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African free trade zone is agreed | African free trade zone is agreed |
(20 minutes later) | |
The leaders of three African trading blocs on Wednesday agreed to create a free trade zone of 26 countries with a GDP of an estimated $624bn (£382.9bn). | The leaders of three African trading blocs on Wednesday agreed to create a free trade zone of 26 countries with a GDP of an estimated $624bn (£382.9bn). |
It is hoped the deal will ease access to markets within the region and end problems arising from the fact several countries belong to multiple groups. | It is hoped the deal will ease access to markets within the region and end problems arising from the fact several countries belong to multiple groups. |
The deal also aims to strengthen the bloc's bargaining power when negotiating international deals. | The deal also aims to strengthen the bloc's bargaining power when negotiating international deals. |
Analysts say the agreement will help intra-regional trade and boost growth. | Analysts say the agreement will help intra-regional trade and boost growth. |
The three blocs which struck the deal were the Southern African Development Community (SADC), the East African Community (EAC) and the the Common Market for Eastern and Southern Africa (Comesa). | The three blocs which struck the deal were the Southern African Development Community (SADC), the East African Community (EAC) and the the Common Market for Eastern and Southern Africa (Comesa). |
"The greatest enemy of Africa, the greatest source of weakness has been disunity and a low level of political and economic integration," said Ugandan President Yoweri Museveni at a meeting with the heads of state who chair the three trade blocs. | |
The agreement will also lend its backing to joint infrastructure and energy projects in the zone. | |
Groupings | |
The three blocs are already well-established in their own right but cover varying swathes of land and numbers of people. | |
The SADC was first established as the Southern African Development Coordination Conference in 1980 in order to reduce independence on apartheid South Africa. | |
It was reincarnated as the SADC in 1992. It covers a population of some 248 million people and a zone whose cumulative GDP is $379bn in 2006. | |
The SADC's members include South Africa, Tanzania, Zambia and Zimbabwe. | |
Comesa was established in 1994 and replaced the Preferential Trade Area. It includes 398 million people and the area has a combined GDP of $286.7bn in 2006. Among its members are Zimbabwe, Zambia, Uganda and Sudan. | |
EAC is the smallest of the group in terms of GDP, and had a GDP of $46.6bn in 2006. Set up in 1967, disagreements between founding members Uganda, Kenya and Tanzania led to its collapse. | |
A treaty was signed for its re-establishment in 1999 and the new EAC was formed in 2000. |