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GTAP Resource #4537

"Can The Tripartite Free Trade Area (TFTA) deliver effective and real trade liberalization for economic growth?"
by Inama, Stefano and Pramila Crivelli

The regional trade initiatives called the Tripartite Free Trade Area (TFTA) has been recently created to relaunch regional integration in Africa given the limited achievements of existing Regional Economic Communities (RECs) in liberalizing trade. Much of the success in international negotiations and subsequent implementation of trade agreements depends on previous analysis conducted at domestic level and the capacity to elaborate appropriate negotiating strategies reflecting the economic interests and objectives. In that perspective, this paper first explores the current status of the TFTA as an actor in global trade by assessing the existing trade performances of the TFTA member states and the structure of traded products. The data show that (i) the intensive margin of trade within the region turn out to be very limited (ii) export diversification constitutes a major challenge for TFTA members, both in terms of number of traded products and export destinations (iii) the share of traded manufactured products is relatively low and (iv) the utilization of current preferences granted under existing RECs is rather limited. Using the UNCTAD Trade Policy Simulation Model (TPSM), the trade creation and diversion effects of the TFTA have been estimated at the 6-digit tariff line level of the Harmonized System providing therefore precious indications to trade negotiators.

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Created: Crivelli, P. (4/16/2014)
Updated: Crivelli, P. (6/18/2014)
Visits: 2,791
- Preferential trading arrangements
- Africa (Central)
- Africa (East)
- Africa (North)
- Africa (Southern)

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