Abstract
In January 2018, the 10th African Union (AU) Summit of African Heads of States and Governments was held in Kigali. At this occasion, 44 countries had signed the African Continental Free Trade Area (AfCFTA) agreement. In this study, it is pointed out that the implementation of AfCFTA cannot be done without harmonized trade procedures. Using a gravity model of 49 African countries over the 2010-2015 periods, the study estimates the impact of inefficient trade procedures on intra-African trade. The results show that trade procedures such as the number of documents required to import goods and Border compliance negatively affect intra-African trade. This suggests the need of harmonization and rationalization of trade procedures to boost intra-African trade.
Highlights
Long time before the establishment of the African Union (AU) in 2000, regional integration was a key policy agenda item across the African continent
It is pointed out that the implementation of African Continental Free Trade Area (AfCFTA) cannot be done without harmonized trade procedures
Using a gravity model of 49 African countries over the 2010-2015 periods, the study estimates the impact of inefficient trade procedures on intra-African trade
Summary
Long time before the establishment of the African Union (AU) in 2000, regional integration was a key policy agenda item across the African continent. According to the United Nations (UN), AU and African Development Bank (2017) report, the second stage has not been totally achieved and only three (ECOWAS, EAC and COMESA) of the eight recognized RECs have both a FTA and Customs Union as expected at third stage This is the reason why since2010, the African Ministers of Trade have recommended to fast-track the regional integration agenda and proposed the establishment of a Continental Free Trade Area (CFTA) by 2017 (Mevel and Karingi, 2012; ECA, 2016). Even if the African Continental Free Trade Area (AfCFTA) does not feature explicitly in the Abuja Treaty, in accordance with the sequential stages of regional economic integration, it is an important way to catch up with stage 4 which relates to the creation of Continental Customs Union. Trade procedures harmonization is one of the four fundamental principles of Trade Facilitation (Figure 3)
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