Benefits Of Africa Free Trade Agreement

Maryla Maliszewska , lead author, is a senior economist in Trade and Regional Integration Unit (ETIRI) at the World Bank. His area of expertise covers various aspects of trade policy and regional integration, with particular emphasis on the impact of trade on poverty and income distribution. Countries should focus on eliminating these bottlenecks. The African Union, the United Nations Economic Commission for Africa and the African Development Bank should make the free trade area work as quickly as possible. By creating a single economic space, with harmonized trade policies and a regulatory framework, the TFTA solves the problem of multiple memberships, streamlines trade negotiations, reduces business costs, supports industrialization and stimulates cross-border infrastructure projects. The free trade area can only enter into force if all protocols from at least 22 countries are finalized and ratified. Most of the benefits of further trade integration (i.e. social benefits through lower import prices, production efficiency and increased production, higher value-added jobs and exports, technological specialization, etc.) will be realized in the long term, while most of the costs of adaptation and integration (i.e. lost revenue from trade rights) will be realized in the long term, while most of the costs of adaptation and integration (i.e. lost revenue from trade rights) , the disappearance of local SMEs in the face of increased competition, the adjustment of unemployment), the necessary investments in infrastructure, political and regulatory reforms, etc.) short-term. (6) Between 2012 and 2014, more than 75% of the continent`s exports were made from profits; Yet, during the same period, less than 40% of intra-African trade, according to the African Union (AU), were extracts from de-demerit, underscores the need to boost trade within the continent.

According to a research paper published by the United Nations Conference on Trade and Development (UNCTAD) in February 2018, CFTA offers many opportunities for sustainable development and economic growth in African economies. However, not all countries will benefit in the same way and the benefits of social benefits will also entail relevant costs and obligations. (6) The TFTA is an important milestone in Africa`s economic history. It was important with Ghana`s independence in 1957, the creation of the Organization of African Unity in 1963 and its reinvention as the African Union in 2002.