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| Africa Targets Free Trade Area By 2017 |
by Lorys Charalambous, Tax-News.com, Cyprus
Thursday, February 02, 2012
The statement issued at the end of the 18th summit of the African Union (AU)
has confirmed that African countries will target the establishment of a continental
free trade area (CFTA) by 2017.
The AU has produced a three-step plan in preparation for the CFTA, with the
first move being finalization of the tripartite agreement between the East African
Community, the Common Market for Eastern and Southern Africa and the Southern
African Development Community by 2014.
The second will be to urge other trade blocs to follow the experience of the
tripartite agreement and reach parallel agreements between 2012 and 2014, before,
finally, the tripartite and other regional free trade areas would be consolidated
into the CFTA initiative between 2015 and 2016.
"Enhanced intra-African trade and deepened market integration can contribute
significantly to sustainable economic growth, employment generation, poverty
reduction, the inflow of foreign direct investment, industrial development and
the better integration of the continent into the global economy," the statement
said.
Africa has seven major regional trade blocs, including the Economic Community
of West African States, the Economic Community of Central African States, the
Arab Maghreb Union and the Community of Sahel-Saharan States, in addition to
those within the proposed tripartite agreement.
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