Step by step, Africa inches toward 'historic' free trade zone

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The African Union launches the 'operational phase' this weekend of a long-awaited trade accord.

The 55-nation AU, gathering for a summit in Niger, will give the formal push to a deal to phase out tariffs on trade from the Cape of Good Hope to Cairo.NAIROBI - The African Union launches the"operational phase" this weekend of a long-awaited trade accord, but analysts say the continent faces an uphill task to transform the pact into reality.

The economy of Africa, with a GDP of $2.5-trillion today, will reach takeoff just as its 1.2 billion population doubles over the next three decades, they predict. Talks on free trade began back in 2002, culminating in a deal that in late May crossed the threshold of ratification by at least 22 countries.- Major hurdles -

A timetable for lowering customs duties, rules for certifying"Made in Africa" products, and arbitration mechanisms to settle trade disputes are among the hurdles not even close to being resolved.Tariffs will be scrapped over a longer period on seven per cent of"sensitive" goods -- a potential means for a country to protect national sectors from foreign imports, say analysts. Tariffs on the remaining three percent of goods will remain in place.

 

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