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South African Journal of Economic and Management Sciences

versão On-line ISSN 2222-3436
versão impressa ISSN 1015-8812

Resumo

FERREIRA, Lorainne  e  STEENKAMP, Ermie A.. Identifying regional trade potential between selected countries in the African tripartite free trade area. S. Afr. j. econ. manag. sci. [online]. 2020, vol.23, n.1, pp.1-13. ISSN 2222-3436.  http://dx.doi.org/10.4102/sajems.v23i1.2936.

BACKGROUND: One of the most compelling arguments for regional trade and integration in Africa is that the African market is the most fragmented in the world, with only 16% of trade being within the continent. Furthermore, with 14 regional economic communities (RECs), the scale of integrated trading compared to the magnitude of trade is cause for concern. Africa could soon witness an important milestone on its path towards increased regional trade and improved integration with the implementation of the Tripartite Free Trade Agreement (TFTA) involving 26 countries. However, addressing overlapping memberships of the RECs and streamlining regulations, customs and border procedures can be a lengthy process AIM: In the meantime, this study aims to identify specific intra-regional trade opportunities among African countries to inform a more targeted approach to regional trade METHODS: This article uses a unique approach based on the Decision Support Model (DSM) to identify intra-regional trade opportunities between the TFTA countries, taking into account each country's import demand and export supply RESULTS: We determined 334 such opportunities among the 26 countries, of which 232 (almost 70%) are newly recognised as not being exploited CONCLUSION: This economic potential calls for policymakers to take a more proactive approach in their actions and recommendations by targeting these trade opportunities

Palavras-chave : Tripartite Free Trade Agreement; intra-regional trade; free trade; Africa; decision support model.

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