- The agreement among African nations for a liberal intra trade arrangement gives hope of increase in trade in the region which has been severely affected by the pandemic.
- But there are contentious issues of tariff harmonisation, Rules of Origin and above all the imbalance in transport infrastructure are the kay detriments of smooth trade flow among African nations
A continents economic maturity sharpens when the intra-regional trade among the nations gains new hights and momentum. Africa is witnessing such a development in the last couple of years! In the year 2021 African countries signed an agreement for intensifying the intra trade among them. If implemented this could lead to creation of a single market which will trigger billions of dollars trade in the region. As per the agreement, services and goods should be flowing freely in and out of the participating countries, making the continent the biggest free trade area in the world.
It is estimated that this agreement can translate into huge opportunities for the nations. The free trade initiative could create an integrated market with a total GDP of over $3 trillion (£2.3 trillion). The trade agreement was to be effective in July 2021 couldn’t progress as planned as the covid had hit the nations again. Apart from some critical issues like decisions of uniform tariff line, rules of origin etc, the negotiations are in a state of advancing further but some pressing issues remains unresolved. Poor communication and a lack of adequate transportation infrastructure between African nations is another problem affecting intra-African trade. Most intra-African trade goes by road and there have been delays at border posts with queues that were literally several kilometres long during lockdown, as all countries have adopted border restrictions. But the negotiations for the successful conclusion of the trade agreement is in an advanced stage and this would certainly give the region a renewed lease of trade life.
