The National Assembly yesterday approved the Economic Partnership Bill between AFOA members on one side and the UK and Northern Ireland on the other. An important step in the exchanges.
A boost for trade. The National Assembly yesterday adopted the bill on the economic partnership between the AFOA member countries, including Madagascar, the United Kingdom and Northern Ireland. Presented by the Ministry of Industrialization, Trade and Consumption and that of Foreign Affairs, the project was supported by Ministers Edgard Razafindravahy and Yvette Sylla in Tsimbazaza. This partnership was validated by the Council of Ministers on October 22, 2019 and Madagascar signed the agreement on November 21, 2021 like three other AFOA member countries, namely Mauritius, Seychelles and Zimbabwe. This bill allows to intensify trade between the United Kingdom and Madagascar. As we know, the United Kingdom left the European Union in January 2020 but has kept its relations with the AFOA member countries. The agreement gives better access to international markets for Malagasy products. Each year, trade between Madagascar and the United Kingdom is estimated at 75 million dollars. Madagascar benefits from these exchanges by exporting cash crops such as vanilla and by importing industrial machinery and plastic equipment.
Market diversity
Three points concern Madagascar in this partnership, namely the opening of the market, fishing and economic development. Minister Razafindravahy clarified before the deputies that this partnership agreement with the United Kingdom is in line with the development projection established by the government. This partnership is especially favorable to developing countries, in particular Madagascar, thanks to the diversity of international markets to which their products will have access. Trade in favor of poor countries will considerably reduce imports and will therefore cure the balance of payment deficit for several years. The UK has been an active partner of Madagascar for a long time. Relations were frozen for a while before picking up again. The United Kingdom acts in the maritime sector and blue economy, development of youth and women’s entrepreneurship. The UK also supported Madagascar during the Covid-19 outbreak in 2020-2021. This bill will still go through the test of the Senate before its promulgation.