Abstract (eng)
Regional integration efforts on the African continent have been ongoing since the end of European colonial rule. Especially the changes to the architecture of world trade, the ‘breakdown’ of the Doha Development Round and the rise of new groups of emerging powers (e.g. BRICS: Brazil, Russia, India, China and South Africa) have created both opportunities and challenges for Africa’s development and growth. In 1991, the Treaty of Abuja was signed and provides the overarching framework for an ‘African Economic Community’. Ever since, so called ‘Regional Economic Communities’ were established, they have become the main economic engines, but fragment the continent. However, despite the integration effort, African intra-continental trade is the lowest in the world. Therefore, the ‘African Continental Free Trade Area’ was initiated. It covers all 55 African Member States of the African Union and seeks to boost intra-African trade, facilitate trade, promote sustainable development and lay the foundations for the creation of a Customs Union.
The main objective of this thesis is to introduce the reader to the economic system on the African continent and to place the newly established AfCFTA into the African framework of existing ‘Regional Economic Communities’. Quantitative data analysis was undertaken to show the level of economic integration on the African continent. This author established that most of the trading is being done within the existing ‘Regional Economic Communities’. Additionally, the legal study of the ‘Agreement establishing the African Continental Free Trade Area’ shows that the ‘Regional Economic Communities’ will continue to exist under the AfCFTA and will further engage in negotiations with each other. This will lead to a denser ‘Spaghetti-bowl’ of ‘Regional Trade Agreements’ on the African continent. Additionally, this thesis analyses the severe effect of ‘Non-Tariff Barriers to Trade’ and shows that improvement in infrastructure development, customs clearance, logistics services, etc. is necessary to fulfil the full economic potential. In addition, this author provides an in-depth discussion of the legal Agreement and concludes that the document is grossly incomplete even though it went into force in May 2019. Until today, the essential features to make preferential trade under the AfCFTA operative, namely Schedules of Tariff Concessions, Rules of Origin and Commitments in Trade in Services, have still to be agreed on.