Policy brief: economic partnership agreements and the African continental free trade area

Abstract

The 2015 Economic Report on Africa by the United Nations Economic Commission for Africa (ECA) shows that deepening African economic integration in the context of the proposed Continental Free Trade Area (CFTA) prior to the full implementation of the Economic Partnership Agreements (EPAs) could offset the negative effects of those agreements on intra-African trade. However, this implies that the transition periods provided for under the EPAs are used to fast-track the regional integration of agenda of the African countries. Studies show that the EPAs may have adverse effects on intra-African trade and could generate significant trade revenue losses for African countries. Nonetheless, efforts are being made throughout the EPAs to address these issues and mitigate the effects of liberalization of revenues, notably through the proposed setting up of EPA implementation funds in most of the African EPA regions.