African trade blocs free#

вЂњThe conditions have never been better,вЂќ says Sindiso Ndema Ngwenya, the secretary-general of COMESA. The Abuja Treaty of 1995 signed by 51 African countries mandates all regional economic communities to join the group by 2017 in anticipation of an African Economic Community by 2028.

For now, these blocs are not participating in this new initiative for political and economic reasons. Non-participating economic blocs include the Arab Maghreb Union, the Economic Community of West African States, the Intergovernmental Authority on Development, the Economic Community of Central African States and the Community of Sahel-Saharan States.

African trade blocs free#

When implemented, the free trade area will constitute about half of AfricaвЂ™s GDP, half of its population and will cover a combined landmass of 17 million square kilometres, about the size of Russia.ДЄt the moment, however, only three of AfricaвЂ™s eight regional economic communities are participating in the TFTA. The participating countries will benefit from liberalized intra-regional trade, which is expected to boost the flow of goods and services.

Under this agreement, all the 26 countries, with a combined gross domestic product (GDP) of about $1.3 trillion and a population of 565 million, will merge into a common market and eliminate tariff lines and trade barriers.

The talks finally bore fruit on 10 June 2015 when 26 African countries signed the Tripartite Free Trade Area (TFTA) agreement in Cairo, Egypt. For several years, experts from the three largest trading blocs in Africa - the Southern African Development Community (SADC), the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) - were locked in intense negotiations over a free trade agreement whose aim is to bring about a unified and liberalized single market.