Inclusive Trade in Africa: The African Continental Free Trade Area in Comparative Perspective

226 Pages·2019·2.757 MB·English

by  David Luke (editor), Jamie Macleod (editor)

Inclusive Trade in Africa
Providing the first book-length analysis of the African Continental Free Trade
Area (AfCFTA), this volume asks how can it be ensured that the AfCFTA is
effectively implemented to deliver inclusive trade in Africa.
The African Continental Free Trade Area (AfCFTA) will cover an African
market of 1.2 billion people and GDP of over $2.5 trillion, across all 55 member
States of the African Union. Yet, trade policy increasingly appreciates that free
trade is not enough; trade must also be inclusive to deliver developmental benefits.
With contributions from leading trade policy authors across Africa and beyond,
this book offers insights into the development and implementation of the AfCFTA
and serves as a reference for stakeholders interested in trade in Africa more
broadly. The contributors assess what important lessons can be drawn from the
experiences of regional integration in and beyond Africa, including from success
stories like ASEAN as well as from failures like the Free Trade Agreement of the
Americas.
An important new work for researchers and policymakers focusing on African
trade and economic policy, and trade policy more generally.
David Luke is Coordinator of the African Trade Policy Centre at the United
Nations Economic Commission for Africa.
Jamie MacLeod is a Trade Policy Expert in the African Trade Policy Centre at
the United Nations Economic Commission for Africa.
The International Political Economy of New Regionalisms Series
Series Editor: Timothy M. Shaw
The International Political Economy of New Regionalisms Series presents innova-
tive analyses of a range of novel regional relations and institutions. Going beyond
established, formal, interstate economic organizations, this essential series pro-
vides informed interdisciplinary and international research and debate about myr-
iad heterogeneous intermediate-level interactions. Reflective of its cosmopolitan
and creative orientation, this series is developed by an international editorial team
of established and emerging scholars in both the South and North. It reinforces
ongoing networks of analysts in both academia and think-tanks as well as inter-
national agencies concerned with micro-, meso- and macro-level regionalisms.
The Relevance of Regions in a Globalized World
Bridging the Social Sciences-Humanities Gap
Edited by Galia Press-Barnathan, Ruth Fine and Arie Kacowicz
Expanding Perspectives on Human Rights in Africa
Edited by M. Raymond Izarali, Oliver Masakure and Bonny Ibhawoh
The International Political Economy of the BRICS
Edited by Li Xing
Structural Change in Africa
Misperceptions, New Narratives and Development in the 21st Century
Carlos Lopes and George Kararach
Multipolarization, South-South Cooperation, and the Rise of Post-
Hegemonic Governance
Efe Can Gürcan
Inclusive Trade in Africa
The African Continental Free Trade Area in Comparative Perspective
Edited by David Luke and Jamie MacLeod
For more information about this series, please visit: www.routledge.com/
ASHSER-1146
Inclusive Trade in Africa
The African Continental Free Trade
Area in Comparative Perspective
Edited by David Luke and
Jamie MacLeod
First published 2019
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
52 Vanderbilt Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2019 selection and editorial matter, David Luke and Jamie MacLeod;
individual chapters, the contributors
The right of David Luke and Jamie MacLeod to be identified as the
authors of the editorial material, and of the authors for their individual
chapters, has been asserted in accordance with sections 77 and 78 of the
Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark notice : Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
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ISBN: 978-1-138-39452-0 (hbk)
ISBN: 978-0-429-40112-1 (ebk)
Typeset in Times New Roman
by Apex CoVantage, LLC
Contents
List of figures vii
List of tables ix
List of contributors x
List of acronyms xii
Foreword xvi
Introduction: bringing about inclusive trade in Africa with
the African Continental Free Trade Area 1
DAVID LUKE AND JAMIE MACLEOD
1 Making the case for the African Continental Free Trade Area 5
DAVID LUKE
PART I
Lessons learned from regional integration in Africa
and beyond 13
2 The AfCFTA as yet another experiment towards continental
integration: retrospect and prospect 15
GUILLAUME GÉROUT, JAMIE MACLEOD AND MELAKU DESTA
3 The failure of the Free Trade Area of the Americas: a
cautionary tale for the African Continental Free Trade Area 35
SEBASTIAN HERREROS
4 ASEAN at 50 and beyond 49
MIA MIKIC AND WEIRAN SHANG
vi Contents
PART II
Implementing a “win-win” AfCFTA 67
5 How important is special and differential treatment for
an inclusive AfCFTA? 69
LILY SOMMER AND JAMIE MACLEOD
6 AfCFTA, value chains and overlapping origin regimes:
a complementarity assessment along a segment of the
copper value chain in Africa 87
GUILLAUME GÉROUT AND HARRISON ADDO-OBIRI
7 Governance for an effective AfCFTA 120
BABAJIDE SODIPO
8 The AfCFTA in a changing trade landscape: rise of the
emerging market economies and the persistence of
African export dependency 134
JAMIE MACLEOD
9 Regional Aid for Trade in Africa: a catalyst for economic
integration and development 147
FRANS LAMMERSEN, RAFFAELA MUOIO AND MICHAEL ROBERTS
PART III
Preparing for the AfCFTA phase II negotiations 165
10 Approaching competition policy in the AfCFTA 167
ELIZABETH GACHUIRI
11 A principled approach to intellectual property rights and
innovation in the African Continental Free Trade Agreement 177
CAROLINE NCUBE, TOBIAS SCHONWETTER, JEREMY DE BEER
AND CHIDI OGUAMANAM
Index 195
Figures
1.1 African Continental Free Trade Area: key features 6
1.2 Composition of Africa’s exports to outside and within Africa 7
1.3 Share of Africa’s exports destined for Africa (percentage) 7
1.4 Intra-African trade comprises less extractive exports 8
2.1 Organogram of envisaged continental integration, 2012
Boosting Intra-African Trade Action Plan 25
3.1 Structure of Latin American merchandise exports to the world
by technology intensity, 2016 36
3.2 Share of China and the United States in Latin America and the
Caribbean’s total merchandise trade, 2000–2017 43
4.1 Share of tariff lines at 0% in the ASEAN Free Trade Area
(ATIGA) tariff schedule 52
4.2 Increase in Non-Tariff Measures in ASEAN 53
4.3 Transition from AEC 2015 to AEC 2025 54
4.4 ASEAN’s total merchandise trade and each major trading
partner’s share 56
5.1 African countries as a sub-set of all countries, by GNI per
capita (2017) 74
6.1 Spaghetti bowl of RTAs across Africa 88
6.2 Overview of the upstream and downstream linkages to the
copper cathode segment of the value chain 93
6.3 Africa’s participation in world copper trade 94
6.4 Existing and potential trade 95
6.5 Baseline scenario: preferences used by DRC and Zambia in
trade in copper products 98
6.6 Alternative scenario 1: preferences used in trade flowing
between and from COMESA and SADC FTA countries 101
6.7 Alternative scenario 2: copper trade flowing between and
from COMESA, SADC and Agadir countries 104
8.1 Africa’s trade profile and its dependency on extractive
resources, 2000 to 2016, real 2016 US$ 135
8.2 Extractive commodity prices, 2000 to 2016 136
8.3 Contribution to world GDP, by analytic groupings 137
viii Figures
8.4 Constituent economies of the EME group, arranged by
2016 GDP 138
8.5 Destination share of Africa’s exports, percentages 138
8.6 Origin share of Africa’s imports, percentages 139
8.7 Evolution of Africa’s exports, by destination, 2016$ 139
8.8 Evolution of Africa’s imports, by source, 2016$ 140
8.9 Composition of Africa’s exports to the emerging market
economies, 2000–2016 141
8.10 Composition of Africa’s exports to the Global North,
2000–2016 142
8.11 Composition of intra-African trade, 2000–2016 142
8.12 Africa’s declining industrial share of GDP and EME trade
(imports plus exports) 144
9.1 Development finance flows by DAC and IFIs: share per GNI
per capita 150
9.2 Aid for Trade disbursements by region and sector 152
9.3 Share of regional and subregional Aid for Trade 153
9.4 Regional and subregional Aid for Trade disbursements by
region and sector 154
9.5 Regional Aid for Trade to Africa, disbursements by sector 155
9.6 Average GVC participation index by region 1996–2011 160
10.1 The map of situation in Africa in terms of competition law 169
Tables
3.1 Main regional economic integration blocs and free trade agreements
in the Western Hemisphere, 1994 38
4.1 Selected indicators showing development gaps 60
5.1 African country groupings by GNI per capita (2017) and LDC
and SVE status (2018) 73
5.2 Typology of African countries 75
5.3 Flexibilities and Technical Assistance in the Agreement and
Protocols of the AfCFTA 80
5.4 Level of ambition and modalities for tariff liberalization 81
6.1 Overlaps in intra-African RTAs 89
6.2 Overlaps in cross-regional FTAs 90
6.3 Overlapping origin requirements, preferences granted to DRC
and Zambia on copper products 99
6.4 Overlapping origin requirements, SADC and COMESA 103
6.5 Change in tariff heading vs. maximum non-originating material
content requirement 106
6.6 Tariffs faced by DRC, Zambia and Egypt in export market along
the copper value chain 107
6.7 Intra-African overlapping origin regimes 114
6.8 Cross-regional overlapping origin regimes 115
6.9 All overlapping origin regimes 117
8.1 List of emerging market economies 137
8.2 Volatility of exports, by market, 2000–2016 140
8.3 Composition of Africa’s ‘non-extractive’ exports to destination
markets, 3-year average 2014–2016 143
8.4 Composition of Africa’s imports, by analytic groupings, 3-year
average 2014–2016 143