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Legal Aspects of Economic Integration of West Africa

The historic signing of the African Continental Free Trade Area (AFCFTA) on 21 March 2018 marked a momentums milestone for regional economic integration in Africa. Despite the strong signals of commitment by policy makers and African leaders to regional economic integration, the process faces challenges such as limited energy and infrastructure development, insecurity and violent conflicts, multiple and overlapping membership of Regional Economic Communities (RECs), poor sequencing of the regional integration arrangements and limited financial resources (UN Economic Commission for Africa, Addis Ababa, 2019: Assessing Regional Integration in Africa (Part ix). Regional integration is now widely accepted as indispensable for expanding economic opportunities in Africa. African nations are vigorously pursuing an integration agenda in order to participate effectively in the globalization process. African leaders therefore view regional integration the most direct route to fast, broad-based economic development, an effective way to overcome the limitations of small internal markets and reducing the high rates of poverty and unemployment plaguing the continent. In view of the slow pace of continent-wide integration, African leaders have provided a framework for the implementation of the integration agenda. This framework is enshrined in the Abuja Treaty of 1991, which provides, inter alia, for the establishment of the African Economic Community (AEC), sets out its objectives and lay out six stages for the implementation of the integration agenda. Included in this framework is the critical role of African Regional Economic Communities (RECs), as the building blocks of the AEC in ensuring harmonization of their monetary, financial and payment policies, in order to boost intracommunity trade, establish a common market and to enhance monetary and financial cooperation among Member States. Accordingly, African leaders have firmly committed themselves to accelerating regional integration and cooperation. Underlying this commitment is a belief that most African countries cannot achieve rapid economic growth and development in a reasonable time without first overcoming the constraints of small economies and populations. Of the 54 African countries, 32 have populations of less than 15 million, while one third have populations of 3 million or less. Moreover, of the 46 least developed countries in the world, 31 are in Africa. Thus, the contribution of regional integration and cooperation to the promotion of intra-group trade, growth, development, social and political cohesion is unquestionable. Removal of border controls, harmonization of macroeconomic, sectoral and institutional policies and actions, liberalization of trade, free movement of people, goods, services and capital are expected to result in more efficient use of resources as well as in productivity and income gains. Participating countries are expected to fare better with integration than without it. The productivity gains arising from economies of scale and cost-saving arrangements are also likely to strengthen internal as well as external competitiveness of products and firms. Economic gains in turn are likely to facilitate the process of political and social cohesion and unity. The launching of the African Union (AU) and the adoption of the New Partnership for Africa’s Development (NEPAD), together with the keen interest of African countries become effective members of World Trade Organization (WTO), all attest to the continent’s drive to achieve economic and political integration and avoid global marginalization. It is an embodiment of Africa’s will to accelerate its transformation as a continent of predominantly least developed and developing individual economies. The RECs, like ECOWAS, were expected to evolve into free trade areas, customs union and, through horizontal coordination and harmonization, to culminate a common market and economic union embracing the entire continent. Hence under the leadership of Nigeria and Togo, West African States established the regional Economic Community of West African States (ECOWAS) on 28th May 1975. Under the 1975 ECOWAS Treaty, membership of the Community was open to all West African States, an expression that is not defined by the Treaty. Although the 1993 Revised ECOWAS Treaty requires, among others, the pursuit of economic integration for the realization of the AEC objectives, a movement towards a common market and an economic union, there is however, a huge information deficit in the ECOWAS region, regarding this ambition among Community individual and corporate citizens. While many are cynical about the slow pace of implementation of the regional integration agenda since 1975, others are apprehensive about the possible adverse effects of increased competition for Jobs and markets arising from a further move towards a deeper integration. It is obvious that a much greater effort at public education and sensitization is necessary. It is against this background that this paper seeks to achieve the following objectives: i. To provide conceptual clarification of relevant key terms such as ‘regional, trade, market, monetary and financial economic, integration’, ‘Community law’ and ‘harmonization’ of laws and policies; ii. To examine the nature and scope of the legal regime for regional economic integration in ECOWAS; iii. To underscore the importance of implementation of Treaties and ECOWAS Laws in Member States; iv. And to conclude with the way forward for ECOWAS.