I came across some great news today and had to share it with you all. The following information comes from BBC News.
Nigerian President Muhammadu Buhari has signed a landmark agreement aimed to increase trade between African countries. The African Union (AU) stated that the African Continental Free Trade Area (AfCFTA) will create the world’s largest free trade area, and it estimated it will lead to a 60% boost in intra-African trade by 2022. Currently, only 16% of international trade by African countries take place between other African countries. And with Nigeria being Africa’s biggest economy, they have a lot to gain from increasing access to its goods and services to a wider market.
In regards to free trade agreements, the following has been advised:
Free trade agreements are designed to cut trade tariffs between member countries.
Tariffs are a form of tax, like border tax.
The purest free trade agreement (FTA) removes all border taxes or trade barriers on goods.
They get rid of quotas too, so there is no limit to the amount of trade you can do.
They come in all sorts of forms and with different rules but in short, they make trade between countries as liberal as possible and allow for more rules-based competition.
This is great news. Hopefully, trade deals will eventually expand throughout the diaspora as well. You can read the full article by clicking here. If you have any additional information, feel free to comment below.
Until Next Time…