Trade Area Research Articles

The Liberating Effects of Nigeria to African Continental Free Trade Area: Synoptic Perspectives

The purpose of this study was to investigate theoretically the relationship between transformational leadership (the “Magnetic Manager) and organizational success. The transformational leadership and social exchange theories are the underpinning theories for this paper. The literature on the concept of transformational leadership, its forms, and organizational success was thoroughly reviewed. The paper found that a transformational leader is a critical success factor that can bring out changes in employees and the organization as a whole. The study concludes that there is a significant relationship between transformational leadership and organizational success. The study recommended that organisations celebrate successes. Transformational leaders should recognise and celebrate the successes of their followers. This helps to build morale and motivation, which can lead to success. Keywords: Transformational Leadership; Organizational Success; Charisma; Inspirational Motivation

The Urgency of Free Trade Agreements (FTA) and Digital Platforms for MSMEs in Realizing a Sustainable Digital Economy

Free Trade Areas (FTAs) offer significant opportunities for Micro, Small and Medium Enterprises (MSMEs) by providing access to international markets without tariff barriers. However, MSMEs often face challenges such as limited understanding of FTA regulations and difficulties in accessing global markets. This article discusses the need to develop a global digital marketplace platform specifically designed for MSMEs with FTA integration to address these challenges. The study uses a qualitative approach, analyzing relevant journals and articles to identify the needs of MSMEs and how digital platforms can support them in maximizing the benefits of FTAs. The discussion aims to provide solutions to market access limitations and information barriers, contributing to the growth and innovation of MSMEs towards a more inclusive and sustainable digital economy.

INTERNATIONAL COMMUNITY IN THE GLOBAL DIGITAL ECONOMY: A CASE STUDY ON THE AFRICAN DIGITAL TRADE FRAMEWORK

Abstract Global digital integration is desirable and perhaps even inevitable for most States. However, there is currently no systematic framework or narrative to drive such integration in trade agreements. This article evaluates whether community values can offer a normative foundation for rules governing digital trade. It uses the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol as a case study and argues that identifying and solidifying the collective needs of the African region through this instrument will be key to shaping an inclusive and holistic regional framework. These arguments are substantiated by analysis of the regulation of cross-border data flows, privacy and cybersecurity.

A Proposed Coupling Framework of Biological Invasions: Quantifying the Management Prioritization in Mealybugs Invasion

ABSTRACTPrioritizing potential invasive alien species, introduction pathways, and likely places susceptible to biological invasions is collectively critical for developing the targeting of management strategies at pre‐border, border, and post‐border. A framework for prioritizing the invasion management that considered all these elements in combination is lacking, particularly in the context of potential coinvasion scenarios of multispecies. Here, for the first time, we have constructed a coupling framework of biological invasions to evaluate and prioritize multiple invasion risks of 35 invasive alien mealybugs (IAMs) that posed a significant threat to the agri‐horticultural crops in China. We found that the imported tropical fruits from free trade areas of the Association of Southeast Asian Nations to entry ports of southern China were the primary introduction pathway for IAMs, vectored on various fruit commodities. There was also a high probability for cointroductions of potential multi‐IAMs with a single imported tropical fruit. The potential distribution of such IAMs with dissimilar net relatedness were mainly located in southern China. These distributions, however, are likely to expand to the higher latitudes of northern China under future climate and land use/land cover changes. Temperature and anthropogenic factors were both independently and collectively determining factors for the diversity and distribution patterns of imported IAMs under near‐current climate conditions. Our findings highlight that these multiple components of global change have and will continue to facilitate the introduction and establishment risks of IAMs in southern China, as well as the spread risk into northern China. Additionally, our findings, for the first time, demonstrated management prioritization across the continuous invasion stages of 35 IAMs in China, and provide additional insights into the development of targeting of their biosecurity and management decisions.

Environmental Policies and Green Technologies: Impacts on Energy Sustainability in the African Continental Free Trade Area.

This research focuses on environmental pollution, a significant concern today due to energy use. Improving ecological sustainability suggests a framework for sustainable energy behaviours. This paper reviews the advances in environmental policies and green technology in designing efficient energy systems, but some gaps remain. The variables considered in this research are analyzed through Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models to determine their effects on energy structures and the environment in 31 of the 55 countries within the AFCFTA. Some main results show that one percentage point improvement in environmental legislation leads to decreased ecological footprints by 9.11% (DOLS) and 20.98% (FMOLS). On the other hand, a one percent increase in green innovations reduces ecological footprints by 0.6% (DOLS) and 1% (FMOLS). Also, service imports reduce sustainability by decreasing it by 2.98% (DOLS) and 1.47% (FMOLS), while service exports improve sustainability by increasing it by 1.59% (DOLS) and 1. 09% (FMOLS). Thus, these results underscore the need to maintain and strengthen environmental legislation and encourage green investments, as well as the importance of green innovation environmental policies and renewable energy to enhance environmental quality.

Benefits and Vulnerabilities of the Free Trade Agreement for the EAEU Countries and China

Aim. Objective is to formulate the position of the EAEU in the negotiations on the free trade area with China.Tasks. We determine the potential results of the creation of the China-EAEU free trade area for each country.Methods. The indices of complementarity and trade intensity were calculated, and the benefits to society from the abolition of customs tariffs were calculated using a partial equilibrium trade-policy simulation.Results. The study of supply and demand for excavators showed that the total benefit of consumers (the construction industry) from the abolition of customs duties only slightly exceeds the losses of producers and the government. Based on the complementarity assessment, it was found that the free trade agreement is more beneficial for China than for the EAEU countries — the structure of China’s exports better corresponds to the structure of imports of the EAEU countries. It was revealed that the exports of the EAEU countries to China are not diversified, and the main export goods face minimal tariffs — 0% for crude oil from Russia and Kazakhstan, 3% for potash fertilizers from Belarus, 0% for ores and concentrates of precious metals from Kyrgyzstan, 0% for copper ores and concentrates from Armenia. The EAEU countries may be interested in further liberalization of trade with China due to the intention to export frozen fish, corn, wheat and rice (Russia), tobacco (Kyrgyzstan and Armenia), meat and dairy products (Belarus), and cognac (Armenia).Conclusions. Reduction of duties on the specified goods may be the subject of a preliminary temporary agreement. A free trade zone may be created by finalizing the existing Agreement on Trade and Economic Cooperation between the EAEU and its Member States and the PRC. It is recommended that, in addition to including provisions on the abolition of customs duties, sections on trade in services, investments, and movement of individuals be included.

DAMPAK PEMBANGUNAN INFRASTRUKTUR TERHADAP PENINGKATAN AKTIVITAS PEREKONOMIAN PASAR SENTRAL KABUPATEN SUPIORI

The Central Market of the Supiori Regency is one of the economic centres in the Supiori Regency.However, in its development, it did not turn out as expected. The market was abandoned by the traders whopreferred to sell along the streets of Sorendiweri City, the capital of Supiori Regency. This has caused the mainroad in Sorendiweri City, which is used as a trading area, to be filled with scattered trash. Vehicle drivers passingthrough the location become uncomfortable and disturbed because the vendors occupy half the road to sell theirgoods. This research has two objectives, namely, first, to identify and analyze the factors causing traders to preferselling on the main road within the city of Sorendiweri rather than at the Central Market, and second, to identifyand analyze the local government's policy strategies in building new infrastructure to improve accessibility to theCentral Market. This research uses qualitative descriptive analysis to analyze the data.

Assessing the evolution and perspectives of developing the russian export in current terms: adoption of the 4P model

The study’s relevance is caused due to the Russian export experiences, which acts as a research subject. Goal is to reveal current peculiarities of Russian export. As methodical tool the model of marketing mix was applied, which includes product, price, place, promotion. The analysis has shown: the Russian economy, to promote its export in new terms, uses marketing with new characteristics. The bigger are become the share in it of agricultural and metallurgical products, the share of developing countries among buyers. Promoting the export is provided including through the free trade zones of the Eurasian economic union with the third countries, common trade and cooperation areas with them. State support for import substitution assists to create the production able to export. Scientific contribution of the research results consists in that they expand application of micro-economic marketing mix model on export of national economy as a whole. The results received make possible to study in complex and simultaneously in detail the strengths and weaknesses of export, including the volume and structure of export, price dynamics, currency and financial, transport, trade and diplomatic peculiarities of sale.

Impact of the Belt and Road Initiative on the United States’ textiles and clothing imports from Asian countries: Evaluating the significance of Chinese aid and ACFTA

This study analyzes how Chinese aid and the ASEAN-China Free Trade Area (ACFTA) within the Belt and Road Initiative (BRI) impact Asian countries’ textiles and clothing (T&C) exports to the United States (US). The BRI is viewed as a hub-and-spoke network, with China as the central hub providing resources to the spoke countries along the Belt and Road region. These resources are intended to improve trade infrastructure and attract export-oriented foreign direct investment in the T&C sector. Utilizing an extended gravity model with a panel dataset, the study examines the effects of Chinese aid and ACFTA on the US T&C imports from 16 Asian economies between 2008 and 2019. The findings, obtained through the application of the feasible generalized least squares method, indicate a positive impact of Chinese aid and ACFTA on T&C exports. Policymakers are advised to leverage the BRI to stimulate T&C sector growth for export purposes, thereby creating more value for all stakeholders.

Legal Certainty for Providing Preferential Tariffs in the ASEAN-China Free Trade Area (ACFTA) Agreement Based on Operational Certification Procedures (OCP) in Tax Court Decisions

The ASEAN-China Free Trade Area (ACFTA) is an agreement made by the member countries of ASEAN and the People's Republic of China with the aim of promoting a stable and harmonious economy through the free flow of goods. ACFTA also supports the idea that barriers to international trade, both tariff and non-tariff, should be reduced or even eliminated, which is known as preferential tariffs. The countries involved in the ACFTA agreement agree that the Rules of Origin (ROO) provisions are necessary to obtain preferential tariffs. ROO establishes three criteria: Origin Criteria, Consignment Criteria, and Procedural Criteria. (Procedural Criteria). The Procedural Criteria are regulated in the Operational Certification Procedures (OCP) in Appendix 1 of Attachment A of Annex 1 ROO. The OCP contains regulations regarding the time for submitting a Certificate of Origin (SKA) in order to obtain a preferential rate. There are parties that think about the implementation of OCP ACFTA in Indonesia, that further regulations on OCP cannot be made without an agreement from both sides to do so. Research conducted using a normative legal approach with data collection methods through literature study, concluded that there are still differences in the application of Operational Certification Procedures (OCP) in the imposition of preferential rates by customs officers and Tax Court judges in the region in resolving disputes regarding preferential tariff. Therefore, adjustments are needed in the legal products regarding the implementation of preferential tariff imposition, as well as an enhancement of legal understanding and reasoning in the Tax Court to provide legal certainty, justice, and benefits for all stakeholders. Keywords: ACFTA, Preferntial Tariff, OCP.

Artificial Intelligence in Finance: Applications and Implications

The definition and uses of Artificial Intelligence, often abbreviated as AI, has come a long way since its inception. This technology is rapidly changing some business operations in the areas of trading, identification of frauds, and customer service in particular, the modern finance sector, and this article highlights the importance of technology in these processes. Significant Applications of Artificial Intelligence in Finance: From Algorithmic Trading to Robo-Advisors. Explaining, the paper analyzes the current trends and practices in the industries, addressing the positive and negative aspects of AI in the finance sector, with respect to the visions of the future. One that relates to the socio-technical implications that include the use of such technology in finance and the associated risks of data breach, availability, and loss of control and trust in processes.

Транстихоокеанское партнерство и всестороннее региональное экономическое партнерство как международно-правовая модель экономической интеграции в Азиатско-Тихоокеанском регионе

The article explores international law aspects of the contemporary integration processes in the Asia-Pacific with a specific focus on such relatively new formationsas the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). Based on the WTO law provisions with regard to the free trade areas for goods and services, both Partnerships significantly widen the scope of regulated inter-governmental relationships, which allows considering the TPP and the RCEP as a fundamentally new form of the regional trade agreements. Having a fixed number of participating states and a system of institution with their functions and competencies, the Partnerships do not represent inter-governmental organizations and are vested with no legal capacity or, especially, supranational powers. However, this does not undermine the trade and economic significance of the Partnerships while also making them an attractive model of the soft integration structure between the states having different level of economic development, located in different geographical regions and bound with their own integration obligations under bi- and multilateral (subregional) trade agreements. The founding agreements of the Partnerships are typical “WTO plus” arrangements combining the provisions on liberalization of trade in goods and services with the parties’ mutual obligations in the fields of investments, sustainable development, competition, administrative and legal cooperation. At the same time, applicability of parallel bi- and multilateral trade agreements between the Asia-Pacific states, including those within ASEAN, forms a complex multilayer regulation of foreign trade and entails a risk of legal uncertainty for economic operators.

Possible development path for agricultural economic and trade cooperation in FTAAP: A numerical simulation

Exploring the path of developing agricultural economy and trade cooperation in the Free Trade Area of the Asia Pacific (FTAAP) is of great practical significance for deepening economic integration in the Asia Pacific region and strengthening regional agricultural development. This paper proposes three feasible paths based on RCEP, CPTPP, and the integration of RCEP and CPTPP to establish FTAAP. Moreover, a dynamic computable general equilibrium model of global trade is used to simulate the macroeconomic effects and the agricultural effects represented by China in forming FTAAP under these three paths. The research results show that six common policy nodes will promote macroeconomic growth in participating countries, and the effects of the in-depth implementation of RCEP and CPTPP will be greater than those of the initial implementation. Due to the broader base of participating economies and the higher level of openness, establishing FTAAP under Path 3 will yield greater macroeconomic effects and agricultural effects. Therefore, the path based on the integration of RCEP and CPTPP is an optimal selection for economic and trade cooperation of agriculture in FTAAP. All parties should actively overcome the obstacles to forming FTAAP and provide a stable internal and external industrial development environment for regional agricultural economic and trade cooperation.

Ghanaian Small and Medium-Scale Enterprises (SMEs') Readiness for African Continental Free Trade Area (AfCFTA) Implementation

This paper seeks to assess Ghanaian Small and Medium-Scale Enterprises (SMEs') readiness for the African Continental Free Trade Area (AfCFTA) Implementation. The research instrument used to collect data was questionnaires and the study employed descriptive research design. The study randomly selected 250 SMEs from a population of 480 SMEs that were registered members of the Ghana National Chamber of Commerce and Industry, Cape Coast Branch and operating within manufacturing, pharmaceutical, herbal, tourism, hospitality, food and beverage, agribusiness, garment, leather, and textiles. Data collected from the SMEs was analysed using SPSS, version 28. The findings from the study shows that, there is a significant gap between Ghanaian SMEs' readiness for AfCFTA implementation. The study finds out that although majority of SMEs are capable of innovation and developing new products, they also have limited knowledge of export documentation, trade information and infrastructure, trade finance, and funding for expansion. They also have low knowledge and lack a basic understanding of the benefits of AfCFTA, its advantages, components, protocols, and Rules of Origin. The study again revealed that the obstacles facing Ghanaian SMEs exportation are high cost of production, border delays, poor infrastructure, high inflation, difficulty in accessing credit, and language problems. Based on these findings, the study recommended that SMEs needs to be retooled particularly in the area of AfCFTA Rules of Origin, its objectives, components, and Ghana’s trade policy to improve their readiness for AfCFTA implementation. Again, businesses should concentrate more on value addition, and be dedicated to looking for ways to enhance their current or existing products to outperform comparable products from other African nations.

Implementing African Continental Free Trade Area: Lessons from Afro-Pessimists and Afro-Optimists

Global cooperation has been an acceptable strategy for addressing many of the world’s challenges. The African Continental Free Trade Area (AfCFTA) agreement which entered into force on 30 May 2019 was designed in a similar light for Africa’s development. Its objectives among others are to create a single market for goods, and services, and deepen the economic integration of the African continent by the vision of an integrated, prosperous, and peaceful Africa as enshrined in the Agenda 2063. However, these benefits may not be realized unless member states garner concerted and sustained efforts to ensure the effective implementation of the AfCFTA. These efforts often elude most developing countries, and it is against this backdrop that this study attempts to investigate whether the contrasting perspectives of the Afro-pessimists and Afro-optimists could be of relevance to AfCFTA implementation. Using desk review methodology, the study synthesized both empirical and theoretical literature and found that Afro-pessimists are very critical and paint a gloomy picture of Africa. Whereas the Afro-optimists, are more positive looking with the claim that Africa is mistreated and its achievements are inordinately ignored. Significantly, both perspectives deepen understanding of the strengths and weaknesses of Africa’s development, providing a useful context for either the failure or success of the AfCFTA’s implementation. The key lesson the study draws is for Africans to maximize their strengths as much as possible and minimize their weaknesses. This will actualize the “Africa rising” phrase and lead to the majority of Africans rising with Africa.

Morocco, at the Heart of the Harmonization of the African Union's Migration Policies: Context, Complexity, Diversity, Effects and Challenges

Since the mid-1980s, the European Union has adopted a cautious attitude to migratory flows. It has constantly stepped up initiatives to combat immigration, by tightening border controls and reducing the granting of visas, thereby forcing would-be emigrants to look for alternatives. At the same time, Africa is facing unique migration challenges. The consequences of colonization, the imposition of capitalist relations and the development of an extroverted economy, among others, continue to influence current migration dynamics. Persistent economic crises, exacerbated by inequitable global economic policies, are driving many people to seek better opportunities elsewhere. In addition, the effects of climate change, such as desertification, droughts and floods, are intensifying migratory pressures. African countries therefore need to develop effective migration policies to govern migratory flows and respond to geopolitical challenges. It is crucial to put in place regional and international cooperation mechanisms to manage migration in a coordinated and humane manner. This means thinking carefully about migration issues, considering the historical, economic and political realities that shape them. This issue must be at the heart of the concerns of States and the African Union. It is true that attempts are being made at continental level, such as the Kampala Convention and the establishment of the African Continental Free Trade Area (ACFTA), but these measures can only be truly appreciated if they are applied on the ground.

Unlocking Kenya's Export Potential: Opportunities in the African Continental Free Trade Area

Regional trade agreements enhance export market prospects by providing preferential access. Since 1986, Kenya has embraced an export-led growth strategy, unswervingly executing trade liberalization through bilateral, regional, and multilateral trade agreements. This study assesses Kenya's export potential within the African Continental Free Trade Area (AfCFTA) framework, intent on its bilateral trade prospects with six AfCFTA member states namely Cameroon, Egypt, Ghana, Mauritius, Tanzania and Tunisia. Utilizing the stochastic frontier gravity model, the analysis discloses that Kenya’s average export potential is strong, with potential rates of 94% for Cameroon and Tunisia, 66% for Mauritius, 93% for Egypt, 66% for Ghana, and 56% for Tanzania. The findings show that African states possess considerable export potential in agricultural and value-added products. To capitalize on this potential, it is critical to identify specific commodities that align with markets where Kenya's strengths are positioned. The study concludes that a targeted strategy focusing on specific goods for specific markets, along with increased export of agro-processed products through value addition and diversification, can effectively harness this potential.

Innovative approaches to enhancing logistics for adapting to the evolving demands of manufacturing companies in East Africa through improved lean strategies

This article explores innovative approaches to enhancing logistics for manufacturing companies in East Africa through improved lean strategies. The region faces numerous logistical challenges, including poor infrastructure, political instability, and supply chain disruptions. These issues are critical barriers to the competitiveness and growth of East African manufacturers in a globalized market. By adopting lean strategies such as Just-in-Time (JIT) inventory management, Value Stream Mapping (VSM), and Continuous Improvement (Kaizen), companies can streamline their operations, reduce costs, and improve customer satisfaction. The article highlights the importance of localizing lean practices to fit the unique context of East Africa, emphasizing the need for a cultural shift towards continuous improvement and innovation. Additionally, it underscores the role of advanced technologies, public-private partnerships, and regional collaborations in optimizing logistics systems. The future of logistics in East Africa is seen as promising, with opportunities arising from the African Continental Free Trade Area (AfCFTA) and the potential for technological advancements to reshape the logistics landscape. Ultimately, the article calls for concerted efforts from governments, businesses, and NGOs to invest in infrastructure, foster innovation, and promote sustainable logistics practices. By doing so, East African manufacturers can overcome current challenges and position themselves for long-term success in the global market.

Regional trade agreements and economic integration in Africa: assessing the impact of the African Continental Free Trade Area (AFCFTA)

This article examines the impact of Regional Trade Agreements (RTAs) on economic integration in Africa, focusing on the African Continental Free Trade Area (AfCFTA). As the largest free trade area globally, AfCFTA aims to create a unified market for goods and services across 55 African Union member states, fostering economic growth, reducing trade barriers, and enhancing intra-African trade. This article assesses the potential economic benefits of AfCFTA, including increased market access, industrialization, and job creation. It also considers the challenges of implementation, such as infrastructure deficits, varying levels of economic development, and non-tariff barriers. Through case studies of key African economies, including South Africa, Nigeria, and Kenya, the article explores how AfCFTA is reshaping trade dynamics and regional cooperation. Furthermore, it evaluates the role of AfCFTA in addressing Africa’s dependence on external markets and enhancing global competitiveness. The article concludes by providing recommendations for policy reforms, capacity building, and regional cooperation needed to maximize the benefits of AfCFTA. By analyzing both opportunities and challenges, this article offers insights into how AfCFTA can drive deeper economic integration and sustainable development across the African continent.

Breaking Down Barriers: Preparing Africa's Insurance Market for AfCFTA Success

This article examines the regulatory challenges that affect the readiness of the African insurance sector for expansion and integration under the African Continental Free Trade Area (AfCFTA) framework. Employing a mixed-methods research design, the study integrates qualitative interviews with senior industry executives and quantitative survey data from key stakeholders to identify and evaluate the primary regulatory barriers impeding market preparedness. The analysis reveals several critical obstacles, including regulatory fragmentation, inconsistent enforcement of standards, and inadequate cross-border coordination. The findings suggest that addressing these challenges is crucial for realizing the full potential of AfCFTA in the insurance sector. The article concludes by providing strategic recommendations aimed at fostering regulatory coherence, enhancing market readiness, and supporting sustainable growth across Africa’s insurance markets.