Wednesday, December 26, 2018

With China, the U.S., and Europe entrenched in a tariff war, Africa is preparing to become a continental free trade zone

With the global economy deeply entrenched in an ongoing tariff and trade war, one region of the world is looking to free itself from the restrictions that governments impose on free trade.

In a new report out on Dec. 26, South Africa is ratifying a 49 nation treaty to make the entire continent of Africa a virtual free trade zone.

South Africa’s and Togo’s parliaments this month ratified the agreement establishing the African Continental Free Trade Area (AfCFTA). The total number of countries committing to the deal has thus grown to 49. 
Once the agreement comes into effect, it will create a tariff-free continent, covering a single market of 1.2 billion people in 55 nations with a combined gross domestic product of about $3 trillion. 
It will constitute the largest free trade area globally, according to South African Trade and Industry Minister Rob Davies. 
Economists say that tariff-free access to a huge and unified market will encourage manufacturers and service providers to leverage economies of scale. - Russia Today
Over the past five years, China has been investing heavily into Africa, and the country of South Africa has been a solid member of the BRICS coalition.  And with more and more nations rejecting globalism and seeking to participate in trade agreements using their own currencies, the time appears right for Africa to open its doors to new investment and development and potentially become the fastest growing region of the 21st century.


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