ABSTRACT
World trade has expanded faster than economic growth and has been a vehicle for raising the standard of living in OECD countries. African countries have not seen similar trade expansion. Africa's share of world exports has dropped by nearly 60 percent from 3.5 percent in 1970 to 1.5 percent in 1999 representing a staggering income loss of $70 billion annually, an amount equivalent to 21 percent of the region's GDP and to more than five times the $13 billion in annual aid flows to Africa (World Bank, 2003). The dismal performance of African trade can be attributed to several factors traditionally associated with trade facilitation such as complex customs requirements, lengthy and non-transparent bureaucratic procedures associated with the movement of goods and services across international borders. These trade impediments could be compounded when countries are party to several non-functioning regional and bilateral trade agreements, leading to significantly high cost of doing business and competitiveness.
