Trade Area Research Articles

Transition to Polycentrism and the Transformation of Regional Trade Agreements

Regional trade agreements (RTAs) are important instruments of the world trade system, which have been increasingly developed in recent decades, since they complement the existing World Trade Organization (WTO) and WTO+ agreements and allow taking into account the specificities of regions. The principle of ensuring non-discriminatory trade is the main principle of multilateral trade of the WTO, or in other words, observes the rule of not favoring one trading partner over another. RTAs are, in fact, an exception to this approach, as it is the signatories that enjoy more favorable market access conditions. At the same time, the WTO recognizes the legitimate role of RTAs in facilitating trade between their parties, but requires that they not create barriers to trade with third parties. RTAs cover more than half of world trade, and new transcontinental agreements have been concluded in recent years: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Comprehensive Regional Economic Partnership, and the African Continental Free Trade Area. There are different types of RTAs in international cooperation, ranging from free trade agreements to common markets, including between countries of a territorially contiguous or transcontinental nature, based on WTO and WTO+ agreements or protectionist in nature. The article reflects the consequences for the national economies of developing countries, it is revealed that the European Union in the RTAs is actively promoting its values as the absolute truth for all peoples and nations, and their non-acceptance is considered as a factor causing possible restrictions. Other developed economies have also imposed obligations on signatories in terms of ensuring the transformation of the national economies of developing countries, but in recent years this trend has weakened somewhat. China, initiating the RTA, pursues the realization of its national interests, without imposing any political, mental or social aspects, and at the same time is ready to develop mutually acceptable compromises. The transformation of RTАs in modern conditions is carried out in three basic directions: preference for the preservation of full sovereignty by the signatory countries; the inclusion of articles that condition the promotion of sustainable development; control and monitoring to ensure compliance with labor safety regulations, non-damage to the ecological environment, as well as the use of tools of responsible corporate business conduct.

Standards and non-tariff barriers in trade – A case study of South Asia

SAFTA (South Asian Free Trade Area) is not a success story. Geographically connected, but highly dis-integrated, with more than 90 % outward-oriented trade, this is the case of South Asia. Of course, military, and political tensions are the major obstacles. However, recent data and studies show that cumbersome procedures, ruthless application of NTMs (Non-Tariff Measures) and restrictions are the biggest challenges for trade in the region. NTMs are important for public health and the environment but if such standards are mutually recognized through bilateral or multilateral agreements then the hectic and lengthy procedures can be avoided. This is the basic hypothesis investigated and checked in this research. Taking four economies, (Bangladesh, India, Pakistan, and SriLanka) two-step process is adopted; firstly, AVEs (Ad Valorem Equivalents) of NTMs are calculated and then incorporated in an extended GTAP (Global Trade Analysis Project) based CGE model. Simulation results suggest that if standards are mutually recognized then all countries will be better off, intra-regional trade and welfare will increase. The study recommends that SAFTA should proceed to establish such a mechanism that enables member countries to recognize the certificates and tests approved by the exporting countries. Further, Port restrictions and the issue of para-tariffs should be discussed in future negotiations.

ANALISIS GAP BIDANG SUMBER DAYA MANUSIA (SDM) RUMAH SAKIT PKU MUHAMMADIYAH YOGYAKARTA UNIT II MENUJU RS TIPE B

Background : Issues of ASEAN Free Trade Area ( AFTA ) and globalization of the world economy demands which is every profit and non-profit organizations to compete in marketing and resource. The changes, requires hospitals to survive among competitors that would appear at any moment. Therefore , Human Resources (HR) hospitals must be able to respond it. HR needs proper planning in accordance with the service requirements of each unit in accordance with the classification of hospitals based on the Regulation of the Minister of Health ( Permenkes ) number 56 of 2014 as well as national accreditation standard version of the Commission on Accreditation of Hospitals 2012 ( KARS ). So the RS PKU Muhammadiyah Yogyakarta Unit II will head the hospital type B and accreditation .Methods: The study design was qualitative used in-depth interviews and quantitative method for analyzing a plan about between condition HR today and the need for hospital accreditation of type B and KARS version 2012. While quantitative data obtained through questionnaires Need Assessment journal guidelines on Managerial Competency Development at Provincial and District HospitalsResults : Based on the research results, there is a shortage of human resources about the type and number according to hospital type B and for the accreditation of 99 elements document ratings are 96 % complete . As for performance assessment PKU Muhammadiyah Yogyakarta Unit II responsibility for the examination and treatment, training, science and research, issues of hospital management which is indispensable. To support the referral level, in terms of both treatment and prevention. As well as for international cooperation needs to be improved. While the assessment of training needs at the level of priority on the entire item, respondents give a high priority level assessment.Conclusion : There is a shortage of the type and quantity of human resources between the condition of human resources today and the provisions of hospital type B and there are some completeness of documents for the accreditation of qualifications assessment and education staff KARS 2012 version. Keywords : hospital type B, Permenkes 56/2014, accreditation of KARS version 2012, human resources.

China's Response To Indonesia's Policies In The North Natuna Sea

Problems: The North Natuna Sea has emerged as a point of contention between China and Indonesia. This research delves into the ambiguity and potential conflict within China's response to Indonesia's actions in the region. Purpose: This research aims to examine China's response to Indonesia's North Natuna Sea policies. And also Investigate Indonesia's policy regarding North Natuna Sea map issuance. Methodology: Qualitative research methods are employed, primarily involving an extensive review of existing literature. The analysis relies on a descriptive approach, drawing from foreign policy theory and geopolitical theory. Results/Findings: Indonesia's bold move in 2017, Indonesia officially inaugurated the North Natuna Sea Map. Objectives were clear, demarcate territorial boundaries, maximize resource utilization, and advance maritime ambitions. There is China's Ambiguous Response that took three forms. Coercive Response, China asserted dominance via the controversial Nine Dash Line and military force deployment within Indonesia's Exclusive Economic Zone (EEZ) in the North Natuna Sea. Persuasive Response, Diplomatically, China argued for South China Sea sovereignty, including the Nansha Islands and their waters. President Xi Jinping advocated mutual respect among neighboring countries. Dialogic Response, China engaged in diplomatic dialogues through forums like ASEAN-China Free Trade Area (ACFTA) and ASEAN-China Political Consultative Mechanism (PCM) to reduce regional tensions, seeking mutual agreements.Bottom of Form Paper Type: Geopolitical Issue Keywords: North Natuna Sea, UNLCOS, ZEE

Article: Friends and Free Trade: How Indo-Pacific Countries Can Leverage the QUAD and I2U2 in Friendshoring

Recent disruptions in international relations and the international trading order have given rise to new innovations in the ways countries trade. In this regard, friend-shoring is emerging as a means to recast entrenched global supply chains in a manner that favours friends and allies. Through this paper, we seek to explore how Indo-Pacific countries particularly India, the United Arab Emirates (UAE), Japan, Australia and the United States (US) can use friendshoring to integrate itself into global supply chains. Particularly, we focus on how these countries can leverage ‘minilaterals’ such as the Quadrilateral Security Dialogue (QUAD) and I2U2 (India, Israel, UAE. US) to collaborate on traditional as well as emerging areas of trade and gain from the strengths of these trading partners. In doing so, we look at free trade agreements (FTA) and regional agreements that exist between these countries, to examine if the same may be channelized to further friendshoring. We also study major collaborations that are taking shape amongst these countries. friend-shoring, QUAD, I2U2, IMEEC, minilaterals

The AfCFTA: An Enabler or Hindrance of China-Africa Trade?

China is flooding Africa with its products. This phenomenon is referred to by various scholars and commentators as the “dumping” of cheap manufactured goods on the continent. Using terms such as “zhing-zhongs” in Zimbabwe and “fong-kongs” in South Africa to refer to the inauthentic cheap goods that mostly bear a “Made in China” label, China is said to have influenced the growing unemployment and closing of firms in Africa. This article investigates whether or not the African Continental Free Trade Area (AfCFTA) enables or hinders trade relations between China and Africa. Admittedly, the agreement is said to be a solution to enabling intra-trade in Africa. This intra-trade is also a positive response to Africans to not rely exclusively on China's manufactured goods but also produce and consume their own products. Through the AfCFTA, it is argued that the “Made in Africa” label will override China's finished goods in the long term. Given that China is not only the world's largest manufacturing hub but Africa's largest trading partner, the implications of China's manufactured goods in Africa is a terrain worth investigating. The article argues that although the AfCFTA is a stepping stone for intra-trade on the continent, the benefits of the agreement will not be realised anytime soon because of various challenges such as limited infrastructure, the affordability of the manufactured goods, and the convenience of having readily available products at the time of purchase.

The Laffer curve for rules of origin

Firms in regional trade areas choose whether to comply with rules of origin (RoO) or pay a tariff penalty. Stricter content requirements initially expand regional part sourcing, but contract it when set at levels above a threshold, analogously to the Laffer curve for taxes. We calibrate the model to fit part cost shares for autos sold in North America. The effects of the 75% RoO imposed in 2020 depend on the relevant tariff and the ability to relocate assembly. With fixed assembly locations, the higher RoO reduces employment in all three countries for cars, where tariffs are low. For trucks, the 25% US tariff induces more compliance in Canada and Mexico, increasing employment in those countries. With the option to relocate assembly, higher RoOs redistribute employment to the US, but Canada and Mexico lose more, leading to a half percent decline in North American employment for both cars and trucks.

Leveraging the Potential of the African Continental Free Trade Area: Logistics Challenges and Development Paths for Future Value Chains in Africa

Background: With a rapidly growing young population, the African continent provides a high but barely exploited economic potential. Creating an African free trade zone is one of the African Union’s major initiatives to increase prosperity. Even though the AfCFTA has already come into force, its potential has not yet been fully exploited. This study investigates the logistics challenges associated with the AfCFTA and potential solutions and development paths for future value chains. Methods: The study builds upon a two-stage research process. First, applying the Nominal Group Technique with a group of 19 industry experts, current challenges and strategies to deal with them are conducted, and statements about potential development paths emerging from the AfCFTA are synthesized. Second, a questionnaire among additional industry experts is done to assess the results of the first stage. Results: The article sheds light on the barely untapped field of logistics challenges hindering the AfCFTA to leverage its potential. Strategy fields to address current challenges are explained, and the first indications of how the AfCFTA will shape supply chains in the mid-term are outlined. Conclusions: The article underlines the importance of logistics in the development of pan-African value chains and highlights potential development paths that may arise in the medium term. It also emphasizes the growing need for cooperation between politics, business, and research to overcome current logistics challenges and leverage the potential of the AfCFTA.

Effects of free trade on export efficiency of COMESA member-states

Regional integration in Africa is deepening, and the existing regional groupings are making frantic efforts to remove barriers to trade. One way in which trade among countries can be promoted is through the establishment of free trade areas with member-states. However, regulatory quality that supports international trade in most African countries is exceptionally low. This study investigates the effect of the Common Market for Eastern and Southern Africa (COMESA) free trade area (FTA) on the bilateral export efficiency of member-states over the period 1997–2021. The results obtained using a stochastic frontier specification of the gravity model and panel data of 16 exporting COMESA member-states show a positive effect of the COMESA free trade area on export efficiency. In addition, the study finds regulatory quality to have a positive impact on export efficiency. Controlling for regulatory quality, the results also show that the FTA stimulates export efficiency. Hence, non-FTA COMESA members ought to contemplate joining the FTA in order to expand their respective exports with other member-states to their maximum potential.

Is the Green Total Factor of Energy Efficiency Rising or Falling? Evidence from the Belt and Road Initiative Countries

“The Belt and Road Initiative” (BRI) seeks to attain high‐quality development and sustainability. This study examines the green total factor energy efficiency (GTFEE) of 58 BRI countries from 2005 to 2019 and its influence factors using the Super slacked‐based measurement and Tobit models. The findings indicate that: 1) Singapore and the other seven countries have GTFEEs above 0.9, which is better than other countries; seven out of 58 countries have GTFEEs below 0.5. 2) Due to regional disparities, Southeast Asia, Central, and Eastern Europe have the greatest GTFEE, followed by South Asia, West Asia, and the Commonwealth of Independent States, and the lowest is in Central Asia, China, and Mongolia. 3) Compared to developing economies, developed economies have a higher GTFEE. 4) Between 2005 and 2019, the overall BRI energy efficiency dropped from 0.75 to 0.56. 5) According to Tobit results, for every 1% increase in economic development and energy structure, GTFEE increases by 0.08% and 0.31% points, respectively, and for every 1% increase in trade and land area, GTFEE decreases by 0.04 and 0.05, respectively. Therefore, BRI countries should strengthen international cooperation, develop advanced technologies, and increase the proportion of renewable energy utilization.

Critical factors to consider in the trade–security nexus of the African Continental Free Trade Area: A catalyst for establishing peace

ABSTRACT This study examines the geostrategic importance of the African Continental Free Trade Area (AfCFTA), discusses its potential trade impacts on African states, and considers whether it could support regional peace. Regional integration is crucial for achieving industrialisation, promoting trade across African borders, and preserving regional peace and security. Inextricably linked to regional integration is a security community comprising a distinct group of individuals for whom the likelihood of large-scale conflict or violence has diminished. A comparative analysis was conducted using Africa’s trade patterns, milestones, and achievements during 2015–2017 and 2022–2023. Subsequently, the key causes of insecurity on the African continent were explored, focusing on the Regional Economic Communities and states embroiled in coups during 2020–2023. The findings suggest that African authorities view the AfCFTA positively and believe economic integration may bring about peace. However, African authorities would require a strong continental strategy – supported by robust regional and national programmes – to promote investor confidence and trade, considering Africa’s high levels of intercommunal violence, civil unrest, violent extremism, terrorism, and transnational crime. The AfCFTA delayed trade liberalisation to protect Africa’s less developed economies, resulting in poor working conditions, intellectual capital loss, and decreased tax collection.

Economic Transition Opportunities for Nigeria in joining the African Continental Free Trade Area

This article explores the African Continental Free Trade Area (AfCFTA) and its implications for Nigeria. AfCFTA, established in 2018, aims to create a competitive single African market by eliminating tariffs and barriers, fostering economic growth, job creation, and industrialization. The nature of trade in Continental Africa has been more with the rest of other continents than within Africa. Then comes the question of what is standing on the way of inter and intra Africa trade. With trade we can unlock Africa growth and development and by so doing, we can improve per capita income in the continent and by so doing reduce poverty in Africa. The article discusses the objectives and challenges of AfCFTA, emphasizing the importance of infrastructure, regulatory harmonization, and trade facilitation. For Nigeria, Africa’s largest economy, joining AfCFTA offers expanded market access, job opportunities, and economic diversification. The government’s rationale for participation includes promoting industrialization, increasing export opportunities, and improving trade balance and foreign exchange reserves. The reality is that we all need each other to get the wheel of life going. Keywords: , Globalization, AfCFTA, Regional Trade, Trade balance

The Growth Prospects for Nigeria in Joining the African Continental Free Trade Area

This paper examines the potential benefits and challenges of Nigeria joining the African Continental Free Trade Area (AfCFTA) agreement, which aims to create a single market for goods and services across Africa. Using a computable general equilibrium model, we simulate the effects of trade liberalization under different scenarios of tariff reduction, trade facilitation, and regional integration. We find that Nigeria stands to gain from participating in the AfCFTA, especially if it is accompanied by improvements in infrastructure, customs procedures, and regulatory harmonization. However, we also identify some potential costs and risks, such as trade diversion, revenue loss, and adjustment costs for some sectors and regions. We recommend that Nigeria adopts a proactive and strategic approach to maximize the opportunities and mitigate the challenges of the AfCFTA, such as diversifying its export basket, enhancing its competitiveness, strengthening its domestic policies, and engaging in regional cooperation. Keywords: AfCFTA, Nigeria, trade liberalization, regional integration, computable general equilibrium model

The Transformative Trajectory for Nigeria in the Aftermath of Joining the African Continental Free Trade Agreement.

The African Continental Free Trade Agreement (AfCFTA) is a significant initiative aimed at promoting economic integration among 54 African nations. This article examines the historical context, challenges, and achievements of the AfCFTA, including tariff reductions, trade in goods and services, intellectual property rights, and free movement of persons. It also highlights the challenges faced by African economies, such as low industrialization and limited access to finance. The article proposes strategic solutions, such as infrastructure development and regulatory harmonization, to address these issues. The AfCFTA has created the world's largest free trade area, promoted trade in services, and attracted foreign investment. The article highlights its resilience during the COVID-19 pandemic and acknowledges its transformative potential in shaping Africa's economic future. Future prospects include scope expansion, regional integration, digitalization, and sustainable growth. Keywords: Global trade, AfCFTA, Regional Trade, Trade block

Positioning Nigeria as a First World Economy in the Era of Signing the African Continental Free Trade Area (AFCFTA)

The challenging circumstances of Nigerian businesses within the African continental free trade agreement has not really placed Nigerian economy at the desired global height as expected. The challenges in line with the ex post facto result of our study showed that, Nigerian was prepared to be launched at the global business circle but are still confronted with specific issues due to lack of proper African continental integration. Our report also showed that, Nigerian capital and financial markets are robust to leverage AfCFTA to boost trade and commerce, attract FDI, utilized our abundance natural and human resources and increase exports. It was however, recommended that: A special purpose vehicle should be created to monitor the progress of the AfCFTA strategies in each of the Member countries. Also, Nigerian government should work harmoniously with stakeholders to ensure trade liberalization especially export sector and start up so as to boost local production; trade Concessions should be given to infant industries, and laws should be made to protect SMEs from foreign and giant competitions; ease of doing business policies should be improved to attract foreign direct investment, FPI and capital inflows. Keywords: Globalization, AfCFTA, International trade, Trade balance, Classical & Neoclassical trade theories.

Economic Transition Opportunities for Nigeria in joining the African Continental Free Trade Area.

This article explores the African Continental Free Trade Area (AfCFTA) and its implications for Nigeria. AfCFTA, established in 2018, aims to create a competitive single African market by eliminating tariffs and barriers, fostering economic growth, job creation, and industrialization. The nature of trade in Continental Africa has been more with the rest of other continents than within Africa. Then comes the question of what is standing on the way of inter and intra Africa trade. With trade we can unlock Africa growth and development and by so doing, we can improve per capita income in the continent and by so doing reduce poverty in Africa. The article discusses the objectives and challenges of AfCFTA, emphasizing the importance of infrastructure, regulatory harmonization, and trade facilitation. For Nigeria, Africa's largest economy, joining AfCFTA offers expanded market access, job opportunities, and economic diversification. The government's rationale for participation includes promoting industrialization, increasing export opportunities, and improving trade balance and foreign exchange reserves. The reality is that we all need each other to get the wheel of life going. Keywords: Globalization, AfCFTA, Regional Trade, Trade balance

The Growth Opportunities for Nigeria in Joining the African Continental Free Trade Area.

This Article examines the African Continental Free Trade Area (AfCFTA), focusing on its inception, goals, challenges, and specific implications for Nigeria. Africa, with abundant natural resources and cultural diversity, faces hindrances like poor infrastructure and governance, limiting intra-African trade. Established in 2018, AfCFTA aims to create a competitive single African market by eliminating tariffs and barriers. AfCFTA objectives span tariff elimination, customs harmonization, dispute resolution, and cooperation on technical barriers. Challenges include infrastructure gaps, non-tariff barriers, economic diversity, competition adjustments, informal trade, political instability, capacity constraints, and financing issues. Mitigating these requires strategies like infrastructure development, trade facilitation, capacity building, and harmonizing standards. Nigeria, as Africa's largest economy, could benefit from AfCFTA by accessing cheaper goods. However, implementation faces delays due to unmet trade requirements. The National Action Committee outlines pillars for effective implementation, emphasizing institutional development, export growth, improved trade facilitation, and infrastructure development. Despite Nigeria's delay, the upcoming Guided Trade Initiative in October 2023 is anticipated to accelerate its participation in AfCFTA, fostering economic growth and trade relations within the continent. Keywords: Global trade, globalization, AfCFTA, Trade Block, Commerce.

Towards ICT diffusion and trade liberalisation on inclusive growth in Sub-Saharan Africa

AbstractWhile the debate over the nexus between trade liberalization and inclusive growth is progressively reaching some consensus in emerging and developing economies, the empirical findings are mixed for sub-Saharan African (SSA) countries. Some of the SSA countries experience rapid growth in information and communication technology (ICT) diffusion manifesting in increased green wealth via the invention of new ideas, access to wider markets like the African Continental Free Trade Area (AfCFTA), promoting accountability, social inclusion, and e-governance among others. The present study critically assesses how ICT diffusion modulates trade liberalization on inclusive growth throughout the 2005–2020 periods for 48 SSA countries. This study contributes empirically and methodologically to literature, specifically on the construction of the ICT index, inclusive growth index, and adoption of a better befitting econometric model. The study explores the direct impacts of ICT diffusion and trade liberalization, and their indirect impacts using an interaction term on inclusive growth. Contrary to the prior expectations, trade liberalization does not lead to inclusive growth in the SSA region, but ICT diffusion has a positive and significant impact on inclusive growth. However, the interaction term of ICT and trade liberalization improves inclusive growth. Therefore, the study advocates for policies that would build a knowledge-based human capital, stimulate innovation in socio-economic systems, and develop ICT infrastructure and its penetration among others, with the expectation that as AfCFTA takes effect, ICT diffusion will facilitate intra-regional trade, enhancing inclusive growth in the African region among other sound policy suggestions.

Addressing the Challenges Facing One-Stop Border Posts in Africa: Lessons from Chirundu

As African countries work towards establishing a continental market created under the African Continental Free Trade Area (AfCFTA), emphasis needs to be placed on improving connectivity and regional accessibility. One-Stop Border Posts (OSBPs) are central to enhancing interconnectivity among African countries to facilitate traffic flows along Africa's transport corridors. Under the OSBP concept, all traffic stops once to undertake both exit and entry formalities when crossing into another jurisdiction. Such a framework would help alleviate border congestion and delays that adversely impact transport costs, trade flows, and trade competitiveness. However, OSBPs present their own challenges. Using the Chirundu OSBP between Zambia and Zimbabwe (which was the first of its kind in Sub-Saharan Africa) as a case study, this article examines the challenges, highlights the issues, and suggests ways to address the problems. It reviews the border management and infrastructure challenges affecting operations and success of the Chirundu OSBP and points to implementation lessons that can be drawn to inform other African countries that intend to implement, or are in the process of developing, OSBPs.

Learning pedestrian’s perspective towards sidewalk through new urbanism

In the 1990s, several urban and environmental designers discussed various issues related to suburban expansion, including income disparities, environmental degradation, and rampant use of motorized vehicles. The New Urbanism movement became known in the 1970s and 1980s in America. The principles of New Urbanism are clearly illustrated in the book Charter of the New Urbanism (Leccese & McCormick, 2000). The nature of being friendly to pedestrians is one form/pattern of the theory of New Urbanism. New Urbanism is also known as neotraditional design, transit-oriented development, and traditional or neighborhood development (TND). The analysis technique used for this goal is IPA (Important Performance Analysis). Before conducting the analysis process, it is necessary to test the validity and reliability and the Wilcoxon test of the variables used. The study focuses on the Tunjungan area in Surabaya City, an essential element of accessibility for trade and service areas. A pedestrian network is necessary for safe and comfortable mobility, as mandated by the Regulation of the Minister of Public Works. TOD nodes were created to connect public and private transportation and link neighborhoods and districts through corridors. These corridors are essential in developing New Urbanism theory, which recommends corridors with mixed land use patterns to create a compatible environment and protect public security, health, and safety. Community participation is necessary to develop regulations related to corridors.