Tag: Non-tariff barriers

tralac’s Daily News Selection

16 Feb 2018 News
From RECs to a Continental FTA: Strategic tools to assist negotiators and agricultural policy design in Africa (UNCTAD) The establishment of the Continental Free Trade Area (CFTA) is gaining speed, with the African Union (AU)...
The AfCFTA: It’s not just about the tariffs

The AfCFTA: It’s not just about the tariffs

Ashly Hope - 14 Feb 2018 Discussions

Ashly Hope, tralac Research Coordinator (Trade in services & regulation), discusses potential welfare gains and non-tariff barriers (NTBs) within the context of the African Continental Free Trade Area

Africa’s Continental Free Trade Area (AfCFTA) is part of a broader program for African integration. But integration is not an end in itself. The expectation is that this integration will improve the lives of people on the continent.

For economists, improvements in life are measured in ‘welfare gains’, within which, welfare means prosperity, and is measured in dollars. So, without joining the debate as to whether this is the best way of measuring improved lives, we can agree that more prosperity – i.e. more welfare gains – are better than fewer.

This is why it is interesting that recent UNCTAD modelling shows that the welfare gains from the reduction of ‘non-tariff barriers’ (NTBs) in the continental free trade area dwarf the potential welfare gains of tariff reduction, even in a

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