Stephen Kingah (UNU CRIS)

Transcription

1 Stephen Kingah (UNU CRIS)

2 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?

3 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

4 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?

5 Complex integration in Africa

6 SADC

7 ECOWAS

8 COMESA

9 EAC

10 ECCAS

11 IGAD

12 CENSAD

13 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

14 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

15 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

16 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

17 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

18 SADC (i)epa SADC EU trade worth 58.2b euros in 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

19 (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

20 (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 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

21 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

22 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

23 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

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

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

26 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

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

28 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

29 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

30 Thank you, Stephen Kingah