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There is an important advantage of regional economic connection. Regional contracts usually reduce tariffs and non -tariff barriers and facilitate intra -regional trade through easy customs methods and supplies.
Regional contacts also encourage specialization and comparative advantage and reduce production costs through expanded markets. It also creates a stable, forecast environment that attracts the FDI. As a result, cross -border price chains emerge and promote manufacturing and services.
Regional economies invest in joint infrastructure projects (transport corridors and energy grid). Better communication reduces the cost of transactions and the dependence on global markets and distant partners. This encourages trade diversity in the region.
Regional economic cooperation also results in political stability. Economic mutual dependence often promotes peace. Regional forums support dialogue and resolution of disputes. The easy movement of professionals and cooperation in research and development accelerates technology and knowledge transfer.
Regional economic connectivity stimulations include better market access. In most cases, access to better contact exports extends and helps to connect smaller economies to big people. It reduces dependence on global powers by promoting regional self -reliance.
Regional relations have helped nations deal with the difference between poverty, unemployment and infrastructure. These matters are on the rise in South Asia. Cross -border energy, water and natural resources are limited.
Regionally linked economies take joint action during epidemic, supply chain barriers and financial crises. In the regional block, the dominant economy operates as anchor of stability by providing economic and political leadership (such as, Nafata, ASEAN +3 in China). The economy of the economy imports from smaller economies, developing growth in the region.
It also serves as an investment provider through regional infrastructure or industrial investment financing. This leads to regulations, digital standards and efforts to integrate the financial system. However, these traits are absent in the case of India, which is the dominant economy of South Asia.
When the dominant regional economies are seen as exploitation, as President Trump has begun to expand his relations with the partner economies, the lack of tariff barriers, anger and confidence.
South Asia lacks intra -regional connectivity. Regional agreements have promoted weak member economies elsewhere. ASEAN, mostly comprised of 10 members from Asia in the Middle East, is an excellent example of this.
In this block, the intra -regional trade is between 22 and 25 %. Most of its economies are doing good and developing. Japan was initially the largest economy in the region. It outsource most of its component manufacture of Indonesia, Malaysia, South Korea and other neighboring economies, which emerged as the independent manufacturers of electronics, computers and automobiles. Relations in the region are strong and political disputes between the member states have diminished.
The European Union is another example of the success of regional connection. It has historically eliminated conflicts between the member states. In this block, about 60 % of the total trade is made between the member states that have uniform taxes on imports from anywhere in the world.
The United States, Canada and Mexico (North America’s Free Trade Agreement). It was implemented from 1994 to 2000. It is then replacing digital trade, automotive principles, labor and environmental standards, intellectual property concerns and rules for dispute resolution procedures. The intra -regional trade in the USMA is 40 to 45 percent.
Regionally linked economies take joint action during epidemic, supply chain barriers and financial crises. In the regional block, the dominant economy operates as anchor of stability by providing economic and political leadership.
The AFCFTA includes all 55 members of the African Union, though the pace of verification and implementation is different. Of the 55, 54 AU countries have signed the AFCFTA agreement. Eritrea is the only country that has not yet signed it. By 2024, 47+ countries have confirmed the agreement and are working for implementation.
Its key members include Egypt, Algeria, Morocco, Tunisia, Libya, Sudan from North Africa. Nigeria, Ghana, Senegal, Kot Diwire, Burkina Faso from West Africa. Uganda from Kenya, Ethiopia, Tanzania, Rwanda, East Africa. Zambia from Cameroon, Chad, Congo (Brazavil), Central Africa and South Africa, Botswana, Namibia, Zimbabwe, South Africa.
AFCFTA goals include the formation of a single African market for goods and services. To facilitate people’s free movement, facilitate investment and investment and promote intra -African trade, industrialization and regional value chains.
AFCFTA is being implemented in a phased manner. In Phase I, the focus and services trade, tariff schedule and the original rules were focused. In Phase II, competitive policy, focus on intellectual property rights and investment. In Phase III, currently, e -commerce and digital trade are Foes.
The blockade structure includes the AFCFTA Secretariat based in Ekra, Ghana, which oversees harmony and implementation. There is a council of ministers of ministers of member states. There is also a committee of senior trade officials who develops technical work for ministers. Finally, a dispute is a settlement agency that resolves trade disputes using a legal protocol.
Under the AFCFTA, the trade framework includes commercial liberalization, which is aimed at eliminating revenue on goods over 90 % of goods over 5-10 years. The quality of determining which goods are eligible for preferential treatment are being resolved (the rules of the original). The procedure for identifying and eliminating NTBS has also been shaped. NTB online tools, electronic payment systems and pan African digital passports have been planned for digital platforms.
So far, the progress on the land includes a guide trade Initiative (GTI), a guide trade in 2022 for pilot trade in eight countries. So far, focus has been on food food, pharmaceuticals and textiles. Local currencies have launched a payment and settlement system for cross -border transactions.
There are still many operational challenges, including infrastructure gaps (roads, ports, digital networks). Limited industrial base in some countries. Non -tariff obstacles and bureaucracy; Matters of political will and harmony; And slow customs modernization.
Nevertheless, this regional agreement created many economic activities in the region and some of its member states have improved governance and transparency. Africa is now being seen as the next growing market. The intra -regional trade share has reached 18 %.
In the SAARC region, intra -regional trade is limited to less than 5 %, which is lower in all other regional agreements. There are several reasons for this failure of regional connection in South Asia, including political tensions between India and Pakistan.
The conflict between the two has stopped the construction and cooperation of trust. Historical hatred and security concerns have given rise to economic logic. The region also has poor infrastructure and cross -border rail, road and energy networks. Member States maintain high tariffs and non -tariff barriers. As an economic block, SAARC is politically weak. Progress is often stopped through vetoes. Small countries are afraid of domination by India, which has not demonstrated the operative spirit needed for the blockbladding.
Another problem is the lack of private sector desire. The business parties of the member states are less integrated and are often nationalists in a narrow manner.
The author is a senior economic reporter.
