The Tripartite Free Trade Agreement: A Comprehensive Guide
In today`s globalized world, international trade is an essential component of the economy. Countries around the world are seeking to increase their trade relationships, reduce trade barriers, and enhance economic growth. One such effort is the Tripartite Free Trade Agreement (TFTA).
The TFTA is a regional agreement between three African regional economic communities: the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC), and the Southern African Development Community (SADC). The agreement was signed in June 2015, and it aims to create a single market for goods and services, increase investment flows, and promote industrial development within the three regional blocs.
The TFTA covers a population of 690 million people and a combined GDP of over $1.3 trillion. The agreement creates a market without borders, which enables the free movement of goods, services, and people across the three regional economic communities. The TFTA has 27 member countries, including Egypt, Kenya, South Africa, and Tanzania.
One of the key benefits of the TFTA is that it will increase trade between the member countries, which will, in turn, lead to an increase in economic growth and job creation. The agreement also aims to create a more conducive environment for businesses to operate by harmonizing trade policies and standards across the three regional economic communities.
To ensure that the TFTA achieves its objectives, member countries are required to undertake several commitments. These include the elimination of tariffs on goods traded within the TFTA, the liberalization of trade in services, and the reduction of non-tariff barriers to trade.
The TFTA is also expected to promote regional infrastructure development, including transport links, communication networks, and power infrastructure. This will enhance intra-regional trade and boost economic growth across the region.
In conclusion, the Tripartite Free Trade Agreement is a significant milestone in regional integration in Africa. The agreement provides a framework for increased trade between the member countries, which will lead to job creation, economic growth, and regional infrastructure development. The TFTA is an essential step towards creating an integrated African market and promoting sustainable economic development in the region.