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Treaty establishing the African Economic Community |
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We, the Heads of State and Government of the Member States of the Organization of African Unity (OAU);
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The President of the People’s Democratic Republic of Algeria
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The President of the People's Republic of Angola
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The President of the Republic of Benin
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The President of the Republic of Botswana |
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The President of the Republic of Burkina Faso |
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The President of the Republic of Burundi |
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The President of the Republic of Cameroon |
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The President of the Republic of Cape Verde |
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The President of the Central African Republic |
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The President of the Federal Islamic Republic of the Comoros |
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The President of the People's Republic of Congo |
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The President of the Republic of Cote d'lvoire |
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The President of the Republic of Djibouti |
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The President of the Arab Republic of Egypt |
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The President of the People's Democratic Republic of Ethiopia |
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The President of the Republic of Equatorial Guinea |
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The President of the Republic of Gabon |
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The President of the Republic of the Gambia |
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The President of the Republic of Ghana |
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The President of the Republic of Guinea |
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The President of the Republic of Guinea Bissau |
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The President of the Republic of Kenya |
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The King of Lesotho |
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The President of the Republic of Liberia |
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The Leader of the 1st of September Revolution of the Great Socialist People's Libyan Arab Jamahiriya |
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The President of the Republic of Madagascar |
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The President of the Republic of Malawi |
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The President of the Republic of Mali |
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The President of the Islamic Republic of Mauritania |
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The Prime Minister of the Republic of Mauritius |
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The President of the Republic of Mozambique |
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The President of the Republic of Namibia |
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The President of the Republic of Niger |
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The President of the Federal Republic of Nigeria |
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The President of the Republic of Rwanda |
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The President of Sahrawi Democratic Arab Republic |
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The President of the Republic of Sao Tome and Principe |
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The President of the Republic of Senegal |
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The President of the Republic of Seychelles |
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The President of the Republic of Sierra Leone |
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The President of the Republic of Somalia |
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The President of the Republic of the Sudan |
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The King of Swaziland |
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The President of the United Republic of Tanzania |
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The President of the Republic of Tchad |
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The President of the Republic of Togo |
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The President of the Republic of Tunisia |
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The President of the Republic of Uganda |
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The President of the Republic of Zaire |
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The President of the Republic of Zambia |
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The President of the Republic of Zimbabwe. |
MINDFUL of the principles of international law governing relations between States;
BEARING IN MIND the principles and objectives set forth in the Charter of the Organization of African Unity;
CONSCIOUS of our duty to develop and utilize the human and natural resources of the Continent for the general well-being of our peoples in all fields of human endeavour;
RECOGNIZING the various factors which hinder the development of the Continent and seriously jeopardise the future of its peoples;
HAVING REGARD to the various resolutions and declarations adopted by our Assembly in Algiers in September 1968, in Addis Ababa in August 1970 and May 1973 providing that the economic integration of the Continent is a pre-requisite for the realization of the objectives of the OAU;
HAVING REGARD to our decision taken in Libreville in July 1977 endorsing the Kinshasa Declaration adopted by our Council of Ministers in December 1976 concerning the establishment of an African Economic Community, an objective to be attained in successive stages;
CONSIDERING the ''Monrovia Declaration of Commitment on the Guidelines and Measures for National and Collective Self-reliance in Economic and Social Development for the Establishment of a New international Order” and which, inter-alia, calls for the creation of an African Common Market as a prelude to an African Economic Community;
CONSIDERING FURTHER the Lagos Plan of Action and the Final Act of Lagos of April 1980 reaffirming our commitment to establish, by the year 2000, an African Economic Community in order to foster the economic, social and cultural integration of our continent;
FINALLY CONSIDERING our Declaration made on the occasion of the Twenty-fifth Anniversary of the OAU and, in particular, the reaffirmation of our commitment and our determination to take the necessary steps to accelerate the establishment of the proposed African Economic Community;
NOTING that the efforts already made in sub-regional and regional sectoral economic cooperation are encouraging and justify a larger and fuller economic integration;
NOTING the need to share, in an equitable and just manner, the advantages of cooperation among Member States in order to promote a balanced economic development in all parts of the Continent;
HAVE DECIDED TO ESTABLISH AN AFRICAN ECONOMIC COMMUNITY CONSTITUTING AN INTEGRAL PART OF THE OAU AND HEREBY AGREE AS FOLLOWS:
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“Treaty '' shall mean the present Treaty;
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“Protocol'' shall mean an instrument of implementation of the Treat having the same legal force as the latter;
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''Community “ shall mean the organic structure for economic integration established under Article 2 of this Treaty and constituting an integral part of the OAU;
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''Region'' shall mean an OAU region as defined by Resolution CM/Res.464 (XXVl) of the OAU Council of Ministers concerning the Division of Africa into five (5) regions namely North Africa, West Africa, Central Africa, East Africa and Southern Africa;
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''Sub-region “ shall mean at least three (3) States of one or more regions as defined in paragraph (d) of this Article;
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“Member States” shall mean a Member State of the Community;
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“Third State” shall mean any State other than a Member State;
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“Assembly '' shall mean the Assembly of Heads of State and Government of the OAU as provided for in Articles 7 and 8 of this Treaty;
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''Council” shall mean the Council of Ministers of the OAU as provided for in Articles 7 and 11 of this Treaty;
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“Pan-African Parliament'' shall mean the parliamentary assembly established under Articles 7 and 14 of this Treaty;
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''Commission '' shall mean the Economic and Social Commission of the OAU as provided for under Articles 7 and 15 of this Treaty;
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''Committee '' shall mean any specialized technical committee established under Articles 7 and 25 of this Treaty or in pursuance thereof;
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''Court of Justice '' shall mean the Court of Justice of the Community constituted under Articles 7 and 18 of this Treaty;
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''Secretariat '' shall mean the General Secretariat of the OAU provided for in Articles 7 and 21 of this Treaty;
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''Secretary-General ” shall mean the Secretary-General of the OAU as provided for in Article 23 of this Treaty;
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“Customs Duty" shall mean protective customs duties and charges having equivalent effect, levied on goods for their importation;
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''Export Duties and Taxes '' shall mean export duties and charges having equivalent effect, levied on goods for their exportation;
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''Customs Duties and Taxes '' shall mean all duties and taxes as defined in paragraphs (p) and (q) of this Article;
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“Non- Tariff Barriers” shall mean barriers which hamper trade and which are caused by obstacles other than fiscal obstacles;
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“Intra-Community Trade System'' shall mean the system under which advantages are accorded to the goods referred to in Paragraph 1, Article 33 of this Treaty;
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''Goods in Transit” shall mean goods being transported between two Member States or between a Member State and a third State and passing through one or more Member States;
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“Barter Agreement'' or ''Compensatory Exchanges'' shall mean any agreement under which goods and services imported into a Member State may be paid for in full or in part by direct exchange of goods and services;
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“Fund” shall mean the Solidarity, Development and Compensation Fund of the Community established pursuant to Article 80 of this Treaty;
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''Person" shall mean a natural or legal person.
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For the purpose of this Treaty,
hereby establish among themselves an African Economic Community.
THE HIGH CONTRACTING PARTIES, in pursuit of the objectives stated in article 4, of this Treaty solemnly affirm and declare their adherence to the following principles:
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equality and inter-dependence of Member States;
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solidarity and collective self-reliance;
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inter-state cooperation, harmonization of policies and integration of programmes;
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promotion of harmonious development of economic activities among Member States;
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observance of the legal system of the Community;
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peaceful settlement of disputes among Member States, active cooperation between neighboring countries and promotion of a peaceful environment as a pre-requisite for economic development;
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recognition, promotion and protection of human and peoples' rights in accordance with the provisions of the African Charter on Human and Peoples' Rights; and
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accountability, economic justice and popular participation in development.
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The objectives of the Community shall be:
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to promote economic, social and cultural development and the integration of African economies in order to increase economic self- reliance and promote an endogenous and self-sustained development;
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to establish, on a continental scale, a framework for the development, mobilization and utilization of the human and material resource of Africa in order to achieve a self-reliant development ;
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to promote cooperation in all fields of human endeavour in order to raise the standard of living of African peoples, and maintain and enhance economic stability, foster close and peaceful relations among Member States and contribute to the progress, development and the economic integration of the Continent;
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to coordinate and harmonize policies among existing and future economic communities in order to foster the gradual establishment of the Community.
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In order to promote the attainment of the objectives of the Community as set out in paragraph 1 of this Article, and in accordance with the relevant provisions of this Treaty, the Community shall, by stages, ensure:
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the strengthening of existing regional economic communities and the establishment of other communities where they do not exist;
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the conclusion of agreements aimed at harmonizing and coordinating policies among existing and future sub-regional and regional economic communities;
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the promotion and strengthening of joint investment programmes in the production and trade of major products and inputs within the framework of collective self-reliance ;
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the liberalization of trade through the abolition, among Member States, of Customs Duties levied on imports and exports and the abolition, among Member States, of Non-Tariff Barriers in order to establish a free trade area at the level of each regional economic community;
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the harmonization of national policies in order to promote Community activities, particularly in the fields of agriculture, industry, transport and communications, energy, natural resources, trade, money and finance, human resources, education, culture, science and technology;
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the adoption of a common trade policy vis-a-vis third States;
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the establishment and maintenance of a common external tariff;
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the establishment of a common market;
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the gradual removal, among Member States, of obstacles to the free movement of persons, goods, services and capital and the right of residence and establishment;
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the establishment of a Community Solidarity, Development and Compensation Fund;
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the granting of special treatment to Member States classified as least developed countries and the adoption of special measures in favour of land-locked, semi-land-locked and island countries;
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the harmonization and rationalization of the activities of existing African multi-national institutions and the establishment of such institutions, as and when necessary, with a view to their possible transformation into organs of the community;
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the establishment of appropriate organs for trade in agricultural and cultural products, minerals, metals, and manufactured and semi- manufactured goods within the Community;
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the establishment of contacts and the promotion of information flow among trading organizations such as State commercial enterprises, export promotion and marketing bodies, chambers of commerce, associations of businessmen, and business and advertising agencies;
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the harmonization and coordination of environmental protection policies;
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any other activity that Member States may decide to undertake jointly with a view to attaining the objectives of the Community.
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Member States undertake to create favourable conditions for the development of the Community and the attainment of its objectives, particularly by harmonizing their strategies and policies. They shall refrain from any unilateral action that may hinder the attainment of the said objectives.
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Each Member State shall, in accordance with its constitutional procedures, take all necessary measures to ensure the enactment and dissemination of such legislation as may be necessary for the implementation of the provisions of this Treaty.
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Any Member States which persistently fails to honour its general undertakings under this Treaty or fails to abide by the decisions or regulations of the Community may be subjected to sanctions by the Assembly upon the recommendation of the Council. Such sanctions may include the suspension of the rights and privileges of membership and may be lifted by the Assembly upon the recommendation of the Council.
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The Community shall be established gradually in six (6) stages of variable duration over a transitional period not exceeding thirty-four (34) years.|
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At each such stage, specific activities shall be assigned and implemented concurrently as follows:
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First Stage:
Strengthening of existing regional economic communities and, within a period not exceeding five (5) years from the date of entry into force of this Treaty, establishing economic communities in regions where they do not exist.
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at the level of each regional economic community and within a period not exceeding eight (8) years, stabilizing Tariff Barriers and Non-Tariff Barriers, Customs Duties and internal taxes existing at the date of entry into force of this Treaty; there shall also be prepared and adopted studies to determine the time-table for the gradual removal of Tariff Barriers and Non-Tariff Barriers to regional and intra-Community trade and for the gradual harmonization of |
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Customs Duties in relation to third States; |
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strengthening of sectoral integration at the regional and continental levels in all areas of activity particularly in the fields of trade, agriculture, money and finance, transport and communications, industry and energy; and |
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coordination and harmonization of activities among the existing and future economic communities.
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Third Stage:
At the level of each regional economic community and within a period not exceeding ten (10) years, establishment of a Free Trade Area through the observance of the time-table for the gradual removal of Tariff Barriers and Non-Tariff Barriers to intra-community trade and the establishment of a Customs Union by means of adopting a common external tariff.
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Fourth Stage:
Within a period not exceeding two (2) years, coordination and harmonization of tariff and non-tariff systems among the various regional economic communities with a view to establishing a Customs Union at the continental level by means of adopting a common external tariff.
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Within a period not exceeding four (4) years, establishment of an African Common Market through: |
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the adoption of a common policy in several areas such as agriculture, transport and communications, industry, energy and scientific research; |
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the harmonization of monetary, financial and fiscal policies; |
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the applicof the principle of free movement of persons as well as the provisions herein regarding the rights of residence and establishment; and |
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constituting the proper resources of the Community as provided for in paragraph 2 of Article 82 of this Treaty.
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Sixth Stage:
Within a period not exceeding five (5) years:
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consolidation and strengthening of the structure of the African Common Market, through including the free movement of people, goods, capital and services, as well as, the provisions herein regarding the rights of residence and establishment; |
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integration of all the sectors namely economic, political, social and cultural; establishment of a single domestic market and a Pan-African Economic and Monetary Union; |
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implementation of the final stage for the setting up of an African Monetary Union, the establishment of a single African Central Bank and the creation of a single African Currency; |
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implementation of the final stage for the setting up of the structure of the Pan-African Parliament and election of its members by universal suffrage; |
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implementation of the final stage for the harmonization and coordination process of the activities of regional economic communities; |
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implementation of the final stage for the setting up of the structures of African multi-national enterprises in all sectors; and |
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implementation of the final stage for the setting up of the structures of the executive organs of the Community.
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All measures envisaged under this Treaty for the promotion of a harmonious and balanced development among Member States, particularly, those relating to the formulation of multi-national projects and programmes, shall be implemented concurrently within the time period specified for the attainment of the objectives of the various stages outlined in paragraph 2 of this Article.
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The transition from one stage to another shall be determined when the specific objectives set in this Treaty or pronounced by the Assembly for a particular stage, are implemented and all commitments fulfilled. The Assembly, on the recommendation of the Council, shall confirm that the objectives to a particular stage have been attained and shall approve the transition to the next stage.
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Notwithstanding the provisions of the preceding paragraph, the cumulative transitional period shall not exceed forty (40) years from the date of entry into force of this Treaty.
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The organs of the Community shall be:
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the Assembly of Heads of State and Government;
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the Council of Ministers;
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the Pan-African Parliament;
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the Economic and Social Commission;
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the Specialized Technical Committees.
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The Organs of the Community shall perform their duties and act within the limits of the powers conferred on them by this Treaty.
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The Assembly shall be the supreme organ of the Community.
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The Assembly shall be responsible for implementing the objectives of the Community.
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To this end, it shall:
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determine the general policy and major guidelines of the Community, and give directives, coordinate and harmonize the economic, scientific, technical, cultural and social policies of Member States;
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take any action, under this Treaty, to attain the objectives of the Community;
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oversee the functioning of Community organs as well as the follow-up of the implementation of its objectives;
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prepare and adopt its rules of procedure;
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approve the organizational structure of the Secretariat;
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elect the Secretary-General, his Deputies and, on the recommendation of the Council, appoint the Financial Controller, the Accountant and the External Auditors;
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adopt the Staff Rules and Regulations of the Secretariat;
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on the recommendation of the Council, take decisions and give directives concerning the regional economic communities in order to ensure the realization of the objectives of the Community;
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on the recommendation of the Council, approve the Community’s programme of activity and budget and determine the annual contribution of each Member State;
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delegate to the Council the authority to take decisions in pursuance of Article 10 of this Treaty;
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refer any matter to the Court of Justice when it confirms, by an absolute majority vote, that a Member State or organ of the Community has not honoured any of its obligations or has acted beyond the limits of its authority or has abused the powers conferred on it by the provisions of this Treaty, by a decision of the Assembly or a regulation of the Council;
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request the Court of Justice, as and when necessary, to give advisory opinion on any legal question;
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in carrying out its function hereunder, exercise any other powers granted to it under this Treaty.
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The Assembly shall be assisted by the Council in the performance of its duties.
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The Assembly shall meet once a year in regular session. An extraordinary session may be convened by the Chairman of the Assembly or at the request of a Member State provided that such a request is supported by two –thirds of the members of the Assembly.
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The office of the chairman shall be held every year by one of the Heads of State and Government elected by the Assembly after consultation among Member States.
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The Assembly shall act by decisions.
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Without prejudice to the provisions of paragraph (5) Article 18, decisions shall be binding on Member States and organs of the Community, as well as regional economic communities.
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Decisions shall be automatically enforceable thirty (30) days after the date of their signature by the Chairman of the Assembly, and shall be published in the official journal of the Community.
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Unless otherwise provided in this Treaty, decisions of the Assembly shall be adopted by consensus, failing that, by a two-thirds majority of Member States.
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The Council shall be the Council of Ministers of the OAU.
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The Council shall be responsible for the functioning and development of the community.
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To this end, it shall:
make recommendations to the Assembly on any action aimed at attaining the objectives of the Community;
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guide the activities of the subordinate organs of the Community;
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submit to the Assembly proposals concerning programmes of activity and budget of the Community as well as the annual contribution each Member State;
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propose to the Assembly the appointment of the Financial Controller, the Accountant and the External Auditors .
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prepare and adopt its rules of procedure;
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request the Court of Justice, as and when necessary, to give advisory opinion on any legal questions;
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carry out all other functions assigned thereto under this Treaty and exercise all powers delegated to it by the Assembly.
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The Council shall meet twice a year in Ordinary Session. One such Session shall precede the Ordinary Session of the Assembly. An extra-ordinary Session may be convened by the Chairman of the Council or at the request of a Member State provided that such request is supported by two-thirds of the members of the Council.
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The office of the Chairman of the Council shall be held by the Minister of a Member State elected by the Council after consultations among its members.
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The Council shall act by regulations.
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Without prejudice to the provisions of paragraph (5) of Article 18 of this Treaty, such regulations shall be binding on Member States, subordinate organs of the Community and regional economic communities after their approval by the Assembly. Notwithstanding the foregoing provisions, regulations adopted as aforesaid shall forthwith have a binding effect in the case of delegation of powers by the Assembly pursuant to paragraph 3( j ) of Article 8 hereof.
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Regulations shall be enforceable automatically thirty (30) days after the date of their signature by the Chairman of the Council and shall be published in the official journal of the community.
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Unless otherwise provided in this Treaty, shall be adopted by consensus or, failing that, by two-thirds majority of Member States.
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In order to ensure that the peoples of Africa are fully involved in the economic development and integration of the Continent, there shall be established a Pan-African Parliament.
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The composition, functions, powers and organization of the Pan-African Parliament shall be defined in a Protocol providing thereof.
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The Commission shall be the Economic and Social Commission of the OAU.
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The Commission shall comprise Ministers responsible for economic development, planning and integration of each Member State. They may be assisted, as and when necessary, by other Ministers.
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Representatives of regional economic communities shall participate in meetings of the Commission and its subsidiary organs. The modalities and conditions of their participation shall be prescribed in the protocol concerning relations between the Community and African regional and sub-regional organizations and Third States. Representatives of other organizations may also be invited to participate as observers in the deliberations of the Commission.
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The Commission shall carry out the following functions:
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Prepare, in accordance with the Lagos Plan of Action and the Final Act of Lagos, programmes, policies and strategies for cooperation in the fields of economic and social development among African countries on the one hand, and between Africa and the international community on the other, and make appropriate recommendations to the Assembly, through the Council;
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Coordinate, harmonize, supervise and follow-up the economic, social, cultural, scientific and technical activities of the Secretariat, of the Committees and any other subsidiary body;
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Examine the reports and recommendations of the Committees and submit the same, together with its observations and recommendations to the Assembly, through the Council, and ensure their follow-up;
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Make recommendations to the Assembly, through the Council with a view of coordinating and harmonizing the activities of the different regional economic communities;
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Supervise the preparation of international negotiations, assess the results thereof and report thereon to the Assembly through the Council;
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Carry out all other functions assigned thereto by the Assembly or the council.
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The Commission shall meet at least once a year in Ordinary Session. It may be convened in extraordinary Session either on its own initiative or at the request of the Assembly or the Council.
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The Ordinary Session of the Commission shall be held immediately before the Ordinary Session of the Council preceding the Session of the Assembly and at the same venue of such Session.
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The Commission shall prepare and adopt its rules of procedure.
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A Court of Justice of the Community is hereby constituted.
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The Court of Justice shall ensure the adherence to law in the interpretation and application of this Treaty and shall decide on disputes submitted thereto pursuant to this Treaty.
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decide on actions brought by a Member State or the Assembly on grounds of the violation of the provisions of this Treaty, or of a decision or a regulation or on grounds of lack of competence or abuse of powers by an organ, an authority or a Member State; and |
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at the request of the Assembly or Council, give advisory opinion .
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The Assembly may confer on the Court of Justice the power to assume jurisdiction by virtue of this Treaty over any dispute other than those referred to in paragraph 3(a) of this Article.
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The Court of Justice shall carry out the functions assigned to it independent of the Member States and the other organs of the Community.
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The Decisions of the Court of Justice shall be binding on Member States and organs of the Community.
The statutes, membership, procedures, and of other matters relating to the Court of Justice shall be determined by the Assembly in a protocol relating to the Court of Justice.
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The Secretariat shall be the General Secretariat of the OAU.
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