Regional trade agreements hinder services market growth in developing countries.
Regional agreements (RTAs) in Africa are effective in some aspects of trade liberalization in services, but lag behind the General Agreement on Trade in Services (GATS) in handling policy sensitivities and critical sectors like telecommunications and finance. This suggests that regionalism may not be the best approach for liberalizing trade in sensitive sectors. To improve services exports, Africa needs to harmonize regulations regionally and coordinate domestic policies effectively. Entry restrictions and regulatory barriers hinder the growth of services exports by discouraging firms from improving productivity to compete effectively.