The Effect of Rules of Origin on Regional Trade: An Analysis of the Africa Continental Free Trade Area

Abstract

Purpose – The aim of this study is to identify the factors that affect the success of Regional Trade Agreements and the impact Rules of Origin on increasing intra-regional trade. Research design/methodology – An inter pretivist paradigm is adopted by the researcher to address the posed research questions. This is achieved through a qualitative inquiry, relying on secondary data for the adopted case study approach. Findings – The author finds that various factors play a role in the success of RTAs and that if the Africa Continental Free Trade Areas is to be successful, due regard must be given to the specificity of the legal texts defining the RoO. Further, that in order for business originating from member-states to truly benefit, measure must be put in place both on the regional and national level. Recommendations – The study recommends that at national level, there must be policy changes that will facilitate the implementation of the AfCFTA and at regional level, there is need to enhance the legal backing of implementing institutions and to ensure that the concluded rules are easy to understand and result in a simplified certificate of origin to aid business growth and efficiencies. Originality/value – The findings of this study address the core challenges faced by RTAs in Africa and what must be done to ensure that the AfCFTA succeeds in achieving its core vision and mandate.