Paper short abstract:

Using quantitative and qualitative analysis, this paper critically examines how social standards and regional value chains can be implemented within the context of the AfCFTA. Findings assist to develop strategies that address the issue of social standards and RVCs within the context of the AfCFTA.

Paper long abstract:

Traditionally, regional integration and trade agreements have always resulted in a political economy scenario whereby some economies gain more than others. The international best practice has been that appropriate and sustainable compensation mechanisms are designed and implemented to address this phenomenon at regional level, whilst at national level social spending patterns are revised to manage social standards. The signing of the Agreement Establishing the African Continental Free Trade Area (AfCFTA) by 44 African countries on 21 March 2018 in Kigali presents an opportunity to deepen regional integration in Africa and boost intra-African trade by further liberalizing trade and fostering regional value chains (RVCs). One of the grand questions that arise is whether RVCs that are envisaged across the continent will incorporate social standards or whether these will facilitate more effective state regulation of social standards and trade. This paper therefore seeks to critically examine how social standards can be implemented within the context of AfCFTA. It further assesses how RVCs will incorporate social standards and the extent to which African countries will be able to integrate social standards into AfCFTA to promote fair intra-African trade. Methodologically, the paper utilizes secondary data sources and quantitative trade analysis using Comtrade datasets. The concepts of social standards, regional value chains and free trade constitute the conceptual framework of analysis for the study. Findings of the study assist to develop strategies on how African countries can sustainably address the issue of social standards in building RVCs as the implementation phase of the AfCFTA approaches.