Andrew Mitchell, Shadow Secretary of State for International Development, will be speaking at Cato on October 20th:
Africa is one of the most protectionist regions in the world. Most imports, including life-saving drugs and medical equipment, continue to be subjected to high tariff and nontariff barriers. Moreover, African countries impose some of their highest tariffs on goods from other African countries. African trade liberalization could increase intra-African trade by 54 percent. It is hypocritical for African leaders to call for greater access to global markets while rejecting trade openness at home. Andrew Mitchell will explain why African governments should support a Pan-African Free Trade Agreement if they are truly serious about the benefits of trade liberalization.
If African governments were serious about the benefits, they probably wouldn’t confine themselves to a continental agreement. Why are advocates of liberalization investing energy in this idea?
[Does that 54% increase in intra-African trade represent trade diversion or trade creation? No idea, as the context of the calculation is unclear in the policy brief by Marian Tupy, and he obtained the figure through personal communication with a World Bank author.]
If African governments were serious about the benefits, they probably wouldn’t confine themselves to a continental agreement. Why are advocates of liberalization investing energy in this idea?
Perhaps promoting trade between African states is more politically acceptable than promoting trade between African states and the rich world.
Perhaps promoting trade between African states is more politically acceptable than promoting trade between African states and the rich world.
I presume that you mean it’s more politically acceptable in the African states. That might true, ceteris paribus, but I doubt that the magnitude would be meaningful. Though weaker trust is correlated with less trade, I doubt that cultural bias is a good explanation for protectionism. Are Botswanans so much fonder of Ghanaians than Americans that they want to tax imports produced by the latter more? Moreover, is it even true that Africans are more trusting of other Africans than Americans, Asians and Europeans? Think of artificial states, then artificial continents.