INTERNATIONAL REGIONAL ECONOMIC INTEGRATION OF AMERICA AND AFRICA

Abstract

This article delves into the concept of international regional economic integration, where countries within a region unite for shared development and mutually beneficial conditions. It explores how such integration can enhance trade volumes, attract investments, and collectively address challenges faced individually. This collaborative approach aims to improve the competitiveness of member countries on the global stage, leveraging collective influence and resources. The article notes the potential for joint efforts in addressing regional and global issues and challenges. Drawing comparisons between Africa and the Americas, the article acknowledges the unique features, interests, and historical contexts that shape their integration efforts. In Africa, integration has evolved through sub-regional alliances, leading to the creation of entities such as ECOWAS, the Economic and Monetary Community of Central Africa, the African Union, EAC, SADC, and notably, the African Continental Free Trade Area (AfCFTA). The prevalence of sub-regional unions in Africa underscores their role as the foundation for mutually beneficial relations, aligning goals, and addressing shared challenges. The USMCA and MERCOSUR emerge as the primary integration entities in the Americas, featuring closely interlinked economies evidenced by substantial volumes of mutual trade and investments. While the existence of the free trade zone has spurred quantitative growth in GDP, exports, imports, and investments, a discernible adverse trend is the escalating trade deficit, particularly for the United States. In Africa, integration historically revolved around sub-regional blocs, but a paradigm shift is observed with the recent formation of the African Continental Free Trade Area (AfCFTA). Despite being the world's largest in terms of country participation, the current proportion of mutual exports and imports within AfCFTA stands at 13.7%, comparatively lower than other integration unions. The article posits that the sustained presence of the free trade area holds the potential to fortify trade and economic collaboration among African nations in the future. Overall, the article furnishes insights into the divergent dynamics of regional economic integration in the Americas and Africa. It underscores the positive impact on trade and economic interactions, while acknowledging challenges such as trade imbalances in the Americas and a relatively modest share of intra-African trade within AfCFTA.