African Continental Free Trade Area (AfCATA) may be only less than six months old. Yet , prudence demands that an objective assessment of what that had happened during the short time of its existence, though one should not hold too much on to its. Such an exercise would help the contracting parties (countries) to the agreement to know the initial fault lines and can take corrective measures.
The benefits of the largest trade bloc in the world are compelling and nobody can deny that. Everybody acknowledges that without a murmur. The type of economic development that has to be created, quantum of gainful jobs to be created, direction of development that need to be carried out etc, cannot be done by any singular country or group. Participation of all countries-tiny, small or big –are needed despite the skewed internecine development matrices amongst them. No country can claim that it can usher in a development path on its own unlike the countries in the developed world.
Why then people are skeptic about the impact of the free trade? The critics say this is not the first time such an arrangement is taking place. Limited trade grouping within Africa was there for several years. They include the Southern African Development Community (SADC); the Preferential Trade Area for Eastern and Southern African States (PTA) which was later replaced by the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). They argue that these trade blocs though limited to the regions they belong to, could not progress well due to the fundamental differences in the development perceptions of its members.
It may sound rude but the protagonists ask when smaller groupings are refusing to take concrete shape, how would the continental trade bloc take wings, having regard to the fact that there are 54 countries of various hues and sizes and political textures, from democracies to totalitarian regimes. Should the hope for a 2 trillion dollar economy and a captive population of 3 billion alone overlook some of the intrinsic contradictions in the continent? Even from a theoretical perspective, such conundrums should be explained not to negate the overriding concept of free trade but to reinforce the need for it. A dialectical approach will have better acceptance of the seamless African market rather than pushing the parent differences under the carpet.
The second challenge is bringing the businesses across the continent to believe in the cardinal principles of the free trade. In public there may be tacit support for the concept. But in private, many experts feel that African businesses including the larger corporations have to be brought around the concept of competition and survival of the fittest. All of them want a protected market and shun the intruders from anywhere including their close neighbors. That could be the reason for countries like Nigeria to close the borders with neighboring countries, though they may claim in public it was to prevent large scale smuggling of comparatively cheaper oil from the country. That trend is not limited to Nigeria alone. The recent outbreak of racial conflicts in countries like South Africa, Gambia, Ghana and ethnic clashes on the border of Ethiopia and Eritrea, near economic collapse of Zimbabwe etc have their roots in economic reasons rather than political or social.
Should there be an intellectual discourse on AfCATA along with its persuasive economic appeal? That sounds good to subsume the perceptional cleavages and ideological differences, at least to bridge the gap of those who favor and oppose the concept. That dialogue can smoothen differences and to help work towards a consensus.
Should AfCATA change the goal post? That is suicidal to say the least. Every economic proposition would have its downside. That does not mean that the baby should be thrown with the bathwater. The initial pangs should be addressed objectively and in the spirit of give and take. Then what is the way out? There is a golden mean always that can be implemented with least pain. In the free trade parlance, they are often referred as low lying fruits, which can be implemented faster and at the same time with least pain. Can the AfCATA open up the services sector first? Sectors like education, information technology, healthcare, tourism etc would not face with much resistance in as much as manufacturing, mining, agriculture and what have you. That does not mean manufacturing should be in a silo while liberalizing trade. It should also be done in a calibrated manner with more focus on back loading them.
