CRÍA DE Rhipicephalus (Boophilus) microplus (Canestrini) (Acari: Ixodidae):

Regional integration can be a key force for sustainable development.¹ It remains an important economic and political goal in Africa.² It can contribute to economic growth, poverty reduction and social development.³ Many countries view regional integration as a strategy for dealing with the profound effect of globalisation on the political economy of trade.⁴ The profundity lies in its impact at the level of macroeconomic policy and ideology.⁵ It has widened the gap between the rich countries and the poor countries.⁶ Regional integration is believed to increase negotiating capacities, enhance competitiveness in global trade, improve access to foreign technology, and investment, and to help integrate Member States of the relevant regional grouping into the world economy.⁷

1 Draper, Alves & Kalaba South Africa’s International Trade Diplomacy: Implications for regional integration A study conducted for Friedrich Ebert Foundation- Botswana Office (2006) 7, hereafter Draper et al South Africa’s International Trade Diplomacy. The concept of regional integration is not new to Africa: Economic Commission for Africa Assessing regional integration in Africa II: Rationalising regional economic

communities (2006) xiii and Fagbayibo ‘A politico-legal framework for integration in Africa: Explaining the attainability of a supranational African Union’ LLD thesis, University of Pretoria (2010) 224 available at http://upetd.up.ac.za/thesis/available/etd-10092010-143207/unrestricted/00front.pdf (accessed 5 April 2012), hereafter Fagbayibo A politico-legal framework for integration in Africa: Explaining the attainability of a supranational African Union LLD thesis.

2 Venter & Neuland Regional Integration-Economic Partnership Agreements for Eastern and Southern Africa (2007) 10, hereafter Venter & Neuland Regional Integration.

3 Draper et al South Africa’s International Trade Diplomacy 7; Oluwu ‘Regional integration, development and the African Union agenda: Challenges, gaps and opportunities’ (2003)13 Transnat’l L. & Contemp Probs 252, hereafter Oluwu (2003)13 Transnat’l L. & Contemp Probs.

4 Gibb ‘Regional integration and Africa’s development trajectory’ (2009) 30 Third World Quarterly 703, hereafter Gibb (2003)13 Transnat’l L. & Contemp Probs. See also Mukamanana & Moeti ‘Challenges of regional integration in Africa: Policy and administrative implications’ (2005) Journal of Public Administration 91, hereafter Mukamanana & Moeti (2005) Journal of Public Administration; Glenn Globalisation (2007) 81, Glenn Globalisation; Lee The political economy of regionalism in Southern Africa (2003) 7, hereafter Lee The political economy of regionalism.

5 Some governments in Africa such as the post-apartheid government of South Africa have been forced to introduce a range of industrial and macro-economic reforms designed to attract investment from outside the borders. See Magubane ‘Globalisation and the South African Transformation: The impact on social policy’ 49 Africa Today (2002) 89-110, hereafter Magubane49 Africa Today (2002) and Omotola ‘Globalisation, new regionalism and the challenge of development in Africa’ (2010) Africana 117, hereafter Omotola (2010) Africana.

6 Buthelezi Regional Integration in Africa: Prospects and challenges for the 21^st Century (2006) 54.

7 Mistry ‘Africa’s record of regional co-operation and integration’ (2000) 99 African Affairs 554, hereafter Mistry (2000) 99 African Affairs: see also Robson Economic integration in Africa (2011) 12, hereafter Robson

Africa’s regional integration results from postcolonial efforts to develop African economies by integrating them into the global economy.⁸ Many African countries are small as a result of colonial fragmentation.⁹ Some problems that arise from their small size are a narrow resource base, small domestic markets, and the inability to benefit from economies of scale and high transactions costs.¹⁰ Regional integration is expected to combine national markets into a single market which will allow Member States to benefit from, production and trade, economies of scale¹¹ thereby maximising the welfare of their nations.¹² Member States will be able to benefit from the differences in comparative advantage¹³ in the production of commodities.¹⁴ A single market will enhance domestic competition,¹⁵ encourage economic diversification, increase return on investment and will attract more foreign capital and increase employment.¹⁶ Regional integration is, therefore, viewed as Africa’s strategy

Economic integration and United Nations Economic Commission Assessing regional integration in Africa IV:

Enhancing intra-African trade (2010) 1 available at http://www.uneca.org/aria4/ARIA4Full.pdf (accessed 25 January 2013), hereafter UNECA Assessing regional integration in Africa IV.

8 Regional integration is more of a self-reliance mechanism for African countries and an answer to the economic problems that the continent keeps experiencing-: Erasmus & Hartzenberg ‘The Tripartite Free Trade Area-Towards a new African integration paradigm’ in Trade Law Centre for Southern Africa (Tralac) The Tripartite Free Trade Area: Towards a new African integration paradigm? (2012) 9, hereafter Erasmus

& Hartzenberg ‘The Tripartite Free Trade Area-Towards a new African integration paradigm’.

9 Africa ‘… has 47 small economies, with an average Gross Domestic Product (GDP) of US$4 billion, and a combined GDP equal to that of Belgium or 50% of the GDP of Spain’: Kritzinger-van Niekerk ‘Regional integration: Concepts, advantages, disadvantages and lessons of experience’ (May, 2005) available at http://www.sarpn.org/documents/d0001249/P1416-RI-concepts_May2005.pdf (accessed on 15 February 2012), hereafter Kritzinger-van Niekerk ‘Regional integration. Africa has 54 countries and not only 43 as stated by Kritizinger-van Niekerk. See also Robson Economic integration 12 and Venter & Neuland Regional Integration 9.

10 Kritzinger-van Niekerk ‘Regional integration: Concepts, advantages, disadvantages and lessons of experience’ (May, 2005) 1 available at

http://www.sarpn.org/documents/d0001249/P1416-RI-concepts_May2005.pdf (accessed on 15 February 2012). See also Laurent ‘Priorities for small States in global trade governance’ in Birkberk (ed) Making global governance work for development: Perspectives (2011) 229.

11 Economies of scale refer to reductions in unit cost or the cost advantage that an enterprise obtains due to the expansion: Baumol & Blinder Microeconomics: Principles and Policy (2011) 142-143. See also UNECA Assessing regional integration in Africa IV 1. Dlagnekova ‘The need to harmonise trade-related laws within countries of the African Union: An introduction to the problems posed by legal divergence’ (2009) 15-1 Fundamina 1, hereafter Dlagnekova (2009) 15-1 Fundamina. See also UNECA Assessing regional integration in Africa I: Accelerating Africa’s integration (2004) 21 available at

http://new.uneca.org/Portals/aria/aria1/Chap1.pdf (accessed 15 February 2012), hereafter UNECA Assessing regional integration in Africa I.

12 The economies of scale allow enterprises to be able to run their businesses efficiently from a microeconomic point of view: Knoop Recessions and Depressions: Understanding Business Cycles (2010) 29.

13 Comparative advantage refers to the ability of a country to efficiently produce a particular goods or services at a lower cost than others. The underlying principle is that every country must specialise in the production of goods or services in which it has comparative advantage, and trade that good for the other.

14 Robson Economic integration 12.

15 Competition may ultimately force firms to cut prices expand sales and reduce internal inefficiencies: Laurent

‘Priorities for small States in global trade governance’ in Birkberk (ed) Making global governance work for development: Perspectives (2011) 229.

16 Robson Economic integration 12 and Dlagnekova (2009) 15-1 Fundamina 10.

tailored to fight the new realities of a globalised world which are characterised by competition for markets and difficulties in trying to export finished products.¹⁷

The chapter starts by defining key concepts, such as regional integration and regionalism, regionalisation and legal integration with the aim of putting these terms into perspective. The term regional integration itself may mean different things in different countries and at different times.¹⁸ Problems in the definition of regional integration stem from its varying applications and scope. The purpose of regional integration tends to influence its definition.¹⁹ The second part discusses the theories of regional integration with particular emphasis on economic integration. This is because legal integration of trade mark laws, which is the focus of this study, usually takes place within a regional economic grouping: in this case the African common market.²⁰ Economic integration cannot take place without a preceding political process, but economic integration also cannot subsist without a solid legal framework.²¹ Integrated laws are an essential building block of a common market because fragmented laws give rise to uncertainty which in turn discourage trade and investment.²² Supranational legal institutions, such as courts and political institutions play an important role in fostering the integration of laws.²³ Supranational institutions are able to enforce legal norms against and for, Member States and citizens, something that cannot be achieved by the institutions of public international law. Apart from legal integration, the convergence of economic policies is also necessary for integration.²⁴

The third part of the chapter analyses the relationship between regionalism and multilateralism. Multilateralism is essential to regional integration as it enhances coherence

17 Omotola (2010) Africana 109 and Tussies ‘Regionalism: Providing a substance to multilateralism’ in Shaw &

Soderbaum (eds) Theories of new regionalism (2003) 99, hereafter Tussies ‘Regionalism: Providing a substance to multilateralism’.

18 In developed market economies integration is viewed as a means of introducing the most profitable

technologies and a way to foster free and fair competition. For developing countries regional integration is seen as a tool for economic development: Jovanovic International economic integration: Limits and prospects (1998) 8, hereafter Jovanovic International economic integration.

19 An imprecise definition may lead to uncertainty.

20 A common market has no or few barriers between the Member States and also implements a common trade policy towards non-member countries: Venter & Neuland Regional Integration 36.

21 Mancusso ‘Trends on the harmonisation of contract law in Africa’ (2007) 13 Ann. Surv. Int’l & Comp. L.

158, hereafter Mancusso 2007) 13 Ann. Surv. Int’l & Comp. L.. See also chapter 2 part 2.7.

22 Martor, Pilkington, Sellers & Thouvenot Business Law in Africa: OHADA and the harmonisation process (2002) 18, hereafter Martor et al Business Law in Africa.

23 Allot ‘The unification of laws in Africa’ (1965) 16 The American Journal of Comparative Law 85, hereafter Allot (1965) 16 The American Journal of Comparative Law.

24 Burley & Mattli ‘Europe before the court: A political theory of legal integration’ (1993) International Organisation 42, hereafter Burley & Mattli (1993) International Organisation 42.

between national development strategies and global economic processes to ensure growth and development especially in developing countries.²⁵ The interface between regionalism and multilateralism has implications for trade and development in African countries.²⁶ These two phenomena must complement and not undermine each other; divergence may undermine growth.²⁷

The fourth part examines some of the possible obstacles to regional integration in Africa and mechanisms for overcoming them. The central question that arises is: if regional integration is so important why has it not made significant progress in Africa? The thesis draws some lessons from Africa’s past failures since the idea of creating a united African economic bloc started in the Lagos Plan of Action adopted in 1980 by the Organisation of African Unity (OAU).²⁸

The fifth part of the chapter deals with legal integration. This part specifically analyses Organisation for the Harmonisation of Business Laws in Africa’s (OHADA) harmonisation of business laws. The final part is a summary and conclusions.