Negotiating South-South Regional Trade Agreements: Economic Opportunities and Policy Directions for Africa PDF
Preview Negotiating South-South Regional Trade Agreements: Economic Opportunities and Policy Directions for Africa
Advances in African Economic, Social and Political Development Gbadebo Odularu Bamidele Adekunle E ditors Negotiating South-South Regional Trade Agreements Economic Opportunities and Policy Directions for Africa Advances in African Economic, Social and Political Development SeriesEditors DierySeck,CREPOL-CenterforResearchonPoliticalEconomy,Dakar,Senegal JulietU.Elu,MorehouseCollege,Atlanta,GA,USA YawNyarko,NewYorkUniversity,NY,USA Africa is emerging as a rapidly growing region, still facing major challenges, but withapotentialforsignificantprogress–atransformationthatnecessitatesvigor- ous efforts in research and policy thinking. This book series focuses on three intricatelyrelatedkeyaspectsofmodern-dayAfrica:economic,socialandpolitical development. Making use of recent theoretical and empirical advances, the series aims to provide fresh answers to Africa’s development challenges. All the socio- political dimensions of today’s Africa are incorporated as they unfold and new policy options are presented. The series aims to provide a broad and interactive forum of science at work for policymaking and to bring together African and international researchers and experts. The series welcomes monographs and con- tributed volumes for an academic and professional audience, as well as tightly edited conference proceedings.Relevant topics include, but are not limited to, economic policy and trade, regional integration, labor market policies, demo- graphic development, social issues, political economy and political systems, and environmentalandenergyissues. Moreinformationaboutthisseriesathttp://www.springer.com/series/11885 Gbadebo Odularu • Bamidele Adekunle Editors Negotiating South-South Regional Trade Agreements Economic Opportunities and Policy Directions for Africa Editors GbadeboOdularu BamideleAdekunle CentreforResearchonPolitical UniversityofGuelph&RyersonUniversity Economy Guelph&Toronto,Ontario Dakar-Yoff,Senegal Canada ISSN2198-7262 ISSN2198-7270 (electronic) AdvancesinAfricanEconomic,SocialandPoliticalDevelopment ISBN978-3-319-45568-6 ISBN978-3-319-45569-3 (eBook) DOI10.1007/978-3-319-45569-3 LibraryofCongressControlNumber:2017930402 ©SpringerInternationalPublishingAG2017 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinor for anyerrors oromissionsthat may havebeenmade. Thepublisher remainsneutralwith regardtojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations. Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringerInternationalPublishingAG Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland Acknowledgement Abooklikethiswouldnotbepossiblewithouttheassistanceofmanypeople,which wegratefullyacknowledge. First,therenownedteamatSpringerInternationalPublishingAGhassparedno effortstohelpus;theirinvaluableexperienceandskillinpublishingEconomicsand Regional Science books were extremely indispensable. The editors acknowledge HellenOriaroandDr.DierySeck’s contributionandinspirationintheplanningand development of this book. Dr. Diery Seck’s guidance and encouragement were criticalinputsinthefinalizationofthisbookproject. Publishing a book of this nature requires some doses of love, persistence and endurance. Itis on thisnote thatwe express ourgratitude toMorganSage forher excellent research assistantship in looking after the details towards making the projectmoveforward.Alsodeservingspecialcommendationarethereviewersfor theirconstructivecommentsandclarifications.Furthermore,wethankDanGwarzo Maitlandforhisinsightfulcommentsonearlierversionsofthisbook. Finally,wehopethatouraudiencewillbeinspiredandempoweredbeyondtheir comfortzonesintotheborderlessworldofunlimitedSouth–Southtradeopportunities. We would also like to express our hearty gratitude to our families, for their sustainedsupportduringtheperiodwehavedevotedtowritingthisbook. ProfessorsGbadeboOdularuand BamideleAdekunle v Contents Introduction:IncreasingDynamicsandtheNewTradingEcosystem fortheSouth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 GbadeboOdularu TheBigPicture:South–SouthRegionalTradeAgreements withintheContextoftheMultilateralTradeSystems. . . . . . . . . . . . . . . 9 GbadeboOdularu,MariamaDeen-Swarray,andCiliakaGitau PartI SelectedCasesonSouth–SouthRegionalTradeAgreements TradingwithChina:HowcanAfricaBenefit?. . . . . . . . . . . . . . . . . . . . 35 BamideleAdekunleandMonikaKorzun EnhancingAfrica–IndiaRegionalTradeAgreements:Issues andPolicyRecommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 ChrisShimbaOchiengandPhilipMusyoka UnderstandingtheDynamicsofIndia-AfricaTrade NegotiationGame:LessonsandPolicyDirections. . . . . . . . . . . . . . . . . . 61 OlayinkaIdowuKareem AdvancingRegionalTradeInterestsbetweenAfricaand SouthKorea:EmergingIssues,ConcernsandPolicyOptions. . . . . . . . . 85 GbadeboOdularuandChineduSamuelOkonkwo Africa–BrazilRegionalTradeAgreements:LookingForward withProactiveStrategies. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. 101 BamideleAdekunleandMariamaDeen-Swarray vii viii Contents PartII RecentIssuesonSelectedIntra-AfricanRegionalTrade Agreements(RTAs) UnderstandingBilateralTradeFlowsandNegotiatingSouth-South RTAs:LessonsandPolicyDirectionsfortheTripartiteFree TradeAreaAgreement(TFTA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 MusibauAdetunjiBabatundeandGbadeboOdularu LeveragingTradeFacilitation(TF)MeasurestoMaximize theBenefitsofRegionalTradeAgreements(RTAs)inWestAfrica. . . . 141 GbadeboOdularuandAdenikeOdularu Conclusion:EmergingIssues,StrategicPrioritiesforSouth–South RTAsResearch,andEconomicPolicyDirectionsforAfrica. . . . . . . . . . 159 GbadeboOdularu Introduction: Increasing Dynamics and the New Trading Ecosystem for the South GbadeboOdularu 1 Introduction Regional Trade Agreements (RTAs)1 represent a global economic and political phenomenoninvolvingbothdevelopedanddevelopingcountries.Thisispartlydue to the debate it generates, especially for the welfare gains that accrue to a devel- opingcountrytradingpartner.Inthepastdecade,Africahasbeenhometosixofthe ten fastest-growing economies in the world—a number that is often projected to growfurtherintothefuture.AccordingtotheWorldBank,Africacouldbe‘onthe brinkofaneconomictakeoff,muchlikeChinawasabout30yearsagoandIndia about 20 years ago.’ At the close of the twenty-first century, the World Trade Organization(WTO)theUnitedNationsCooperation forTradeandDevelopment (UNCTAD) announced that the global Regional Trade Agreements (RTAs) have reachedthe200mark,andnotedthattheupwardtrendwouldmostlikelycontinue. 1RTAsareusedasagenerictermforbilateralorplurilateralfreetradeagreements,customsunions orcommonmarkets.Non-reciprocalpreferentialtradeagreementssuchasGeneralisedSystemof Preferences(GSPs)areexcludedbydefinition.Infact,whatallRTAsintheWTOhaveincommon isthattheyarereciprocaltradeagreementsbetweentwoormorepartners.Inrecenttimes,trade negotiations between developed (rich) and under-developed (poor countries) have moved to regional (between two countries) agreements; usually regarded as regional trade agreements (RTAs).Theyincludefreetradeagreementsandcustomsunions,notifiedunderArticleXXIV:7 of the GATT 1994, and paragraph 2 (c) of the Enabling Clause, and Economic Integration AgreementsunderArticleV:7oftheGATS.Infact,mostmodernRTAsextendbeyondtraditional trade policy mechanisms and tariff-cutting preferential treatment to include regional rules on investment,competition,environmentandlabour;preferentialregulatoryframeworkformutual servicetrade;andincreasinglycomplexintra-traderegulationswhichincludeinteralia:standards, safeguardprovisions,customsadministration,etc. G.Odularu(*) CentreforResearchonPoliticalEconomy(CREPOL),Dakar-Yoff,Senegal e-mail:[email protected] ©SpringerInternationalPublishingAG2017 1 G.Odularu,B.Adekunle(eds.),NegotiatingSouth-SouthRegionalTrade Agreements,AdvancesinAfricanEconomic,SocialandPoliticalDevelopment, DOI10.1007/978-3-319-45569-3_1 2 G.Odularu NearlyalloftheRTAsprojectionsavailabletodatesuggestthatalargepartofthe expectedgrowthwouldoccurinthedevelopingworld.Theunrelentingincreasein global RTAs and its attendant effects of trade flows, demand urgent remedial actions and solutions from policy makers, technocrats, researchers, and other relevantdecisionmakers. Looking at the main trends and characteristics of African RTAs kaleidoscope, the changing landscape of RTAs in Africa becomes increasingly relevant in the sense that if they are well utilized, RTAs policies could provide the formidable springboardsforAfrica’seconomictransformation.ThoughthenumbersofRTAs have increased dramatically and the scope broadened over the past decades, the political economy of negotiating RTAs remains that some African governments havereluctantlysignedthem.However,fosteringmarketaccessaswellaspreserv- ing existing reciprocal preferences continues to remain the driving forces behind signingRTAs.Thesedevelopmentsexistinparallelwiththegloballiberalizationof trade and commerce, thereby expanding the bouquet of RTA benefits to include strengtheningofregionalpolicycoordination,adoptionofpro-poorpolicyreforms, andaddressingforeignpolicyissues. Basedonthisbackground,thisbookonnegotiatingSouth–SouthRTAsinAfrica offersanintroductionintotheworldofmodernRTAs.Itgoesbeyondthetraditional paradigmoftradecreationversustradediversiontoaddresstheeconomicandlegal aspects of the regulatory policies that are contained in Africa’s RTAs today. This book provides a succinct description of the principles, rules and procedures of RTAs, as well as filling the yawing information gap on a political economy— informeddiscussion of how South–South RTAs are being used as instruments for economic transformation in Africa. Further, this book presents a roadmap for developing a more cohesive, effective strategy for negotiating selected RTAs with Africa in the traditional, emerging and modern sectors. The book also maps the landscape of RTAs, summarizes the theoretical arguments as well as the political economy of RTAs. It also proceeds to discuss the current practice in the mainpolicyareastypicallycoveredinRTAs(fromagriculturalpolicy,manufactur- ing policy, rules of origin, customs unions, trade remedies, product standards, technical barriers, to behind the border issues related to investment, trade facili- tation,competition,environment,migration,anddisputeresolution). Thereisaclearandpressingneedforincreasedglobalnegotiationsandengage- mentwithAfricaviatheadoptionofRTAtoolsandinstruments.Increasedglobal trade facilitates mutually beneficial growth, simultaneously strengthening global economy and market. There is an urgent need for other regions to accelerate and deepenstrategiceconomicengagementswithAfrica. Undoubtedly,RTAsareincreasinglybeingsignedbyAfricancountriesduetoits benefitssuchasspurringdevelopment,promotingtradeopportunitiesandreducing poverty.Whilethereisagrowingbodyofevidence-basedresearch,therestillexists somuchforleveragingavailablelessonsandbestpracticeforAfrica’scurrentand future regional trade policy agenda. Thus, prominent academics, business actors, development practitioners, policy-shapers, opinion leaders, researchers and deci- sionmakersfromAfricaandtherestoftheworld,largelyrecognizethatthebenefits derivablefromRTAsaredistinctandhuge.ThereisaneedtolookatprovenRTA practices,field-testedsouth–southRTAtools,andinnovativeRTAapproachesthat
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