Protectionist drive may complicate African free trade

2020 ◽  
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
West African ◽  
Secretary General ◽  
African Union ◽  
Content Type ◽  
Goods And Services ◽  
Trade Area ◽  
External Threats ◽  
The Eu

Subject West African protectionism. Significance The African Continental Free Trade Area (AfCFTA), an African Union (AU) initiative to create a single market for goods and services throughout the continent, will start trading on July 1. In anticipation, the EU has declared its intention to establish a bicontinental ‘Eurafrican’ free trade area, building upon the AfCFTA. However, the nascent framework faces distinct internal and external threats. Impacts The secretary-general post is a considerable boost for South Africa given the postholder’s role in implementing AfCFTA’s liberalisation. Ghana’s main parties will try to outbid each other for farming support, with resulting protectionist promises, before this year's polls. Intra-African tensions will be heightened by perceived AfCFTA breaches, such as Nigeria’s border closure.

Ghana’s Akufo-Addo faces economic diplomacy challenges

2021 ◽  
Keyword(s):  
International Trade ◽  
Free Trade ◽  
Free Trade Area ◽  
African Union ◽  
Content Type ◽  
Economic Diplomacy ◽  
Trade Area ◽  
Social Tensions ◽  
Trade Partners

Significance However, the success of Akufo-Addo's second term could depend in large part upon effective economic diplomacy with regional and international trade partners now the African Continental Free Trade Area (AfCFTA) has become operational. Impacts Ghana will push for all African Union (AU) members to ratify the AfCFTA to secure its position as a regional hub. Economic plans may heighten existing social tensions within Ghana, notably Western Togoland, if growth is not shared equitably. More AU members will likely undertake full ratification of the AfCFTA to not be left outside of lucrative continental markets.

Does the formation of RTA support the neoclassical growth theory and convergence hypothesis?

2014 ◽  
Vol 41 (1) ◽  
pp. 51-70 ◽  
Author(s):  
A.K.M. Nurul Hossain ◽  
Mohammad Abdul Munim Joarder
Keyword(s):  
Economic Growth ◽  
Free Trade ◽  
Free Trade Area ◽  
Unconditional Convergence ◽  
Reduced Form ◽  
Per Capita Gdp ◽  
Content Type ◽  
Trade Area ◽  
Per Capita ◽  
The Eu

Purpose – The authors considered three regional trading agreements (RTAs): European Union (EU-25), ASEAN Free Trade Area (AFTA), and South Asian Free Trade Area (SAFTA) to test the hypothesis that poor members within a RTA catch rich members and thereby follow the path of income convergence. Of particular interest is to test whether partial openness (i.e. formation of RTAs) or openness or political conditions are conducive to economic growth among the member countries of RTAs. The paper aims to discuss these issues. Design/methodology/approach – The authors used pooled datasets from three different RTAs, namely the EU-25, the AFTA, and the SAFTA. Taking five years average for all variables, starting from 1961 to 1965 and extending to 2001-2005, the authors tested the hypothesis that the growth rate of per capita GDP is negatively related to the initial level of per capita GDP. Constructing a dynamic behavioral equation and forming the reduced form equation, the authors calculated the s-convergence, and both conditional and unconditional convergence. Findings – The authors found that both the EU-25 and the AFTA exhibit s-convergence, and both conditional and unconditional convergence, while the reverse evidence was observed in the case of the SAFTA. However, the speed of convergence of the AFTA was found to be much higher than that of the EU-25. Originality/value – Formation of RTA by countries should be considered as an essential condition to achieve sustained economic growth. In addition, political rights, trade openness, and more importantly benevolence of the member countries within the RTA must be shown to sustain economic growth and convergence; otherwise with the passage of time, divergence among the RTA members will be evident.

Ukraine-Russia ties will weaken with EU deal

2015 ◽  
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Free Trade Zone ◽  
Content Type ◽  
Trade Area ◽  
Russian President ◽  
Food Imports ◽  
Vladimir Putin ◽  
The Eu

Subject The EU-Ukraine trade agreement. Significance The delayed EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA) will start in January. The accord is set to strengthen ties between the EU and Kyiv. Russian President Vladimir Putin has ordered the ending of a free-trade zone with Ukraine, arguing that the new Kyiv-EU deal will harm Russia's economy. Also, in retaliation for Kyiv's participation in sanctions against Russia, the Kremlin has ordered an embargo against Ukraine food imports into Russia, which could cost Kyiv 300-600 million dollars per year. Impacts Ukraine will continue to reorient itself and sell food and products to other markets, such as Turkey and Israel. An influx of imports from the EU could prove a serious challenge to many local producers and thus should stimulate reforms. Termination of Ukraine trade with annexed Crimea from mid-January will weaken Kyiv-Moscow ties further.

Implementation may hamper Africa free trade area plans

2018 ◽  
Keyword(s):  
South Africa ◽  
Free Trade ◽  
Free Trade Area ◽  
Single Market ◽  
African Union ◽  
Trade Facilitation ◽  
Content Type ◽  
Full Implementation ◽  
Trade Area

Subject Africa's Continental Free Trade Area. Significance An extraordinary African Union (AU) summit on March 21 is expected to see AU members sign an agreement establishing the African Continental Free Trade Area (CFTA), after trade ministers agreed the overall framework in December. The CFTA is set to become the world’s largest single market, incorporating the AU’s 55 members, with a combined population of 1.2 billion and GDP of over 3.0 trillion dollars. Impacts Full implementation of WTO’s trade facilitation agreement alongside CFTA could double intra-African trade volumes within a decade. Trade protectionism in the Trump and Brexit era could hasten uptake of CFTA to bolster Africa’s bargaining clout. Inter- (South Africa versus Nigeria) and intra- (Kenya versus Tanzania) regional rivalries will remain major risks.

Strained ties will hamper West African cooperation

2020 ◽  
Keyword(s):  
Sierra Leone ◽  
Free Trade ◽  
Free Trade Area ◽  
West African ◽  
Economic Recovery ◽  
Content Type ◽  
Guinea Bissau ◽  
Trade Area

Significance Relations among ECOWAS leaders are increasingly strained, after Guinean President Alpha Conde last month closed his country’s border with Guinea-Bissau, Senegal and Sierra Leone. Impacts Intermittent border closures could impede the economic recovery of affected countries. This would also negatively impact on the progress of the prospective Africa Continental Free Trade Area (AfCFTA). Recent trade-related tensions between Ghana and Nigeria are unlikely to lead to a full-blown, protracted diplomatic row.

EU-Japan trade deal gives free trade a timely boost

2017 ◽  
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Framework Agreement ◽  
Content Type ◽  
Trade Area ◽  
Economic Partnership Agreement ◽  
Economic Partnership ◽  
Partnership Agreement ◽  
High Standards ◽  
The Eu

Subject The EU-Japan economic partnership agreement Significance The EU and Japan, which together account for 30% of global GDP, have reached a framework agreement on an economic partnership agreement (EPA), paving the way for the creation of the world's largest free trade area. The EPA involves high standards of trade liberalisation, comparable to the Trans-Pacific Partnership. Impacts Japan will expand its traditional exports (autos and electronics), but also new 'star' products such as sake and green tea. The EU will benefit most from opportunities to export more agricultural goods, processed food and beverages. European auto and electronics makers and Japanese producers of food and agricultural products will face greater competitive pressure. The EPA will boost household consumption in both economies. EU-Japan cooperation on standard-setting may create challenges for developing countries in particular.

African free trade area faces challenges from within

2019 ◽  
Keyword(s):  
Free Trade ◽  
Bargaining Power ◽  
Regional Distribution ◽  
Free Trade Area ◽  
Content Type ◽  
Implementation Challenges ◽  
Trade Area ◽  
The Eu

Significance However, coordination and implementation challenges still weigh on its prospects. Impacts The AfCFTA is projected to increase continental GDP by 0.97%. Employment should increase by 1.17%, but regional distribution will be sufficiently uneven that some countries will face downturns. The AfCFTA could increase Africa’s bargaining power with the EU in post-Cotonou negotiations.

Recent Developments in the Regulation of Investor-State Dispute Resolution: Any Lessons for the Southern African Development Community?

2017 ◽  
Vol 10 (2-3) ◽  
pp. 180-204
Author(s):  
Lawrence Ngobeni ◽  
Babatunde Fagbayibo
Keyword(s):  
Dispute Resolution ◽  
Free Trade ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Southern African Development Community ◽  
African Union ◽  
Foreign Investments ◽  
African Development ◽  
Trade Area ◽  
Recent Developments

Abstract In 2016, the Southern African Development Community (SADC) amended Annex 1 of the SADC Protocol on Finance and Investment (FIP) in order to remove investor access to international arbitration or Investor-State Dispute Resolution (ISDS). The recent formation of the African Continental Free Trade Area (AfCFTA) and the COMESA-EAC-SADC Tripartite Free Trade Agreement (T-FTA) are factors that will likely curtail SADC’s ability to regulate foreign investments. Both AfCFTA and T-FTA are supposed to have their own investment protocols. This means that SADC faces the loss of regulatory authority over foreign investments. The recent formation of the Pan African Investment Code (PAIC) has shown that some African Union (AU) Member States want to provide ISDS for their investors, while others including SADC Members States do not. This article intends to evaluate the lessons SADC can learn from other jurisdictions in terms of the effective regulation of ISDS.

China-United Kingdom free trade area

2017 ◽  
Vol 10 (1) ◽  
pp. 111-126
Author(s):  
Shumei Chen ◽  
Dandan Li
Keyword(s):  
United Kingdom ◽  
Free Trade ◽  
Free Trade Area ◽  
Economic Effects ◽  
The European Union ◽  
Content Type ◽  
Trade Area ◽  
Simulation Results ◽  
The Uk ◽  
Trade Analysis

Purpose The purpose of this paper is to predict the likely economic effects of a free trade area (FTA) on both China and the United Kingdom (hereafter the UK). Design/methodology/approach Following literature review and trade relationship briefing, this paper uses the Global Trade Analysis Project simulation to predict the economic effects of such a FTA on both China and the UK. Findings The simulation results indicate that a China-UK free trade area (hereafter CUFTA) will bring more benefits than harm to both China and the UK, and achieving zero tariff or reducing technological barriers to trade (TBT) is mutually beneficial for both China and the UK, with the growth in GDP, economic welfare as well as import and export. Combining zero tariff and the reduction of TBT in exceptional departments is the most favorable way to improve the macroeconomic effects without bringing damaging effects on the comparative disadvantage industries such as transport equipment, chemicals industries for China and textiles and apparel industry for the UK. Originality/value After the UK voted to leave the European Union, CUFTA is put on the agenda by both the governments, yet there are fewer studies on CUFTA, with this paper being one of the early trials. Besides, based on the simulation results, some policy suggestions will be put forward for future negotiations and industrial policies’ adjustment.

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