African Continental Free Trade Area Agreement

This blog post does not focus on the different reasons that makes integration difficult. Rather, it argues that the structure of the agreements of African Union (AU) contributes to the lack of political commitment among leaders which has been a missing ingredient for successful integration in Africa.

A proper assessment of Rudahindwa’s monograph on the subject of establishing the African Economic Community (AEC) is one that cannot exclude the currents of ongoing reform efforts and the extent to which they are able to move the continent faster towards the dream of achieving the AEC. This invariably raises some methodological questions that border on multidisciplinary approach to regionalism, and the issue of context. The author highlights these two imperatives in the monograph. By using the concept of “developmental regionalism” as an analytical prism, the author situates the discussion within a multidisciplinary paradigm.

There is a feeling that the next decade will be a watershed period in terms of the economic relations between the EU and Africa. Both continents are experiencing sweeping developments that will invariably affect their respective existence and mutual relationships. In Africa, the largest preferential trade area, the African Continental Free Trade Area (AfCFTA), has recently been ratified while in Europe, the EU is navigating the challenges of Brexit. All this is taking place in the backdrop of negotiations between the two blocs to replace the Cotonou Agreement which has since 2000 served as the bedrock of economic relations between the EU and ACP states. How, then, will the Africa-EU relationship be impacted – if at all – by the implementation of AfCFTA?

Cotonou came to disrupt that acquis in at least three ways. First, it abandoned the core principle of unilateral preferences in favour of reciprocity. Second, and more damaging, it jettisoned the issue of trade from its agenda, leaving it instead to economic partnership agreements (EPAs) that were to be negotiated at sub-regional rather than ACP level. The effect of this Cotonou decision in terms of the trade agenda was to effectively demolish the 79-country bloc and replace it with a patchwork of supposedly six sub-regional groupings. Thirdly, and finally, when all but one of the sub-regional groupings on the ACP side were unable to negotiate as cohesive units and reach EPAs at sub-regional level, the EU ended up signing interim EPAs with individual countries, thereby – in the case of Africa in particular – throwing a grenade onto the fledgling regional integration processes underway at the time.

Over the past two decades, a number of factors have disrupted the Cotonou acquis. The opportunity to regenerate the ACP-EU relationship on new terms requires the parties to respond to challenges at the international, regional and domestic levels. At the global level, we have witnessed the declining influence of the USA and the EU on the international stage as emerging economies, like China and India, gain more economic and political power. As the EU’s leverage is not as significant as it was when the CPA was signed almost twenty years ago, multipolarity may present an opportunity for the ACP countries to diversify their partnerships and forge new relationships with non-EU countries.

May, 2019

The book is centered on the thesis that "Regional Developmentalism is the most suitable conceptual framework to support the effective establishment of an African Economic Community.” The African Economic Community is the continental trading system contemplated by the 1991 Abuja Treaty. Some have argued the African Continental Free Trade Agreement fulfills the free trade integration stage contemplated by the Abuja Treaty.

The call for an open, rules-based approach to investment facilitation at the multilateral level is informed by a tipping point in the international investment arena. As discussed below, this paradigm shift and various precedental challenges have made it imperative to seek international investment policy coherence.

For the AfCFTA to succeed will require more than its regulatory framework; a supporting framework is also required and this is found in what Douglass North has termed “mental models”. Mental models are the necessary norms and beliefs of policy makers - their perceptions of the world around them.

It is crucial to incorporate both a balanced approach and a human rights perspective into the negotiations on intellectual property in the context of the AfCFTA. In this regard, it should be noted that the TRIPS Agreement gives countries considerable flexibility with regard to how they can choose to protect plants and new plant varieties because Article 27(3)(b) of the TRIPS Agreement permits countries to exclude plants from patentability although it requires them to provide protection for plant varieties either by patents or by an effective sui generis system or by any combination thereof.