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26 African countries form Tripartite Free Trade Area

The Tripartite Free Trade Area includes countries with a combined economy of $1.2 trillion.

By Ed Adamczyk

SHARM EL-SHEIKH , Egypt, June 10 (UPI) -- A group of 26 African countries, stretching from Egypt to South Africa, have united to form a free-trade zone between them.

The existing cross-border trade zones, with a population of over 600 million and a combined gross domestic product of $1.2 trillion, will comprise the Tripartite Free Trade Area: the East African Community, the Southern African Development Community and the overlapping Common Market for Eastern and Southern Africa.

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The agreement will be signed Wednesday in Sharm El-Sheikh, Egypt. The result is expected to be a common market for countries of the eastern half of the continent, with a predicted increase in trade of 25 percent in the coming decade, a smoother flow of goods and a reduction of customs fees.

The agreement includes Egypt and South Africa, among Africa's wealthiest countries, and some of its poorest, including Mozambique and Burundi. Nigeria, with Africa's largest population and highest gross domestic product, is not included.

A 2013 United Nations report suggested a lack of regional integration caused Africa to fall behind Asia and Europe in trade growth. "If African governments want to achieve their objective of boosting intra-African trade, they have to create more space for the private sector to play an active role in the integration process," it said.

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