- May 2, 2023
- Posted by: AITRC 2
- Category: News
The working paper examines the implications of the African Continental Free Trade Area (AfCFTA) and the rules of origin for the textile and apparel industry in Africa. With the implementation of the AfCFTA, there is a significant opportunity for the textile and apparel industry to contribute to economic growth and development in Africa.
The paper highlights the importance of rules of origin in ensuring that the benefits of the AfCFTA are fully realized. Rules of origin refer to the criteria used to determine the origin of a product and whether it qualifies for preferential treatment under the trade agreement. The authors emphasize that rules of origin must be clear, transparent, and easily understood to ensure that businesses can take advantage of the preferential tariffs offered under the AfCFTA.
It further, emphasizes the importance of addressing non-tariff barriers such as customs procedures, technical regulations, and standards. These barriers can be particularly challenging for small and medium-sized enterprises (SMEs), which make up a significant portion of the textile and apparel industry in Africa. The authors suggest that addressing non-tariff barriers is crucial to ensure that SMEs can participate fully in the AfCFTA.
Also, it discusses the challenges that the textile and apparel industry in Africa may face in meeting the rules of origin requirements. For instance, the industry’s reliance on imported inputs such as fabrics and yarns may affect its ability to meet the necessary threshold for originating products. To overcome this challenge, the authors suggest that African governments and stakeholders should focus on building a robust textile and apparel value chain that includes local sourcing of raw materials. To read more, click here to download
