This year, Africa’s leaders should prioritise their countries’ participation in the mega global trade agreements, thus ensuring that the continent has a voice in the rapidly changing international trade landscape.
This according to the Brookings Africa Growth Initiative’s sixth annual Foresight Africa report released earlier this week which points out that the most significant of these trade agreements is the Trans-Pacific Partnership (TPP) agreement that was concluded in October last year .
Comprising 12 countries – including the United States, Japan, Canada, Mexico, Australia, Vietnam, Malaysia, and Chile – TPP countries represent 40% of global GDP; 25% of global exports; and 30% of global imports, according to Brookings.
“Africa is not a party to any of these mega-regional trade negotiations. At the same time, little progress is being achieved on completing the WTO Doha Round multilateral trade negotiations,” said Amadou Sy, director of the Brookings Africa Growth Initiative.
This means that there is currently no large global trade negotiation where Africa’s views can be considered and progress can be made. “The risk for Africa in this is that new rules and market access preferences agreed under the mega-regional free trade agreements will make it increasingly difficult for African businesses to compete globally, confining Africa to a shrinking share of international trade and diminishing its attractiveness as a destination for investment,” warns Sy.
