African Trade Barriers Shift from Tariffs to Regulations, Hampering Continental Integration
The study investigates how reduced tariffs in African regions could lead to an increase in other trade barriers. Researchers found that while setting lower tariffs in regional agreements benefits trade, it could also limit countries' options to protect their markets. This situation could result in more use of SPS and TBT measures, like food safety rules and product standards, to balance competition. The study discovered that higher tariff differences within Africa raised the chances of using these measures. These findings suggest that just focusing on lowering tariffs may not be enough for successful economic integration in Africa. Coordinating other trade regulations, like SPS and TBT, is also essential for the success of regional trade agreements.