Analysis

Because Ethiopia is the headquarters of the African Union its role on regional integration is usually taken as given. It is usually assumed that the state has and is making efforts to integrate with the continent. In this essay, I contend that Ethiopia’s historical engagement with regional integration has been at best passive and vague. On the contrary, its focus on regional integration at the moment seems different and active.

This week, the WTO members of the East African Community, EAC, are undergoing a Trade Policy Review, (TPR), in Geneva. Of the six EAC members, only South Sudan is not a member of the WTO. South Sudan made a request to accede to the WTO in 2017 and this week, there is a meeting of the Working Party on South Sudan’s Accession to the WTO.

It is clear that over the past decade, there is perhaps no other African country that has made such large concessions to the United States as Morocco has. By first adjusting its intellectual property laws, and now allowing the importation of American poultry despite concerns for its domestic market, Morocco's has affirmed its loyalty to its trade partner. By contrast, countries such as South Africa, which refused the U.S.'s intellectual property law requirements and implemented anti-dumping tariffs against American poultry, are moving in the opposite direction of liberalized free trade with the United States particularly with regard to poultry.

The adoption of imprecise and relaxed SDT provisions that can easily provide leeway for countries to evade SDT obligations will only work contrary to the stated objective of the Agreement to promote and attain sustainable and inclusive socio-economic development among State Parties. Just as Amartya Sen correctly puts it, “the central issue of contention is not globalization itself, nor is it the use of the market as an institution, but the inequity in the overall balance of institutional arrangements—which produces very unequal sharing of the benefits of globalization”

The AfCFTA will continue to face a number of risks that threaten to impede continental integration in favour of fragmentation. Of interest to this post are bilateral trade agreements between African countries, individually or in smaller groups, on the one hand, and non-African countries or regions, on the other.

African countries should consider alternatives to the arm’s length principle. A viable alternative to the arm’s length principle: the unitary taxation (formulary apportionment) approach should be considered. This approach looks in detail at the economic activities resulting into the profits of MNCs for tax purposes. Under this approach, tax authorities in Africa will justifiably impose corporate income taxes on “actual” profits of MNCs accruing form economic activities carried out in their jurisdictions, thereby eliminating the opportunities for base erosion and profit shifting in Africa.

Since TRIPS is extremely flexible on the PBRs regime to be adopted, they should obtain guidance from other balanced international instruments such as ITPGRFA. Further, they can obtain vital lessons from states such as India.

A response to informality includes the suggestion that policy makers should formalize informal entities and activities. This suggestion holds that, responding to informality in such a way will ultimately help create better jobs, improve productivity and reduce poverty. But then, the question again arises at this point: is formalization the optimal solution? Shouldn’t the focus in the short-term rather be to improve conditions for informal sector actors and the spaces in which they operate than formalize? These are some of the broad challenges facing Africa, the AU and the governments of respective member states and other stakeholders as Africa proceeds with the AfCFTA.

The AfCFTA can be used as a booster for the advancement of maritime trading activities and the shipping industry in Africa. Since the main aim of the AfCFTA is to create a single market where goods, services, people and capital will move freely, all 55 countries have to improve their road as well as maritime networks to allow easy access and transportation of goods and people across the region. The AfCFTA along with the African Union’s 2050 Integrated Maritime Strategy can bring a panoply of opportunities and benefits for maritime sector.

With over 100 countries involved, the revision of the ACP-EU Partnership Agreement, signed in Cotonou on 23 June 2000 is an extremely important endeavor that presents immense opportunities to all the parties and that requires careful negotiations. The Agreement will expire in 2020 and the parties are currently negotiating a new framework that is expected to reflect today’s socio-economic opportunities, challenges and concerns. This contribution looks at some of the strategic elements to consider when updating or amending investment-related provisions of the ACP-EU Partnership Agreement.