Dossier

Regional trade: The customers next door

Regional trade deals are a first step towards linking up agricultural markets – but only a first step. Not just an easy alternative to global trade, the regional approach depends on agribusiness and infrastructure that works.

Limiting factors to boosting Africa's trade include road density, internet penetration and use, electricity production and transaction costs. To date, approaches to regional integration on the continent have focused more on the elimination of trade barriers and less on the development of the productive capacities necessary for trade.

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SOURCE: © UNCTAD http://tinyurl.com/lc2xlwo

Related Facts and Figures

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Intra-regional trade worldwide

Despite its enormous potential to create employment, catalyse investment and foster growth in Africa and Pacific Island States, intra-regional trade remains lowest in these regions at around 11% and 3% respectively, compared to 70% in Europe. However, the importance of intra-African trade varies significantly between national economies.

SOURCE: © UNCTAD http://tinyurl.com/lc2xlwo

The Technical Centre for Agricultural and Rural Cooperation (CTA) is a joint international institution of the African, Caribbean and Pacific (ACP) Group of States and the European Union (EU). CTA operates under the framework of the Cotonou Agreement and is funded by the EU.