The African Continental Free Trade Area (AfCFTA) agreement has been making headlines all over the world, but another important agreement that will shape Africa`s economic future is the African Continental Free Trade Area Agreement on the Movement of Persons (AfCFTA-AMP). Also known as the Aladi Agreement, this agreement outlines how member states should regulate the movement of goods and services, as well as the movement of people.
The Aladi Agreement was signed in 1978 by 11 Latin American countries and the seven Spanish- and Portuguese-speaking countries in Africa. It was created to foster economic cooperation and promote trade between these regions. Today, it is still in force and has become an important driver of economic integration in Latin America and Africa.
The agreement`s most significant feature is its elimination of tariffs on goods and services traded between member countries. This has led to increased trade and investment in the region, as businesses can now access new markets without facing prohibitive tariffs. The agreement also promotes the free movement of people between member states, which is essential for the development of the regional economy.
Under the Aladi Agreement, member states have agreed to harmonize their trade policies to ensure that they do not interfere with free trade in the region. This means that they must work together to reduce non-tariff barriers to trade, such as technical standards, regulations, and licensing requirements. They must also coordinate their customs procedures to streamline the flow of goods across borders.
The Aladi Agreement has been successful in promoting economic integration and cooperation in Latin America and Africa. It has helped to stimulate economic growth and job creation in the region, reducing poverty and inequality. However, there is still much work to be done to fully realize the agreement`s potential.
One of the challenges that remain is how to address the uneven distribution of benefits among member states. Some countries have benefited more from the agreement than others, and this has created some tension and resistance to further integration. There is a need for more support and investment in infrastructure and institutions to help countries that are lagging behind.
Another challenge is how to address the issue of migration within the region. While the agreement promotes the free movement of people, it does not address the issue of irregular migration. This is a sensitive issue that requires careful management to avoid creating social and economic tensions within countries.
Despite these challenges, the Aladi Agreement remains an important tool for promoting economic integration and cooperation in Latin America and Africa. It is a model for other regions seeking to promote economic growth and reduce poverty through regional integration. By continuing to invest in infrastructure and institutions and addressing the challenges that remain, the agreement can continue to drive economic growth and job creation for years to come.