The Appellate Body of the African Continental Free Trade Area (AfCFTA) is participating in a pioneering peer learning and capacity building workshop with the Permanent Court of Review of the Southern Common Market (MERCOSUR), marking the first formal engagement between the AfCFTA Secretariat and the South American trading bloc’s dispute settlement system. The workshop, taking place in Asunción, the capital of Paraguay, represents a significant milestone in South to South cooperation on trade governance.
The structured exchange brings together judicial and legal experts from two of the world’s most ambitious regional integration projects to share experiences and strengthen their respective dispute resolution frameworks. Discussions center on regional integration jurisprudence, institutional procedures, and proven practices in trade dispute settlement. The AfCFTA Appellate Body, established under the Disputes Protocol, forms part of the dispute settlement mechanism under the African Continental Free Trade Area agreement signed in March 2018.
As the AfCFTA works to operationalize its various institutional structures, learning from more established regional trade courts offers valuable insights into effective jurisprudence and procedural frameworks. MERCOSUR’s two decades of experience in adjudicating trade disputes provides a rich repository of lessons for the AfCFTA system. The workshop reflects a growing recognition among regional trade organizations that peer learning and institutional cooperation can accelerate capacity development and help newer systems avoid pitfalls experienced by their predecessors.
For the AfCFTA, building a robust and respected dispute settlement mechanism is crucial to the success of the continental free trade area. Businesses need confidence that commercial disputes will be resolved fairly and efficiently, while member states require assurance that the rules-based system will be applied consistently and impartially. The AfCFTA dispute settlement system is modeled on the Dispute Settlement Understanding of the World Trade Organization (WTO), consisting of panels and an Appellate Body.
Only AfCFTA State Parties have standing to file claims under the Protocol, which can be heard and decided by Panels and the Appellate Body. Since violations of obligations regarding trade in goods and services in most instances impact private firms, it is for the national governments of the relevant countries to litigate against states adopting and implementing measures in violation of their obligations. The Dispute Settlement Body has the authority to establish panels and adopt their reports, maintain surveillance of implementation, and authorize suspension of concessions when necessary.
The engagement with MERCOSUR signals the AfCFTA Secretariat’s commitment to learning from diverse regional integration experiences. While Africa’s integration challenges differ from those of South America, the fundamental legal and institutional questions facing regional trade courts share common ground. MERCOSUR, established by the Treaty of Asunción in 1991, comprises Argentina, Brazil, Paraguay, and Uruguay as full members, with Bolivia having joined more recently.
The workshop comes at a critical juncture for the AfCFTA as it transitions from policy development to implementation. With Secretary General H.E. Wamkele Mene emphasizing the shift toward delivery of concrete results, strengthening the institutional architecture becomes essential to facilitating trade and investment flows. The AfCFTA Agreement entered into force on May 30, 2019, with the objective of creating a single continental market for goods and services, with free movement of businesspersons and investments.
The Asunción workshop represents part of broader efforts by the AfCFTA Secretariat to build partnerships with established regional economic communities and trade organizations worldwide. Similar engagements with the European Union, the WTO, and other regional bodies have helped inform the development of AfCFTA’s institutional framework. The choice of Paraguay as the venue is particularly timely, as the country currently holds the pro tempore presidency of MERCOSUR and recently hosted the historic signing of the EU and MERCOSUR free trade agreement on January 17, 2026.
Regional integration jurisprudence forms a core focus of the workshop discussions. The AfCFTA Secretariat has been actively building capacity across member states through various workshops and training sessions. In June 2025, Sierra Leone hosted a four day capacity building workshop in collaboration with the United Nations Economic Commission for Africa and the AfCFTA Secretariat, focusing on strengthening technical and institutional capacity of national implementation committees.
The AfCFTA has made significant progress since trading began on January 1, 2021. Currently, 46 tariff offers on trade in goods have been verified according to agreed liberalization modalities, and 48 member states have submitted initial trade in services offers in the five AfCFTA priority sectors. The Rules of Origin now cover approximately 92.4 percent, though the textile, clothing, and automobile sectors remain unresolved. Phase Two negotiations, focusing on intellectual property rights, investment, competition policy, digital trade, and women and youth in trade, are ongoing.
The workshop reflects the AfCFTA’s recognition that technical expertise and judicial capacity are essential for successful implementation. The AfCFTA Secretariat may provide legal advice and assistance in respect of dispute settlement, in a manner that does not undermine its impartiality, and may organize special training courses. Academic and professional training will be necessary as most international trade disputes involve trade remedies and safeguards requiring difficult technical rules and proof via trade data.
As the AfCFTA continues to build its institutional framework, the exchange with MERCOSUR’s Permanent Court of Review provides a valuable opportunity to understand how an established regional trade court navigates the complex intersection of national sovereignty, regional integration, and international trade law. The lessons learned in Asunción will contribute to shaping a dispute settlement system capable of supporting Africa’s ambitious economic integration agenda.
