By Amina Ismaila
A renowned Nigeria’s Scholar of Regional Economic Integration Law and Practice in Africa, Professor Muhammed Tawfiq Ladan, has emphasized the importance of accelerating the implementation of the African Continental Free Trade Area (AfCFTA) Agreement to unlock new opportunities for African businesses and citizens.
The expert made this call today in a paper titled “AfCFTA Trade Regime and Regional Integration”, presented at a virtual capacity-building workshop on matters related to the Protocol on Intellectual Property Rights (IPR) and its annexes, organized by the AfCFTA Secretariat in Accra, Ghana.
According to Professor Ladan, the AfCFTA law has made unique contributions to the multilateral trading system and international economic law. He stressed that collective efforts are necessary to drive the progressive realization of the single market, highlighting strategic recommendations on how to accelerate AfCFTA implementation in an inclusive, equitable, and sustainable manner.
The professor identified several benefits of the AfCFTA Protocol on Intellectual Property Rights, including creating a uniform system for IP protection across the African continent, fostering intra-African trade, and promoting innovation and creativity. He emphasized that strong IP protection is essential for facilitating trade within the continent and encouraging businesses to invest and expand their operations.
Key aspects of the very rich and elaborate paper contains objectives of the workshop which includes enhancing the contextual understanding of participants of the essence of the AfCFTA Trade Regime in boosting regional integration through increase in intra-African trade and creating single market for goods and services.
Professor Ladan also stressed that the workshop aims to enhance participants’ understanding of how the AfCFTA Protocol on IPR contributes to boosting Intra-African trade and regional integration in Africa.
The expert highlighted that the initiative to create a single African market has existed in the Pan-African political discourse for decades (e.g., Article 6 of the Abuja Treaty Establishing the African Economic Community, entered into force on 12 May 1994, signed by 54 of 55 States and ratified by 50 out of 55 AU Member States). The continent was set on the path to actualizing the goal after the inclusion of the African Continental Free Trade Area (AfCFTA) as a flagship project in the African Union’s Agenda 2063, of the Africa we want. The AfCFTA Agreement was signed on 21 March 2018, came into force on 30 May 2019 and became operational on 7 July 2019. After delays caused by the COVID-19 pandemic, the Free Trade Area(FTA) was launched on 1st January 2021. The are 54 signatories and 48 State Parties to AfCFTA Agreement out of 55 AU Member States, as at August 2024. Figures1 -5 below provide quick facts on AfCFTA Trade Regime. While Tables 1-3 Provide highlights on the significant relationship between the AfCFTA Trade Regime and Regional integration in Africa.
THE ROAD TO A SINGLE (COMMON) AFRICAN MARKET/AFRICAN ECONOMIC
COMMUNITY (AEC): – FROM THE 1991 ABUJA TREATY ESTABLISHING AEC TO THE AfCFTA AGREEMENT, 2018/2019 THROUGH THE AU AGENDA 2063-THE AFRICA WE WANT
AfCFTA Trade Regime as a Catalyst for Deepening Regional Integration
Aiming to create a Single market for goods and services across Africa, which require facilitation by regional integration initiatives.
Expanding market access and boosting intra-African trade: – By reducing trade barriers (both tariff barriers like eliminating tariff on 90% of goods or taxes on imports and non-tariff barriers like complex customs procedures and regulations that hinder trade, requiring harmonization), thereby boosting intra-African trade.
Harmonizing regulations and rules related to trade, customs, investment, competition and IPR, across different countries, thereby reducing the complexity and cost of doing business across borders.
Promoting industrialization and economic diversification: – By creating larger markets for goods and services, attracting investment, protecting innovation and creativity, and encouraging the development of regional value chains.
Addressing Regional integration challenges such as poverty, infrastructure deficits and geopolitical fragmentation: – by promoting trade, investment and economic cooperation among member states.
Synergy and complementary: – Article 19 of the AfCFTA Agreement ensures that it does not hinder existing regional integration efforts. The AfCFTA aims to complement and strengthen the work of RECs by providing a broader platform for trade liberation and cooperation for deeper economic integration among African nations.
Regional Integration in Africa as a Foundation for AfCFTA
Regional economic integration initiative in Africa seek to: – foster economic cooperation, reduce trade barriers, harmonize regulations and rules related to trade, investment, IPR, competition, etc, and seek to improve infrastructure within the 8 recognized RECs: – ECOWAS, SADC, EAC, COMESA, IGAD, AMU, CENSAD and ECCAS.
Through existing RECs, Regional integration lays the groundwork for the AfCFTA, while in turn, AfCFTA recognizes and builds upon the progress made and on the existing framework, by integrating them into a bigger continental framework, thereby extending the benefits of economic integration across the entire continent.
Facilitating trade and investment: – Regional integration initiatives have been instrumental in building trade corridors, reducing trade barriers, and developing digital platforms, which are crucial for the success of the AfCFTA. By creating more integrated regional markets, these initiatives make it easier for businesses to operate across borders and attract investment.
Strengthening regional value chains: – Regional integration encourages the development of regional value chains, where countries specialize in different parts of a production process and trade with each other. The AfCFTA is expected to further strengthen these value chains by creating a larger, more unified market.
In essence, regional integration and AfCFTA have a significant relationship that is mutually reinforcing. While the AfCFTA provides the framework for a broader, continent-wide market, regional integration initiatives have laid the groundwork and continue to support the implementation and success of the AfCFTA.
UNDERSTANDING THE UNIQUE ROLE OF THE AfCFTA PROTOCOL ON IPR TO THE AfCFTA TRADE REGIME AND REGIONAL INTEGRATION IN AFRICA: – WHILE NEGOTIATING ANNEXES TO THE PROTOCOL
The Protocol is designed to enhance the AfCFTA Trade regime and regional integration in Africa by:
Fostering Innovation and Economic Growth
By providing assurance that innovative ideas and creations will be protected, thereby attracting investments and supporting MSMEs.
By encouraging businesses to invest in research and development, leading to the creation of new products and services, thereby promoting a healthy competition.
Harmonizing IP Laws across African States
Reducing the complexity and costs associated with navigating different legal systems.
Reducing non-tariff barriers to trade, making it easier for businesses to trade across borders, including trade in goods and services that incorporate IP, such as software, music, films and other creative works.
Addressing Specific Challenges
Supporting industrial development by encouraging the creation and commercialization of locally developed products and technologies.
Balancing competing interests of different stakeholders, including creators, businesses, local communities and consumers, while also promoting the overall development goals of the African Continent.
The Abuja Treaty establishing the AEC, 1991: – Six Stages of AEC under Article 6
Strengthening RECs as building blocs for FTA (5 years) (Art. 88 (3)).
Eliminating all (tariff and Non-Tariff) barriers to trade among member states, but adopt a Common Trade Policy like CET against Non-Members (8 years) (Articles 29 – 32)
Establishing a Free Trade Area (10 years) (Articles 33-35)
Customs Union (2 years) (Articles 35-40)
Common Market (25 years) (Articles 44, 46-68)
Economic/Monetary Union (5 years) (Articles 44(3) and 45)
The AfCFTA Agreement primarily establishes a Continental Free Trade Area, as envisaged by Article 6 of the AEC Treaty of 1991 and the first ten years implementation plan under the African Union Agenda 2063, “The Africa We Want”.
The Abuja Treaty on AEC, 1991 provides for a total of 40 years timeline to reach stage 6 (1991 to 2031) including FTA as phase 3 by 2014, though the target was missed by 4 years (2018 when AfCFTA Agreement was adopted).
While negotiating annexes to the protocol on IPR, member states are reminded of the following: –
The success of AfCFTA depends on the political will and commitment of member states to address specific African contexts and prioritize inclusivity, flexibility and sustainable development in implementing the AfCFTA legal regime.
Building a harmonized continental IP regime requires fostering collaboration among African nations on building capacity in IP management and enforcement, as well as in promoting awareness about IPRs and their importance for innovation and economic development in Africa’s regional integration agenda.