Report - FES Globalization

1 Report The Continental Free Trade Area (CFTA) in Africa . A Human Rights Perspective 1. Table Of Contents 3. 6. Acronyms and 8. Figures and 9. Executive 10. Chapter I The Continental Free Trade Area in 19. A Introduction to the 19. B The trade landscape in 21. C African regional trade 22. D Boosting intra-African 24. E Development, trade, and human rights commitments in 27. Chapter II The rationale for a human rights impact 32. A Consistency with CFTA objectives and negotiating 32. B An inclusive and just CFTA will be a robust 33. C Human rights provides insights into the distribution effects of the 33. D A human rights impact assessment can usefully inform CFTA negotiation and 37. Chapter III Methodology of this Human Rights Impact 40. A Theory and Practice of 40. B Process of the CFTA 40. C Research 44. Chapter IV The human rights 46. A 46. B General human rights 48. C The right to an Adequate Standard of Living .. 51. D The Right to Work and Social 52. E The Right to 55. F Women's 57.

2 Chapter V Informal Cross-Border Traders .. 61. A 61. B Key 61. C Possible impacts of CFTA on informal cross-border 65. D 72. 1. Chapter VI Small-scale farmers and the right to 82. A 82. B Small-scale farming: key 83. C CFTA provisions likely to affect 84. D Possible impacts of liberalisation on rural food 86. E 95. Chapter VII The right to work and the agro-manufacturing 103. A 103. B Agro-manufacturing in Africa: key 104. C Agricultural trade measures likely to be included in the 104. D Possible impacts of CFTA liberalisation on the Right to 104. E 111. Chapter VIII Ensuring a human rights-consistent negotiating 118. A General 118. B Why encourage 119. C Levels of participation and related 120. D Participation in CFTA 123. E 125. Chapter IX Institutional and Structural 129. A 129. B General 130. C Specific 133. Chapter X Monitoring and 141. A 141. B Who should monitor and evaluate human rights under the CFTA?.. 142. C What should be monitored and evaluated?.. 143. Chapter XI Conclusions and 155.

3 A 155. B Recommendations to CFTA 157. C Recommendations regarding complementary 162. 2. Preface The African Union Assembly launched the continental free trade area negotiations at the 25th Ordinary Summit of Heads of State and Government on 15 June 2015 in Johannesburg, South Africa. This decision marked a significant step towards advancing Africa's regional inte- gration and development agendas. Discussions around the Continental Free Trade Area (CFTA) have paid minimal attention to the important human rights implications of the CFTA, which are likely to be significant. The liberalisation of trade can have differential impacts on various socio-economic groups due to unequal access to assets, credit and economic opportunities. Women and informal cross-bor- der traders face particularly acute challenges to participating in welfare-enhancing trade. Different types of workers can face differential impacts of trade liberalisation, depending on their skill-level or sector of employment. Agricultural trade liberalisation raises particular con- cerns for adverse impacts on agricultural livelihoods and food security.

4 The CFTA offers a window of opportunity for African countries to boost intra-African trade, to diversify, structurally transform, and meet the important human rights objectives and poverty-related goals the continent is committed to under its Agenda 2063 of which the CFTA is a flagship project and the global Agenda 2030. Against this background, the Economic Commission for Africa, the Friedrich-Ebert- Stiftung Geneva office and the Office of the United Nations High Commissioner for Human Rights decided to commission an ex-ante human rights impact assessment of the CFTA. The timing of the assessment is important, because it comes at a time of rising scepticism towards regional integration and trade agreements and rising populist anti-trade attitudes in Europe and in the US. These manifestations of anti-globalisation sentiments have largely been driven by peoples' concerns that the benefits of trade and Globalization have not been fairly distributed. There is a growing effort by civil society and others around the world to scrutinise the details of trade agreements to ensure fairness and equity.

5 As an ex-ante human rights impact assessment initiated during the preparatory period of the CFTA negotiation process, this study provides a unique opportunity to present the findings and analysis during the negotiations and thus to contribute to a positive, robust and human-rights consistent outcome. 3. This human rights impact assessment, like others, advocates for the prioritization of con- cerns of all members of society and their human rights, in the negotiating, drafting and eventual implementation of the CFTA agreement through inclusive, consultative and partici- patory processes. It demonstrates the value of a rights-based approach and the opportunity it provides for meeting the sustainable development goals and strengthening accountability of economic actors. Initial screening and scoping exercises were carried out to narrow the focus of the assessment on the vulnerable groups that are at most likely to be adversely affected by the CFTA women, youth, informal cross-border traders and rural producers.

6 The assess- ment's focus was also narrowed by focussing on the human rights impacts of elements to be covered in the first phase of negotiations liberalisation of trade in goods and services and attaching less attention to investment, competition policy and intellectual property issues which are scheduled for the second phase. Several important messages emerge from the Report . Ensuring broad consultation and participation in the CFTA negotiations and implementation is crucial. This will not be possible without increased efforts by policymakers and negotiators to reach out to all stakeholders and ensure that the voices of vulnerable and marginalised groups are heard and taken into account. Given that governments have obligations to mobilise resources for human rights pur- poses, the full breadth of implications of tariff reductions must be considered with utmost care. Governments should embark on gradual liberalization that allows protection especially for vulnerable groups and in key areas such as food security.

7 This should entail temporary ex- clusion lists and special safeguards which permit limiting imports in times of crisis or against sudden import surges. Economic development is a dynamic process. Member States should be very cautious not to limit their policy space for the future and resist CFTA provisions that could undermine their ability to implement future measures to ensure that all human rights, including the right to development, are protected, respected and fulfilled. Adjustment mechanisms will need to be designed in a range of areas including re-skilling and training, social protection, and short-term financial assistance. The overall impact of the CFTA must be monitored over time, not only in terms of economic results, but also in terms of its impact on the enjoyment of all human rights for all Africans. Ongoing monitoring and evaluation will be key to ensuring that the CFTA policies continue to respond to economic, social and development needs as circumstances change, and adapt when they do not yield human rights- consistent impacts.

8 4. We recommend the analysis and policy messages of this Report to African policy-makers, academia, development partners, civil society, human rights activists and other key stakehold- ers in Africa's quest for human rights consistent regional integration and development. 5. Acknowledgements The production of the Human Rights Impact Assessment of the Continental Free Trade Area was a col- laborative effort by a core team of multi-disciplinary experts made up of Mr. James Thuo Gathii, Ms. Kim- berly Burnett, Mr. Chris Changwe Nshimbi and Ms. Caroline Dommen under the guidance of the United Nations Economic Commission for Africa (ECA) and the Friedrich-Ebert-Stiftung, Geneva office (FES). ECA and FES would like to express their sincere gratitude to all those who contributed to the project and in particular the Food and Agricultural Organization (FAO); the International Labour Organization (ILO). and the United Nations Conference on Trade and Development (UNCTAD). We acknowledge the valuable contribution of OHCHR and its staff members who contributed to this project.

9 In addition, ECA would like to acknowledge the support of Global Affairs Canada to the work of the African Trade Policy Centre. FES. would also like to thank Ms. Monica Iyer for her research assistance throughout this project. An intensive consultative approach was followed in the preparation of the Assessment over a period of some 30 months (2015-2017). While it may not be possible to recognize all those who contributed ide- as at various stages of the project, specific recognition is provided below of the collaborating partners, reviewers, participants at various consultations, interns, students and research assistants. Collaborating Partners Mr. David Luke (ECA); Ms. Lily Sommer (ECA) Mr. William D. Davis (ECA); Ms. Eden Lakew (ECA);. Mr. Yonathan Tadesse (ECA); Mr. Hubert Ren Schillinger (FES Geneva); Ms. Yvonne Theemann (FES. Geneva). Reviewers Working against tight deadlines, the following provided detailed reviews of various aspects of the draft Assessment: Ms. Kim Elliott (CGDEV); Ms.

10 Carla Henry (ILO); Mr. Rashid Kaukab (CUTS International);. Ms. Sophia Murphy (IATP); Ms. Jane Nalunga (SEATINI); Ms. Victoire Umuhire (ILO) and Mr. Christian Viegelahn (ILO). Participants at various consultative meetings and other collaboration Ms. Marren Akatsa-Bukachi (EASSI); Ms. Genzeb Akele (consultant); Mr. Sylvester Bagooro (TWN);. Mr. Koen Berden (World Trade Institute); Ms. Luisa Bernal (UNDP); Ms. Susan Bragdon (QUNO);. Ms. Virginia Bras Gomes (CESCR); Mr. Thomas Braunschweig (Public Eye); Ms. Karen Curtis (ILO);. Mr. Jeronim Capaldo (ILO); Mr. David Cheong (ILO); Mr. Batanai Chikwene (AUC); Mr. Adama Coulibaly (ECA); Ms. Karen Curtis (ILO); Mr. Marco di Bennedetto (EU Delegation to the AU); Mr. Cheng Fang (FAO);. Mr. Patrick Endall (QUNO); Mr. Yordaros Estifanos (ECA); Mr. Lorenzo Fioramonti (University of Pretoria);. Mr. Dauda Foday Suma (AUC); Mr. Abebe Haile Gabriel (AUC); Ms. Misikir Getachew (FES Ethiopia);. Mr. Kebour Ghenna (Pan-African Chamber of Commerce); Mr. Yao Graham (Third World Network).