What Is The Most Likely Result Of A New Continent-Wide Free-Trade Agreement In Africa

  • 15 kwietnia 2021
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The World Bank report, The African Continental Free Trade Area: Economic and Distributional Effects, aims to help policymakers implement policies that can maximize the potential benefits of the agreement while minimizing risks. Creating a continental market requires resolute efforts to reduce all business costs. Governments also need to develop strategies to increase the willingness of their workforce to take advantage of new opportunities. Most of AfCFTA`s revenue increases are expected to be achieved through measures to reduce bureaucracy and simplify customs procedures. A liberalisation of tariffs, accompanied by a reduction in non-tariff barriers – such as quotas and rules of origin – would increase income by 2.4 per cent, or about $153 billion. The remainder – $292 billion – would come from trade facilitation, reduce bureaucracy, reduce compliance costs for commercial enterprises and make it easier for African companies to integrate into global supply chains. In order to obtain access to trade preferences under the GSP, potential beneficiaries must meet the relevant eligibility criteria, including the provision of internationally recognized workers` rights, satisfactory protection of intellectual property rights and appropriate market access. The most important thing in this regard is that access to AGOA is based on the recipient countries that remain eligible for GSP3. If South Africa does not address U.S. concerns about its IP system, it risks losing access not only to the GSP, but also to AGOA, which would hurt the auto and agriculture sectors of the economy4. , is most relevant in this regard.

It obliges Member States not to treat the services or service providers of another state less favourably than national services or comparable service providers A successful free trade agreement will help African economies to heal and provide a necessary boost to the competitive continent covid-19.

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