Economy

Experts discuss impacts of free trade on boosting employment.

File photo: Porters loading bags of cocoa bean on truck ready for exportation

Some experts have brainstorm on the impact of free trade policies in boosting employment in Cameroon.
This was during a recent webinar organized by the Cameroon Economic Policy Institute, CEPI of the Henri Kouam Foundation.

Placed under the theme: “Will free trade boost employment in Cameroon?”, the webinar was part of a project dubbed Trade for You, sponsored by US-based Atlas Network.

Moderated by research fellow at CEPI, Haiwang Djamo, the webinar was attended by some renowned varsity dons, researchers, and economic experts.

According to Dr Herve Wouapi, University of Dschang lecturer, Cameroon has a large informal sector estimated at over 80% of the work force.

As a result, he said this high rate reduces the number of workers who are directly exposed or engaged in trade-related jobs, usually reserved for graduates or trade consultants.

He added that free trade will boost demand for employment in the agro-processing sector, but this will be accompanied by digitization, which could increase demand for skilled labor and reduce demand for unskilled labor.

On his part, Dr Eric Njoya, Associate Professor of Economics at Huddersfield Business School in the United Kingdom, opined that imported products could force local companies out of business, thereby impacting employment of the workers.

However, he noted that the impacts of trade agreements are always negative in the short run for developing countries as they need to adjust to more competitively priced products of better quality.

Dr Njoya strongly encouraged investment in physical infrastructure to reduce the time for food products to leave rural areas to urban areas.

Screenshot of some panelists during webinar

Cogent recommendation

To create both formal and informal jobs across the value chain of businesses, it was recommended that the capacity of farmers and agripreneurs to boost local products, increase compliance and conformity with international standards.

With Cameroon already adjusting to the free trade agreements like the African Continental Free Trade Area, AfCFTA, and the Economic Partnership Agreement, EPA, the panelists noted the demand for skilled labour will increase over the long run to support the economy and wages.

Djamo Haiwang noted that current mechanisms to train and upskill labour market participants should reflect preference of more technical and digitized skill-sets in the market place.

This story was first published in The Guardian Post issue No:3184 of July 30, 2024