Wednesday/April 25

Level 2
African free trade

Trade is buying and selling, or exporting and importing,

between countries.

Trade between countries helps to create employment. It

usually means that, when buying items, people have greater
choice.

Nowadays, countries are often part of trading groups. At first,

what became the EU was a trading bloc, or group of countries.

Trade barriers can make trade between countries very difficult

or even impossible.

The most common trade barriers are tariffs. This is a type of

import tax. If a company sells its goods in another country it
must pay a tariff. That country’s government collects this
money.

When there are no trade barriers it is called free trade.

Fifty-five countries are members of the African Union (AU). All

are within the continent of Africa.

The AU began talking

about free trade three
years ago.

Recently, 44 members
of the AU decided to
sign a trade agreement. The new free trade group is known as
the CFTA (Continental Free Trade Area).

Comprehension questions:
1. What is trade?
2. How many countries are members of the African Union (AU)?
3. When did the AU begin talking about free trade?

Discussion questions:
4. Do you think that free trade areas are successful, why or why
not?
5. How do trade barriers make trade between countries very
difficult?
6. Why do you think the AU wanted to start a free trade area?
 
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