scholarly journals China and the Future of Africa Continental Free Trade Area (ACFTR): Challenges and Opportunities

2021 ◽  
Vol 4 (3) ◽  
pp. 156-169
Author(s):  
Sheriff G.I. ◽  
Ahmet A. ◽  
Sheriff A.I.
Keyword(s):  
Free Trade ◽  
Bilateral Trade ◽  
Implementation Process ◽  
Free Trade Area ◽  
Secondary Source ◽  
African Countries ◽  
Trade Area ◽  
Long Run ◽  
The Future ◽  
Challenges And Opportunities

The paper examines the nexus between China’s coupling and economic relations with Africa under the Africa Continental Free Trade Area (ACFTA). It also analyses the future of ACFTR especially with the technical support African states will be enjoying through their collaboration with China or in the absence of such support, how Africa may utilize the opportunities available and the likely challenges to encounter in the implementation of ACFTA. Using the secondary source of data, findings show that the implementation of ACFTA can lead to substantial higher bilateral trade between China and Africa. The paper concludes that both in the short and long run, China and African countries stand to benefit immensely in the implementation of ACFTA. The paper recommends that African countries should ratify and domesticate ACFTA and should collaborate with China for the purpose of harnessing the opportunities and surmounting the likely challenges that may emanate from the implementation process.

THE ROLE OF SADC IN BOOSTING DOMESTIC, REGIONAL, CONTINENTAL AND INTERNATIONAL TRADE

2016 ◽  
Vol 13 (1) ◽  
pp. 88-98
Author(s):  
Ghazala Begum Essop
Keyword(s):  
Free Trade ◽  
Bilateral Trade ◽  
Global Financial Crisis ◽  
Free Trade Area ◽  
Customs Union ◽  
The European Union ◽  
African Countries ◽  
Regional Economic ◽  
Trade Area

The role of regional economic communities in the development of trade in Africa is widely recognised. Currently, intra-African trade stands at 10 per cent. This is in sharp contrast to other developing regions of the world. In Asia and Latin America, the levels of intra-trade are 50 and 26 per cent, respectively. There are a number of reasons accounting for the low level of intra-African trade, including the weak mandate given to regional economic communities to monitor and enforce the commitments assumed by countries under regional trade agreements. The lack of integration has negatively impacted on African countries and affected their ability to attract foreign direct investment commensurate with their development needs. Had African countries been less exposed to external markets, they would have been minimally affected by the global financial crisis. The importance of boosting intra-African trade was highlighted by Africa’s Heads of State and Government when they devoted this year’s summit to this theme. In the run-up to the summit, the African Union Commission released a study that underscored the importance of regional economic communities in the process of economic integration in Africa. Currently, SADC member states are in the process of implementing the SADC Trade Protocol, which would create a fully-fledged free trade area and later a customs union, and at the same time engaged in tripartite negotiations aimed at merging the three (SADC, COMESA and the EAC) regional configurations. They are also engaged in the EPA negotiations with the European Union, which would create a free trade area and also the Doha negotiations under the auspices of the WTO. The main objective of this article is to estimate SADC countries’ bilateral trade potential, which may result in the improvements in trade facilitation.

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 The African Continental Free Trade Area and Its Employment-Generation Potentials in Nigeria’s Industrial Sector

2021 ◽  
Vol 2 (2) ◽  
pp. 21-38
Author(s):  
Oziengbe Scott Aigheyisi ◽  
Keyword(s):  
Free Trade ◽  
Time Series Data ◽  
Free Trade Area ◽  
Industrial Sector ◽  
Global Market ◽  
Series Data ◽  
Trade Area ◽  
Long Run ◽  
Short Run ◽  
Employment Generation

The study empirically examines the employment generation potentials of the African Continental Free Trade Area (AfCFTA) in Nigeria’s industrial sector. The ARDL approach to cointegration and error correction modeling is employed for analysis of annual time series data covering the period 19912020. The study finds inter alia that the short run effect of expansion of intra-African trade (expected to result from the AfCFTA) on industrial sector employment is positive and statistically significant. The long run effect is also positive, but not statistically significant. It also finds that trade openness integration of the economy with the global market – significantly enhances employment generation in the nation’s industrial sector in the long run; though the short run effect is negative and significant. These suggest that the country’s membership of the AfCFTA and implementation of policies aimed at (cautiously) deepening the integration of the economy with the global market should be considered as supplementary avenues to achieving (sustainable) employment generation in the nation’s industrial sector in the short-and long-run. Other evidence-based policy recommendations are discussed.

scholarly journals IMPACT OF AFRICAN FREE TRADE POLICY (AGREEMENT) ON THE SOCIO-ECONOMIC DEVELOPMENT OF NIGERIA

2021 ◽  
Vol 4 (4) ◽  
Author(s):  
Chika P. Imoagwu ◽  
Joan N. Ozoh ◽  
Chinwe M. Madueke ◽  
Chidinma C. Mbah
Keyword(s):  
Economic Development ◽  
Free Trade ◽  
Household Income ◽  
Access To Health Care ◽  
Free Trade Area ◽  
Growth Strategy ◽  
Poverty Level ◽  
African Countries ◽  
Trade Area ◽  
The World

The signing of the agreement that established the African Continental Free Trade Area (AfCFTA) in the year 2019 is believed to be an African-based growth strategy that is self-reliant and is expected to be the world’s largest free trade area after the World Trade Organization (WTO). The agreement is an attestation to the fact that African countries cannot continue to rely solely on the global trading system and global economy of the world economic powers, probably because they are increasingly becoming unpredictable. However, there is an assumption that the aggregate consumer and business spending on the continent could rise if AfCFTA is implemented successfully. This assumption therefore calls for a research like this to evaluate the likely economic impacts of the free trade agreement on different African countries particularly Nigeria which is the giant of Africa and the focus of this study. To achieve the objectives of the study, descriptive statistical approach was utilized to examine how the AfCFTA could contribute particularly on poverty reduction and Nigeria has been struggling for many decades to reduce poverty. These variables were considered: household income, illiteracy level, unemployment level and access to health care. The results of the analyses revealed that the AfCFTA could be slightly beneficial to Nigeria as it would improve the efficiency of the factors of production and product markets thereby enhancing household income generation, reducing the level of illiteracy, unemployment and increasing access to good health, efficient resource allocation and improved industry competitiveness which was expected to help Nigeria record significant reduction in poverty level and increase in economic development. In the light of these findings, the study recommends that government should then design proactive strategies that would reap the full benefits of AfCFTA such as engaging the private sector in identifying receptive and risk surrounding their sectors and paying more attention to the development of the service sector etc. The study has potential limitations such as unavailability of recent data. To tackle this limitation, the study adopted the 2019 survey data on pillars of measuring human development index by World Bank to address the quality of the findings, and research question. JEL: F10, H13, O10 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0779/a.php" alt="Hit counter" /></p>

An Asian Perspective on SMEs in International Economic Law

2017 ◽  
Author(s):  
Heng Wang
Keyword(s):  
International Economic ◽  
Free Trade ◽  
Free Trade Area ◽  
Regulatory Environment ◽  
Market Liberalization ◽  
Trade Area ◽  
International Economic Law ◽  
Different Types ◽  
Challenges And Opportunities ◽  
Unique Nature

The Trans-Pacific Partnership (TPP) is likely to have profound implications for small and medium-sized enterprises (SMEs) within and beyond the free trade area. The key question will be analysed: what are the challenges and opportunities that the TPP hold for SMEs? It is argued that, first, the key benefits the TPP can be expected to bring for SMEs are enhanced market liberalization and a more predictable regulatory environment. Second, the TPP poses serious challenges for SMEs (eg insufficiency of the opportunities to SMEs, the complexity of rules, difficulties in rule interpretation and implementation, and remaining regulatory differences), but different types of SMEs will face very different problems. Third, the TPP, if properly managed, should bring more opportunities than challenges to SMEs. Finally, opportunities and challenges to SMEs under the TPP may not always be the same as those under bilateral FTAs given the unique nature of this mega FTA.

The "New Regionalism" and the Negotiation of a Free Trade Area of the Americas

2007 ◽  
Vol 12 (3) ◽  
pp. 333-345 ◽  
Author(s):  
Roberto Bouzas
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
New Regionalism ◽  
Preferential Trade ◽  
Trade Area ◽  
Challenges And Opportunities ◽  
Pros And Cons ◽  
Recent Trends

AbstractThis article examines the pros and cons of the "new regionalism," with the negotiations for a Free Trade Area of the Americas (FTAA) taken as a landmark. It summarizes the main features of the "new regionalism" and reviews some of the challenges and opportunities opened by North-South preferential trade agreements (a category that includes many of the new vintage of such agreements). The article also evaluates the record of the FTAA negotiations, emphasizing recent trends and prospects, especially the foundations of the current stalemate.

scholarly journals The COVID-19 Pandemic and African Continental Free Trade Area (AfCFTA): Exploring Potential Impacts and Developmental Implications

2021 ◽  
Author(s):  
Edward Asiedu
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Potential Effect ◽  
African Countries ◽  
Trade Area ◽  
The World ◽  
Vulnerable Households

The COVID-19 pandemic has caused nontrivial disruptions to global value chains and affected the lives of many people, particularly the poor across the world. The outbreak of the COVID-19 pandemic in the early part of 2020 in Africa, happened during a time that African countries had just signed one of the world’s largest trade agreements and therefore began introducing continental-level structures to strengthen free trade among member states. This chapter examines the potential effect of the COVID-19 pandemic on the agenda for free trade in Africa, both in the short and in the long-term. Specifically, the chapter explores the trading environment of firms in Africa and highlights generally the challenges faced when implementing a trade agreement in the middle of a pandemic. It also, on the other hand, highlights how trade agreement in a middle of a pandemic can be a good thing to minimize the effect of the pandemic on poor and vulnerable households in Africa. The chapter ends by highlighting the need for managing the COVID-19 pandemic to grow and sustain intra-African trade.

scholarly journals The Malaysian Polypropylene Industry Outlook In Facing ASEAN Free Trade Area (AFTA) Deregulation

2011 ◽  
Vol 7 (6) ◽  
Author(s):  
Ahmad Zaki Bin Hj. Ismail ◽  
Sarun Bin Selamat ◽  
Elsadig Musa Ahmed
Keyword(s):  
Free Trade ◽  
Global Economy ◽  
Free Trade Area ◽  
Domestic Market ◽  
Export Market ◽  
Trade Area ◽  
Major Market ◽  
The Future ◽  
Asean Countries ◽  
Plastics Industry

The objective of this study is to focus specifically on the Malaysian polypropylene industrys performance in order to further understand the current situation. As the future of the plastics industry is becoming more competitive due to the uncertainties of the global economy, it is hoped that this study could help to assist the Malaysian polypropylene industry to understand the future potential challenges better. Another aspect of the future challenges for the industry is the lifting of the trade barrier within the ASEAN countries. By early 2003, the ASEAN Free Trade Area (AFTA) has imposed in the ASEAN regions and there will be little or no tariff at all between the ten ASEAN countries. Based on the surveys results, the Malaysian polypropylene industry is still very much dependent on the domestic market. The overall domestic market share commands about 60% of the total business. The trend to expand the export market is still in progress and in line with the overall Malaysian plastics industry. At the moment, only the large polypropylene industries are very aggressive in capturing the export market. If the current market segmentation of the overall industry is maintained, the AFTA deregulation could affect the future outlook of the industry as the alternative domestic market is not available in time in case of any penetration happens to this major market segment. As the small and medium polypropylene industries are very much dependent on the domestic market, they could be the first segment of the industry that would face the immediate effect or challenges of AFTA to the industry.

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