Trade Potential in Arab Nations: The Case of the GCC and PAFTA

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Dimitrios Dadakas
Keyword(s):  
Free Trade ◽  
Regional Integration ◽  
Free Trade Area ◽  
Trade Flows ◽  
Trade Expansion ◽  
Maximum Capacity ◽  
Trade Area ◽  
The World ◽  
Trade Potential ◽  
Potential Measure

Abstract We examine trade flows for Arab nations concentrating on the Gulf Cooperation Council (GCC) and Pan-Arab Free Trade Area (PAFTA) areas, to identify opportunities to enhance intra-Arab trade and facilitate regional integration. We employ panel data for the years 2003–2017 and a structural gravity model together with an “aggregate” trade potential measure that treats the GCC and PAFTA areas as single countries. Results suggest that, by 2015, intra-area trade had reached maximum capacity for both blocs. Potential to trade also reached capacity with many of the largest Free Trade Areas around the world, however, opportunities for trade expansion that still exist with the MERCOSUR and ASEAN, as well as many distinct destinations, can assist in strategic planning to enhance integration efforts.

Advancing Regional Integration in Africa through the Continental Free Trade Area (CFTA)

2017 ◽  
Vol 10 (1) ◽  
Author(s):  
F. A. Ismail
Keyword(s):  
Trade Liberalization ◽  
Free Trade ◽  
World Bank ◽  
Regional Integration ◽  
Industrial Development ◽  
Free Trade Area ◽  
African Union ◽  
Trade Area ◽  
The World Bank ◽  
The World

AbstractThe past decade and a half of the new millennium has ushered in dramatic changes to the architecture of world trade creating both opportunities and challenges for Africa’s development. The paper is critical of the recent paper of the World Bank that resuscitates the approach to trade liberalization and regional integration propagated by the Washington Consensus. The paper argues that African countries should adopt a “development integration” approach to regional integration that seeks to combine trade liberalization, industrial development and infrastructure development. The paper urges the World Bank and Africa’s trading partners from the north and south, such as the EU, the US and China, to work closely with the African Union to advance the negotiations and implementation of the Continental Free Trade Area (CFTA) and the African Union Agenda 2063.

Trade Blocks and the Gravity Model: Evidence from Western Hemispheric Countries

2009 ◽  
Vol 10 (2) ◽  
pp. 136-156
Author(s):  
E.M. Ekanayake ◽  
Amit Mukherjee ◽  
Bala Veeramacheneni
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Free Trade Area ◽  
Trade Flows ◽  
Western Hemisphere ◽  
Regional Trade ◽  
Trade Area ◽  
Model Evidence ◽  
Using Data ◽  
Trade Blocks

We analyze the major trade blocks in Western Hemisphere and their effects on intra-regional trade flows using data for the period 1980-2006. We use an augmented gravity model to estimate the effect of various trade blocks on trade flows within and across membership other Western Hemispheric countries. The findings of this study are consistent with findings of previous studies on Western Hemisphere trade flows and shed some light on whether the proposed Free Trade Area of the Americas is beneficial or not for Western Hemispheric countries.

Cross-Cumulation Arrangement as FTA Under GATT Article XXIV

2019 ◽  
Vol 23 (1) ◽  
pp. 165-185
Author(s):  
Jong Bum Kim
Keyword(s):  
World Trade Organization ◽  
Free Trade ◽  
Value Chain ◽  
World Trade ◽  
Free Trade Area ◽  
Rules Of Origin ◽  
Free Trade Areas ◽  
Intermediate Products ◽  
Trade Area ◽  
The World

ABSTRACT A cross-cumulation arrangement helps manufacturers meet the demands of the global value chain economy by facilitating the sourcing of intermediate products within the territories of participants in the arrangement. It is a de facto free-trade area formed by a network of bilateral free-trade areas underpinning the arrangement. However, a cross-cumulation clause provided in a bilateral free-trade area that underpins a cross-cumulation arrangement is inconsistent with General Agreement on Tariffs and Trade (GATT) Articles I and III because the intermediate products from the participants in the arrangement are more favorably treated than products from non-participants in the arrangement. The GATT inconsistencies of a cross-cumulation clause cannot be justified by the GATT Article XXIV exception, because a cross-cumulation clause of a bilateral free-trade area derogates from the free-trade area’s aim by facilitating trade in intermediate products between the free-trade area parties and non-parties to the free-trade area that are participants in the arrangement. In contrast, a cumulation clause provided in a free-trade area contributes to the free-trade area’s aim by facilitating trade in intermediate products between the parties to the free-trade area. To bring a cross-cumulation arrangement such as the Regional Convention on Pan-Euro-Med Preferential Rules of Origin into conformity with World Trade Organization law, the arrangement and its underlying free-trade areas should be recognized as a de jure free-trade area under GATT Article XXIV and notified to the World Trade Organization as such. A large cross-cumulation arrangement as a mega-free-trade area is likely to contribute to the world trading system by harmonizing divergent free-trade area rules of origin and providing an efficient mechanism for the formation of a mega-free-trade area.

Indonesian Visions of Regionalism: From Yudhoyono to Jokowi

2017 ◽  
Author(s):  
Jürgen Rüland
Keyword(s):  
Foreign Policy ◽  
Civil Society ◽  
Free Trade ◽  
Regional Integration ◽  
Free Trade Area ◽  
Trade Area ◽  
Leadership Frame ◽  
Interpretive Frame ◽  
European Regional

With the “leadership frame,” the chapter unearths a new interpretive frame of the Charter from 2009 onward, suggesting a gradual return of extant ideas of Indonesian foreign policymaking. The chapter also scrutinizes the internalization of the new EU-inspired ideas of regionalism. The litmus tests were events in which the territorial and economic sovereignty of Indonesia was challenged, such as the disputes with Malaysia over maritime borders and the ASEAN-China Free Trade Area. The response to these events showed that most stakeholders except civil society threw overboard many of the liberal-cosmopolitan values associated with European regional integration. Last, the chapter examines whether this ideational reversal continued under the Jokowi government and suggests that the latter did not abruptly break with the foreign policy of his predecessor. Many of the seemingly new Jokowi policies had their roots in the second term of the Yudhoyono presidency.

scholarly journals Eliminating ‘Thick’ Borders: Analysing the Legal Framework on Non-Tariff Barriers in the Africa Continental Free Trade Area Agreement

2021 ◽  
Vol 6 (1) ◽  
pp. 167-194
Author(s):  
Catherine Penda
Keyword(s):  
Free Trade ◽  
Regional Integration ◽  
Bargaining Power ◽  
Free Trade Area ◽  
Trade Agreements ◽  
Legal Framework ◽  
Growth Potential ◽  
African Countries ◽  
Global Marketplace ◽  
Trade Area

African countries have long recognised that regional integration is vital if Africa is to optimise its growth potential and boost its bargaining power in the global marketplace. This explains the proliferation of several Regional Trade Agreements (RTAs) across the continent culminating in the conclusion of the landmark African Continental Free Trade Area (AfCFTA). However, despite the concerted efforts to boost intra-trade among African countries, African borders remain ‘thick’ because of the continued existence of Non-Tariff Barriers (NTBs) that reverse gains made from initiatives of trade liberalisation. Accordingly, if the landmark Africa Continental Free Trade Area (AfCFTA) is to be successful, it must strive to address and eliminate Africa’s NTBs. It is argued in this paper that while the AfCFTA makes some important strides in reducing NTBs in intra-African trade, there are still some significant gaps in the AfCFTA’s provisions on NTBs that need to be addressed. Some of these gaps include: the lack of a comprehensive legal framework that adequately addresses all the categories of NTBs and the lack of clear guidelines on how to promote harmonisation among conflicting measures among RTAs. This article singles out and analyses provisions on NTBs under the AfCFTA with the aim of determining whether the AfCFTA addresses the challenges currently facing other RTAs in tackling NTBs. The author will identify shortcomings in the legal framework of the AfCFTA with the aim of making proposals to address them.

scholarly journals Integration associations for Sub-Saharan Africa: history and prospects for development

2020 ◽  
Vol 10 (28-29) ◽  
pp. 52-62
Author(s):  
Mariia Kravchenko ◽  
Keyword(s):  
Free Trade ◽  
Southern Africa ◽  
Regional Integration ◽  
Free Trade Area ◽  
Sub Saharan Africa ◽  
African Unity ◽  
Economic Community ◽  
Trade Area ◽  
Sub Saharan ◽  
Eastern And Southern Africa

The article deals with the main integration associations of such a promising but controversial region, as Sub-Saharan Africa. The author emphasizes the continuity of regional integration associations’ formation that goes back to the colonial times, to the first half of the 20th century. Periodization of ongoing integration processes in Sub-Saharan Africa is proposed in the research. Key milestones for the further regional integration were: - 1963, the foundation of the Organisation of African Unity (OAU); and the beginning of Independence for many postcolonial countries of Sub-Saharan Africa; - 1980, the Lagos Plan of Action adoption that led to the establishment in future of the following integration associations for Sub-Saharan Africa: ECOWAS, Economic Community of West African States; COMESA, Common Market for Eastern and Southern Africa; ECCAS, Economic Community of Central African States; - 1991, the signing of the Abuja Treaty, which called for the African Economic Community creation as the new stage for economic cooperation and integration of the continent, including Sub-Saharan Africa; - 1999-2002, the Organisation of African Unity (OAU) transition into the African Union (AU), launching of new partnerships and integration associations for Sub-Saharan Africa, increased integration. At the beginning of the 21st century, there are serious economic and political factors for disintegration in the region. Nevertheless, the following integration associations, as stated in the article, proved to be effective: SADC, Southern African Development Community; EAC, East African Community; COMESA, Common Market for Eastern and Southern Africa. The author argues that the existence since 2015 the Tripartite Free Trade Area (TFTA) between EAC, COMESA and SADC marks a significant step forward for strengthening of integration associations for Sub-Saharan Africa, as well as for the achievement of African Union’s purpose to provide the African Continental Free Trade Area.

scholarly journals African Continental Free Trade Area (AfCFTA) Agreement and the Mega-Regional Trade Agreements (MRTAs): what are the underlying challenges and prospects for Africa-South-South trade?

2021 ◽  
Vol 9 (5) ◽  
pp. 413-432
Author(s):  
Anayochukwu Basil Chukwu ◽  
Tobechi Agbanike ◽  
Lasbrey Anochiwa
Keyword(s):  
Free Trade ◽  
Regional Integration ◽  
Free Trade Area ◽  
Trade Agreements ◽  
Regional Trade Agreements ◽  
Global Trade ◽  
Regional Trade ◽  
Trade Area ◽  
Trade Share ◽  
Almost All

This study examines the possible challenges and prospects of the recent signing of the African Continental Free Trade Area (AfCFTA) Agreement on South-South trade. The recent ratification of the agreement by the African Union (AU) Heads of Government and the establishment of the mega-regional trade agreements (MRTAs) by the major global trading economies are the biggest since the establishment of the WTO. One of these regional and continental agreements' principal objectives is to further strengthen trade terms and balance of trade statistics between member nations. Whereas almost all the regional and continental blocs have to a large extent, achieved the purpose of their trade agreements, Africa stands out as the only region whose intra-trade value still constitutes less than 15% of global trade share. Many reasons have been adduced to be responsible for the weak trade performance, one of which is weak regional integration. This study, therefore, concludes that for Africa to achieve significant improvement in global trade, the region needs to encourage regional trade, which will act as a catalyst for transforming the domestic economies and lay a robust foundation for healthy regional competition and integration

scholarly journals Trade-economic cooperation of Ukraine and China within COVID-19 Pandemic and in post-pandemic time

2021 ◽  
Vol 255 ◽  
pp. 01031
Author(s):  
Olha Yatsenko ◽  
Tetiana Tsygankova ◽  
Iryna Horbachova ◽  
Oksana Aksyonova ◽  
Valeriia Osadchuk
Keyword(s):  
Foreign Trade ◽  
Free Trade ◽  
Economic Integration ◽  
Free Trade Area ◽  
Economic Relations ◽  
Trade Area ◽  
World Crisis ◽  
The World ◽  
Export Volume ◽  
Mutual Relations

Modern trends of trade-economic relations of the countries within the COVID-19 pandemic have been systemized in the development of mutual relations in particular economy sectors have been identified. Direct connection between the increase of export volume to China and Ukraine GDP growth has been established in the study based on the correlation-regression analysis. Weaknesses and strengths as well as opportunities and threats of mutual relations within the pandemic have been defined. The influence of the world crisis, creating a free trade area, and other factors on foreign trade circulation between Ukraine and China have been studied with the tools of empirical gravity model of international trade. Foreign trade circulation up until 2022 with and without creating a Free Trade Area has been forecast based on the modelled data. Perspective directions of trade-economic relations have been defined; the strategy of extending the trade-economic integration of Ukraine and China within the COVID-19 pandemic and in post-pandemic time within customs tariffs liberalization, intensification of symmetric interdependence and complementarity between the countries, within creating a free trade area, diversifying trade turnovers, overcoming the pandemic, reduction of crisis consequences, and strengthening cooperation in new industries of post-pandemic time has been grounded.

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