African Free Trade Agreement Wto

The share of intra-African imports in total African imports has almost tripled over the past two decades to about 13% ($73.6 billion). However, this positive development hides very divergent trends in the different sub-regions. While South Africa alone is the source of 35 per cent of intra-African exports and receives 15.5 per cent of intra-African imports, other important countries are poorly integrated. Algeria, Egypt and Nigeria together account for half of Africa`s GDP, but are only marginally involved in intra-African trade, which accounts for only 11% of their imports and exports. On the other hand, the SADC is highly integrated because its members exercise a significant part of their exchanges (20%). Most of the intra-African trade – about three-quarters – is in the main regional organizations, mainly in eastern and southern Africa. Intra-African trade has great potential to establish regional value chains and stimulate growth and development. This is because in Africa, trade in manufactured goods is more numerous than African countries export to third countries. High value-added products such as vehicles and cosmetics account for about 40% of intra-African trade (raw materials 44 per cent, agricultural products about 16 per cent). On the other hand, exports outside Africa remain largely dominated by raw materials (about 75%). Africa`s agricultural sector is under serious threat from the free trade area. Smallholder farmers make up a large part of the continent`s population.

The liberalisation of agriculture has shown that it favours economies of scale and hence large industrial farms; especially those who use monocrop techniques for exporting cash plants. Farmers and subsistence food plants Food plants intended to feed the local population (millet, cassava, etc.), unlike cash crops for export (coffee, cocoa, tea, peanuts, sugars, etc.), can be displaced from industrial enterprises, which can lead to increased urbanization and proletarianization, higher food prices, low food security and loss of biodiversity. Some commentators have noted that a reduction in food production capacity on the continent would only serve to open the market to imports of food from large agricultural enterprises, both in Africa and in non-African countries. Free trade agreements can improve some economic indicators, such as. B Gross domestic PRODUCT OF GDP is an aggregate measure of total output within a given area, which corresponds to the sum of gross values added. The measure is notoriously incomplete; it doesn`t take into account. B, an activity that does not enter into a commercial exchange.

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