Regionalism and Integration in Africa AFRICAN HISTORIES AND MODERNITIES Series Editors Toyin Falola, University of Texas at Austin Matthew M. Heaton, Virginia Tech Editorial Board Aderonke Adesanya, Art History, James Madison University Kwabena Akurang-Parry, History, Shippensburg University Nana Amponsah, History, University of North Carolina, Wilmington Tyler Fleming, History, University of Louisville Barbara Harlow, English and Comparative Literature, University of Texas at Austin Emmanuel Mbah, History, College of Staten Island Akin Ogundiran, Africana Studies, University of North Carolina, Charlotte This book series serves as a scholarly forum on African contributions to and nego- tiations of diverse modernities over time and space, with a particular emphasis on historical developments. Specifically, it aims to refute the hegemonic conception of a singular modernity, Western in origin, spreading out to encompass the globe over the last several decades. Indeed, rather than reinforcing conceptual boundaries or parameters, the series instead looks to receive and respond to changing perspectives on an important but inherently nebulous idea, deliberately creating a space in which multiple modernities can interact, overlap, and conflict. While privileging works that emphasize historical change over time, the series will also feature scholarship that blurs the lines between the historical and the contemporary, recognizing the ways in which our changing understandings of modernity in the present have the capacity to affect the way we think about African and global histories. Published in the series Contemporary Africa: Challenges and Opportunities (2014) Edited by Toyin Falola and Emmanuel M. Mbah African Postcolonial Modernity: Informal Subjectivities and the Democratic Consensus (2014) By Sanya Osha Building the Ghanaian State: Kwame Nkrumah’s Symbolic Nationalism (2014) By Harcourt Fuller Prisoners of Rhodesia: Inmates and Detainees in the Struggle for Zimbabwean Liberation, 1960–1980 (2014) By Munyaradzi B. Munochiveyi Mugabeism? History, Politics, and Power in Zimbabwe (2015) Edited by Sabelo J. Ndlovu-Gatsheni Indigeneity, Globalization, and African Literature: Personally Speaking (2015) By Tanure Ojaide Governance and the Crisis of Rule in Contemporary Africa: Leadership in Transformation (2016) Edited by Ebenezer Obadare and Wale Adebanwi Regionalism and Integration in Africa: EU-ACP Economic Partnership Agreements and Euro-Nigeria Relations (2016) By Samuel O. Oloruntoba Regionalism and Integration in Africa EU-ACP Economic Partnership Agreements and Euro-Nigeria Relations Samuel O. Oloruntoba REGIONALISM AND INTEGRATION IN AFRICA Copyright © Samuel O. Oloruntoba 2016 Softcover reprint of the hardcover 1st edition 2016 978-1-137-56865-6 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission. In accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 2016 by PALGRAVE MACMILLAN The author has asserted their right to be identifi ed as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire, RG21 6XS. Palgrave Macmillan in the US is a division of Nature America, Inc., One New York Plaza, Suite 4500, New York, NY 10004-1562. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. E-PUB ISBN: 978–1–137–56866–3 ISBN 978-1-349-57097-3 ISBN 978-1-137-56867-0 (eBook) DOI 10.1007/978-1-137-56867-0 Distribution in the UK, Europe and the rest of the world is by Palgrave Macmillan®, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Library of Congress Cataloging-in-Publication Data Oloruntoba, Samuel O. (Samuel Ojo), 1970– author. Regionalism and integration in Africa : EU-ACP economic partnership agreements and Euro-Nigeria relations / Samuel O. Oloruntoba. pages cm. — (African histories and modernities) Includes bibliographical references and index. ISBN 978-1-349-57097-3 (alk. paper) 1. Nigeria—Foreign economic relations—European Union countries. 2. European Union countries—Foreign economic relations—Nigeria. 3. Nigeria—Commercial policy. 4. Africa—Economic integration. 5. Commercial treaties. I. Title. II. Series: African histories and modernities. HF1616.7.Z4E8515 2015 337.1(cid:2)6—dc23 2015018559 A catalogue record for the book is available from the British Library. Contents List of Illustrations vii Preface i x Acknowledgments xiii 1 Regionalism and Integration in Africa: Euro-Nigeria Relations and Economic Partnership Agreements 1 2 Globalization and Regional Trade Agreements 19 3 Theoretical Framework of North-South Regional Trade Agreements 39 4 History of Euro-African Relations: From Yaoundé Convention to Economic Partnership Agreements 69 5 Eurozone Crisis and Its Implications for the Funding of Economic Partnership Agreements 87 6 Economic Partnership Agreements and Their Implications on Macroeconomic Developments in Nigeria 107 7 Economic Partnership Agreements and the Non-Oil Exports in Nigeria 1 23 8 State Capacity and Trade Policy in Nigeria: A Discourse on the EU-ACP Economic Partnership Agreements 147 9 The Political Economy of Regional Integration and Development in Africa: Rethinking Theory and Praxis 163 10 Regionalism or Multilateralism: Building National Competitiveness for Economic Development in Africa 189 References 199 Index 2 19 This page intentionally left blank Illustrations Figures 3.1 Relationship between EU-ACP and fisheries export and non-oil sector in Nigeria 62 6.1 E U-ACP GDP ratio 117 7.1 Relative share of regions in ACP GDP 141 Tables 2.1 Balassa’s market integration model 35 7.1 Trade in fish products, 2003 and 2006–2009 (US$ million) 143 8.1 Indicators of the state’s (or its components) intrinsic characteristic 149 This page intentionally left blank Preface The deadlock in the negotiations of the Doha Development Round in 2007 under the auspices of the World Trade Organization (WTO) has spurred a new resurgence of regionalism and regional integra- tion in different parts of the world. Although regionalism is not a new phenomenon, its current trend seems to have surpassed previ- ous experiences. Whereas the post–World War II international eco- nomic order seeks an open international economic relations through a multi lateral framework and governance, recent developments at the WTO in terms of power plays between developed and emerging economies have more or less reduced the tempo of multilateralism. While an open regime of international trade and investment is still deemed to be an important and necessary requirement for develop- ment both at the core and the periphery of global capitalism, the salience of interests and power between developed and developing countries and the contradictions that these evoke have undermined the role of the WTO. Consequently, countries have resorted to form- ing regional agreements as a second-best option of attaining greater economic cooperation. The current trend toward regionalism manifests both similarities and differences with the first wave of regionalism in the 1960s. For instance, the EU-ACP Economic Partnership Agreements (EPA), which forms the fulcrum of this book, contains both economic and noneconomic issues in the relations between the European Union (EU) and its former colonies in the African, Caribbean, and the Pacific (ACP) group of states. It would appear that developed economic blocs such as the EU and the United States find it easier to secure the con- sent of developing countries for a more open but less mutually ben- eficial international trade and investment regimes through regional trade agreements rather than at the multilateral levels. The lack of enthusiasm that the EU and the United States have shown toward the conclusion of the Doha Development Round and the paradoxical commitment of the duo to launch and conclude a Transatlantic Trade and Investment Partnership bears out this argument. The strong and vocal voices of emerging countries such as China, India, and Brazil