The African Continental Free Trade Agreement: Why Should the Republic of Benin Ratify the Agreement? Three Possible Explanations
- February 3, 2021
- Posted by: RSIS Team
- Categories: Economics, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue XII, December 2020 | ISSN 2454–6186
Ousmane Amadou
Eastern Mediterranean University, Faculty of Business and Economics, department of International Relations (North Cyprus)
Abstract
Every economic decision is motivated by mostly “Tree Big Ideas”: incentives, the power of trade, and the institutional framework. The motives behind the creation of the African Continental Free Trade Area (AfCFTA) combine some of these ideas, they were inspired by the neoliberal free trade theory. From the conception to the implementation of the first phase of negotiations, many scholars and international institutions in Africa and around the world evaluated and analyzed the potential social, economic, and political impacts of the agreement. Some evaluations seem optimistic while others are cautious. But most of them failed to appreciate how individual countries’ perspectives can also impact in the implementation process. States are sovereign entities and as such are free to choose whether or not to participate in free trade agreements. No scholarly article so fartried to analyze why Republic of Benin should to ratify the AfCFTA and its impacts on the economy of the country. Certainly, the Republic of Benin and several other states that, are yet to ratify the agreement are still carefully analyzing the possible outcomes. This research aims to apply Cowan & Tabarrok (2013) approach on different reasons that can motivate individuals, institutions, or states to conclude certain economic decisions. The republic of Benin is used as a case study to theoretically and empirically test how these neoliberal ideas can be applied in real-life situations. We have used a mixed research methodology to collect data and investigated the political and economic reasons that would motivate the Republic of Benin to participate in the AfCFTA. As of January 1, 2021, the agreement is expected to come into force, out of the 54 signatory states over 62% have already ratified the agreement. The AfCFTA has the potential to grow the intra African trade by 53%. It is also an excellent tool of African integration. After taking into consideration all these variables and considering the fact that Benin has signed the agreement, this paper argued that it will eventually ratify it since the potential benefits outweigh the costs.
Key words: The African Continental Free Trade Area, the republic of Benin, Economic Community of West African
