Presented @ the SOTU-N-Campaign workshop (Lagos Airport Hotel, 26 Feb 2014)

By:Ken UKAOHA, Esq.

President, NATIONAL ASSOCIATION OF NIGERIAN TRADERS – NANTS

Plot 19, Dan Suleiman Crescent; Behind Utako Market – FCT; Abuja - NIGERIA

Economic diplomacy has taken over political diplomacy.

Importance of world creation. Need for poverty reduction. Investment provision and protection – mutual laws Trade as the direct generator of revenue. Cross-regional exchange of goods, services and

capital is key to conserving wealth and capital flow within the continent (e.g. ECOWAS 12% of trade but EU is about 43%).

Out of the 8 Commissions of the AU, 5 are economic related

AEC therefore apparently becomes the hub on which every spoke of development activity of AU rotate

Economic integration is the most direct interpretation of unity in diversity and collective/common wealth of the people for growth.

The African Economic Community Treaty (AEC). Popularly known as the Abuja Treaty. Adopted by the African Union (AU) in 1991 Came into force on 12 May 1994.

It is a treaty establishing grounds for mutual economic development among African states.

The Treaty is to establish development through a gradual process by coordination, harmonization and progressive integration of the activities of existing and future regional economic communities (RECs) in Africa (Article 4(1). AMU - Arab Maghreb Union ECOWAS - Economic Community of West African States ECCAS - Economic Community of Central African States SADC - Southern African Development Community EAC - East African Community COMESA - Common Market of Eastern and Southern Africa

The RECs are regarded as the building blocks of the AEC.

The stated goals of the Community include: the creation of Free Trade Areas (FTA), Customs Unions, a Single Market, a Central Bank, and a Common Currency

Aims to establish an economic and monetary union by 2028. - See Article 4(2) -

The objectives of the AEC include to: Promote economic, social and cultural development. Promote African economic integration in order to increase

self-sufficiency and indigenous development. Create a framework for development, Mobilization of human and material resources. It further aims to promote co-operation and development

in all aspects of human activity with a view to raising the standard of life among Africa’s people.

Maintenance of economic stability and establishment of a close and peaceful relationship among member states. ▪ See generally Article 4.

The implementation of the Abuja Treaty is a process that will be done in 6 stages over 34 years ▪ See Article 6(1)

STAGE 1: Strengthening existing RECs and creating new ones where needed.

STAGE 2: Stabilization of tariff and other barriers to regional trade and the strengthening of sectoral integration, particularly in the field of trade, agriculture, finance, transport and communication, industry and energy, as well as coordination and harmonization of the activities of the RECs.

STAGE 3: Establishment of a free trade area and a customs union at the level of each REC.

STAGE 4: Coordination and harmonization of tariff and non-tariff systems among RECs, with a view to establishing a continental customs union.

STAGE 5: Establishment of an African Common Market and the adoption of common policies.

STAGE 6: Integration of all sectors, establishment of an African Central Bank and a single African currency, setting up of an African Economic and Monetary Union and creating and electing the first Pan-African Parliament.

African States commit to promote RECs, and to create relevant regional blocs where such do not exist, as building blocks for Africa’s integration and strengthening intra-REC integration and harmonization by 2007 particularly through the Arab Maghreb Union (AMU), Economic Community of Central African States (ECCAS), Common Market of Eastern and Southern Africa (COMESA), Southern African Development Community (SADC) East African Community (EAC) and Economic Community of West African States (ECOWAS).

African States commit to an Economic and Social Commission (currently that is the AU Commission) as the principal technical policy making organ of the AEC with functions that are central to the implementation of the objectives of the AEC. In this regard the commission is responsible for the preparation of policies,

programmes and strategies for cooperation in the socio-economic field, as well as the coordination, evaluation and harmonization of activities and issues of the AEC.

States commit to establishing a free trade area and customs union in each regional bloc by 2017.

Establishing a continent-wide customs union by 2019 African states agree to the creation of a continent-wide African

Common Market by 2023 Creation of a continent-wide economic and monetary union (and thus

also a currency union) and Parliament by 2028. The final date for establishing a completed AEC is 2034

African States commitment to eliminating trade barriers by harmonizing, simplifying and automating customs procedures and documentation, enhancing transport and logistics services, and to upgrading and improving infrastructure.

The commitment to improving and strengthening financial markets by the setting up: the African Investment Bank, the African Central Bank, and the African Monetary Fund.

States agree to urge one another to adopt employment policies that allow free movement of persons (immigration laws/policies) within the proposed AEC.

African states through the RECS commit to promoting: free movement of persons, rights of residence and establishing through agreements on visa relaxation, single

tourist visas, and regional passports – African Passport like what ECOWAS REC has.

African states agree to set up a Court of Justice with binding decisions on member states of the AU.

States commit to enhancing industrialization among AU states with a priority on food and agro based industries, building and construction industries, metallurgical industries, mechanical industries, electrical and electronics industries, chemical and petro-chemical industries, forestry industries, energy industries, textile and leather industries, transport and communications industries and biotechnology industries.

African states commit to promote the integration of transport and communications and enhance integrated continental tourism.

African states shall strengthen co-operation in education and training and coordinate and harmonize their policies for the purpose of training persons capable of fostering the changes necessary for enhancing social progress and the development of the continent.

The Abuja treaty recognizes the sub-regional economic communities as foundation blocks for the proposed union, and most of these economic communities have moved to establish regional parliaments.

The national, regional and Pan-African Parliament (PAP) have representational and advisory mandates in varying degrees according to the protocols establishing them. See Article 7(1)(c) and Article 4 of the Protocol establishing PAP (the Protocol.

The development and adoption of basic legal documents by the regional summits and national parliaments and the actual inauguration of the assemblies has in most cases been a lengthy process.

For example, the PAP was inaugurated in 2004 with the objective of supporting the oversight of the implementation of the policies and objectives of the AU and the AEC, as well as promoting the process of African integration through the legislative actions of national parliaments.

Before the creation of the PAP there had not been a continental mechanism for debating and securing more widely informed views on development and other issues affecting the peoples and countries of Africa.

Most African parliaments including PAP have relied on external donors and foreign agencies in the field of development cooperation for support.

Attempts at the creation of regional parliaments to support integration have depended mainly on the degree of internalization of the domestic and sub-regional policies of the member states.

The regionalization process all too often exposes the inability of African states to seek proper mandates or secure the implementation of policies within their own countries.

The lack of commitment to sub-regional integration is often a reflection of patterns prevailing within the countries themselves. (see the powerlessness of the ECOWAS Parliament – advisory rather than law-making or parliamentary)

The objectives of the Pan-African Parliament shall be to: 1. facilitate the effective implementation of the policies and

objectives of the OAU/AEC and, ultimately, of the African Union;

2. promote the principles of human rights and democracy in Africa;

3. encourage good governance, transparency and accountability in Member States;

4. familiarize the peoples of Africa with the objectives and policies aimed at integrating the African Continent within the framework of the establishment of the African Union;

5. promote peace, security and stability; 6. contribute to a more prosperous future for the peoples of

Africa by promoting collective self-reliance and economic recovery;

7. facilitate cooperation and development in Africa; 8. strengthen Continental solidarity and build a sense of

common destiny among the peoples of Africa; 9. facilitate cooperation among Regional Economic

Communities and their Parliamentary for arms.

Unlike the EU, the PAP and the various regional parliaments do not have supranational powers.

Therefore, decisions made by the AU have to be given legal effect under the domestic law of individual member states.

As a result, parliaments, as the highest legislative bodies, have a critical role to play in the integration process through the enactment of legislation to give effect to the proposed union.

Parliaments also have a critical budgetary function to perform in the integration process - Appropriation.

Member states will be required to make financial contributions, based on agreed formulas, to defray operational costs. However, member states’ contributions will have to be allocated in the national budgets and thus will have to be deliberated upon and approved by national parliaments when they debate the annual budget.

The challenge here is the mechanism for tracking the implementation of decisions agreed on at the regional and pan-African level.

Members are unable to take their governments to task when follow-up actions are not taken.

The role envisaged for parliaments, particularly the PAP, includes the following ( See Article 11 of the Protocol): Offering a forum for people to make their views known

through their parliamentary representatives Providing a mechanism whereby integration policies can be

monitored frequently by national and regional parliaments. Keeping member states informed of the progress and

outcome of the integration process Creating opportunities for involvement in the issues of the

integration process. Contributing actively to the ensuing implementation

process, such as drafting legislature and adopting economic, social, scientific and legal policies deliberated upon by the parliament, e.g. NEPAD

Devising a systematic approach for cooperation between committees of national parliaments and the PAP committees.

About 98% of Africans do not know about the existence of the AU Instruments. The instruments warm the shelves. Even among public servants, only few may be

aware of existence and contents Low information around the instruments and

their contents. Disconnect between the people and the

commitments made by their governments under the agreements or frameworks.

Poor media focus on publicizing member states commitments and contents of the instruments.

Legalistic composition and nature of the various instruments needs to be demystified.

In order to involve African parliaments in the process of development, the following steps can be initiated immediately: The AU, in collaboration with the PAP, must develop a

clear legal basis for parliamentary involvement in the integration process.

Non State Actors, especially the CSOs in Africa can begin to advocate for the enactment of such procedure.

There must be a documented legal process through which PAP decisions are stepped down to the national and regional Parliaments.

CSOs must equally begin to advocate for the roles of parliaments at all levels to be institutionalized to go beyond mere advisory to full law making.

The process of electing Parliamentarians to the PAP must be people driven rather than automatic tickets from parliaments in order to make it truly representative of the people and more democratic.

Experience has shown that National Parliaments lack understanding of the provisions of the AEC; and must therefore be informed about the various positions and provided with accurate information about the AEC protocol and the debate to date.

Law and policy making process at the African level must respect the principle of popular participation , i.e. making instruments evolve from the people, their needs and priorities . The ECOWAS CDP example Allowing the people themselves become part and parcel of the process

rather than government deciding and/or articulating policies via hand-picked consultants/technocrats.

Governments or the AU must provide parliaments with resources to develop expertise among individual parliamentarians and to support the work of specialized committees devoted to the issue of integration

Selected members of parliament must be included in government delegations to the AU or related conferences on the integration process.

Inquire whether and to what extent the AU Instruments have been ratified and/or domesticated by the Parliament (are they in our local domestic laws)?

THANK YOU FOR YOUR

QUESTIONS!