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?

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What are the effects of EU trade policies on Africa’s integration?

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What are the challenges and opportunities underlying African economic integration?

Structure



Introduction: From OAU to AU and Beyond

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Africa’s integration in context: global challenges and new regionalism



The paradoxes

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Relief from paradoxes

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Paradoxes as Common challenges for African RECs

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Some selected aspects on the functioning of RECs (SADC, ECOWAS, CEMAC and EAC: because they are active & representative)



Conclusions

Inrtoduction

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Africa overview:

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30.2 m kmsq; 1b people; 54 nations; many nations less than 2m people;



fragmented markets



hence need for integration

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But at what cost?

Complex integration in Africa

SADC

ECOWAS

COMESA

EAC

ECCAS

IGAD

CENSAD



OAU formation:

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Casablanca Group and Monorovia Groups

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Selection of the gradualist Approach

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Use of OAU: a) economically led efforts on economic integration via Lagos Plan; b) politically sped liberation efforts and demise of apartheid

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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

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Enter the African Union

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Based in Addis

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Creation also marked by unitarists and gradualists

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Composed of all African countries except Morocco

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Main institutions include Assembly, Ex Council, Commission, Court, Parliament, ECOSOCC, financial bodies

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But there are also incidental organs like NEPAD and the APRM

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Governed on the basis of the Constitutive Act

• 2. AU in context of globalization

and new regionalism



The new regionalism trend has witnessed expansion

• f 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)

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Little leadership from AU on global trade matters (sidelined on EPAs)

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Little leadership on financial reform (AfDB leading) and persistence of debt problems

• 3. The Paradoxes



Juridical

• r adjudicative: ICJ cases affirm borders

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Historical: no debate on boundaries

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Economic: shrinking trade and investment levels

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Consular: easier for non Africans to travel within Africa

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Cultural: various sub‐regions making little effort to interact culturally

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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

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Synopsis from Yde to CPA

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CPA = reciprocity and sundering of African RECs

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CPA assymetries with EBA and GSP

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Gain for EU in third party cluases esp with BRICs

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Loss of revenue

SADC (i)EPA

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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

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IEPA concluded with BLNS and Moz. Signed by all except Nam with beef concerns

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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

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Safeguard measures can be introduced by all parties to protect local economies

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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

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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

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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

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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

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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

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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

• nce all sign up

EAC EPA

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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

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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

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Juridical: Sub regional courts now active but room for addressing territorial matters underused

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Historical: AU conference on the matter long overdue

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Economic: AU encouraging many states to join trilateral deal in view of AEC; forging common production base with one economic vision (WEF)

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Consular: AU should encourage RECs to extend free movements to non REC African citizens especially professionals and entrepreneurs (WAEMU 2009)

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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)

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Nature and hierarchy of norms and institutions/ nature of decision making

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Funding modalities and compensation

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Relations with continental bodies

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Engagement with civil society and private sector

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Trend: influences of the EU institutions patent

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Trend: With few exceptions African integration tends to be inclusive and not like the EU, exclusive

• 6. Paradoxes as 4 common forms
• f challenges for implementation

in African RECs



Challenges leading to implementation

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Awareness



Assymetrical regulations



Dues

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Challenges during implementation

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Inconsistent application of rules of origin

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Obligations regarded as best endeavour clauses

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Venal customs officials + red tape

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NTBs

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Hybrid challenges (faced either before or during impl)

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Overlaps

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Market size

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Territorial disputes between states

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Internal conflicts (divert regional resources: SL+Lib+CAR



Weak state capacity to provide services (eg Pan African road)



Poor treatment of immigrants

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Potential challenges (sudden and of huge consequence):



Terrorism threats

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The environment

• 7. Conclusions: What kind of Africa

for Tomorrow



One with solid values anchored on solidarity

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One that creates wealth: what others need

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Secure Africa backed by rule of law

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A healthy continent

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One that connects its people

But …

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There is a perception that because regions are there they perform. The gap between expectation and

• utcome 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)