China and ECOWAS trade partnership,performance and factors of economic growth

China and ECOWAS trade partnership,performance and factors of

economic growth

【Abstract】In a climate of economic globalization, recent years have seen the establishment of commercial agreements between regional blocs and emerging countries with high rates of industrialization like China. For years, ECOWAS states had therefore established trade and economic partnership with China. Their business partnerships generally contribute to the increase of trade and strengthening diplomatic ties. Based on a win-win concept, trade and economic performance of the partnership is subject to the stability of ECOWAS region.

【Key words】Ｔrade；Ecowas；Ｇrowth

0.Introduction

Years after the Independences days in 1960, African countries have seen the necessity to form regional blocs to better defend their political and economic interests. The development model they chosen based on the export of their energy and mineral resources to meet their budgetary needs. This business model, constituted for many African countries, a source of enrichment. Among many others, the Economic Community of West African States (ECOWAS) created in 1975 by the Treaty of Lagos, Nigeria, is one of the oldest regional blocs of the African continent. ECOWAS comprises one third of the African population (Ecowas, press release 2012).

The Chinese influence has grown rapidly across Africa. China has made great political progress on the back of high-level visits. In collaboration with its expanding trade commitments, China’s trade with Africa has grown much faster than any other African partners. Interestingly, the speed at which the Chinese engagement has accelerated in recent years has occurred at a time when interest in more traditional development partners has stagnated.

The paper examines China-ECOWAS partnership in terms of trade. The paper tries to answer the question; what are the benefits of the China-ECOWAS partnership and what are the challenges encountered?

1.ECOWAS background

The ECOWAS consists of two groups of monetary instances namely：

（1）West African Economic and Monetary Union (WAEMU) consisting of countries like, Benin, Burkina Faso, C?te d’Iv oire, Mali, Niger, Senegal, Guinea Bissau and Togo. It shares a common currency CFA franc.