Trade links between Europe and Africa so far have been under the COTONOU agreement which gave African, Caribbean and Pacific (ACP) member countries access to the EU markets in order to promote their market competitiveness within the international economy.

The trade was based on non reciprocal preferences. However, the objectives of the preferential terms did not meet the expectations of the ACPs who were recording the diminishing import figures at the international stage. In order to solve this problem, together with the pressure from the WTO[i], the two blocs signed a binding agreement in 2001 in Benin (COTONOU) that launched an Economic Partnership Agreement (EPA) with enthusiastic ACP member countries. It was to be wrapped up in 2007; some countries met the time frame while majority of them signed provisional agreements, others initiated the process in order not to interrupt the trade. However, the trade links between the European Union and African countries through regional groupings, under the framework of Economic Partnership Agreement (EPAs) took effect in most countries in January 2008. It replaces the preferential trade treatment granted by the EU under the Lomé convention and COTONOU agreement. EPA indicates good results to Africa’s regional organizations.

An EPA objective surpasses the normal trade relations between the EU and Africa. They are devised towards creating trade amongst various sub regional blocs in Africa with the purpose of its incorporation within the global economy. There is a great potential in Africa, however the continent has not been doing well in improving inter regional trade because of an overlapping membership in numerous trade agreements.

Regional integration is the principal aim of the EPA deal; its proper implementation will eliminate the intra-regional trade barriers in the existing customs union and free trade agreements. Apart from the Southern African Development Community (SADC), all Africa’s regional arrangements contain internal barriers to trade like limiting rules of origin and other restrictions that hamper trade and safeguard existing businesses.

The EU commenced negotiations with West Africa in October 2003, leading to the implementation of a roadmap in Accra on 4th August 2004 – the negotiations that would permit most of the EU products to gain access to West African market. While the negotiations are still taking place, the EPAs have rejuvenated the reality of regional economic integration. Ken Ukaoha, the President of National Association of Nigerian Traders (NANT), reiterated at the conference held in Abuja in August that before the negotiations went underway, the West African region was in an “apparent comatose” in regards to integration. Not much was happening there apart from fighting and conflict resolution. The negotiations have led to a rising union of member states’ macroeconomic policies, as well as a more developed performance on a common external Tariff.

In the lake region, the East African Community (EAC) EPA framework that has been temporarily signed has facilitated the smooth process of integration within the region. In fact, all the EAC member states have initiated the process. The EAC is now closer to sign the EPA agreement after some of the most contentious issues, for instance, development support halted for about three years was finally ironed out. The EU consented on giving financial support to development programs in East Africa. There has also been a consensus on the development requirements connected with the EPAs in advancing sustained growth, reinforcing integration and promoting structural changes that eventually will augment production in the region.

There has been a considerable development within SADC. Four of its members (Botswana, Lesotho, Mozambique and Swaziland) became a signatory to the interim EPA. This development has resulted in a discussion on the integration projects in the region. However, there lacked consensus in some of the major issues like economic development, export taxes, as well as most favored nations were a drawback in concluding the negotiations.

Implications

Evaluating the impact of EPAs on Africa’s economy is not clear-cut considering the contentious issues that are still under negotiation. The EU is pushing forward the EPA framework in the negotiations which seems to create distress on the impact it will have on Africa’s economy towards poverty eradication, regional integration and economic development.

Under EPA, the EU expects Africa to liberalize a considerable component of their trade through reciprocity, African countries are supposed to lower and remove tariffs up to 80%-98% on its EU import for a period of 12 years[ii]. An assessment done by the United Nations Economic Commission for Africa (UNECA) in 2004 on the implications of EPAs in Africa predicted that the total removal of tariffs on the EU import would provoke public revenue losses in the continent to an average of USD 2.9 billion[iii]. This assessment is especially appalling for ECOWAS that has a fiscal loss of USD 980 million. On the other hand, removing tariffs will create a direct competition between the EU companies and the African domestic producers. Most of African producers will not have the aptitude of competing with the EU import on a reciprocity level due to supply-side constraints. The agricultural sector also will be badly affected due to inexpensive and mostly highly subsidized agricultural commodities in the EU. Moreover, it will pose a negative impact on African countries whose government budgets depend largely on tariff revenues, especially those who import a lot from the EU[iv], hence creating impediment in financing development projects. The end result is that most of African countries will face a constraint in reimbursement for the loss of revenues stimulated by the EPA.

Considering the difference in the structure of African economies and their EU counterparts in regards to intra-regional trade and attainment of integration, the method of reciprocity that is based on EPAs conditions is likely to have its ramifications on Africa’s exports trade and overall economic activities in the continent. On the other hand, African exports that are currently enjoying duty free access to the EU markets and endure supply constraints, will not considerably top up their trade in the EU market, whereas the EU exporters will expand their shares on the African market. Consequently, Africa would probably experience trade imbalances that may lead to a dwindling intra-regional trade at the expense of Africa-EU trade.

EPA has the capability of reorganizing regional organizations’ projects and improves the reliability of regional integration. Conversely, if the existing limitation that results from contradicting and overlying regional trade programs is not adequately tackled prior to African countries implementing EPA, then employing free trade agreement with the EU may lead to destabilizing the progress of regional markets. In a situation where the ongoing negotiations are deemed to fail in countering the development efforts of Africa, another deal must be made in order to maintain persistent access to the EU market.

Africa requires an organization that would provide an ideal economic understanding of significant policy questions to the negotiators. Such organization should create an emphasis on what the agreement is on, for instance, if it is prudent for African countries to open up their markets for competition. Such organization should also present unbiased and consistent information that could result in baffling circumstances. With the ongoing negotiations, it is with high hope that the EPA framework will cater for both the EU and Africa’s economic development.

[i] Preferences to ACP member countries were not commensurate with the "enabling clause" (GATT decision, 1979), that consented preferential treatment of developing countries, as they discriminated among developing countries on the basis of non-objective criteria.

[ii]SADC-EPA are to eliminate tariffs on 86% of imports from EU within 8 years, by 2016; Comoros 98%, Madagascar89.9%, Mauritius 96.6%, Seychelles 97.7% and Zimbabwe 87%, in the East South Africa ESA(ESA) group are to eliminate their duties within 14 years, by 2022. The East African Community are to eliminate duties on 80% of the value of imports within this period and 64% within the first two years of EPA. Ghana is to eliminate duty on 80.5% of the tariff lines within this period and Cote d’Ivoire on 88.7% within the period.

[iii] Regional meeting on Economic Partnership Agreement. 29th September 2005.

http://www.uneca.org/tfed/meetings/mombasa/index.htm

[iv] Most of the COMESA member states largely depends on customs duties for budgetary resources. Countries that suffer the most from the elimination of tariff reductions are Kenya, Sudan, Mauritius, Ethiopia, DRC and Seychelles.

Financial Sector Integration in the East Africa community Region of Sub-Saharan Africa

For most African states, the small scale of national markets constrains financial sector growth and efficiency, contributing to higher costs, a narrowed range of financial product offerings and the exclusion of numerous Africans from formal financial services. African states have long noted the limits imposed by their scale and set various courses on the pathway of economic regionalization, establishing a mosaic of regional agreements and bodies. Each African state is a member of on average four regional agreements relating to trade and/or finance. Making Finance Work for Africa. Regional financial integration, when set within the broader context of the financial sector reform agenda, offers one set of strategies to help unlock the efficiency of scale and market forces of competition.
While Africa has taken some steps toward regional financial integration, many of the benefits seem to be elusive. What aspects of financial sector integrations have the regions attained, and what should be prioritized among that which remains? What financial regulations, infrastructure and instruments should be tapped to deepen the financial sector and drive shared economic growth? Regional economic communities in Africa frequently focus upon the long term goal of a monetary union and prioritize convergence criteria, marginalizing discussions on banking supervision, payment systems, credit information and other pieces in the backbone of financial system. Yet the regionalization of these elements can offer significant gains either in conjunction with or in absence of a monetary union. History also suggests that the timeline achieving monetary union is long, while modest interim steps can advance the larger agenda and be realized in a relatively short timeframe.

NON VIOLENCE AS A WORKING FORCE IN 21st CENTURY

However much we try to attain peace and happiness, the speedy dynamic change in life still leaves us perplexed as to whether there is a likelihood of nonviolence action in this 21st century.
According to Gene Sharp (a political scientist), the politics of nonviolence is based most importantly on the means to successfully attain its goal. That the strategic violence is not passive, neither does it evade conflict. Conflict is unavoidable. Strategic nonviolEnce is basically a way of taking an active part in resisting in order to put agenda across through strategic campaigning using various means of disobedience and disruption.
A few points from the UN on the position of conflicts happening now and the urge for non violent alternatives; In this century, the turn of events have have projected things in different pesrpectives. The height of information technology, the new world order and Economic globalization. Post cold war drastically changed/ and still changing the socio-economic and political environment for better and for worse at the same time. The former being that there has been corresponding opportunities that arises with the change. The later is because there has been incessant risks to human security and freedom. Proliferation number of refugees and the displaced is a living testimony of human rights infringment. The universal declaration ‘vision of all rights for all people in all countries’ since 5 decades a go should be practised since now there are machineries, knowledge and capabilities of reaching for this aspiration.
Regardless of where one is, there is human values that we all expect to have; kindness, universal accountability, open mindedness and considerate. We are obliged to look beneath these characteristics and notice the part every one of us can play in changing the society, the corelation between our mind and actions undertaken and the rapid level of threat and the dread in gearing towards success as a result. Budding up a non-violent intellect becomes a recipe in speeding up the attainement of universal peace. It is a vision that can be reached by a person in a lifespan since it does not command any unique training and can be undertaken on the spot.
Non-violence has beneficial effects to an individual, it attains instant sense of tranquality, diminish intense stress and aggravation, personality and actual competence in yearning to helping others. This approach ,is consequential to a familly, a place of work and to the society at large.
Regarding the turn of events in the contemporary society based on the level of threat and the expression of violence such as civil wars, terrorism, person to person agressions, rape and torture, non violense should be given a first priority. The world is seaching for hope and advancement but appears to be more unsafe than it was before. Since the time of cold war to this century, there has been deadly conflicts, some are internal conflicts and impending disputes between some states. The world is looking for a way of stopping all these.
Even though we have varied experience in our lives, races, tribes, religious doctrines and cultures, we all endevour for a better and happier future regardless of miseries and concern. Everybody has been distressed by the unfolding events in the world. Political analysts have considered 21st century as being bloodier than any other in human history. Our main responsibility now is to change the course of how things have been and resort to nonviolent actions in order to find a lasting solution for peace.
In order to meet this objective, its important to consider the moral foundation of violence and nonviolent action.Non violent action starts from the mind of an individual and creating nonviolence ideology is instrumental in offering us a chance for another hope. Violence however, not only involves physical actions but it also encompasses speech and purpose. Its upon these attributes that we should act on and change the community we live in and the world at large. Violent actions should not be condoned when applied on our perpetrators neither should it be validated when a friend uses it on a common enemy. All in all, it is still violence and it leads to destruction. An action should be taken to prevent the escalation of violent activities such as prejudice, revulsion, inequality,antagonism and religious indoctrination.
The international community has worked together in peacebuilding processes and their work should not be ignored in finding a solution to the conflicts. Indiviuals should also play a bigger role whether in the community based groups or in businessess. Also education and sports are increasingly advancing in acknowledging the process. Multilateral diplomacy is thriving and giving an optimism in acquiring peace.
There is need in checking the way forward so that there can be a shift from violence actions to nonviolent activities and provide a severe deliberation to its perfomance in a commplishing nonviolent community. There are reasons fo this argument; First, it is imperative to discern that violent actions are not skin deep, nobody is born violent, it only starts from the mind of an individual. It lies upon the physical actions and speeches made. However, getting rid of violence in the mind is not an easy option, it involves bravery and fortitude.
Just like mahatma Gandhi said ‘We must be the change we wish to see not the darkness that we wish to leave’.