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Regional Trade Arrangements in Africa

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  • Yongzheng Yang
  • Sanjeev Gupta
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    Abstract

    Regional trade arrangements (RTAs) in Africa have been ineffective in promoting trade and foreign direct investment. Relatively high external trade barriers and low resource complementarity between member countries limit both intra- and extraregional trade. Small market size, poor transport facilities and high trading costs make it difficult for African countries to reap the potential benefits of RTAs. To increase regional trade and investment, African countries need to undertake more broad-based liberalization and streamline existing RTAs, supported by improvements in infrastructure and trade facilitation. Early action to strengthen the domestic revenue base would help address concerns over revenue losses from trade liberalization.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/36.

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    Length: 44
    Date of creation: 01 Feb 2005
    Date of revision:
    Handle: RePEc:imf:imfwpa:05/36

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    Keywords: Trade policy; regional integration; regional trade; trade liberalization; intraregional trade; regional trade arrangements; trade integration; rules of origin; regionalism; trade arrangements; trade diversion; preference erosion; trade barriers; multilateral trade; trade agreements; regional trade integration; free trade; multilateral liberalization; trade creation; external trade; trade facilitation; world trade; global trade; trade reform; preferential trade; economic integration; economic community; import substitution; multilateral trade liberalization; export growth; tariff reductions; trade negotiations; external tariff; trading partners; external trade barriers; international trade; trading costs; trade intensity; tariff reduction; common market; nontariff barriers; external tariffs; regional integration schemes; regional trade agreements; mfn tariffs; trade taxes; preferential trade arrangements; regional cooperation; global trade liberalization; domestic competition; eec trade; regional intervention; regional arrangements; trade growth; preferential market access; balance of payments; trade regime; economic union; preferential trade agreements; multilateral trade negotiations; multilateral system; trade in services; dynamic gains; high tariffs; terms of trade; world market; monetary union; bargaining power; tariff levels; trade blocs; unilateral liberalization; world economy; trade flows; trade areas; liberalization of trade; trade diversion effect; bilateral trade; competition policy; free trade agreements; world exports; trade promotion; intra-eec trade; dynamic effects; economic partnership agreements; regional integration arrangements; trade tax revenue; trade performance; investment protection; indirect taxes; trade agreement; world markets; internal trade; free entry; regional markets; domestic taxes; domestic production; north-south; noneconomic objectives; average tariffs; border crossings; preferential trading; partner country; trade data; trading arrangements; merchandise trade; net inflows; multiple memberships; nondiscriminatory liberalization; domestic subsidies; export performance; free trade agreement; trade relationships; regional arrangement; preferential trading arrangements; economic convergence; trade preferences; transport costs; global market; trade losses; tariff revenue; preferential treatment; interest groups; tariff heading; export orientation; round agreement; common markets; quantitative restrictions; tax incentives; agricultural export subsidies; import bans; nondiscriminatory trade liberalization; economic partnership agreement; imports of textiles; global merchandise; trade shocks; trading blocs; regional agreements; regional market; import duties; export subsidies; free trade area; internal trade barriers; net trade creation; intra-regional trade; export price; trade reforms; regional free trade; impact of trade; loss of tariff revenue; protectionist devices; open trade; reducing trade barriers; multilateral free trade; most-favored-nation; importing countries; transition period; bilateral arrangements; regional trade arrangement; terms of trade effects; textile imports; economic liberalization; value-added tax; world demand; tariff rates; trade openness; import substitution policies; free trade zones; tariff structures; trade relations; political integration; nonpartner countries; trading system; preferential trade liberalization; tariff cut; intraindustry trade; preferential arrangements; liberalizing trade; neighboring countries; import duty; tariff cuts; exchange rate policies; internal tariffs; liberal trade; international trade agreements; reducing tariffs; exporting countries; trade structure; import value; trade effect; preferential tariffs; nondiscriminatory trade; exchange rate regime; domestic consumption; aggregate trade; nontrade issues; multilateralism; regional cooperation arrangements; bilateral trade flows; tariff lines; transport equipment; regional approach; tariff peaks; mutual trade; trade policy reform; environmental standards; impact of trade liberalization; global trading; export and domestic subsidies; trade area; global integration; nonmember countries; average tariff; trade components; trade policies; trade effects; applied tariff; world trade organization; developing country exports; transport cost; import side; monetary unions; reduction of barriers; common tariff; trade bloc; regulatory regimes; partial equilibrium; free trade areas; multilateral approach;

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    Cited by:
    1. Thierry Verdier, 2010. "Regional Integration, Fragility and Institution Building: An Analytical Framework Applied to the African Context," EUI-RSCAS Working Papers 38, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    2. Anna Maria Mayda & Chad Steinberg, 2006. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," Working Papers gueconwpa~06-06-03, Georgetown University, Department of Economics.
    3. Golub, Stephen S. & Mbaye, Ahmadou Aly, 2009. "National Trade Policies and Smuggling in Africa: The Case of The Gambia and Senegal," World Development, Elsevier, vol. 37(3), pages 595-606, March.
    4. Chiumya, Chiza, 2009. "Regional Trade Agreements: An African perspective of Challanges for Customs Policies and Future Strategies," MPRA Paper 17838, University Library of Munich, Germany, revised Aug 2009.
    5. Independent Evaluation Group, 2006. "Assessing World Bank Support for Trade, 1987-2004 : An IEG Evaluation," World Bank Publications, The World Bank, number 6966, October.
    6. Afesorgbor, Sylvanus Kwaku & van Bergeijk, Peter A.G., 2011. "Multi-membership and effectiveness of regional trade agreements in Western and Southern Africa: a comparative study of ECOWAS and SADC," Proceedings of the German Development Economics Conference, Berlin 2011 1, Verein für Socialpolitik, Research Committee Development Economics.
    7. Yongzheng Yang, 2005. "Africa in the Doha Round," IMF Policy Discussion Papers 05/8, International Monetary Fund.

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