Interregional Comparison of Geographical and Sovereign Fragmentation

CHALLENGES
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AT THE BORDER
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When embedded in a consistent and credible reform strategy, the key determinant of RTAs’ success is low external trade barriers. While many
African and Asian countries have reduced tariffs, in some cases, as noted above, they remain high, and the risk of trade diversion remains significant.
Further reductions in applied MFN tariffs thus will be required to ensure that RTAs are beneficial for those participating in them and to minimize the impact on the countries that are left out. At the same time, a preferential trading arrangement cannot substitute for an adequate investment climate.
Investment Treaties and Agreements
Bilateral Investment Agreements
Worldwide, the number of bilateral investment treaties (BITs), double taxation treaties (DTTs), and various other types of preferential trade agree-
FIGURE 3.14
The Spaghetti Bowl of African RIAs
Algeria
Morocco
Mauritania
Tunisia
AMU
Ghana
Nigeria
Cape Verde
The Gambia
ECOWAS
Conseil de
L’Entente
Guinea-Bissau
Mali
Senegal
WAEMU
Liberia
Sierra Leone
Guinea
Libya

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