“It`s not that I`m against globalization. I just want to go further. In Kigali, Rwanda, where the framework protocol was signed in March last year, African heads of state and government were optimistic. If – or when – the 55 African countries ratify the free trade area, it would together represent more than $4 trillion in consumer and business spending, and a market size of 1.2 billion people. The signing of the framework protocol will not immediately create a free trade area. Countries have yet to conclude negotiations on protocols on trade in goods and services, intellectual property rights, investment and competition. Analyze the message conveyed by the various elements of visual media. For each item, answer the following questions in full sentences. Give proof of the resource and lesson to justify your answers. Unsurprisingly, financial markets see the other side of the coin.
Free trade is an opportunity to open up another part of the world to local producers. Countries must also provide information on “rules of origin” to ensure that products are exclusively manufactured in Africa. The framework itself stipulates that by 2022, participating countries will have to remove tariffs on 90% of the products they produce and eliminate non-tariff barriers, such as border duty delays, import quotas, subsidies, regulatory bottlenecks, etc. The free trade area can only enter into force if all protocols from at least 22 countries are finalized and ratified. Choose two different visual media that will express your opinion on trade agreements, trade barriers or free trade. The resource list contains some examples of visual media and instructions for Internet search. Make sure you include the media element or access instructions with your evaluation. Write down the most important events and ideas that are recognizable in the item, creator and date of origin and read all included entries or quotes. Companies frustrated by trade barriers could use a “non-tariff barrier mechanism” in the agreement to signal commitments on trade problems and ask for solutions, Muchanga says. Few issues divide economists and the scope of public opinion as much as free trade.
Studies show that economists at U.S. university faculties are seven times more likely to support a free trade policy than the general public. In fact, the American economist Milton Friedman said: “The economic profession was almost unanimous on the question of the desire for free trade.” A new free trade agreement with the United States requires Singapore to change its ban on chewing gum. In the short term, countries can protect 10% of “sensitive products” or impose tariffs, but these safeguards will be removed in the future. The strongest safeguards are “trade remedies,” including a measure allowing countries to apply anti-dumping duties on imports below their fair value, to offset the impact of duties on imports subject to unjustified subsidies. Africa does not need to accept protectionism (taxing imports as a strategy to protect domestic industry from foreign competition), Hartzenberg advises. “It may be tempting to fall back on the protective barriers, but there is enough evidence that this does not promote economic growth, especially for small economies.