The WTO’s Trade Policy Review Mechanism: Lessons for the AfCFTA Review Process

The document argues that the African Continental Free Trade Area (AfCFTA) is essential for reversing the marginalisation of African countries in global trade, with the potential to generate $450 billion in additional income by 2035 and lift 30 million people out of absolute poverty. However, full implementation has been delayed since January 2021 due to resource constraints, debt distress in over 50% of African countries, and fears of tariff revenue losses. To address this, the AfCFTA Secretariat introduced the AfCFTA Implementation Review Mechanism (AFIRM) in July 2024. The author suggests that AFIRM should move away from a narrow focus on compliance and instead adopt the broader, transparency-based approach of the WTO's Trade Policy Review Mechanism (TPRM). The TPRM is credited with enhancing adherence through peer pressure and factual reporting without being a tool for dispute settlement, a model that could reduce resistance among AfCFTA state parties.

• Full implementation of the AfCFTA Agreement is projected to significantly boost Africa's economy by 2035, increasing income by nearly 7% (approximately $450 billion), raising foreign direct investment flows by 111% to 159%, and lifting 30 million people out of absolute poverty and 68 million out of moderate poverty.
• The full implementation of the AfCFTA has been delayed since January 2021, driven by several factors: the economic impact of COVID-19 and the war in Ukraine, high food import bills, and debt distress affecting more than 50% of African countries.
• State parties have shown reluctance to trade under the AfCFTA due to predicted losses in tariff revenue, particularly for import-dependent countries, leading some to increase most-favoured-nation tariff rates.
• The AfCFTA Implementation Review Mechanism (AFIRM), established in July 2024, aims to assess progress, increase transparency, and promote adherence to AfCFTA commitments, with reviews intended to occur at least once every five years.
• The WTO's Trade Policy Review Mechanism (TPRM) promotes adherence not through enforcement or penalties, but by creating a transparency-based environment where members avoid peer embarrassment and use the process to identify technical assistance needs.
• The author argues that AFIRM's current focus on directly assessing compliance may cause resistance and non-cooperation, suggesting it should instead adopt the TPRM's broader focus on trade policy regimes and transparency.

APA

KESSIE, E. (2024). The WTO’s Trade Policy Review Mechanism: Lessons for the AfCFTA Review Process. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2025/01/SAIIA_PI_159_TradePolicyRvwMechanism.pdf

Chicago

KESSIE, EDWINI. The WTO’s Trade Policy Review Mechanism: Lessons for the AfCFTA Review Process. South African Institute of International Affairs, 2024. https://saiia.org.za/wp-content/uploads/2025/01/SAIIA_PI_159_TradePolicyRvwMechanism.pdf.

Wikipedia

{{cite report |last1=KESSIE |first1=EDWINI |title=The WTO’s Trade Policy Review Mechanism: Lessons for the AfCFTA Review Process |publisher=South African Institute of International Affairs |date=December 2024 |url=https://saiia.org.za/wp-content/uploads/2025/01/SAIIA_PI_159_TradePolicyRvwMechanism.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kessie2024wtos, author = {KESSIE, EDWINI}, title = {{The WTO’s Trade Policy Review Mechanism: Lessons for the AfCFTA Review Process}}, institution = {South African Institute of International Affairs}, year = {2024}, month = dec, url = {https://saiia.org.za/wp-content/uploads/2025/01/SAIIA_PI_159_TradePolicyRvwMechanism.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }