THE PLACE OF REGIONAL ECONOMIC COMMUNITIES (RECs) IN THE AFRICAN CONTINENTAL FREE TRADE AGREEMENT (AFCFTA) IMPLEMENTATION: A CASE STUDY OF THE ECONOMIC COMMUNITY OF (original) (raw)
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Zamfara Journal of Politics and Development, Department of Political Science , 2022
The objective of this paper is to examine the African Continental Free Trade Area (AfCFTA) of the African Union (AU) and to assess the challenges and prospects for regional integration in Africa in a post covid-19 era. The paper, which is qualitative in its approach, argues that the number of states accepting regional economic integration initiative such as the AfCFTA is one of the major features of globalization whose benefits have not been distributed equally. It also argues that though the AfCFTA is a pillar and beacon of continental wide integration in form of an African Economic Community (AEC) envisaged in the Abuja Treaty, however, the adoption of unrealistic and unfeasible timelines for implementation of the AEC pose serious challenges to regional integration for Africa. Regional integration in Africa seeks to transform Africa by addressing the fragmentation and division brought about by colonialism, and to promote unity and African development. While the AU argues that AfCFTA will boost intra-African economic integration through increased trade and investment, the extent to which African states would reap the benefits of the free trade area remains unclear. Numerous challenges that currently affect intra-African trade include, but not limited to, the low levels of development of African economies and their excessive dependence on primary commodity production and exports, protectionist trade policies, weak infrastructure, and high security risks. The outbreak of novel corona virus (COVID 19) pandemic threatens to reverse the gains made towards takeoff of the AfCFTA as African countries have diverted attention towards mitigation and containment of the spread of the virus in their individual countries. The reluctance of some African states such as Nigeria to sign the AfCFTA shows that not all African states are convinced that the promised continental benefits of free trade would align with their national interests. Some countries perceive the AfCFTA as a re-introduction of the earlier rejected contentious European Union's Economic Partnership Agreement (EPA). The paper concludes that while most African countries may have signed the agreement, the implications on national economies would be considered by many before and even after ratification. It recommends that the African Union should protect the vital interests of member states by commissioning in-depth studies and to carry out further enlightenments on the AfCFTA. This will go a long way in transforming Africa's trade potentials to benefits for the growth and development of member states.
World Journal of Advanced Research and Reviews, 2024
This article examines the impact of Regional Trade Agreements (RTAs) on economic integration in Africa, focusing on the African Continental Free Trade Area (AfCFTA). As the largest free trade area globally, AfCFTA aims to create a unified market for goods and services across 55 African Union member states, fostering economic growth, reducing trade barriers, and enhancing intra-African trade. This article assesses the potential economic benefits of AfCFTA, including increased market access, industrialization, and job creation. It also considers the challenges of implementation, such as infrastructure deficits, varying levels of economic development, and non-tariff barriers. Through case studies of key African economies, including South Africa, Nigeria, and Kenya, the article explores how AfCFTA is reshaping trade dynamics and regional cooperation. Furthermore, it evaluates the role of AfCFTA in addressing Africa's dependence on external markets and enhancing global competitiveness. The article concludes by providing recommendations for policy reforms, capacity building, and regional cooperation needed to maximize the benefits of AfCFTA. By analyzing both opportunities and challenges, this article offers insights into how AfCFTA can drive deeper economic integration and sustainable development across the African continent.
The African Continental Free Trade Area: The road ahead for the continent's bold integration project
Journal of International Trade Law and Policy, 2023
Purpose-The paper examines the road ahead for the African Continental Free Trade Area (AfCFTA), focusing on its potential opportunities and challenges. It is intended to help the AfCFTA's effective implementation by highlighting the major areas of intervention for State Parties. Approach-The paper analyses relevant economic, political and legal research sources on regional integration in Africa and offers some personal views of the author to evaluate the past, present and future of the AfCFTA. Findings-The paper shows that the AfCFTA can support its State Parties' industrialization and diversification, better integrate Micro-, Small and Medium-sized Enterprises (MSMEs) to regional value chains, create jobs, encourage sustainable investments, and help its State Parties have common positions on global issues and achieve development. But, it also shows the challenges facing the AfCFTA, which include infrastructure gap, revenue and job losses, overlapping membership of State Parties in Regional Economic Communities (RECs), cumbersome customs systems, difficulty to cross African borders, fledgling MSMEs and inadequate technical capacity on trade policy. Accordingly, it recommends that State Parties continuously take various actions to address these challenges and maximize the multiple benefits of the AfCFTA. Originality/value-The paper provides a comprehensive and up-to-date appraisal of the opportunities and challenges of the AfCFTA, both in the context of the history of regional integration in Africa and the recent global shocks that adversely impacted the continent (Covid-19 and the war in Ukraine).
A Step Closer: Economic Integration and the African Continental Free Trade Area
SSRN Electronic Journal
Post-colonial Africa views economic integration as an endogenous means for attaining self-reliant, sustainable development. Working under various regional and sub-regional economic institutions, states elaborated several norms in search of legitimacy in economic competence. However, several political and economic pathogens, including weak institutions, have blighted those efforts. This paper interrogates the African Continental Free Trade Area (AfCFTA or CFTA), which is the latest attempt to reboot the integration drive and achieve sustainable development. The CFTA seeks to create a geographic zone where goods and services will move freely among member states by removing trade distortions and boosting factor mobility, competition, and investment. After a rigorous analysis of the relevant normative instruments and examining the vertical and horizontal relationship between the CFTA and regional economic communities (RECs)/member states, the paper articulates some objective criteria for measuring the CFTA's effectiveness. It concludes that, if faithfully implemented, the CFTA could maximize utility and increase welfare. For the analysis and conclusions, the paper deploys principles of public international law as well as economic theories, with a blend of political and moral philosophy.
This article expounds and assesses the fundamental role of regional economic integration within Africa in promoting global free trade. Certainly, the common consensus on the role played by regional economic integration is yet to be met, taking into account the overlapping viewpoints put forward by different scholars regarding role of regional economic integration. However, despite the varying and dispersed viewpoints over the role of regional economic integration, with respect to East Africa Community (EAC) as a case study, this paper remains pessimistic over the role played by regional economic integration in promoting global free trade. Regional integration is seen as an exit option for trade and economic growth for many nations, particularly in Africa due to the nature of their internal markets which are relatively small to fully absorb the produced output. Since, nations are opting for integration as a coherent response to the trade difficulties induced by relative small national markets. As a result, African governments have established a very large number of regional integration arrangements, several of which have
Liberalizing Regional Trade Regimes Through AfCFTA: Challenges and Opportunities
Journal of African Law, 2020
The ratification of the African Continental Free Trade Agreement (AfCFTA) marked a landmark event in the quest to achieve intra-African free trade. AfCFTA is poised to represent the largest free trade area outside the World Trade Organization. Although AfCFTA aspires to liberalize intra-African trade in goods and services to foster socio-economic development, there are concerns that capacity constraints may stultify the underlying goals. AfCFTA is expected to build on the considerable successes already achieved by Africa's regional economic communities. However, it fails to clarify how the overlapping regimes will be reconciled and harmonized. Nevertheless, the agreement is laudable for its quest to facilitate intra-African trade, foster regional value chains that can facilitate integration into the global economy, and energize industrialization, competitiveness and innovation. This article examines the celebrated AfCFTA to understand its potential amid local realities and the p...
Unpacking the Significance of African Continental Free Trade Area for Africa and its People
2021
With free trade under attack in much of the developed world, Africa is forging a new path for itself to foster sustainable wealth and development for the continent. On 21 March 2018, AU leaders met in Rwanda to finalise the signing of a new trade agreement creating the African Continental Free Trade Area (AfCFTA). The AfCFTA consists of a framework agreement for its establishment and also the Protocol on Trade in Goods and Trade in Services, and the Protocol on Rules and Procedures on the Settlement of Disputes. These developments come on the back of 10 rounds of AfCFTA negotiations concluded in December 2017, with the 11th round underway in May 2018 in Addis Ababa, Ethiopia. The AfCFTA signals the beginning of a new chapter for mega-regional trade relations on the African continent and enhanced efforts at deepening trade and regional integration. This paper gives a snapshot of developments building up to the signing of the AfCFTA and examines the status of the AfCFTA as African gov...
Regional Integration in Africa -The Role of the AfCFTA in Advancing Political Integration
2023
Africa’s economic prospects have always been a topic of great consternation for local governments and international analysts and commentators. A continent rich in commodities such as oil, diamonds, minerals, with favorable demographic trends i.e. young population, and the potential for economic growth, has historically been underperforming. Throughout the years, African countries have advance regional cooperation through the African Union (AU) and created various Regional Economic Communities (RECs), in order to improve economic growth through trade. More recently, regional economic efforts in the continent have included the Tripartite FTA, and the current African Continental FTA (AfCFTA), promising to become the largest free trade area. This article will examine the AfCFTA from a regional integration perspective and not just as a trade agreement that will produce economic benefits (like tariff reductions, trade facilitation, and economies of scale) as the latter part is known and well documented. With that in mind, the thesis of this article is whether a trade agreement like AfCFTA can lead to regional political integration for African nations. First, we look into the current political and legal institutions in the AU, and how far regional and political integration has advanced so far. Next, the article will look into the current regional integration effort in Africa, and in particular the AfCFTA. The intent is to explore the potential to promote both further regional, as well as political, integration within the AU. Finally, we assess the feasibility of achieving regional integration through the AfCFTA. Although it is still too early to tell, the AfCFTA with its focus on trade (customs union and a common market) and with a new pan-African dispute resolution system, could be the key to both weathering global developments through further regional integration, and pave the way for future political integration.
Critical Analysis of Economic Community of West African States (Ecowas) Intra-Trade
Social Science Research Network, 2009
The main objectives of Economic community of west African states (ecowas) were the eventual elimination of all tariffs and trade barriers between members, the establishment of a customs union, unified fiscal policy and coordination of regional policies in transport ,communication, energy and other infrastructural facilities. To be to achieve this objective the formation of regional integration arrangement to enhance subregional trade becomes necessary. This analysis traced past colonial era to the present period and highlighted the challenges that militate against successful integration and also reviewed the new effort in the region to deal with potentials constraints to sub-regional trade integration especially how that regional trade blocs and multilateral institutions are promoting inter regional trade negotiations at the global level.