1. Why are African countries more likely to trade with Europe and America than they are with
each other?
The reasons that African countries are more inclined to trade with Europe and America than with
each other.
− Intra-Africa trade is difficult due to high trade barriers
− Obstacles such as delays in customs checks and unnecessary red tapes
− Infrastructure is very poor.
− Request local content
− Certain restrictions on labor mobility
− Very low level of industrialization
2. What are the likely gains from trade to be had from TFTA if it is fully implemented as a
common market?
It is a move to integrate the existing regional organization into an African Economic
Community. The Tripartite Free Trade Area (TFTA) includes 26 countries participating in the
Eastern Common Market. It helps to reduce tariffs, abolish customs procedures. This will help
African businesses sell more goods and services to neighboring countries, allowing them to
achieve greater economies of scale and lower costs, which will benefit all countries parties to the
agreement.
3. Why do you think free trade areas established so far in Africa have not lived up to
