session 2: lessons from other regional integration schemes in africa

Session 2: Lessons from other regional integration schemes in Africa

Lessons Learned from the Tripartite-Free Trade Area

Christian KingombeNEPAD, Regional Integration and Trade Department (ONRI)

African Development Bank Group

AfDBExpert Group Meeting on Preferential Trade Agreements and Regional Integration in the Arab World

Ramada Hotel, Gammarth, Tunis, Tunisia,

5 December, 2012

1. Introduction

2. The Core of the AfDB’s Mandate and the Role of the AfDB

3. RIS and RISPs support to T-FTA

4. Organization of the Bank’s work on regional integration

5. AfDB’s Multinational and Regional Operations & Disbursement in T-FTA

6. What lessons can be learnt from the integration efforts in the RECs of

1. East Africa

2. Southern Africa

7. Establishment of Tripartite Free Trade Area

8. Achievement to date under the Tripartite Arrangement

9. A Framework for the Development of a Coherent Agenda for RI in ESA

10.Conclusion and Policy Recommendations.

1. Introduction

2. The Core of the AfDB’s Mandate and the Role of the AfDB

3. RIS and RISPs support to T-FTA

4. Organization of the Bank’s work on regional integration

5. AfDB’s Multinational and Regional Operations & Disbursement in T-FTA

6. What lessons can be learnt from the integration efforts in the RECs of

1. East Africa

2. Southern Africa

7. Establishment of Tripartite Free Trade Area

8. Achievement to date under the Tripartite Arrangement

9. A Framework for the Development of a Coherent Agenda for RI in ESA

10.Conclusion and Policy Recommendations.

Outline

1

Introduction• T-FTA is anchored on three pillars

– The Traditional Market Integration Pillar – Infrastructure Development, and– Industrialisation.

• The explicit inclusion of the 2 and 3 pillars in the ambit of a FTA provides the potential for the development of a deeper integration agenda that addresses– Not only impediments at the borders, but – More fundamentally the behind-the-border constraints on industrial development

and competitiveness.

• Commitment to establish a T-FTA that goes beyond the traditional trade-in-goods agenda: – to address the region’s infrastructure deficit– To enhance its industrial capacity.

• It Requires new thinking about traditional market integration issues• The T-FTA can be a new generation African integration arrangements • The T-FTA negotiations will be a test of how serious MS are about a

development approach to regional integration. (Trudi Hartzenberg, TRALAC, 2012)

The African Development Bank Today

Regional Integration at the Core of AfDB’s Mandate

• Regional Integration has been part of the AfDB’s Charter since its establishment in 1964.

•The 2003-2007 Strategic Plan, adopted in 2000, placed regional infrastructure development as a central pillar.

•The High Level Panel (HLP) reaffirmed in 2007 that “economic integration should be

•a prime policy of the Bank and

•a distinguishing feature of its programs”.

• Regional integration was also identified as an area of increased focus in the Bank’s Medium term Strategy (MTS) for 2008-2012.

• The HLP and the MTS provide the framework for the Bank Group Regional Integration Strategy (RIS) for 2009-2012.

• Regional Integration has been part of the AfDB’s Charter since its establishment in 1964.

•The 2003-2007 Strategic Plan, adopted in 2000, placed regional infrastructure development as a central pillar.

•The High Level Panel (HLP) reaffirmed in 2007 that “economic integration should be

•a prime policy of the Bank and

•a distinguishing feature of its programs”.

• Regional integration was also identified as an area of increased focus in the Bank’s Medium term Strategy (MTS) for 2008-2012.

• The HLP and the MTS provide the framework for the Bank Group Regional Integration Strategy (RIS) for 2009-2012.AfDB Regional Integration Strategy 4

The Role of the African Development Bank• As the primary regional development agency in Africa, • AfDB has had an important role in the delivery of trade-related financial and

technical assistance in the region prior to the formal establishment of the AfT Initiative.

• In general, therefore, the AfDB has assumed a crucial role in promoting the AfT agenda in Africa.

• Since 2006, it has – scaled up funding for trade-related infrastructure and – expanded its trade capacity building programmes.

• In fact, AfDB is currently the single largest financier of trade-related infrastructure on the African continent.

• The Bank is a major player in regional infrastructure development.– Since 2002, we have supported 48 infrastructure projects under the NEPAD Short-

Term Action Plan with loans totalling $2.6 billion, while – mobilising another $2 billion in co-finance from other development finance

institutions.

• Together with the African Union and NEPAD, we manage the Programme for Infrastructure Development in Africa (PIDA), launched in 2010The African Development Bank Today

Regional Infrastructure

Formulation and review of strategic

frameworks

Support to development

corridors

NEPAD-IPPF: Bring projects to

“bankable stage”Investment

Institutional Capacity Building

Rationalization of Regional Economic

Communities (RECs)

Strengthening of regional and

national institutions

Trade Facilitation and Capacity

Building

Partnerships and Cross-Cutting Issues

Aid for Trade Regional Financial Integration

AfDB Regional Integration Strategy 6

RIS 2009-2012: Pillars and Cross Cutting Issues

Regional Integration Strategy Papers• To address challenges such as the persistent hard and soft constraints on

effective integration – the poorly developed network of regional infrastructure, and – the unsuitable array of legal, institutional and regulatory frameworks.

• the Bank embarked on the process of preparing Regional Integration Strategy Papers (RISPs)

• RISP is one of the commitments in ADF-12 i.t.o. filtering project for financing.• It is a key instrument for assisting RMCs and RECs to identify and implement

measures to – close the regional infrastructure gap and – accelerate integration of their economies.

• The strategy – fits within the Bank’s comparative advantage and – reflects the regional and country needs identified through extensive stakeholder

consultation.

• In terms of strategic thrust, the RISP conforms to the two pillars of the RIS’s; – regional infrastructure and – capacity building in support of infrastructure interventions.The African Development Bank Today

Summary of the Strategic Pillars of the RISP, 2011 – 2015


Organization of the Bank’s work on regional integration

• Within the Bank, the NEPAD, Regional Integration and Trade Department (ONRI) was established in 2006

• A Department dedicated to promote the Bank’s regional mandate. • ONRI comprises several divisions, units and infrastructure partnerships and • ONRI undertakes activities in three broad areas, namely:

– Provision of support to the NEPAD including:• Infrastructure project design and programming, as well as • mobilisation of resources for bankable projects;

– Provision of strategic and policy advice • on issues related to Bank’s strategy for regional integration (e.g. RIS & RISPs) • Assisting RECs and RMCs in advancing regional integration through trade

facilitation, harmonization of financial, monetary, trade and fiscal policies and regulations; and

– Serving as the Secretariat for the Infrastructure Consortium for Africa (ICA).•


The objective of the Regional Integration and Trade Division• The objective of the Regional Integration and Trade Division is

– to implement activities that support regulatory and policy reforms and institutional capacity development

– to ensure movement of goods and services across borders – to facilitate Africa’s economic integration and global trade.

• The division’s priority focus areas include: – a) trade facilitation and services, – b) trade policy and investment attraction, – c) trade finance, and – d) monetary and financial integration.

• Within a context of sustained commitment towards regional integration the Bank Group is launching a new flagship report as a means to generate knowledge that can support the future design of improved projects and regional operations.


Multinational operations• From the beginning of its lending activities in 1967 to December 2009, the

Bank had approved 257 multinational operations amounting to UA 3.73 billion.

• Under ADF XII, for example, The infrastructure sector represents for the largest share of the ADF-12 portfolio with UA 3,171.3 million (59 percent) of the total pipeline of operations in ADF-12.

• Infrastructure sector approvals as at end-July 2012 stood at UA 1,341.7 million (42 percent of the total expected commitments for the cycle).

• Within the infrastructure sub-sectors, – the transport sector accounts for 76 percent approvals, – followed by energy (12 percent), – water supply and sanitation (11 percent) and – information communication and technologies (1 percent).


AfDB’s Regional Operations• The Bank Group has steadily increased its focus on regional and multinational

operations as the modality for channeling support for – regional integration and – trade expansion since early 2000s.

• This rising profile of regional operations has been supported by a range of new policy, strategic and institutional developments which have resulted in – the emergence of new implementation mechanisms and delivery systems; – that implement those already in place for country operations.

• The number of Bank Group AfT projects totaled 698 over the 2000–2010 period; – the share of regional operations in this total averaged over 18% for the entire period,

while showing a significant upward shift between• 2000 – 2004 period when its share averaged 15% • 2005 – 2010 when this share averaged 20%.

• In value terms, the share of regional operations reflected a similar pattern, – rising from an average of about 8% during the 2001 – 2005 – to approximately 19% in the 2005 – 2010.


Table 2: How AfDB contributes to regional integration in Africa (Level 2)


Bank Group AfT disbursements: Country and regional operations

• With respect to both country and regional operations, AfDB’s AfT disbursements during 2001 – 2010 focused on three key sectors, – trade policy and regulations, – economic infrastructure, and – productive capacity building.


Bank Group AfT disbursements: Regional Distribution

• Bank Group AfT disbursements showed – the dominance of West and East Africa compared to – Southern and Central Africa; – with the relatively negligible share of North Africa explainable largely in

terms of eligibility for ADF financing.


Table 3.4: Regional Distribution of Bank Group AFT Project Disbursements (2001 – 2010) (US$m)

Regions Country Operations Regional Operations

Value % Value %

Central Africa 753.48 10.67 7.95 0.46

East Africa 2598.05 36.79 179.17 10.28

North Africa 65.52 0.93 4.33 0.25

Southern Africa 1024.95 14.52 10.05 0.58

West Africa 2619.26 37.09 213.09 12.22

Multi region - - 1329.11 76.22

Total 7061.26 100 1743.7 100


Source: Computed from Bank Group Disbursement Data

Overview of Bank Group support to Regional Integration in East Africa

• The AfDB has a long history of financing regional projects in East Africa. • Between 1969 and 2010, the Bank Group financed 32 operations worth

UA740.5 million in East Africa.• These operations mainly involved infrastructure, particularly in the transport

sector.• The Eastern African countries have committed to enhancing trade facilitation

through the development of infrastructure such as roads, railways, airports, ports, pipelines, and ports along with ICT and energy grids.


Figure 1: Cumulative Bank Group Multinational Operations by sector in East Africa, 1969-2010


Agriculture and Rural Development

4%Communications

2%

Finance16%

Power7%

Transport61%

Water and Sanitation

10%

Regional Integration Strategy Paper for East Africa• The Bank has prepared a RISP for East Africa (2011 – 2015) • aimed at providing an analytical framework for

– streamlining regional operations (ROs) – identifying Regional Public Good (RPGs).

• The East African RISP focuses on the role of regional communities such as COMESA, SADC, the Inter-Governmental Authority on Development (IGAD) and the Indian Ocean Commission (IOC) in the integration process.

• The RISP is underpinned by focus of both EAC and COMESA on the CES Tripartite Arrangement.

• In line with the vision and objectives of the region, the Bank’s agenda for Eastern Africa is to support the development of an integrated, economically prosperous and peaceful region.


East Africa

• Eastern Africa has the largest number of RECs and intergovernmental regional bodies in Africa,

• South-Sudan, Africa’s newest state, – joined COMESA in 2011, and – has also applied to join the East African Community (EAC).

• The other countries of the region – are members of six of the eight RECs recognized by the African Union, – with most of them belonging to between 2 to 4 RECs, notably

• the Indian Ocean Commission (IOC) and • the Inter-Governmental Authority Development (IGAD),

– both have a strong influence on the regional integration process in the region.

• Multiple membership often results in duplication of resources and conflicting goals and policies and

• COMESA-EAC-SADC (CES) Tripartite Arrangement is a bold attempt aimed at addressing some of these issues.


East African Community• The current East African Community (EAC) is a revival of the previous East

African Cooperation between Kenya, Tanzania and Uganda which collapsed in 1977 and was revived in 2000, with Burundi and Rwanda joining in 2007.

• It comprises 133.5million people and a GDP of $74.5 billion. • A key objective of the EAC is to improve the competitiveness of the region

through deeper economic integration.• The steps towards full economic integration include

• the establishment of a customs union and later a common market by 2010, • a monetary union by 2012, and • ultimately a political federation by 2015.

• The EAC Customs Union and the Common Market were launched in 2010 under the Common Market Protocol – which sets out key principles and modalities for deeper integration. • The member states will allow free movement of goods, services and persons

between them. • EAC Citizens will also be able to live and work in other countries in East Africa

without work permits.


EAC: Implementation Challenges• The EAC Secretariat and member states face constraints in putting in

place the necessary regulations to operationalize the Common Market Protocol.

• In addition, the overlapping nature of the regional trade agreements in East Africa poses a number of administrative difficulties.

• Fortunately, the Common External Tariff structure, rules of origin and customs procedures of both COMESA and the EAC are similar – enabling parties to remain in both customs unions.

• This provides a useful foundation for the CES Tripartite Agreement.


EAC & AfDB cooperation• During 2011, the two sides agreed to update and enrich the existing 1998

cooperation agreement in order to deepen their cooperation in order – to ensure the implementation of various projects, and – also to make the EAC region more appealing for additional financial and technical

support.

• The Bank has provided lines of credit to regional development banks, such as – the East African Development Bank (EADB) based in Kampala, Uganda and – the Eastern and Southern African Trade and Development Bank (PTA Bank) in

Nairobi, Kenya

• which both play a catalytic role in regional integration through the provision of development finance to the five EAC countries.


Southern Africa• Two prominent RECs are leading the process:

– the Southern African Development Community (SADC) and – the Common Market for Eastern and Southern Africa (COMESA).

• The goal of the Southern African regional integration agenda is to create a fully integrated and internationally competitive region with the overarching objective of poverty reduction.

• This goal will be achieved progressively through the creation of – a Free Trade Area (FTA) which will grow into – a Customs Union, Common Market, Monetary Union, and – finally the creation of the African Economic Community (AEC).

• Two major RECs, namely; the SADC and COMESA, promote the RIA.


SADC• The SADC FTA was expected to become fully operational by 2012 – removing

tariffs on 85% of products reached as of 2008, • The progress towards the SADC Customs Union has slowed down.


COMESA

• COMESA launched a FTA which currently involves 13 of its 19 member states,

• The COMESA Customs Union was launched in 2009 with the aim of becoming operational later (2012).


Bank Group Support to Southern Africa• The sectoral distribution of the Bank’s cumulative multinational operations in

Southern Africa as at 31 December, 2010. • As with the other regions,

– transport dominates Bank allocations, accounting for UA 235.2 million (66%); – industry and mining UA 50.6 million (14%); – the energy sector UA 45.6 million (13%); – agriculture and rural development UA 13.7 million (4%); and – the social sector UA 11.9 million (3%).

• The Regional Integration Strategy Papers for Southern Africa draws on – the COMESA-EAC-SADC Tripartite Agreement, as well as – the integration work programmes in SADC and COMESA.

• It prioritises regional infrastructure and capacity building, and • helps support regional cooperation in areas such as macroeconomic

convergence and knowledge management.


Figure 2: Sectoral Distribution of Bank Group Multinational Operations in Southern Africa, 1969-2010


Agriculture and Rural Development

4%Industry Mining and Quarrying

14%

Power13%

Social3%

Transport66%

Bank Group Support to the Southern African Development Community (SADC)

• To promote regional integration in Southern Africa, the Bank prepared the first Regional Assistance Strategy Paper (RASP) – which guided Bank support for regional integration support to SADC for the period 2004-2008.

• In addition to the RASP, the Bank also concluded a memorandum of understanding with the SADC Secretariat, covering a wide range of areas for cooperation.

• In implementing the RASP, the Bank approved 8 projects for SADC,– amounting to UA 62.83 million, – comprising studies, investment projects and capacity building activities.


Lessons Learnt from East and Southern Africa’s Integration Efforts

• The RECs of East and Southern Africa display two general features:– First, they follow a linear approach to integration; – Second, the legal and institutional frameworks face similar challenges.

• In addition to the Treaty there is • A number of protocols dealing with trade in goods and related matters such as

RoO, standards, NTBs and basic arrangements about dispute settlements.• These additional instruments will address Poverty Reduction, Development etc.• The consequence of non-implementation of legal regimes of the RECs is that

obligations are not effectively implemented.


Establishment of Tripartite Free Trade Area• The establishment of the T-FTA provides an opportunity

– to appraise the experiences of the RECs in East and Southern Africa. – to take lessons from RTAs in other parts of the world, and– to determine a new model for Africa’s integration.

• Global Trends indicate that the benefits from FTA are considerably enhanced in by the adoption of a deeper integration agenda (beyond the traditional Tariff Liberalisation Agenda), which targets the key competitiveness and development challenges for these African countries.


The CES Tripartite Arrangement• Launched in October 2008, the CES Tripartite Arrangement currently defines

the vision and strategic objectives of the Southern and Eastern Africa regional integration agenda.

• The CES Tripartite Arrangement covers 26 countries, which accounted for about 56% of the population and

• some 58% of the combined GDP of Africa in 2008. • The Tripartite Arrangement is a bold initiative to

– expand intra-regional trade, – promote inter-RECs collaboration– Facilitate:

• joint planning, • resource mobilization and • project/programme implementation

– with the intention that the 3 RECs eventually merge into one REC, thus– addressing the problem of multiple country membership.


CES Tripartite Arrangement• The key provisions of the CES Tripartite Arrangement include: • (i) establishing the CES Tripartite Free Trade Agreement (FTA) to promote

deeper trade integration; • (ii) developing joint infrastructure programmes, financing and implementation; • (iii) designing joint programmes for agricultural development and food security; • (iv) developing programmes to enhance the movement of business persons,

labour and services across the region; • (v) harmonizing legal and institutional framework; and • (vi) preparing common regional positions and strategies in multilateral and

international trade negotiations.• Based on a study completed in 2009, the main FTA document has been

prepared in the form of a draft agreement for establishing the Tripartite FTA containing 14 annexes covering various complementary areas necessary for effective functioning of a regional market.

• The main proposal is to establish the Tripartite FTA on a tariff-free, quota-free, and exemption-free basis by simply combining the existing FTAs of the 3 RECs.

• However, there is a provision for countries to maintain a list of sensitive products to which the provisions will not be applied during a transition period.The African Development Bank Today

The proposed stages for implementing the FTA• A preparatory period for consultations at national, regional and tripartite

level from early 2010 to June 2011; • A final agreement to establish the Tripartite FTA by June 2011 and signature

by July 2011; • the launching of the Tripartite FTA by January 2012;• However, some of the timelines have been missed, so a revision of the

roadmap took place after the 2nd summit in June 2011. • Current thinking within the Joint Task Force (JTF) is that the launching of the

Tripartite FTA may slip to 2014 or even 2015.


Achievement to date under the Tripartite Arrangement• The launching of the Tripartite North South Corridor (NSC) Investment

Programme, a model Aid for Trade (AfT) pilot programme, in April 2009. • A High Level Conference on the NSC was held in Lusaka, Zambia on 6-7 April

2009 for fund raising, during which donors pledged US$ 1.2 billion for the programme, of which the ADB pledged US$ 600 million.

• Backstopped by DFID through TRADE MARK SA (TMSA), actions are being taken to fast track the implementation of the NSC and other prioritised corridor programmes.

• Another MOU has also been signed between the Tripartite Task Force and the Development Bank of Southern Africa (DBSA) for the management of the NSC Fund.

• The Investment Committee established under the second MOU has considered financing proposals for the prioritised projects and approved a budget of US$ 10 million for 2010.


North South Corridor Road Transport Priority Projects


The Nacala Road Corridor Project• One of our flagship regional operations in Southern Africa is the Nacala Road

Corridor Project ($324 million), which is – providing Zambia, Malawi and Mozambique with improved road access to the

Nacala Port, while – helping local community’s access markets and services.


Kazungula Road Bridge Project (Botswana, Zambia, and Zimbabwe)

• The Kazungula Road Bridge Project will be constructed between Botswana and Zambia on the North-South Corridor in Southern Africa.

• The project scope will include – a bridge linking Botswana and Zambia over the Zambezi River to replace the existing ferry, – construction of juxtaposed one-stop border post facilities for Zambia and Botswana, and – other improvements in trade facilitation.

• Expected project outcomes include: – (i) reduced border crossing time, – (ii) improved trade facilitation procedures, – (iii) improved border management operations, and consequently – (iv) increased traffic throughput, and – (v) reduced time-based transport and trade costs.

• Project implementation will commence in 2012.• The initiative is a flagship project of AfDB and • The knowledge gained from the design and construction of a complete cross-

border infrastructure system is expected to provide an invaluable knowledge base for future projects with significant trade impact.


North-South Corridor Railways and Connections


Major Sea Ports in Eastern and Southern Africa


Likely Future Regional Port Developments• Port Upgrading

– All regional ports, without exception, are undergoing or are planning upgrades and expansion. Works include greater depth, additional terminals, more equipment and improved access.

• New Port Developments– New major ports are being planned at Techobanine (Mozambique), Tanga

(Tanzania), Bagamoyo (Tanzania) and Lamu (Kenya). – However these are all speculative and may not be implemented in the medium

term.

• More Hub Ports– With increased volume throughput, many of the regional feeder ports (e.g, Beira)

will become hub ports with mostly direct calls.

• Balanced Flows - More and better ports will lead to– increased competition– more balanced flows– greater transport efficiency and– lower costs and pricing.


Border Posts – one-stop to no-stop?• Over the last few years a number of border posts have

– Received significant infrastructure investments in buildings, bridges and ICT systems. Others in east Africa are in the process of being upgraded;

– And Achieved operational efficiency improvements including through pursuing approaches such as the OSBP model

• Current trends include– On the one hand, a move to increase open hours at border posts which may require

more investments, e.g. in staff housing.– On the other hand, customs clearances increasingly taking place ‘behind-the-

border’, reducing processing times ‘at-the-border’, and which will obviate the need for longer border hours and infrastructure investments.

• Future question– Continued infrastructure investments at border posts is likely to entrench

processing at border posts, and perpetuate long transit times and high cross-border transaction costs.


The Private Sector• The private sector in ESA is sufficiently actively involved in RI matters

(APEX/Business Councils with meetings with inputs to council decisions).• RI remains state-driven, in some cases with scant attention to the impact of

agreements on enterprises battling – To source competitively prices inputs and– To find skills to produce quality products and services

• for consumers in markets that are difficult and costly to access.• Attempts to liberalise trade in goods are in most RECs marked by exclusion,

many sensitive products / RoO, that cancel any market access & RVC dev.


Industrialisation 3rd Pillar of the T-FTA• The Communique from the 2nd CES T-Summit in June 2011 emphasised that MS

had ‘adopted a developmental approach to T-RI process that will be anchored on three pillars:

– Market Integration based on the T-FTA;– Infrastructure Development to enhance connectivity and reduce cost of doing business;– Industrial Development to address the productive capacity constraints.

• The Summit directed that a programme of work be developed for the I-pillar• The 1st CES TTF meeting on Ind.Dev. took place in Feb.2012: The Work plan

agreed to focus on:– Situational analysis of industrial trends and potential + HL stakeholder workshop to

be held– RVCA specifically focusing on agro-industry; chemicals + chemical products + mining

processing

• It should inform negotiation during the 1st phase where smaller countries with small industrial sectors can identify opportunities for Ind.Dev. (.e.g. Auto Ind.).


Infrastructure Development Pillar

• During phase 1, a Work Programme on Infrastructure to be developed.• The development of physical infrastructure has to be complemented by • the development of soft infrastructure or regulation to facilitate effective

access to infrastructure services. • The Development of a Services Agenda encompassing regulatory reform and

liberalisation, remains elusive in this region, • despite the fact that the high costs of doing business in the region are often

associated with industries such as transport and telecommunications.


A Framework for the Development of a Coherent Agenda for RI in ESA

• The three pillars of the T-FTA provide a framework addressing– Not only market access issues, but– Crucially, also the supply-side and competitiveness challenges of the region

• What are the prospects for adopting a fresh approach and a realistic treatment of the rules-based requirements for RTA, under the T-FTA?

• Governments argue that they will lose sovereignty and • They clam that African countries do not have the required Tech.Capacity and

expertise to implement rules-based trade arrangements.• The T-FAT is

– linked to the implementation of an African Pgm on CI, while– Being anchored in specific regional experiences.

• It is premised on ideas about ‘developmental integration’, but • Constrained by unique national needs and agendas. • There are suggestions now to use the CES-FTA as the core building block for

establishing a C-FTA by 2017 and a CM by 2020.• It sounds like a repetition of the previous approaches?The African Development Bank Today

Conclusion

• While the AfDB has been committed since it’s founding to promoting regional economic integration in Africa,

• Its strategies and approaches have become increasingly focused over the years as the regional integration agenda has gained momentum.

• We have – a strong overarching policy framework in our Regional Integration Strategy 2009–

2012 and – a set of priorities tailored to the needs of each region in our Regional Integration

Strategy Papers.

• the RISP strategic focus is on providing technical support to the CES Tripartite Arrangement, which is a significant step in the direction of greater harmonization and convergence among the RECs.

• This support will entail harmonization and prioritization of RECs’ programmes, such as Regional Transport and Infrastructure Master Plans; development and implementation of priority corridors that link the 3 RECs;

• Support towards the implementation of the Tripartite FTA with a view to addressing the issue of overlapping mandates and functions; and support for the preparation of the CES Tripartite Strategy.The African Development Bank Today

T-FTA Recommendations: 1• The establishment of the T-FTA will have to accommodate

– Separate legal and institutional arrangements (incl. secretariats and regional courts)– National designs for domesticating and implementing existing legal instruments on

regional trade

• If new T-FTA institutions such as a secretariat, cooperation structures and demarcation lines will require careful designs.

• The T-FTA Negotiating Principles states that the negotiations shall build: – ‘on the acquis of the existing REC FTAs in terms of consolidating TL in each REC FTA’?

• The acquis concept derives from the EC Law where fundamentally different rules and procedures apply:

– The EC exercises supranationla powers not enjoyed by any African REC, while– The European Court of Justics has developed a jurisprudence way beyond anything imaginable

in Africa

• However, the plan is to incorporate best practices from the existing structures• But a separate legal arrangement for the 26 states, that will have to comply with

certain WTO rules will have to be created.


What will the ambitious T-FTA achieve?• Sound legal and Institutional arrangements must be in place in order to achieve

the outcomes associated with good governance for trade.• This process needs time but should start with the right design and context while

supported by political will in the participating governments.• Discussion of the T-FTA has to be put into a broader context:

– Taking into account developments in the global economy– At the WTO– The external PTAs

• The expectation that the DDR would have resulted in easier Multilateral rules for RI-arrangements involving DCs has also been dashed.

• At this stage the F-TFA is very much a political construct, but the PS, CSO and Int. Investors will take a keen interest in its design and its legal and inst. features.

• This includes the question whether it will be a rules-based arrangement.• One of the disappointments about existing A-RTAs has been the failure to

monitor the implementation of obligations and to enforce the rules:– The protection of the rights of PS players and– The availability of remedies in the case of violations of their rights

• May turn out to be vital challenges for the T-FTAThe African Development Bank Today

• Thank you for your Attention

• For further information on the AfDB’s Tripartite Capacity Building Programme

• Contact: Christian Kingombe (ONRI.2)• [email protected]


mailto:[email protected]

session 2: lessons from other regional integration schemes in africa

Documents

regional integration

economic integration

integration efforts

industrial development

deeper integration agenda

development approach

african development

traditional trade