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Informative Article | Economics and Business | Eritrea | Volume 10 Issue 3, March 2021 | Popularity: 6.7 / 10
Why Eritrea has Delayed Signing the African Continental Free Trade Area? Investment and Customs Policies of Eritrea in Relation to the Regional Integration
Ataklti Tsige Kidane
Abstract: In the African continent, economic policies that facilitate exports and imports among member states with no or lower tariffs, open to the Market and information, and remove trade barriers could have tangible benefits to different economic growth and the majority of small-medium businesses. Eritrea's provisional government adopted liberal investment law at the end of the year 1991 to accelerate economic growth ambitions in the country. This investment proclamation is expected to have significance in promoting a high level of investment and ensuring self-sustaining economic growth when the government fully implemented it. The government's fundamental development principles are the key means of fighting and alleviating poverty, protecting national sovereignty, and bringing peace and cooperation based on mutual benefits with neighboring states. Eritrea has been committed toward regional Integration by applying the regional reduction of the customs tariff, like what it did in February 1998 with legal notice no.36/1998 (Regulation to reduce the tariff for the common Market for eastern and southern Africa member state) when it became a member of COMESA. Eritrea's macro-policy, which was drafted in 1994, has not fully achieved what the citizen expected due to U. N. sanctions, the state of no war and peace, and systematic isolation. Eritrea's short and long term objectives have been these concrete principles that are listed in the macro-policy: building strong national unity, Self-sustaining growth, accelerating the process of democratization, prevailing peace and stability in the region, opening up to harmonious and cooperative external relations as well as the Enhancement and promoting regional and international economic cooperation. When we see the Eritrea's political ideology seems unique. And the country has a single-party system, which is the people's front for democracy and justice (PFDJ). Eritrean government believes the Socio-economic Integration begins with the neighboring countries. That is why the government was working toward economic cooperation among the bordering countries and later could expand to the farthest countries.
Keywords: Regional Integration, Economic Integration, African Continental Free Trade Area, Macro-Policy, Investment policy, and Customs tariff
Edition: Volume 10 Issue 3, March 2021
Pages: 1733 - 1739
DOI: https://www.doi.org/10.21275/SR21321172048
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