The theory of free trade areas: The case for an African continental free trade area

This chapter focuses on the theoretical gains and losses to Africa from FTAs in general and the CFTA in particular. The standard theory of regional integration posits that integration can take several forms, depending on the levels of political and economic commitment of member countries. Crucially, these arrangements can move beyond a mere tariff-reducing exercise to a more ambitious form of economic integration, with provisions for common monetary and fiscal policy. The theory outlines a menu of integration options, where regional integration deepens asrestrictions on trade and investment diminish (table 3.1).

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions