Most Recently Signed Trade Agreement in Africa
The African continent has been witnessing a lot of trade activities in recent times, and the latest is the Continental Free Trade Area (CFTA) agreement. This agreement was signed on January 1, 2021, by 54 African Union member countries. This agreement is expected to boost intra-African trade and enhance economic growth on the continent. The […]
The African continent has been witnessing a lot of trade activities in recent times, and the latest is the Continental Free Trade Area (CFTA) agreement. This agreement was signed on January 1, 2021, by 54 African Union member countries. This agreement is expected to boost intra-African trade and enhance economic growth on the continent.
The CFTA agreement is the largest trade agreement in the world since the creation of the World Trade Organization. The agreement aims to eliminate tariffs on goods traded within the African continent, thereby increasing trade activities and economic integration. The agreement also aims to address some of the challenges faced by African countries, such as infrastructure, inadequate trading systems, and poor logistics.
The CFTA agreement is expected to increase trade among African countries by 52% within the first few years. This is due to the elimination of tariffs, the harmonization of trade policies, and the creation of a single market for goods and services. The agreement also aims to address non-tariff barriers such as regulatory barriers, technical barriers, and bureaucratic bottlenecks.
The CFTA agreement is a significant milestone for African countries as it signals a move towards a more integrated continent. The agreement is expected to generate a combined Gross Domestic Product (GDP) of over $2.5 trillion and create a market of over 1.3 billion people.
The CFTA agreement is expected to have a positive impact on various sectors, including agriculture, manufacturing, and services. It will also promote job creation, reduce poverty, and enhance the standard of living for African citizens.
In conclusion, the Continental Free Trade Area agreement is a significant development for African countries. It aims to boost intra-African trade, create a single market for goods and services, and enhance economic growth on the continent. The agreement`s successful implementation will depend on the commitment of African leaders and the cooperation of various stakeholders.