Trade between African countries today averages 16% of Africa’s total trade, while trade between the more developed countries makes up 70% for Europe, 50% for Asia or 21% for Latin America. However, Africa’s plan for a Continental Free Trade Area (CFTA) promises to open the continent to a trade area covering more than a billion people and with a continental GDP of over US$ 3 trillion. But ECA’s Carlos Lopes in a new essay warns African countries of an expected decline in African trade due to a series of recently negotiated Mega Regional Trade Agreements (MRTAs) between the U.S, Europe, Asia, Pacific Rim countries and others. Mr Lopes argues that Africa needs to move fast in implementing its own MRTA to mitigate the expected decline in trade volume. In his words, “Africa needs to make its own move and it needs to do it now.” More about the ECA in this BRIEFING.
