ABSTRACT
Trade is important to every country’s economy as it is responsible for the economic progress and development of such economy. Free trade on the other hand, is a more integrated form of trade in which goods and services are allowed to move freely. Free trade is an economic situation whereby goods and services can be transported across international borders without any economic hindrance, such as taxes, tariffs, quotas and import/ export duties. Free trade allows for a better standard of living, a wider consumer choice range and the betterment of a country at large.
However, for free trade to exist, it has to be properly regulated by laws and policies. The regulation of free trade must happen at both the international and domestic level in order for the concept of free trade to be realised. These laws and policies are the major instruments used to create free trade areas and achieve economic integration. At the global level, the most popular regulation of trade is the General Agreement on Tariffs and Trade (GATT). Similarly, in Africa, various sub regions have created regulations that would guide free trade amongst themselves; however, the effectiveness of these regulations remains a question of significant importance. More so, Africa as a whole has come together to promulgate the African Continental Free Trade Agreement (AfCFTA) in order to regulate free trade on the African continent. It has also begun the proposal of a single currency – the Afriq: to go simultaneously with the African Singe Market. These regulations, if effective and properly drafted, could transform Africa to an economic power house of the world. However, they are several challenges faced by these regulations that hinder them from achieving their objective of free trade. To overcome these challenges, there need to be significant actions taken by African States, as well as a complete overhaul of the regulations of free trade in order to achieve full economic integration just as their counterparts in the European Union has done by promulgating effective and efficient regulation on free trade.
In essence, this project examines the regulatory framework of free trade in Africa both under the various regional economic communities and also under the African Continental Free Trade Agreement (AfCFTA). It also examines the proposed African Single currency – the Afriq; while analysing the impact of the African Continental Free Trade Agreement (AfCFTA) on Nigeria, as well as exposing the potential benefit a well regulated free trading system has for Africa. This work goes further to expose the challenges faced by the African States, particularly Nigeria, in relation to regulation of free trade in Africa and makes a comparative analysis with that of the European Union regulation of free trade, stating out the institutional and economic implications of both regulatory frameworks on its Member States, in order to serve as a guide to African States.
