Eritrea, the northeast African country, has been making strides towards regional integration through various trade agreements. These agreements have strengthened Eritrea`s economic ties with neighboring countries, ultimate contributing towards the country`s economic growth.
One of the most significant regional trade agreements that Eritrea is a member of is the Common Market for Eastern and Southern Africa (COMESA). Established in 1994, COMESA is a free trade agreement comprising of 21 member states. The agreement aims to promote regional integration by eliminating trade barriers and boosting economic cooperation. Eritrea joined COMESA in 1994 and has since benefitted from increased trade with member states.
Eritrea is also a member of the Intergovernmental Authority on Development (IGAD). Established in 1986, IGAD comprises of eight member states from the Horn of Africa, including Eritrea. The objective of this regional organization is to promote economic cooperation, peace, and security among its member states. Through IGAD, Eritrea has been able to coordinate with other countries in the region to improve trade, infrastructure, and investment.
Another regional initiative that Eritrea is part of is the African Continental Free Trade Area (AfCFTA), which was officially launched in January 2021. This agreement aims to create a single market for goods and services across Africa. Eritrea joined AfCFTA as a signatory in 2018. This trade agreement presents an opportunity for Eritrea to further integrate into the African market and increase its exports.
Eritrea has also signed bilateral trade agreements with neighboring countries, including Sudan, Ethiopia, and Djibouti. These agreements aim to reduce trade barriers and promote cross-border trade between the countries.
In conclusion, Eritrea`s regional trade agreements have played a vital role in improving its economic growth and promoting regional integration. These agreements have helped in reducing trade barriers and ensuring a level playing field for businesses. As Eritrea continues to participate in regional trade initiatives, it is expected to see significant benefits in terms of increased trade and investment.
