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La Zlecaf à l’épreuve des déterminants et stratégies d’internationalisation des firmes multinationales ainsi que du régime du multilatéralisme commercial de l’OMC
[The AfCFTA tests the internationalization determinants and strategies of multinational firms as well as the WTO's trade multilateralism regime]

Author

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  • GAOMBALET, Célestin Guy-Serge
Abstract
Africa stands to gain from a free trade area (FTA) with a market of over 1.3 billion people. However, given the proliferation of trade agreements between parties to the African Continental Free Trade Area (AfCFTA) and third parties, globalization, which is marked by the proliferation of multinational firms (MNCs) and the membership of several African countries in the multilateral trading system (MTS) of the World Trade Organization (WTO), the African trade space will be exposed to multiple economic and financial vulnerabilities. As these foreseeable threats could undermine expectations of improved employment elasticity and domestic taxes as opposed to gateway taxation, which will be progressively eroded with the implementation of the African Free Trade Agreement (AFTA), the prerequisite for strengthening continental regional integration lies in the definition of decent, appropriate, balanced, flexible and evolving rules of origin that consider the African context. These rules of origin are the most relevant instrument of ratification that will support the preferential liberalization of intra-African trade. In addition to these rules, modern basic infrastructure and effective institutional capacities should underpin the strategies of African production factors to integrate into regional and global value chains. This will enable the African people, and their growing youth in search of opportunities, to substantially improve their living conditions through endogenous and inclusive economic growth, production of "Made in Africa" goods and services, demographic dynamics and the continent’s abundant ecosystem and fossil resources. This paper aims to analyze the AfCFTA in its entirety and complexity. It reveals that the AfCFTA, indeed, will provide opportunities for the continent. However, in many ways, these benefits will not apply to all its member states. It would depend on the public policies and strategies that each country implements to fully exploit the potential it will bring. Moreover, with the gradual abolition of tariff (NT) and non-tariff barriers (NTBs) and globalization, which is primarily a process of opening small economies to international competition, the effectiveness of the AfCFTA will be tested. Conflicts and positional wars will occur within the WTO. These trade wars, both complex and formidable, will position countries with offensive commercial interests or countries of the North and emerging economies against those with defensive economic interests, namely the AfCFTA stakeholders.

Suggested Citation

  • GAOMBALET, Célestin Guy-Serge, 2021. "La Zlecaf à l’épreuve des déterminants et stratégies d’internationalisation des firmes multinationales ainsi que du régime du multilatéralisme commercial de l’OMC [The AfCFTA tests the internationa," MPRA Paper 109001, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:109001
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    References listed on IDEAS

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    2. Jagdish Bhagwati, 2002. "The Wind of the Hundred Days: How Washington Mismanaged Globalization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262523272, April.
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    4. Mehdi Abbas, 2009. "Mondialisation et développement. Que nous enseigne l'enlisement des négociations commerciales de l'OMC ?," Post-Print halshs-00443793, HAL.
    5. Kiichiro Fukasaku & Masahiro Kawai & Michael G. Plummer & Alexandra Trzeciak-Duval, 2005. "La cohérence des politiques des pays de l'OCDE à l'égard de l'Asie de l'Est : Enjeux pour le développement," Cahiers de politique économique du Centre de Développement de l'OCDE 26, OECD Publishing.
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    More about this item

    Keywords

    AfCFTA - MNCs - Multilateral trade - Regime - Regional integration - Rules of origin;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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