African free trade zone is agreed

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 agreement will ease access to markets within the region and end problems arising from the fact several countries belong to multiple groups.

Trade Agreements are set up so that countries can protect themselves from tariffs and quotas and promote free trade of the member countries.

Economists claim this could increase world trade, create more jobs and improve the balance of trade by bridging the gap between the rich and poor countries. The economy and standard of those living in the LEDC could rapidly improve

This agreement will provide Africa with more of a stance to cope with existing trading blocks such as the:

EU - European Union

NAFTA - North American Free Trade Agreement

GATT - General Agreement on Tariffs and Trade

OPEC - Organisation of Petroleum Expoting Countries