As we celebrate Black History Month and reflect on the decades of struggle that was required to bring the African American community into the mainstream of American life, it seems fair to ask what impact, if any, the New Deal had on the movement to secure equal rights for Blacks during the difficult years of the s and beyond. It did not bring to an end the tremendous injustices that African Americans had to suffer on a day-to-day basis, and some of its activities, such as the work of the Federal Housing Administrationserved to build rather than break down the walls of segregation that separated black from white in Jim Crow America.
Messenger The last few months have seen some significant developments for African trade and integration. This has resulted in slower GDP growth than expected, currency fluctuations and reduced investment — particularly in resource-rich countries.
New dynamics are emerging as a result of two major developments: Combined, they are likely to have some positive economic implications for Africa. The recent trade and integration developments should raise economic activity and competitiveness in non-extractive sectors, leading to higher GDP growth and greater economic diversification.
They are How african states deal with the to boost intra-African trade, particularly in goods, and may increase African trade with the EU and Britain.
This has created a free-trade zone stretching from Cape Town to Cairo, covering 26 countries and representing almost half of African Union member states.
At least half of the member states are expected to ratify the tripartite agreement within the coming year, enabling implementation to begin. The tripartite agreement promises to remove trade barriers within this extended region and increase market size and economic activity.
Critically, it will reduce the cost of goods traded within the affected zones.
Not all member countries will benefit equally from the agreement. Notably, countries with smaller economies and limited goods export capacity, such as Rwanda, may lose out to stronger regional economies where production centres may consolidatesuch as South Africa.
Since member states will be required to remove protectionism from domestic industries, infant industries are likely to struggle to compete unprotected in the free trade zone. This may hamper industrialisation efforts in smaller economies.
A notable weakness is that the tripartite agreement does not cover trade in services, such as legal, accounting and IT services. Achieving greater integration through implementation of the tripartite agreement will require considerable investments in improving infrastructure and connectivity across member states.
This is essential to reduce transaction costswhich remain disproportionately high across much of Africa. It costs more in time and money to import and export containers of goods in sub-Saharan Africa than any other region. The tripartite agreement is expected to form the basis of the Continental Free Trade Area negotiations, which are due to be completed by October The continental agreement aims to join the 15 countries of Economic Community of West African States to the tripartite free trade area.
This deal was signed shortly before Britain voted to leave the EU. The EU agreement with the southern African bloc appeared to yield a fairer deal compared to previous agreements.
For example, flexible rules of origin were adopted, allowing for partial processing in more than one of the included southern African countries. This will contribute significantly to strengthening regional value chains. In addition, for the first time, the Southern African Development Community agreement prohibits the EU from using agricultural export subsidies.
While the Common Agricultural Policy has already undergone much reform, removal of the remaining protectionist provisions is likely boost GDP and reduce poverty in Africa, as shown in a case study on Uganda.
Pressure may be mounting for the EU to extend similar or better terms for the East African Community. A broadly similar revised EU agreement has been negotiated recently but its signing was recently delayed. Tanzania demanded a moment of pause citing turmoil in the EU after the Brexit vote.
It is too early to be certain, but this may be the first sign of African countries using Brexit to renegotiate and leverage fairer trade terms with the EU.
When Brexit finally takes effect, Britain will have no valid agreements with either African trade blocs or individual countries. New agreements with Britain will need to be negotiated. This may be a costly exercise for African countries but can be made easier by negotiating as regional blocs.
African trade blocs are therefore unlikely to be addressed for some time, and the uncertainty created by this delay may be damaging to African exporters. This lack of clarity could be mitigated by an early signal from Britain as to its planned stance.
Brexit will have both positive and negative effects On the negative side, British consumer demand for imports from Africa could drop as the pound weakens and the British economy goes into a mild, Brexit-induced recession.
African countries more integrated into global markets will be most affected, notably South Africa, Kenya, and Nigeria.
On the positive side, Brexit could possibly result in fairer trade deals for Africa, both with Britain and the EU. A weakened EU may be forced to compromise more, enabling African countries to secure fairer deals.
Despite some deficiencies with the trade blocs and agreements, these developments have the potential to significantly expand trade and economic growth in Africa.
They may increase competition and strengthen regional value chains. Further gains will also be achieved if the free-trade zones are expanded to cover trade in services.MOSCOW (Reuters) - Russia and the Central African Republic (CAR) signed a military deal on Tuesday paving the way for Moscow to step up training of CAR's armed forces, Russian news agencies reported.
This groundbreaking deal is going ahead despite desperate efforts from Somalia, which has invalidated the deal and lodged official complaints with the Arab League and African Union.
Somalia’s foreign minister again urged DP World to “reconsider” last week. Focus on migration is shifting towards stopping flows from Africa with plans to cut deals with handful of origin countries before the end of the year. The threat of the Barbary pirates faded into history, especially as the age of imperialism meant the African states supporting piracy came under the control of European powers.
And pirates were mainly found in adventure tales until incidents off the coast of Somalia made headlines in the spring of African Americans have improved their social and economic standing significantly since the civil rights movement and recent decades have witnessed the expansion of a robust, African-American middle class across the United States.
Kenya would pay more taxes. Out of the six EAC countries, Kenya stands to lose the most if the deal is not signed. Other member states, like Tanzania, Burundi, Uganda, would still be elligible for duty and quota-free access under EU’s Everything But Arms initiative for teh world’s “Least Developed Countries”.