The Protocol on Rules and Procedures on the Settlement of Disputes is one of the 6 protocols that constitute the AfCTA trading block. Let’s look at what it represents for the average African businessman in detail.
Here’s what this article covers:
- What does the Protocol on Rules and Procedures on the Settlement of Disputes mean and cover?
- How does it function?
- What are the expected challenges?
- What has been done to solve some of these issues?
AfCFTA: Protocol on Rules and Procedures on the Settlement of Disputes
This protocol provides for the administration of the Dispute Settlement Mechanism established in accordance with Article 20 of the Agreement. The aim is to ensure that the dispute settlement process is transparent, accountable, fair, predictable, and consistent with the provisions of the AfCFTA Agreement.
How does the Protocol on Rules and Procedures on the Settlement of Disputes Function?
This protocol only applies to state parties who present disputes concerning their rights and obligations under the provisions of the Agreement.
The Protocol dictates contractual terms for the settlement of business disputes between two or more transaction parties. This means that the municipal laws will apply once a state/country requests consultation, in the event of any dispute, pursuant to Article 7 of this same Protocol.
What Are the Expected Challenges?
The mode of dispute resolution follows a pattern like other international tribunals with the challenge of enforcing tribunal decisions on states who may refuse to respect these decisions.
This would make it more difficult to drive compliance at the state level and encourage all state parties to set up (and maintain) mechanisms and infrastructure to enable fair and competitive trade within and beyond their borders.
What Has Been Done to Solve Some of These Issues?
The Negotiations that are ongoing are focused on commitment through inclusive participation. That means that each state would be held responsible for its commitments based on the negotiated terms which would eventually be signed by parties.
This measure would ensure that countries remain committed to their responsibilities and are held accountable for shortfalls in meeting these same commitments.
Written by Ikechukwu Ibeawuchi for Upside Africa