes.

  • AfCFTA Agreement and Annexes
  • Protocols of the AfCFTA

The architecture of the African Continental Free Trade Area (AfCFTA) consists of various operational instruments the form of protocols negotiated and agreed upon by the member states. These protocols provide the legal framework and guidelines for the implementation of the AfCFTA. Here are the key operational instruments:

  •  Agreement Establishing the AfCFTA: This is the foundational document that establishes the AfCFTA and sets out its overall objectives, principles, and institutional framework. It outlines the commitment of member states to create a single market for goods, services, and investments within Africa.
  • Protocol on Trade in Goods: This protocol addresses various aspects related to trade in goods. It covers rules of origin, which determine the criteria for products to qualify for preferential treatment under the AfCFTA. It also deals with tariff liberalization  schedules, customs cooperation, trade facilitation, and other related matters.
  • Protocol on Trade in Services: This protocol focuses on trade in services and aims to enhance liberalization and facilitation of trade in services among member states. It covers areas such as market access, national treatment, regulatory frameworks, recognition of professional qualifications, and cooperation in service sectors.
  • Protocol on Investment: The investment protocol provides a framework for promoting and protecting investments within the AfCFTA. It aims to create a conducive environment for cross-border investments, including provisions for investment protection, investor-state dispute settlement mechanisms, and cooperation in investment-related matters.
  • Protocol on Intellectual Property Rights (IRP): This protocol addresses the protection and enforcement of intellectual property rights within the AfCFTA. It aims to harmonise intellectual property standards and promote innovation, technology transfer, and the development of a robust intellectual property regime across the continent.
  • Protocol on Competition Policy: This protocol focuses on promoting fair competition and preventing anti-competitive practices within the AfCFTA. It establishes a framework for competition policy and enforcement, including provisions related to mergers, abuse of market dominance, and cooperation among competition authorities.
  • Protocol on Dispute Settlement: The dispute settlement protocol provides a mechanism for resolving trade disputes among member states. It establishes a dispute settlement body and sets out procedures for consultation, mediation, and arbitration to address conflicts that may arise in the interpretation of the AfCFTA agreements.

These operational instruments, through their respective protocols, form the legal framework for the AfCFTA and guide member states in implementing the trade agreement. They address various aspects of trade, investment, intellectual property, competition policy, and dispute resolution, aiming to create a predictable and rules-based trading environment within Africa.

Various legal instruments were released to provide comprehensive rules and regulations to govern specific aspects of the free trade area after the AfCFTA's trade agreement was signed. These protocols are an essential part of the AfCFTA and will help to ensure that the agreement operates smoothly and effectively. These legal instruments include six protocols, namely:
  • Trade in Goods: This protocol sets out the rules for tariff reduction and elimination, rules of origin, customs cooperation, and other related issues.
  • Trade in Services: This establishes the framework for liberalizing trade in services and facilitating the movement of service providers across the continent.
  • Rules and procedures on the settlement of disputes: This establishes a framework for resolving investment disputes.
  • Investment: This protocol seeks to promote and protect investment flows within the free trade area.
  • Competition Policy: This aims to promote fair competition, prevent anti-competitive practices, and protect consumers across the free trade area.
  • Intellectual Property Rights (IPRs): This protocol aims to create a harmonized system for protecting intellectual property across the continent.