Chapter 9, Problem 2CDQ

Summary Introduction

Case summary:

Continent AF has a very little inside trade and has significant trade barriers which limits the movement of goods. AF countries are more likely trade with Countries in E and Countries in A than the other countries. In the year 2015, countries of 26 members joined and create a common market. This is known as tripartite free trade area.

If this becomes successful, then Continent AF can achieve the greater economies of scale and can lower the cost.

Character in the case:

• Countries in continent AF
• Countries in continent E
• Countries in A

To discuss: The gain from the trade from TFTA when it is fully implemented as a common market.

Introduction:

Tripartite free trade area (TFTA) is the agreement that Continent AF free trade agreement between the common market for ESAF, SF Development Community and EF Community.