822 (XXXI). Implementation of the Treaty establishing the African Economic Community

The Conference of Ministers,

            Considering the entry into force on 12 May 1994 of the Abuja Treaty establishing the African Economic Community,

            Further considering the urgent need for accelerating the integration process given the development challenges facing the continent in the context of the globalization of the world economy, the establishment and consolidation of regional and subregional economic blocs in the developed countries and the prospects provided by the outcome of the Uruguay Round Negotiations,

            Recalling that the first phase of the implementation of the Abuja Treaty concerns the strengthening of the regional communities, considered as the building blocks and instruments for achieving the objectives of the African Economic Community,

            Considering also that there is the need for rationalization of economic cooperation and integration in the subregional economic spaces as defined under the Abuja Treaty, and mindful of the inadequacy of financial resources required for the achievement of their objectives,

            Noting the poor results so far realized by the process of rationalizing the institutional mechanisms of those economic cooperation and integration organizations,

            Considering the need to remove the obstacles caused by the existence of several treaties within the same region, particularly in the area of trade liberalization,

            Aware of the limitation of the system of direct contributions from the national budgets of member States as a means of financing the integration process, and of the need to render the integration process more credible and irreversible,

            1.         Urges member States that have not ratified the Abuja Treaty to do so as a matter of urgency;

            2.         Stresses the need for every African country to become a member of a regional or subregional community;

            3.         Requests member States, the regional and subregional communities to:

            (a)        Urgently institute a programme for the rationalization and harmonization of community trade policies through the unification of trade liberalization instruments within each regional space, in particular those relating to:

                     (i)            The elimination of tariff barriers;

                    (ii)            Rules of origin;

                   (iii)            Certificates of origin;

                   (iv)            Compensation mechanisms; and

                    (v)            Tariff and statistical nomenclatures;

            (b)        Sustain and strengthen the regional integration process by adopting appropriate measures for the institution of common external tariffs, domestic taxation and pricing policies susceptible of providing African products a competitive edge in their own markets;

            (c)        Promote and encourage the participation of the private sector in the integration process;

            (d)        Design and implement self-financing mechanisms that will enable the regional and subregional communities to secure adequate and regular financing of the African economic integration process;

            4.         Further requests member States and the regional and subregional communities to design and implement appropriate activities for the harmonization of other sectoral integration policies;

            5.         Invites the Executive Secretary of the Economic Commission for Africa, the Secretary-General of the Organization of African Unity and the President of the African Development Bank to assist the regional and subregional communities in the implementation of the programme for the rationalization and the design of self-financing mechanisms for the integration process, in particular through the conduct of the required substantive studies;

            6.         Requests the United Nations Development Programme and other donors and funding agencies to contribute to the financing of studies and activities identified for the implementation of this programme;

            7.         Welcomes the progress made by some regional communities in the implementation of their programmes and exhorts them to speed up the integration process;

            8.         Invites the Joint Organization of African Unity/Economic Commission for Africa/African Development Bank secretariat to do its utmost to provide a dynamic catalyst for and proper coordination of the activities of the regional and subregional economic communities;

            9.         Calls upon the Joint Organization of African Unity/Economic Commission for Africa/African Development Bank secretariat on the implementation of the Abuja Treaty to expedite the process of preparation of the protocols to be annexed to the Treaty.

                                                                                                                                          301st meeting,

                                                                                                                                             8 May 1996.