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Can The Tripartite Free Trade Area (TFTA) deliver effective and real trade liberalization for economic growth? A practitioner view

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  • Inama, Stefano

Abstract

The regional trade initiatives called the Tripartite Free Trade Area (TFTA) has been recently created to relaunch regional integration in Africa given the limited achievements of existing Regional Economic Communities (RECs) in liberalizing trade. Much of the success in international negotiations and subsequent implementation of trade agreements depends on previous analysis conducted at domestic level and the capacity to elaborate appropriate negotiating strategies reflecting the economic interests and objectives. In that perspective, this paper first explores the current status of the TFTA as an actor in global trade by assessing the existing trade performances of the TFTA member states and the structure of traded products. The data show that (i) the intensive margin of trade within the region turn out to be very limited (ii) export diversification constitutes a major challenge for TFTA members, both in terms of number of traded products and export destinations (iii) the share of traded manufactured products is relatively low and (iv) the utilization of current preferences granted under existing RECs is rather limited. Using the UNCTAD Trade Policy Simulation Model (TPSM), the trade creation and diversion effects of the TFTA have been estimated at the 6- digit tariff line level of the Harmonized System providing therefore precious indications to trade negotiators.

Suggested Citation

  • Inama, Stefano, 2014. "Can The Tripartite Free Trade Area (TFTA) deliver effective and real trade liberalization for economic growth? A practitioner view," Conference papers 332485, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332485
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