ISSN 2756-3456
Global Journal of Sociology and Anthropology Vol. 8 (3), pp. 001-009, March, 2019. © International Scholars Journals
Review
To what extent are regional trade arrangements in Africa fulfilling the conditions for successful RTAs?
Babatunde Omilola
United Nations Development Programme (UNDP) Regional Service Centre for Eastern and Southern Africa. E-mail: [email protected]
Accepted 12 November, 2018
Abstract
Almost all African countries have embraced RTAs since attaining independence in 1950s and 1960s as means of enhancing policy credibility and accelerating trade to overcome the economic disadvantages of fragmentation of many small-nation economies on the continent. Today, there is no country in Africa that is not a member of at least one regional economic group. As reflected in the 13 RTAs operating in Africa, the issue of RTAs continues to occupy the economic agenda of countries. This paper examines the conditions under which RTAs are successful, and gauges the extent to which African RTAs have met these conditions. The paper concludes that African RTAs have not met most of the desired conditions required for successful RTAs. The dismal outcome of African RTAs can be attributed to many factors, which include low level of share of intra-RTA trade in total trade; dependence on basic minerals and primary products as main exports; low level of structural complementarity of the African economies; multiple, duplicative and overlapping protocols, structures, mandates and membership of African RTAs; recurrent political instability and conflicts; over-ambitious goals and unrealistic time frame for achieving their objectives; and weaker infrastructure and communication linkages. Despite their economic inefficiency, African RTAs are still being maintained. The explanation for this probably lies in the fact that African RTAs are still seen as the key to Africa’s integration into the global markets and overall trade policy environment. Yet formal RTAs in Africa are not likely to ensure greater integration of member countries into the global economy, and hence are doubtful to be beneficial to member countries.
Key words: Africa, regional trade arrangements, market, economic integration, policy environment.