Nigeria signs African continental free trade area agreement to enhance Intra-Africa trade and create the world’s largest trading bloc

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Nigeria signs African continental free trade area agreement to enhance Intra-Africa trade and create the world’s largest trading bloc

Nigerian President Muhammadu Buhari has signed African continental free trade area agreement to enhance Intra-Africa trade and create the world’s largest trading bloc. This agreement was signed at the African Union summit in Niger though it left Eritrea as the only African country not to engage in the trading block.

The agreement figures that upon implementation, it will lead to a 60% boost in the intra-African trade by 2022 as its first step will be cutting tariffs (a form of tax) for goods from countries defined to benefit from the bloc. As of now the period for this is not yet communicated.

Why Eritrea wasn’t considered to engage in the trading block?
According to Albert Muchanga, the Commissioner for Trade and Industry of the African Union Commission, Eritrea did not participate in the negotiations because of their conflict with Ethiopia.

He further added that the two countries are now at peace and Eritrea asked to go through the agreement with the African Union.

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