Question

The 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union, held in Addis Ababa, Ethiopia in January 2012, adopted a decision to establish a Continental Free Trade Area by an indicative date of 2017. The Agreement Establishing the African Continental Free Trade Agreement (AfCFTA) entered into force on 30 May 2019 for the 24 countries that had deposited their instruments of ratification.
The AfCFTA will bring together all 55-member states of the African Union covering a market of more than 1.2 billion people, including a growing middle class, and a combined gross domestic product (GDP) of more than US$3.4 trillion. In terms of numbers of participating countries, the AfCFTA will be the world’s largest free trade area since the formation of the World Trade Organization. The main objectives of the AfCFTA are to create a single continental market for goods and services, with free movement of business persons and investments, and thus pave the way for accelerating the establishment of the Customs Union.
From the above, discuss three (3) advantages that Ghana as a member of AfCFTA may get by signing the agreement and two (2) disadvantages that Ghana may suffer from AfCFTA.   

Answer 1

Answer :-

Advantages of AfCFTA to Ghana in particular and Africa in large :-

• Upgrade of government's present Industrial Development Agenda and add to the expansion of the Ghanaian economy and open up new market get to open doors for Ghanaian producers especially Small and Medium-scale Industries.Greater employment opportunities for youth.

• Usage of the One District, One Factory Initiative and the foundation of stay industries, for example, vehicle, iron and steel, and on Trade Infrastructure, chipping away at Port Expansion and development of streets and railroads.

• For Ghana, in territories of Access to Finance, there was progressing rollout of Stimulus Package for Local Industries and on Trade Information the country had just settled the Ghana Commodity Exchange and the Electronic Trade Information framework for the Ghana Export Promotion Authority, while on the Trade Policy Ghana has set up a National Trade Policy which means smooth sail for Ghana in executing approaches.

Disadvantages of AfCFTA for Ghana :-

• Ruin of domestic industries -

There are high possibilities that domestic industries in Ghana won't have the option to stand the opposition from different countries. Less expensive imports will unfavorably influence their endurance and they may wind up dropping their tasks.

• Poor working conditions -

AFCTA will encourage the development starting with one African country then onto the next African country .Labor related laws and guidelines shift with nations. Ghana's accomplices may need fundamental work security plans. Subsequently, workers from. Ghana will discover of hard to adapt up to the current circumstance. They may by utilized without security safety measures and their wellbeing will be in question.

• Reduction in Tax revenue -

Import taxes are a significant wellspring of salary . with the execution of AFCTA, all import taxes will be disposed of. Therefore, Ghana's government will wind up losing an impressive bit of its revenue.

Misfortune in revenue will thus hurt the capacity to lead financial arrangement effectively.

Anyway , AFCTA is an incredible open door for Ghana and other African nations if usage is finished by considering all the upsides and downsides.

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