African Free Trade Area Agreement

The World Bank`s report, The African Continental Free Trade Area: Economic and Distributional Effects, aims to help policymakers implement measures that can maximize the potential benefits of the agreement while minimizing risks. Creating a continent-wide market requires firm efforts to reduce all trade costs. Governments also need to develop strategies to increase the willingness of their workforce to seize new opportunities. The African Continental Free Trade Area (AfCFTA) agreement will create the world`s largest free trade area in terms of the number of participating countries. The pact associates 1.3 billion people in 55 countries with a combined gross domestic product (GDP) worth $3.4 trillion. It has the potential to lift 30 million people out of extreme poverty, but harnessing its full potential will depend on the implementation of important policy reforms and trade facilitation measures. Yulia Vnukova advises in the Trade and Regional Integration Division (ETIRI) of the World Bank. Based on more than ten years of experience, Yulia`s current work focuses on trade policy and regional integration, with a focus on macroeconomic and microeconomic analysis of trade, trade and sectoral competitiveness, global value chains and private sector development in emerging countries in Europe, in Asia and Africa. As of July 2019, 54 of the 55 African Union states had signed the agreement, with Eritrea being the only country not to sign the agreement. Of these Member States, 27 have deposited their instruments of ratification. [43] [44] Paul Brenton is a Chief Economist of the World Bank`s Trade and Regional Integration Unit (ETIRI).

It focuses on analytical and operational work on trade and regional integration. Ghana`s Minister of Trade and Industry Alan Kyerematen listed the benefits of a free trade area in Africa, including increasing intra-African trade to 52% by 2022, consolidating currently fragmented markets, economies of scale, adding value of Africa`s natural resources and economic diversification. These activities, which collaborate in collaboration with European, Japanese and Indian partners, could have a significant impact on economic growth in Africa and on Africa`s expansion as a market for external goods and services. As we are currently presenting, Prosper Africa will be a one-stop shop to enable more trade and investment between U.S. and African companies. The initiative has clear links to the AfCFTA and, if fully implemented and adopted, could benefit both stakeholders. The implementation phase of the African Continental Free Trade Area (AFCFTA) is expected to start in less than three months. While the COVID-19 crisis has undoubtedly complicated the picture, the East African region is indeed well positioned to implement the AfCFTA. Despite the skepticism expressed in some quarters about the ability of countries to implement the pioneering trade agreement, there are strong reasons to be optimistic. He said Africa`s prosperity depends largely on intra-African trade. “Increasing trade is the surest way to deepen regional integration in Africa. Nigeria was one of the last nations to sign the agreement.

With 200 million inhabitants, Nigeria is the most populous country in Africa and includes for example the population of the second and third most populous countries of Ethiopia and Egypt, each of which has a population of about 98 million. .

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