Ghana's Mahama Champions AfCFTA Expansion to Caribbean

• President John Dramani Mahama plans to champion AfCFTA expansion to Caribbean countries when Ghana assumes AU Chairmanship next year.
• The initiative aims to create a larger duty-free and tariff-free trading bloc, promoting investment, industrialization, and shared prosperity between Africa and the Caribbean.
• AfCFTA currently provides duty-free and tariff-free trade among African countries, serving a market of over 1.4 billion people with a combined economy valued at approximately US$3 trillion.

President Mahama said the proposal to extend the arrangement to the Caribbean would form part of Ghana's priorities when it takes over the AU Chairmanship.

The African Continental Free Trade Area (AfCFTA) has already made significant strides in promoting economic integration among its member states, creating a market of over 1.4 billion people with a combined economy valued at approximately US$3 trillion. However, the current framework only accounts for trade within Africa, leaving out the Caribbean region. President John Dramani Mahama's plan to expand AfCFTA to include Caribbean countries aims to bridge this gap and create a larger duty-free and tariff-free trading bloc. This move has the potential to promote investment, industrialization, and shared prosperity between Africa and the Caribbean.

The relationship between Africa and the Caribbean is deepening, with the African Union formally recognizing the Caribbean as its seventh region. This recognition has enabled the Caribbean Community (CARICOM) to participate in AU discussions and deliberations on issues of common interest. President Mahama sees this growing partnership as an opportunity to deliver economic benefits for both regions. He believes that stronger commercial ties will complement the historical, cultural, and diplomatic relations already existing between Africa and the Caribbean.

To achieve his goal of expanding AfCFTA to the Caribbean, President Mahama acknowledges that deliberate policy decisions, investment in infrastructure, and sustained collaboration are necessary. He highlights the importance of investing in necessary infrastructure and logistics to facilitate trade, citing the example of the AfCFTA's digital trading platform, which connects buyers and producers across participating countries. The President also emphasizes the need for a continental digital payment and settlement system to improve efficiency and reduce barriers to cross-border trade.

Lawyers and compliance officers should watch for potential changes in trade regulations and policies between Africa and the Caribbean, which may impact businesses operating in both regions.

Source: Original reporting via Ghanaian Times