African heads of states and governments during the African Union Summit
for the agreement to establish the Continental Free Trade Area in
Kigali, Rwanda, on March 21, 2018. AFP PHOTO
In the past month, there have been detailed critiques and
appraisals of the African Continental Free Trade Area (AfCFTA) from
different corners.
Indeed the agreement is an embodiment of the Pan African dream towards economic, political and social integration.
Effective
implementation of the AfCFTA will bring about much desired
industrialisation, infrastructural growth, economic diversification, job
creation, food security, regional value chain development and ultimate
continental development.
Much like other Free Trade
Agreements (FTAs), the AfCFTA will be largely producer – oriented with a
focus on small and medium enterprises (SMEs) and the larger private
sector.
The prevailing sentiments around it reflect this. For instance,
the Kenyan cabinet specifically called upon the private sector to
leverage the opportunities presented by the AfCFTA in relation to Kenyan
exports.
Similarly, the African Union Commission
(AUC) urged the private enterprise to wield the AfCFTA development
agenda for greater opportunities and sustainable growth.
Conspicuously
missing from the AfCFTA discussions is the aspect of consumer
protection. Though its Protocol on Trade in Services recognises consumer
protection, it is only within the preamble and not the substantive
text.
Ironically, while Free Trade Agreements (FTAs)
are ultimately designed to benefit consumers, trade interests take
precedence at the expense of consumer interests. A 2016 study by audit
firm KPMG found that a majority of the 1.2 billion plus Africans,
especially those in sub-Saharan Africa, are extremely poor consumers.
Consequently,
it is vital that the AfCFTA is inclusive of this significant group. In
line with economic theory, the AfCFTA is expected to create a wider
market that will ultimately translate into consumer welfare gains.
These
gains include enhanced consumer choice, lower prices and improved
quality of goods. Nonetheless, the AfCFTA should go beyond that and
protect consumers through safeguarding their rights.
Generally,
consumers enjoy several rights such as the right to information, the
right to safety protection, the right to the protection of economic
interests and the right to redress. These rights are designed to protect
consumers from unscrupulous vendors who may prey on consumers’ lack of
knowledge or low bargaining power.
As Africa embarks
on its CFTA journey, this is the opportune moment to ensure that it
builds up a robust consumer protection framework. Globally, the European
Union (EU) enjoys the most advanced consumer protection regulatory
regime.
Primarily, the union’s membership is predicated on, amongst others, the acceptance of this regulatory regime.
Additionally,
the EU imposes this regime on other countries through its international
trade agreements. Other regional blocs in Asia (ASEAN and APEC) or in
Latin America (OAS) also have elements of consumer protection within
their framework but to varying degrees.
Further, the
UN Guidelines for Consumer Protection provide a good source regarding
consumer welfare and protection. Africa should import the best practices
exercised by these institutions.
Wanja Wanjiru, Trade and Competition Department, CUTS International Nairobi.
No comments :
Post a Comment