Trade Reform and Regional Integration in Africa (2024)

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Ebo Turkson

Regional Trade Agreements (RTAs) in the form of free trade agreements or customs unions have been a major facet of the global multilateral trading system and trade relations amongst economies for well over fifty years. Since the early 1990s they have become increasingly important and popular in trade relations among nations to the extent that a steady increase in negotiations and establishment of RTAs has resulted. As of 15 January 2012, some 511 notifications of RTAs (counting goods and services separately) had been received by the GATT/WTO. Of these, 347 were in force, including 203 FTAs, 106 Economic Integration Agreements, 23 customs unions and 15 partial scope agreements.1 Counting goods and services together there were 231 RTAs in force, including 128 that covered goods, 102 goods and services and one covering services only. All RTAs in the WTO are reciprocal trade agreements between two or more partners. In spite of its popularity, the answer to the question of whether trade ...

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2011 •

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The importance of regional integration as a means for supporting Africa’s economic development has long been recognized by African leaders. The large number of regional economic communities (RECs), the NEPAD initiative to promote integration at the continen tal level and recent attempts, such as the COMESA-EAC-SADC tripartite FTA, to consol id ate integration efforts are testimony to Africa’s desire to deepen regional integration. Successful regional trade integration can help African countries reap economies of scale, expand markets and collectively exploit their resources, thus gradually raising their compet itive ness in the global economy. Region al integration can also reduce countries’ dependence on traditional trading partners and raise their resilience against external shocks. Intra-regional trade in Africa faces numerous challenges. Beyond the structural constraints, such as lack of resource and production complementarities between many African countries and low levels of i...

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Regional Integration in Africa

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State and Government leaders of the African Union adopt and implement efforts for regional integration as a common strategy for the development of the continent. The objective at continental level is the establishment of the African Economic Community as the last of six consecutive stages, including the strengthening of inter-sectoral cooperation and the establishment of regional free trade areas, monetary union, common market, monetary and economic union, covering the entire continent. Currently there are 15 Regional economic communities in Africa and 7 of them are officially recognized as the foundation for the development of the African economic community. Reviewed are their goals, their main achievements and issues. The study analyses the progress made in the integration process as well as the challenges it faces.

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Regional integration refers to the removal of barriers to international commerce by states that are in same geographical area and interest, through regional integration agreements (RIAs).To foster trade, expansion of the economy, increase coherence, and major macroeconomic benefits across boundaries. In 1850-1890, regional integration was conceived in Europe. Africa is a precursor in the process as far back as 1910 and after the World War II more economic communities surged. Although, Africa’s share of global population is 14%, annual share of global GDP is less than 3%. Experts have blamed Africa marginalization on the absence of effective regional integration mechanism to boost the continent’s external trade. The AU should immediately assess the level of performance at every stage of continental development (national, regional and continental levels), while taking into account the latest realities globally. Continental goals should be prioritized while member-states to show dedica...

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Trade Reform and Regional Integration in Africa (2024)
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