Stephen Kingah (UNU CRIS) Main questions What kind of model is - PowerPoint PPT Presentation

Stephen Kingah (UNU CRIS)

Main questions  What kind of model is African integration following in light of current institutional trends?  What are the effects of EU trade policies on Africa’s integration?  What are the challenges and opportunities underlying African economic integration?

Structure  Introduction: From OAU to AU and Beyond  Africa’s integration in context: global challenges and new regionalism  The paradoxes  Relief from paradoxes  Paradoxes as Common challenges for African RECs  Some selected aspects on the functioning of RECs (SADC, ECOWAS, CEMAC and EAC: because they are active & representative)  Conclusions

Inrtoduction  Africa overview: 30.2 m kmsq; 1b people; 54 nations; many nations less  than 2m people; fragmented markets  hence need for integration  But at what cost? 

Complex integration in Africa

SADC

ECOWAS

COMESA

EAC

ECCAS

IGAD

CENSAD

 OAU formation: Casablanca Group and Monorovia Groups  Selection of the gradualist Approach  Use of OAU: a) economically led efforts on economic  integration via Lagos Plan; b) politically sped liberation efforts and demise of apartheid Phase out of OAU: a) cash strapped; b) victim of cold  war politics; c) elitist d) no clear vision after the Cold War and end of apartheid

 Enter the African Union Based in Addis  Creation also marked by unitarists and gradualists  Composed of all African countries except Morocco  Main institutions include Assembly, Ex Council,  Commission, Court, Parliament, ECOSOCC, financial bodies But there are also incidental organs like NEPAD and  the APRM Governed on the basis of the Constitutive Act 

2. AU in context of globalization and new regionalism  The new regionalism trend has witnessed expansion of mandates of regional economic entities  AU now involved in cooperation with UN in conflict areas (Sudan, Somalia)  AU behind the curve on environmental issues including desertification and innundations (delegating to CENSAD and basin/lake commisions)  Little leadership from AU on global trade matters (sidelined on EPAs)  Little leadership on financial reform (AfDB leading) and persistence of debt problems

3. The Paradoxes  Juridical or adjudicative: ICJ cases affirm borders  Historical : no debate on boundaries  Economic : shrinking trade and investment levels  Consular : easier for non Africans to travel within Africa  Cultural : various sub ‐ regions making little effort to interact culturally  Political : dynastic tendencies strong and little push for reform at sub regional and AU level due to funding power on states like Egypt and Nigeria

Expansion on the economic paradox: EPAs  Synopsis from Yde to CPA  CPA = reciprocity and sundering of African RECs  CPA assymetries with EBA and GSP  Gain for EU in third party cluases esp with BRICs  Loss of revenue

SADC (i)EPA  SADC ‐ EU trade worth 58.2b euros in 2008. Main SADC exports are oil, diamonds, coal, beef and fish; EU exports are vehicles, electrical and mechanical machinery  IEPA concluded with BLNS and Moz. Signed by all except Nam with beef concerns  No duties for SADC imports into the EU. Id for 86% of EU exports to BLNS (sensitive sectors excluded in agric and textiles); lib to be completed in 2015; 81% of EU exports to enter Moz duty free and lib by 2023  Safeguard measures can be introduced by all parties to protect local economies  EU makes commitment to help SADC ‐ with trade fac and SADC ‐ make commitment to conclude EPA covering srvs and invts

(i)EPA for West Africa  15 countries of Ecowas+Mauritania; 32% of trade with EU; trade worth 43.6b euros in 2008; 80% of its exports are from CI, Nig and Gh. All 3+CV are not LDCs the rest are (hence EBA); Nig is with GSP; main exports are oil, gas, cocoa; main EU exports are electrical and mech machinery and vehicles  IEPA signed by CI and initialled by Gh. CI and Gh get duty free access to EU; EU gets lib of 81% over 15 yrs for CI and 80% for Gh; safeguard provisions provided; EU to support efficient customs procedures and compliance

(i)EPA for Central Africa  Central Afrian EPA composed of Cemac and Eccas; negotiated with Cmr, CAR, Chad, Congo, DRC, EqG, Gabon, ST&P; Cmr has signed iEPA in 2009; Congo and Gabon are using GSP; the others are using EBA  Trade with EU worth 13.9b euros in 2008. Cen Afr main exports are oil, wood, cocoa, diamonds; main EU exports are EM, MM and vehicles  Total duty free access for all Cen Afn products; EU gets 80% lib of Cmr market until 2015 (sectors excluded are meat, flour, dairy products); EU commits to help in compliance; improved RoO to be applied once all sign up

EAC EPA  Members are K/U/T/Rw/Bur; All LDCs except Kenya; EAC is CU since 2005; main exports to EU are plants and flowers, fish products, coffee and tea; main EU exports are EM/MM/Vehicles and pharma products  EAC export duty free to EU; EU gets gradual lib of EAC for 82% in 25 years (excluded sectors are cut flower, coffee, tea, fish, meat); there are extensive RoO for farming, fishing and clothing; and rules on trade disputes

4. Relief from Paradoxes  Juridical : Sub regional courts now active but room for addressing territorial matters underused  Historical : AU conference on the matter long overdue  Economic : AU encouraging many states to join trilateral deal in view of AEC; forging common production base with one economic vision (WEF)  Consular : AU should encourage RECs to extend free movements to non REC African citizens especially professionals and entrepreneurs (WAEMU 2009)  Cultural : Embrace Kwanzaa spirit and enhance ties between African RECs on cultural matters; media; integration awards  Political : Enhance importance of APRM

5. Selected aspects on the functioning of African RECs (SADC, ECOWAS, CEMAC and EAC)  Nature of entity (scope of integration)  Nature and hierarchy of norms and institutions/ nature of decision making  Funding modalities and compensation  Relations with continental bodies  Engagement with civil society and private sector  Trend: influences of the EU institutions patent  Trend: With few exceptions African integration tends to be inclusive and not like the EU, exclusive

6. Paradoxes as 4 common forms of challenges for implementation in African RECs  Challenges leading to implementation Awareness  Assymetrical regulations  Dues 

 Challenges during implementation Inconsistent application of rules of origin  Obligations regarded as best endeavour clauses  Venal customs officials + red tape  NTBs 

 Hybrid challenges (faced either before or during impl) Overlaps  Market size  Territorial disputes between states  Internal conflicts (divert regional resources:  SL+Lib+CAR Weak state capacity to provide services (eg Pan African  road) Poor treatment of immigrants 

 Potential challenges (sudden and of huge consequence): Terrorism threats  The environment 

7. Conclusions: What kind of Africa for Tomorrow  One with solid values anchored on solidarity  One that creates wealth: what others need  Secure Africa backed by rule of law  A healthy continent  One that connects its people

But …  There is a perception that because regions are there they perform. The gap between expectation and outcome can be significant. But it is only significant because of our unrealistic expectations.  Nations still prefer to retain reins of control

Thank you, Stephen Kingah (skingah@cris.unu.edu)