Accueil > Documentations scientifiques > Revues récentes > Journal of Systems and Industrial Project Engineering (JSIPE) > JSIPE, Vol. 4, Issue 2, November 2021, ISSN : 2411-7226 > Advantages and Drawbacks of Integration of Madagascar in the African (...)

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  Advantages and Drawbacks of Integration of Madagascar in the African Continental Free Trade Area : a literature review
  Journal of Systems and Industrial Project Engineering (JSIPE)

  auteur(s) : Telina Rafanomezantsoa ; Abel Randriamiarinarivo ; Adolphe Rasoloniaina ; Philippe Rakotoarison ; Augustin Tsitefy ; François Ravalison

  Keywords : African Continental Free Trade Area, Competitive Intelligence, Custom, Tariff
  
  

  [ENG] Background and Aim of the research : The African Continental Free Trade Area is a free trade area. One of the disadvantages of it is the non-tariff barriers (with the gradual elimination of customs duties over a period of 10 years) in the framework of foreign trade, which could overload public expenditure in the country’s current context. The objective of the present research is to highlight the main advantages and disadvantages if Madagascar plans to join the African Continental Free Trade Area. Methods : The methods include three steps : 1/collect documents related to the African Continental Free Trade Area, 2/extract and evaluate each advantage and disadvantage, 3/elaborate a table of advantages and disadvantages for Madagascar. The collect of documents is guided by the competitive intelligence. Main findings : The research has highlighted a table of main advantages and disadvantages for Madagascar. Main advantage is gain even there are dissimilarity of cost ratio between two countries. Export, another main advantage, will increase. Then, global merchandise exchange will grow considerably. However, competitivity may reprimand as far as 85 percent of trade, of Madagascar, is outside the continent. One main drawback is the progressive elimination of tariffs and non-tariff barriers which impacted strongly the revenue of Madagascar. Main conclusions : Joining the African Continental Free Trade Area requires a deep understanding and discussion with the private sector. It involves a strong strategic plan elaborated with participatory and inclusive approach of public and private stakeholders.

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