The paper examines how regional agreements in Africa affect trade among countries. By analyzing data from 1962 to 1996, the researchers found that these agreements increased trade between member countries, even though there was initially some trade diversion. The study used a model that considered factors like transport costs and geography to separate trade creation and diversion effects. The findings show that currency unions in the CFA franc zone strengthened the positive impact of trade agreements on intra-regional trade, while reducing trade diversion. Overall, currency unions had a trade creation effect, especially during unstable international monetary conditions, while trade agreements led to significant trade diversion.