Economic integration level in the African Continental Free TRade Area
The African Continental Free Trade Area (AfCFTA) aims to create a single market for goods and services in Africa, enhancing economic integration on the continent. It was established in 2018 and is expected to be fully implemented in 2021.
Currently, the level of economic integration in the AfCFTA is still in its early stages. The agreement has been ratified by 54 African countries, representing a significant portion of the continent's population and GDP. However, the actual implementation and operationalization of the trade agreement are ongoing processes.
Once fully implemented, the AfCFTA is expected to lead to increased intra-African trade, harmonization of trade policies, and the elimination of non-tariff barriers. This would result in deeper economic integration and cooperation among African countries. It is projected that the AfCFTA could boost intra-African trade by over 50% by 2022.
However, there are still challenges to overcome in order to achieve higher levels of economic integration. These include infrastructure deficiencies, administrative barriers, and the need for regulatory harmonization. Additionally, the COVID-19 pandemic has disrupted trade flows and implementation timeline.
Overall, while the AfCFTA has the potential to significantly enhance economic integration in Africa, the process is still ongoing, and its full impact will be realized in the coming years.
The African Continental Free Trade Area (AfCFTA) aims to promote economic integration among African countries. Here are the different levels of economic integration within the AfCFTA:
1. Preferential Trade Area (PTA): This is the initial level of economic integration within the AfCFTA. It involves the removal of trade barriers, such as tariffs, quotas, and trade restrictions, among member countries. It allows for preferential treatment in trade between the participating countries.
2. Free Trade Area (FTA): The next level of economic integration is the establishment of a free trade area. In an FTA, member countries eliminate tariffs and other barriers on most trade among themselves, while retaining the ability to set independent trade policies with non-member countries. The AfCFTA seeks to establish a free trade area across Africa to promote intra-African trade.
3. Customs Union: A customs union takes economic integration a step further by removing barriers to trade among member countries, as well as establishing a common external tariff (CET) on imports from non-member countries. This means that member countries agree to apply the same tariffs and trade policies to non-member countries. While the AfCFTA aims to eventually establish a customs union, this stage of integration is expected to be attained beyond the initial implementation of the free trade area.
4. Common Market: In a common market, member countries not only eliminate tariffs and trade barriers but also allow for the free movement of goods, services, capital, and labor across borders. This level of integration goes beyond just trade and economic cooperation, emphasizing closer coordination and cooperation in various aspects of economic activity. However, the establishment of a common market is not an immediate target of the AfCFTA.
5. Economic Union: An economic union involves a higher level of economic integration, where member countries coordinate and align their economic policies, including fiscal, monetary, and regulatory frameworks. It requires a deeper integration of economies, including the harmonization of laws and regulations, a single currency, and a common central bank. The creation of an economic union is a long-term goal of the AfCFTA but is not expected to be achieved in the near future.
It is important to note that the AfCFTA is a work in progress, and the process of achieving these integration levels will take time. The aim is to gradually strengthen economic cooperation among African countries and to promote sustainable and inclusive economic growth on the continent.
To determine the economic integration level in the African Continental Free Trade Area (AfCFTA), you can look at the framework and agreements established within the agreement. Here's how you can find information on this:
1. Start by researching the African Continental Free Trade Area (AfCFTA): Look up official sources such as the African Union (AU) or the AfCFTA website. These sources will provide you with detailed information on the level of economic integration planned or achieved within the AfCFTA.
2. Review the AfCFTA agreement: Look for the text of the agreement itself. It outlines the objectives, principles, and goals of the AfCFTA, including measures related to economic integration.
3. Analyze the AfCFTA protocols: The AfCFTA has additional protocols that address various aspects of trade and economic integration. These protocols include investment, intellectual property rights, competition policy, and dispute settlement. Analyzing these documents will give you a deeper understanding of the level of economic integration within the AfCFTA.
4. Consult research papers and analysis: Academic papers, research institutions, or international organizations might have conducted studies or assessments on the level of economic integration in the AfCFTA. Search for reports, analyses, and economic models that provide insights into the expected or achieved economic integration level.
5. Stay updated with news and policy developments: Economic integration is an ongoing process, and policies or agreements could evolve over time. Keep an eye on news articles, policy announcements, and official statements to understand the current state of economic integration in the AfCFTA.
Remember, the level of economic integration may vary over time as the AfCFTA implementation progresses, so it's essential to consider up-to-date sources of information.