Policy brief African Continental Free Trade Area: a Catalyst for Industrial Development on the Continent
The African Continental Free Trade Area is aimed at progressively eliminating tariffs and removing non-tariff barriers on intra-African trade, thus creating opportunities for African businesses throughout the continent. The African market, comprising 55 African Union member states and more than 1.2 billion people, will be the largest free trade area in the world since the formation of the World Trade Organization in 1994. In addition, the agreement contains elements that will help African countries to implement their developmental and industrialization aspirations. There is a greater opportunity for and incidence of trade in industrialized goods on the continent than in trade with other regions that feature predominantly primary products. Increased levels of industrialization will reduce the exposure of African resource-rich countries to the cyclical shocks associated with a dependence on the trade of primary commodities in the international market. The present policy brief draws primarily on research materials and tool-kits prepared by the Economic Commission for Africa (ECA) to highlight the potential for industrial development under the African Continental Free Trade Area, in order for countries to make optimal use of the agreement if critical policies and tailored strategies are in place
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