Treaty Establishing The African Economic Community

Treaty Establishing The African Community

Source:

Noting that the efforts already made in sub-regional and regional sectorial economic co-operation are encouraging and justifying a larger and fuller economic integration,

Recognizing the need to share, in an equitable and just manner, the advantages of co-operation among Member States in order to promote a balanced economic development in all parts of the African continent:

DECIDE TO ESTABLISH AN AFRICAN ECONOMIC COMMUNITY Constituting AN INTEGRAL PART OF THE OAU AND HEREBY AGREE AS FOLLOWS:

Chapter I Definitions

Article 1

For the purposes of this Treaty,

(a) "Treaty" shall mean the present Treaty establishing the Community,

(b) "Protocol" shall mean an instrument of implementation of the Treaty having the same legal force as the latter;

(c) "Community" shall mean the organic structure for economic integration established under Article 2 of this Treaty and constituting an integral part of the OAU;

(d) "Region" shall mean an OAU region as defined by Resolution CM/Res.464 (XXVI) of the OAU Council of Ministers concerning the Division of Africa into 5 regions namely, North Africa, West Africa, Central Africa, East Africa and Southern Africa:

(e) "Sub-region" shall mean at least three States of one or more regions as defined, in Article 1(d) of this Treaty

(f) Member State" shall mean a Member State of the Community;

(g) "Third State" shall mean any State other than a Member State;

(h) "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;

(i) "Council" shall mean the Council of Ministers of the OAU as provided for in Articles 7 and 8 of this Treaty;

(j) "Pan-African Parliament" shall mean the Parliamentary Assembly established under Articles 7 and 14 of this Treaty;

(k) "Commission" shall mean the Economic and Social Commission established under Articles 7 and 15 of this Treaty;

(l) "Committee" shall mean any specialized technical committee established under Articles 7 and 25 of this Treaty or in pursuance thereof;

(m) "Court of Justice" shall mean the Court of Justice of the Community set up under Articles 7 and 18 of this Treaty;

(n) "Secretariat" shall mean the General Secretariat of the OAU as provided for in Article 21 of this Treaty;

(o) "Secretary-General" shall mean the Secretary-General of the OAU as Provided for in Article 23 of this Treaty;

(p)"Customs Duty" shall mean the protective customs duties and charges having equivalent effect, levied on goods by virtue of their exportation;

(r) "Export Duties and Taxes" shall mean and taxes as defined above;

(s) "Non-Tariff Barriers" shall mean barriers which hamper trade and which are caused by obstacles other than fiscal charges;

(t) "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;

(u) "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;

(v) "Barter Agreement" or "Compensatory Exchanges" shall mean any agreement under which goods and services imported into a Member State can be paid for in full or in part by direct exchange of goods and services;

(w) "Fund" shall mean the Community's Solidarity, Development and Compensation Fund established pursuant to Article 80 of this Treaty;

(x) "Person: shall mean a natural or legal person.

Chapter II Establishment, Principles, Objectives, General Undertaking and Modalities

Article 2 Establishment of the Community

The High Contracting Parties hereby establish among themselves an African Economic Community (........) hereinafter referred to as "the Community."

Article 3 Principles

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:

1.Equality and inter-dependence of Member States;

2.Solidarity and collective self-reliance;

3.Inter-state co-operation, integration of programmes and harmonization of policies;

4.Promotion of harmonious development of economic activities among Member States;

5.Respect for the legal system of the Community;

6.Peaceful settlement of disputes among Member States, active co- operation between neighbouring countries and promotion of peaceful environment as a prerequisite for economic development;

7.Respect, promotion and protection of human and peoples' rights in accordance with the provisions of the African Charter on Human and Peoples' Rights;

8.Accountability, economic justice and popular participation in development.

Article 4 Objectives

1.The objectives of the Community shall be:

(a) 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 community;

(b) to establish on a continental scale, a framework for the development, mobilization and utilization of the human and material resources of Africa in order to achieve a self-reliant development;

(c) to promote co-operation in all fields of human endeavour in order to raise the standard of living of its peoples, and maintain and enhance economic stability, foster close and peaceful relations among Member States and contribute to the progress, development and economic integration of the African continent;

(d) to co-ordinate and harmonize policies among existing and future economic communities in order to foster the gradual establishment of the African Economic Community.

2.In order to promote the attainment of the Community objectives as set out in paragraph 1 above, and in accordance with the relevant provisions of this Treaty, the Community shall, by stages, ensure:

(a) the strengthening of existing regional economic communities and the establishment of other communities where they do not exist;

(b) the conclusion of agreements aimed at harmonizing and co- ordinating policies among existing and future sub-regional and regional economic communities;

(c) 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;

(d) the liberalization of trade through the abolition, among Member States, of Customs Duties and any other charges having equivalent effect levied on imports and exports and the abolition, among Member States, of Non-Tariff Barriers so as to establish a free trade area at the level of each regional economic community;

(e) 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;

(f) the adoption of a common trade policy vis-a-vis third States;

(g) the establishment and maintenance of a common external tariff;

(h) the establishment of a Common Market;

(i) 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;

(j) the establishment of a Community Solidarity, Development and Compensation Fund;

(k) the granting of special treatment to and the adoption of special measures in favour of land-locked, semi-land-locked and island countries and/or those classified as Least Developed Countries;

(l) the harmonization and rationalization of the activities of existing African multi-national institutions and the establishment of new ones, if necessary, with a view to their possible transformation into organs of the Community;

(m) the establishment of appropriate organs for the exchange of agricultural and cultural products, minerals and metals, manufactured and semi-manufactured goods within the Community;

(n) 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, business and advertising agencies;

(o) the harmonization and co-ordination of environmental protection policies;

(p) any other activity that Member States may decide to undertake jointly with a view to attaining Community objectives.

Article 5 General Undertaking

1.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.

2.Each Member State shall, in accordance with its constitutional procedures, take all necessary measures to ensure the adoption and dissemination of such legislation as may be necessary for the implementation of the provisions of this Treaty;

3.Any Member State which persistently fails to honour its general undertaking 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.

Article 6 Modalities for the Establishment of the Community

1.The Community shall be gradually established over a transitional period, not exceeding 34 years sub-divided into six 6 stages of variable duration.

2.At each stage, specific activities shall be assigned and implemented concurrently as follows:

(a) First Stage:Strengthening of existing regional economic communities and, within a period not exceeding 5 years from the date of entry into force of this Treaty, establishing economic communities in regions where they do not exist;

(b) Second Stage:

(i)at the level of each regional economic community and within a period not exceeding 8 years, stabilization of tariff barriers, customs duties and all other charges having equivalent effect and internal taxes existing at the date of entry into force of this Treaty. There shall also be preparation and adoption of studies to determine the time- table for the gradual removal of tariff and non-tariff barriers to regional intra-community trade, and for the gradual harmonization of customs duties and charges having equivalent effect in relation to third States;

(ii) 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;

(iii) co-ordination and harmonization of activities among the existing and future economic communities;

(c) Third Stage:At the level of each regional economic community and within a period not exceeding 10 years, establishment of free trade area through the application of the time-table for the gradual removal of tariff and non-tariff barriers to intra-community trade and the establishment of a customs union through the adoption of a common external tariff;

(d) Fourth Stage: Within a period not exceeding 2 years, co- ordination and harmonization of tariff and non-tariff systems among the different regional economic communities with a view to establishing a customs union at the continental level through the adoption of a common external tariff;

(e) Fifth Stage:Within a period not exceeding 4 years, establishment of an African Common Market through the:

(i)adoption of a common policy in a number of areas such as agriculture, transport and communications, industry, energy and scientific research;

(ii) harmonization of monetary, financial and fiscal policies;

(iii) application of the principle of free movement of persons, right of residence and establishment;

(iv) creation of the Community's own resources as provided for in Article 82, paragraph 2.

(f) Sixth Stage;Final stage for the establishment of the Community within a period not exceeding 5 years:

(i)consolidation and strengthening of the African Common Market structure; free movement of people, goods, capital and services, right of residence and establishment;

(ii) integration of all the sectors: economic, political, social and cultural; establishment of a single domestic market and a Pan-African Economic and Monetary Union;

(iii) final stage for the setting up of an African Monetary Union, the establishment of an African Central Bank and the creation of a single African Currency;

(iv) final stage for the setting up of structure of the Pan- African Parliament and election of its members by Continental Universal Suffrage;

(v)final stage for the harmonization and co-ordination of the activities of regional economic communities;

(vi) final stage for the setting up of the structures of African multi-national enterprises in all sectors;

(vii) final stage for the setting up of the structure of the executive organs of the Community.

3.All measures envisaged under this Treaty for the promotion of a harmonious and balanced development among Member States, particularly, the formulation of multi-national projects and programmes, shall be implemented at the same time as the objectives of the various stages outlined above are realized.

4.The transition from one stage to another shall be determined when the specific objectives laid down in this Treaty or 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 assigned to a particular stage have been attained and shall approve the transition to the next stage.

5.Notwithstanding the provisions of the preceding paragraph,the total transitional period shall not exceed 40 years from the date of entry into force of this Treaty.

Chapter III Organs of the Community

Article 7 Organs

1.The Organs of the Community shall be:

(a) the Assembly of Heads of State and Government; (b) the Council of Ministers; (c) the Pan-African Parliament; (d) the Economic and Social Commission; (e) the Court of Justice; (f) the General Secretariat; (g) the Specialized Technical Committees provided for under this Treaty or established in pursuance thereof.

2.The Organs of the Community shall perform their duties and act within the limits of the powers conferred on them by this Treaty.

The Assembly of Heads of State and Government

Article 8 Composition and Powers

1.The Assembly of Heads of State and Government of the Organization of African Unity shall be the supreme organ of the Community.

2.The Assembly shall be responsible for implementing the objectives of the Community.

To this end, it shall:

(a) determine the general policy and major guidelines of the Community, and give directives, co-ordinate and harmonize the economic, scientific, technical, cultural and social policies of Member States;

(b) take any action, under this Treaty, to attain the objectives of the Community;

(c) oversee the functioning of Community organs as well as the follow-up of the implementation of its objectives;

(d) prepare and adopt its Rules of Procedure;

(e) approve the organizational structure of the Secretariat;

(f) elect the Secretary-General, his Deputies and, on the recommendation of the Council, appoint the Financial Controller, the Accountant and the External Auditors;

(g) adopt the Staff rules and Regulations of the Secretariat;

(h) take decisions and give directives concerning the regional economic communities in order to ensure the realization of the objectives of the Community;

(i) on the recommendation of the Council, approve the Community's programme of activity and budget and determine the annual contribution of each member State;

(j) delegate to the Council the authority to take decisions;

(k) 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 misused the powers conferred on it by the provisions of this Treaty, a decision of the Assembly or a regulation of the Council;

(l) request the Court of Justice to give any advisory opinion on any legal question.

4.The Assembly shall exercise any other powers granted to it under this Treaty.

5.The Assembly shall be assisted by the Council in the performance of its duties.

Article 9 Organization

1.The Assembly shall meet once a year in regular session. An extra- ordinary session may be convened by its Chairman or at the request of a Member State provided that such a request is supported by two-thirds of the Assembly Members.

2.The Office of the Chairman shall be held every year by one of the Heads of State and Government after consultations among Member States.

Article 10 Decisions

1.The Assembly shall act by decisions.

2.Without prejudice to the provisions of Article 18, decisions shall be binding on Member States and organs of the Community, as well as regional economic communities.

3.The decisions shall automatically enter into force 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.

4.Unless otherwise specified in this Treaty, decisions of the Assembly shall be adopted by consensus or alternatively by a two- thirds majority of Member States.

The Council of Ministers

Article 11 Composition and Powers

1.The Council of Ministers shall be the Council of Ministers of the OAU.

2.The Council shall be responsible for the functioning and development of the Community.

3.For this purpose, it shall:

(a) make recommendations to the Assembly on any action aimed at attaining the objectives of the Community;

(b) guide the activities of the other subordinate organs of the Community;

(c) submit the draft programmes of activity an budget of the Community to the Assembly and propose to the Assembly the annual contribution of each Member State;

(d) propose the appointment of the Financial Controller, the Accountant and the External Auditors to the Assembly;

(e) prepare and adopt its Rules of Procedure;

(f) exercise any powers granted to it under this Treaty and any powers delegated to it by the Assembly;

(g) request the Court of Justice to give any advisory opinion on any legal matter, if necessary.

Article 12 Organization

1.The Council shall meet twice a year in regular session. One such session shall precede the regular 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 two-thirds of its members approve.

2.The office of the Chairman of the Council shall be held by the Minister of a Member State elected after consultations among its members.

Article 13 Regulations

1.The Council shall act by regulations.

2.Without prejudice to the provisions of Article 18 (5) of this Treaty, the regulations of the Council shall be binding on Member States, subordinate organs of the Community and regional economic communities after their approval by the Assembly. However, these regulations shall be binding automatically in the case of delegation of powers by the Assembly.

3.The regulations shall enter into force 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.

4.Unless otherwise stated in this Treaty, the regulations shall be adopted by consensus or, failing that, by two-thirds majority of Member States.

Article 14 The Pan-African Parliament

1.In order to ensure that the peoples of Africa are fully involved in the development and integration of the Continent, there shall be established a Pan-African Parliament as an organ of the Community.

2.The composition, functions, powers and organization of the Pan- African Parliament shall be defined in a Protocol annexed to this Treaty.

Article 15 Economic and Social Commission Establishment, Composition and Participation

1.An Economic and Social Commission of the Community is hereby established.

2.The Economic and Social Commission shall comprise Ministers responsible for Economic Development, Planning and Integration of each Member State. They may be assisted, if necessary, by other Ministers.

4.The representative of regional economic communities shall participate in the meetings of the Commission and its subsidiary organs. The modalities and conditions of their participation shall be governed by the Protocol annexed to this Treaty on relations between the Community and African regional and sub-regional organizations and third States. Representatives of other organizations may also be invited to participate in the deliberations of the Commission as observers.

Article 16 Powers

The Commission shall carry out the following functions:

(a) Prepare, in accordance with the spirit of the Lagos Plan of Action and the Final Act of Lagos, programmes, policies and strategies for co-operation 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 recommendations to the Assembly, through the Council;

(b) Co-ordinate, harmonize and supervise the economic, social, cultural, scientific and technical activities of the Secretariat, the specialized technical committees and any other subsidiary body, and ensure their follow-up.

(c) Examine the reports and recommendations of the specialized technical committees and submit them together with its observations and recommendations to the Assembly, through the Council;

(d) Make recommendations to the Assembly, through the Council, with a view to co-ordinating and harmonizing the activities of the different regional economic communities;

(e) Supervise the preparation of international negotiations, assess the results thereof and report thereon to the Assembly through the Council;

(f) Undertake any other assignment which may be entrusted to it by the Assembly or the Council.

Article 17 Organization

1.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.

2.The ordinary session of the Commission shall be held immediately before the Council meeting preceding the Assembly session.

3.The Commission shall prepare and adopt its Rules of Procedure.

Court of Justice

Article 18 Establishment and Powers

1.A Court of Justice of the Community is hereby established.

2.The Court of Justice shall ensure the adherence to law in the interpretation and application of this Treaty and shall decide on disputes submitted to it under this Treaty.

3.The Court of Justice shall:

(a) decide on actions brought by a Member State or the Assembly on the grounds of the infringement of the provisions of this Treaty, a decision, a regulation or on grounds of lack of competence or abuse of powers;

(b) give advisory opinion on any legal matters at the request of the Assembly or Council.

4.Powers to deal with other disputes may be granted to the Court by the Assembly, by virtue of this Treaty.

5.The Court of Justice shall carry out the functions assigned to it independent of the Member States and the Community organs.

Article 19 Decisions of the Court

The Decisions of the Court of Justice shall be binding on Member States and organs of the Community.

Article 20 Organization

The membership, procedures, statutes and other matters relating to the Court shall be determined by the Assembly.

General Secretariat

Article 21 Establishment and Composition

1.The General Secretariat of the Organization of African Unity shall be the Secretariat of the Community.

2.The Secretariat shall be headed by the Secretary-General assisted by the necessary staff for the smooth running of the Community.

Article 22 Secretary-General and his Powers

1.The Secretary-General shall direct the activities of the Secretariat and shall be its legal representative.

2.The duties of the Secretary-General shall be:

(a) to implement the decisions of the Assembly and the regulations of the Council;

(b) to promote development programmes and projects of the Community;

(c) to prepare the draft programme of action and the draft budget of the Community and have it implemented;

(d) to submit a report on Community activities to all Assembly, Council and Commission meetings;

(e) to prepare and service Assembly, Council, Commission and Committee meetings;

(f) to carry out studies with a view to attaining the objectives of the Community and to make proposals likely to enhance the functioning and harmonious development of the Community. To this end, he may request Member States to supply him with all necessary information.

(g) to recruit the staff of the Community and make appointments to all posts except those specified in Article 8, paragraph 3 (f) of this Treaty.

Article 23 Appointments

1.The Secretary-General and his assistants shall be appointed by the Assembly in conformity with the relevant provisions of the OAU Charter and the Rules of Procedure of the Assembly.

2.The Financial Controller and the Accountant shall be appointed by the Assembly for a term of four years renewable once only.

Article 24 Relations between the Staff of the Community and Member States

1.In the performance of their duties, the Secretary-General and his Assistants, the Financial Controller, the Accountant and the staff of the Community shall be responsible only to the Community. Accordingly, they shall neither seek not accept instructions from any Government or any national or international authority outside the Community. They shall refrain from any conduct incompatible with the nature of their status as international officers.

2.Every Member State undertakes not to influence the staff of the Community in the performance of their duties and to respect the international character of the duties of the Secretary-General, his Assistants, Financial Controller, Accountant and any other officer of the Community.

3.Member States shall co-operate with the Secretariat and other organs of the Community and assist them in the discharge of their responsibilities under this Treaty.

Article 25 Specialized Technical Committees Establishment and Composition

1.The following specialized technical Committees are hereby established:

(a) The Committee on Rural Economy and Food;

(b) the Committee on Financial and Monetary Affairs;

(c) The Committee on Trade, Customs and Immigration;

(d) The Committee on Industry, Science and Technology, Energy, Natural Resources and Environment;

(e) The Committee on Transport, Communications and Tourism;

(f) The Committee on Health, Labour and Social Affairs;

(g) The Committee on Education, Culture and Human Resources.

2.Should it be deemed necessary, the Assembly shall decide, at any time, to establish new Committees.

3.Each Committee shall comprise a representative from each Member State. These representatives may be assisted by advisors.

4.Should it be deemed necessary, each Committee may establish sub- committees to assist it in its work, and shall determine their composition.

Article 26 Powers

Each Committee shall:

(a) prepare Community projects and programmes falling within its competence and submit them to the Commission;

(b) ensure the supervision, follow-up and the evaluation of the implementation of decisions of the Community in its field of competence;

(c) ensure the co-ordination and harmonization of Community projects and programmes in its field;

(d) submit to the Commission, either on its own initiative or at the request of the Commission, reports and recommendations on the implementation of the provisions of this Treaty, within its area of competence;

(e) carry out any other functions assigned to it with a view to ensuring the implementation of this Treaty.

Article 27 Organization

1.Subject to the directives given by the Commission, each Committee shall meet as often as necessary and shall prepare its Rules of Procedure and submit them to the Commission for approval.

Chapter IV Regional Economic Communities

Article 28

1.During the First Stage, Member States shall strengthen the existing regional economic communities and establish new ones where they do not exist in order to ensure the gradual establishment of the community.

2.Member States shall take all necessary measures aimed at progressively promoting increasingly closer co-operation among the communities, particularly through the co-ordination, harmonization and integration of their activities in the priority areas/sectors in order to ensure the realization of Community objectives.

Chapter V Customs Union and Liberalization of Trade

Article 29 Customs Union

Member States of each regional economic community agree to progressively establish among them during a transitional period, as specified in Article 6 of this Treaty, a Customs Union involving:

(a) the elimination, among Member States of each Community, of customs duties and charges having equivalent effect, quota restrictions, other restrictions or prohibitions and administrative trade barriers, as well as all other non-tariff barriers;

(b) the adoption, by Member States, of a common external customs tariff.

Article 30 Elimination of Customs Duties among Member States in each Regional Economic Community

1.During the Second Stage, Member States of each regional economic community shall refrain from establishing any new customs duties and other charges having equivalent effect and form increasing those that apply in their mutual trade relations.

2.During the Third Stage, Member states shall progressively reduce and finally eliminate among them, at the level of each regional economic community, customs duties and other charges having equivalent effect in accordance with a programme and modalities to be determined by each regional economic community.

3.During each Stage, the Assembly, on the recommendation of the Council, shall take the necessary measures with a view to co- ordinating and harmonizing the activities of the regional economic communities relating to the elimination of customs duties and charges having equivalent effect among Member States.

Article 31 Elimination of Non-Tariff Barriers to Intra-Community Trade

1.At the level of each regional economic community and subject to the provisions of the Treaty, each Member State, upon the entry into force of this Treaty, shall progressively relax and ultimately remove quota restrictions, and all other non-tariff barriers and prohibitions in force which apply to the exports to that State, of goods originating in the other Member States, at the latest, by the end of the Third Stage and in accordance with paragraph 2 of this Article. Except as may be provided or permitted by this Treaty, each Member shall refrain thereafter from imposing any further restrictions or prohibitions on such goods.

2.Subject to the provisions of this Treaty, each regional economic community shall adopt a programme for the progressive relation and ultimate elimination, at the latest by the end of the Third Stage, of all quota restrictions and prohibitions and all other non-tariff barriers which apply in a Member State, to imports originating in the other Member States, provided that each regional economic community may subsequently decide that all the quota restrictions and prohibitions be relaxed more rapidly or removed earlier than laid down in this paragraph.

3.The special provisions on restrictions, prohibitions, quota restrictions, dumping, subsidies and discriminatory practices shall be the subject of a Protocol on Non-Tariff Trade Barriers annexed to this Treaty.

Article 32 Establishment of a Common External, Customs Tariff

1.During the Third Stage, Member states shall, at the level of each regional economic community, agree to the gradual establishment of a common external customs tariff applicable to goods imported into Member States from third States.

2.During the Fourth Stage, regional economic communities shall, in accordance with a programme drawn up by them eliminate differences between their respective external customs tariffs.

3.During that Stage, the Council shall propose to the Assembly the adoption, at Community level, of a common customs and statistical nomenclature for all Member States.

Article 32 System of Intra-Community Trade

1.At the end of the Third Stage, no Member State of the regional economic communities shall levy customs duties and other charges having equivalent effect on goods originating in one Member States and imported into another Member State. The same shall apply to goods coming from third States which are in free circulation in Member States and are imported from one Member State into another.

2.The definition of the notion of products originating in Member States and the rules governing foods coming from a third State and which are in free circulation in Member States shall be governed by a Protocol annexed to this Treaty [not reproduced].

3.Goods coming from third States shall be considered to be in free circulation in a Member State if the import formalities relating to them have been complied with, and customs duties and other charges having equivalent effect have been paid in that Member State and, if they have not benefitted from a partial or total exemption from such duties.

3.Member States shall not adopt legislation implying direct or indirect discrimination against identical or similar products of other Member States.

Article 34 Internal Taxes

1.During the Third Stage, Member States shall not levy, directly or indirectly on goods originating in Member States and imported into any Member State, internal taxes in excess of those levied on similar domestic products.

2.Member States, at the level of each regional economic community, shall progressively eliminate any internal taxes levied for the protection of domestic products. Where by virtue of obligations under a prior agreement signed by a Member State such State is unable to comply with this Article, the member State shall notify the Council of this fact and shall not extend or renew the agreement when it expires.

Article 35 Exception and Safeguard Clauses

1.Notwithstanding the provisions of Articles 30 and 31 of this Treaty, any Member State, having made its intention known to the Secretariat of the Community, shall be free to impose or continue to impose restrictions of prohibitions affecting:

(a) the application of security laws and regulations;

(b) the control of arms, ammunition and other war equipment and military items;

(c) the protection of human, animal or plant health or life or the protection of public morality;

(d) export of strategic minerals and precious stones;

(e) the protection of national treasures of artistic or archaeological value or the protection of industrial, commercial and intellectual property;

(f) the control of hazardous wastes, nuclear materials, radio-active products or any other material used in the development of exploitation of nuclear energy;

(g) protection of infant industries;

(h) the control of strategic products;

(i) goods imported from a third country to which a Member State applies total prohibition relating to country of origin.

2.However, such prohibitions or restrictions shall in no case be a means of arbitrary discrimination or a disguised restriction on trade between Member States.

3.If a Member State encounters balance-of-payments difficulties arising from the application of the provisions of this Chapter, that State may be allowed by the relevant institutions of the Community, provided that it has taken reasonable steps to overcome the difficulties, for a period to be determined by the appropriate organs of the Community, to impose, for the sole purpose of overcoming such difficulties, quantitative or similar restrictions or prohibitions on goods originating in the other Member States.

4.For the purposes of protecting an infant or strategic industry, a Member State may be allowed by the relevant institutions of the Community, provided it has taken all reasonable and necessary steps to protect such industry, to impose for the sole purpose of protecting such industry, for a specific period to be determined by the Community, quantitativeor similar restrictions or prohibitions, on similar goods originating in the other Member States.

5.When the imports of a particular product by a Member State from another Member State increase in a way that causes or is likely to cause serious damage to the economy of the importing state, the latter may be allowed by the relevant institutions of the Community to apply safeguard clauses for a given period.

6.The Council shall keep under review the operation of any quantitative or similar restrictions or prohibitions imposed under paragraphs 1, 3 and 4 of this Article and shall take appropriate action in this connection. It shall report every year on these matters to the Assembly.

Article 36 Dumping

1.Member States shall prohibit the practice of "dumping" within the Community.

2.For the purposes of this Article, "dumping" shall mean the transfer of goods originating from a Member State to another Member State to be sold:

(a) at a price lower than the usual price offered for similar goods in the Member State from which those goods come, due account taken of the differences in conditions of sale, taxation, transport expenses or any other factor affecting the comparison of process;

(b) in conditions likely to undermine the manufacture of similar goods in the Member State.

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(iv) develop an intra-community trade information network, linking the computerized trade information, systems of existing and future regional economic communities and individual Member States of the Community;

(v)with the assistance of the Secretariat, study the supply and demand patterns in Member States and disseminate the findings within the Community.

(b) South-South Trade

(i)promote the diversification of Africa's markets and the marketing of Community products;

(ii) participate in extra-Community trade fairs, especially within the context of South-South Co-operation;

(iii) participate in extra-Community trade and investment fora.

2.Details for the organization of the Community's trade promotion activities and trade information systems shall be governed by a Protocol annexed to this Treaty [not reproduced].

Chapter VI Free Movement of Persons, Right of Residence and Establishment

Article 43

1.Member States agree to adopt, individually, at bilateral or regional levels, the necessary measures, in order to attain progressively the free movement, right of residence and establishment of their nationals within the Community.

2.For this purpose, Member States agree to conclude a Protocol on the Free Movement of Persons, Right of Residence and Establishment, annexed to this Treaty.

Chapter VII Money, Finance and Payments

Article 44

1.In accordance with the pertinent Protocols annexed to this Treaty, Member States shall, within a time-table to be determined by the Assembly, harmonize their monetary, financial and payments policies, in order to boost intra-community trade in goods and services, to further the attainment of Community objectives and to improve monetary and financial co-operation among them.

2.For this purpose, Member States shall:

(a) use their national currencies in the settlement of commercial and financial transactions among them so as to reduce the use of external currencies in their mutual transactions;

(b) establish appropriate mechanisms for the setting up of multilateral payments systems;

(c) consult regularly among themselves on monetary and financial matters;

(d) promote the establishment of national, regional and sub-regional money markets through the co-ordinated establishment of stock markets and the harmonization of legal texts governing existing ones to make them more effective;

(e) co-operate effectively in the fields of insurance and banking;

(f) further the liberalization of payments and the elimination of any possible restrictions among them and promote the integration of all existing payments and clearing mechanisms among the different regions into an African Clearing and Payments House;

(g) establish an African Monetary Union through the harmonization of regional monetary zones.

Article 45 Movement of Capital

1.Member States shall ensure the free movement of capital within the Community by eliminating restrictions on the transfer of capital funds between Member States in accordance with a time-table to be determined by the Council.

2.The capital funds referred to in paragraph 1 above are those which belong to either Member States or their natural or legal persons.

3.As far as capital funds, other than those referred to in paragraph 2 of this Article, are concerned the Assembly, taking into account the development objectives of national, regional and continental plans, and upon the recommendation of the Commission and after the approval of the Council, shall decide on the conditions for their movement within the Community.

4.With regard to the movement of capital between Member States and Third States, the Assembly, upon the recommendation of the Commission and after the approval of the Council, shall take steps towards the progressive co-ordination of national and regional exchange control policies.

Chapter VIII Food and Agriculture

Article 46

1.Member States shall co-operate in the fields of agriculture, forestry, livestock and fisheries development. The aims of this co- operation are:

(a) to ensure food security;

(b) to increase production and productivity in agriculture, livestock, fisheries and forestry, as well as improve conditions of work and generate employment opportunities in rural areas;

(c) to enhance agricultural production by locally processing animal and plant products;

(d) to protect the prices of export commodities on the international market by establishing an African Commodity Exchange.

2.To this end, and in order to promote the integration of production structures, Member States shall co-operate in the following fields:

(a) production of agricultural inputs, fertilizers, pesticides, selected seeds, agricultural machinery and equipment and veterinary products;

(b) development of river and lake basins;

(c) development and protection of marine and fishery resources;

(d) plant and animal protection;

(e) harmonization of agricultural development strategies and policies at regional and Community levels, especially as they relate to production, trade and marketing of major products and imputs;

(f) harmonization of food security policies in order to ensure:

(i)reduction of losses in food production;

(ii) strengthening of existing institutions for the management of natural calamities, agricultural diseases and pest control;

(iii) conclusion of regional and continental agreements on food security;

(iv) provision of food aid to assist member States in case of serious food shortage;

(v)protection of regional and continental markets primarily in favour of African agricultural products.

Article 47

For the purposes of this Chapter, Member States shall co-operate in pursuance of the Protocol on Food and Agriculture annexed to this Treaty.

Chapter IX Industry, Science, Technology, Energy Natural Resources and Environment

Article 48 Industry

1.For their industrial development and the integration of their economies, Member States shall harmonize their industrialization policies within the Community.

2.In this connection, they shall:

(a) strengthen the industrial base within the Community, in order to modernize the priority sectors and foster self-sustained and self- reliant development;

(b) promote joint industrial development projects at regional and Community levels, African multinational enterprises in priority industrial sub-sectors likely to contribute to the development of agriculture, transport and communications, natural resources and energy.

Article 49

In order to create a solid basis for the industrialization process and promote collective self-reliance, Member States shall:

(a) ensure the development of the following basic industries essential for collective self-reliance and modernization of the priority sectors of the economy:

(i)food and agro-based industries;

(ii) building and construction industries;

(iii) metallurgical industries;

(iv) mechanical industries;

(v)electrical and electronics industries;

(vi) chemical and petro-chemical industries;

(vii) forestry industries;

(viii) energy industries;

(ix) textile and leather industries;

(x)transport and communications industries;

(xi) bio-technology industries.

(b) ensure the promotion of small-scale industries to enhance employment generation in Member States;

(c) ensure the promotion of intermediate industries that have strong linkages to the economy so as to enhance the local component of industrial output within the Community;

(d) prepare master plans at regional and Community levels for the establishment of African multinational industries particularly those whose construction cost and volume of production exceed national, financial and absorptive capacities;

(e) strengthen and establish, where they do not exist, specialized institutions for the financing of African multinational industrial projects;

(f) facilitate the establishment of African multinational enterprises and encourage and give financial and technical support to African entrepreneurs;

(g) promote the sale and consumption of strategic industrial products manufactured in Member States;

(h) promote technical co-operation and exchange of experience in the field of industrial technologies and implement technical training programmes among Member States;

(i) strengthen the existing multinational institutions, particularly the African Regional Centre for Technology, the African Regional Centre for Design and Manufacture and the Industrial Development Fund for Africa;

(j) establish a data and statistical information base to serve industrial development at regional and continental levels;

(k) promote South-South and North-South co-operation for the realization of industrialization objectives in Africa;

(l) promote specialization taking into account national and regional resource endowments to enhance the complementarity of African economies and expand the intra-Community trade base;

(m) adopt common standards and acceptable quality control systems which are crucial to industrial co-operation and integration.

Article 50 Science and Technology

1.Member States shall:

(a) strengthen scientificand technological capabilities to bring about the socio-economic transformation needed to improve the quality of life of their populations, particularly that of the rural populations;

(b) ensure the proper application of science and technology to the development of agriculture, transport, and communications, industry, health and hygiene, energy, education and manpower and the conservation of the environment;

(c) reduce their dependence and promote their individual and collective technological self-reliance;

(d) co-operate in the development, acquisition and dissemination of appropriate technologies;

(e) strengthen the already existing scientific research institutions and establish new ones where they do not exist.

2.In the context of this co-operation, Member States shall:

(a) harmonize their national policies on scientific and technological research with a view to facilitating their integration into the national economic and social development plans;

(b) co-ordinate their programmes in applied research, research for development and scientific and technological services;

(c) harmonize their national technological development plans by placing special emphasis on local technologies as well as their regulations on industrial property and transfer of technology;

(d) co-ordinate their positions on all scientific and technical questions forming the subject of international negotiations;

(e) carry out a permanent exchange of information and documentation and establish community data networks and data banks;

(f) develop joint programmes for training scientific and technological cadres including the training and further training of skilled manpower;

(g) promote exchanges of researchers and specialists among Member States in order to make full use of the technical skills available in the Community;

(h) revise the educational systems in order to better adapt the educational, scientific and technical training to the specific developmental needs of the African environment.

Article 52

Member States shall take all necessary measures to prepare and implement a joint scientific research and technological development programme.

Article 53

For the purposes of this Chapter, Member States agree to co- operate in accordance with the Protocol on Science and Technology annexed to this Treaty.

Article 54 Energy and Natural Resources

1 Member States shall co-ordinate and harmonize their policies and programmes in the field of Energy and Natural Resources.

2.For this purpose, they shall:

(a) ensure the effective development of the continent's energy and natural resources;

(b) establish appropriate co-operation mechanisms with a view to ensuring a regular supply of fuel;

(c) promote new and renewable forms of energy in line with the policy of diversification of sources of energy;

(d) harmonize their national energy development plans;

(e) establish a common policy particularly in the field of research, exploitation, production and distribution;

(f) establish an adequate system of concerted action and co- ordination for jointly solving the Community's energy development problems, in particular those relating to energy transmission, the lack of skilled technicians and the shortage of funds for implementing their energy projects;

(g) promote the continuous training of skilled workers.

Article 55

Member States shall co-operate in the following fields:

(a) Mineral and water resources;

(b) Nuclear energy;

(c) New and renewable forms of energy;

2 They shall further:

(a) seek better knowledge of their natural resources potentialities;

(b) progressively reduce their dependence on transnational enterprises for the development of such resources, in particular by mastering exploration techniques;

(c) improve methods of pricing and marketing raw materials.

Article 56

To promote co-operation in the area of natural resources and energy, Member States shall:

(a) exchange information on the prospection, mapping, production and processing of mineral resources, as well as on the prospection, exploitation and distribution of water resources;

(b) co-ordinate their development and utilization programmes for mineral and water resources;

(c) promote vertical and horizontal inter-industrial relationships which may be established among Member States as a result of the development of such resources;

(d) co-ordinate their positions in all international negotiations on raw materials;

(e) develop a system of transfer of know-how and exchange of scientific, technical and economic data in remote sensing among Member States;

(f) prepare and implement joint training and further training programmes for cadres in order to develop the human resources and the appropriate local technological capabilities needed for the exploration, exploitation and processing of mineral and water resources.

Article 57

For the purposes of this Chapter, Member States shall co-operate in accordance with the Protocol on Energy and Natural Resources annexed to this Treaty.

Article 58 Environment

1.Member States undertake to promote a healthy environment. To this end, they shall adopt national, regional and continental policies, strategies and programmes and establish appropriate institutions for environmental development and protection.

2.For the purposes of paragraph 1 of this Article, Member States shall take the necessary measures to accelerate the reform and innovation process leading to ecologically rational, economically sound and socially acceptable development policies and programmes.

Article 59

Member States undertake, individually and collectively, to take every appropriate step to ban the importation and dumping of hazardous wastes on their respective territories.They undertake further to co- operate in the transboundary movement, management and processing of such wastes produced by Member States themselves.

Article 60

For the purposes of this Chapter, Member States shall co-operate pursuant to the Protocol on Environment annexed to this Treaty.

Chapter X Transport, Communications and Tourism

Article 61 Transport and Communications

1.To achieve a harmonious and integrated development of the continental transport and communications network, Member States undertake to:

(a) promote the integration of transport and communications infrastructures;

(b) co-ordinate the various modes of transport in order to increase their efficiency:

(c) progressively harmonize their transport and communications rules and regulations;

(d) encourage the use of local material and human resources, standardization of networks and equipment, research and popularization of infrastructural construction techniques and of adapted equipment and materials;

(e) expand, modernize and maintain transport and communications infrastructures by mobilizing the necessary technological and financial resources;

(f) promote the establishment of regional industries for the production of transport and communications equipment;

(g) organize, structure and promote, at regional and Community levels, passenger and goods transport services.

2.Accordingly, Member States shall:

(a) draw up co-ordinated programmes to structure the road transport sector so as to establish inter-State links and major transcontinental trunk roads;

(b) prepare plans to improve, re-organize and standardize the various rail networks of Member States with a view to their inter-connection and construct new railways as part of a Pan-African network;

(c) harmonize:

(i)their policies, on maritime, inter-State, river and lake transport;

(ii) their air transport policies;

(iii) their programmes on the training and further training of cadres specialized in transport and communications;

(d) modernize and standardize their equipment in order that all Member States may be linked with one another and with outside world;

(e) develop a more rational integration of air transport in Africa and co-ordinate schedules:

(f) co-ordinate and harmonize their transport policies at regional and Community levels in order to eliminate non-physical barriers that hamper the free movement of goods, services and persons.

Article 62

1.Member States shall encourage the establishment of Community and African multinational companies in the fields of maritime, rail, road, inland water-ways and air transport.

2.The concept and the legal status of Community and multinational enterprises are defined in the relevant Protocol annexed to this Treaty.

Article 63 Post and Telecommunications

1.In the field of the Post, Member States undertake to:

(a) establish a Pan-African Postal Network;

(b) adopt a policy of rationalization and maximization of conveyance of mails;

(c) ensure that the Post has a legal status and an efficient management system and resources necessary for it to provide reliable services to meet customer needs:

(d) create customer-oriented and competitive services.

3.In the field of Telecommunications, Member States shall:

(a) develop, modernize, co-ordinate and standardize their national telecommunications networks in order to provide reliable inter- connection among Member States;

(b) establish a Pan-African network of telecommunications and ensure its utilization and maintenance;

(c) establish a Pan-African system of communications by satellite to improve telecommunications, particularly in rural areas;

(d) provide efficient and regular post and communication services within the Community, and develop close collaboration among Telecommunications Administrations.

3.In order to attain the above objectives, Member States shall also encourage the establishment of private companies for Post and Telecommunications Services.

Article 64 Broadcasting

1.Member States undertake to:

(a) co-ordinate their efforts and pool their resources in order to promote the exchange of radio and television programmes at bilateral, regional and continental levels;

(b) encourage the establishment of programme exchange centres at regional and continental levels. In this connection, they shall strengthen the activities and operations of existing programme exchange centres;

(c) use their broadcasting and television systems to further close co-operation and better understanding among their peoples and to promote the objectives of the Community in particular.

2.Member States also undertake to collect, disseminate and exchange meteorological information at the continental level, particularly, With regard to the development of early warning systems for the prevention of natural disasters to ensure safety in aerial, coastal and inland navigation.

Article 65 Tourism

With a view to ensuring the harmonious and profitable development of Tourism in Africa, Member States undertake to:

1.strengthen intra-African co-operation in tourism particularly through:

(a) the promotion of intra-African tourism;

(b) the harmonization and co-ordination of tourism development plans, policies and programmes through consultations;

(c) joint preparation and promotion of tourism products representing Africa's natural and socio-cultural values;

2.Promote the establishment of efficient tourism enterprises adapted to the needs of the African people and attractive to outsiders, through:

(a) the adoption of measures to promote investments in tourism with a view to the establishment of competitive African tourist enterprises;

(b) adoption of measures to promote and develop human resources for tourism in Africa;

(c) strengthening or establishment of high-level tourism training institutions;

3.take all measures for the development of African tourism that takes due account of the human and natural environment and the well- being of the African peoples and contributes effectively to the implementation of the continent's political and socio-economic integration and development.

Article 66

For the purposes of this Chapter, Member States undertake to co- operate in accordance with the Protocol on Transport, Communications and Tourism annexed to this Treaty.

Chapter XI Standardization and Measurement Systems

Article 67

Member States agree to:

(a) adopt a common policy on standardization and quality assurance of goods and services among Member States;

(b) undertake such other related activities in standardization and measurement systems that would promote trade, economic development and integration within the Community;

(c) strengthen national, regional and continental organizations in this field.

2.For the purposes of this Chapter, Member States agree to co-operate in accordance with the Protocol on Standardization, Quality Assurance and Measurement Systems annexed to this Treaty.

Chapter XII Education, Training and Culture

Article 68

1 Member States shall strengthen co-operation in the field of education and training, co-ordinate and harmonize their policies in this field for the purpose of training persons capable of fostering the changes necessary for enhancing social progress and the development of the continent.

2.For the purposes of paragraph 1 of this Article, Member States undertake to:

(a) improve the efficiency of existing educational systems by promoting the training of trainers and using appropriate methods and aids;

(b) co-operate in the strengthening of existing regional and Community training institutions and establish new ones as may be necessary, preferably through the strengthening of existing appropriate national and regional institutions;

(c) prepare, co-ordinate and harmonize common training programmes so as to better adapt them to development needs with a view to progressively ensuring self-sufficiency in skilled personnel;

(d) promote the systematic exchange of experiences and information on education policy and planning;

(e) take appropriate measures to stop the brain-drain from the Community and encourage the return of qualified professional and skilled persons to their countries of origin.

Article 69 Culture

For the purposes of this Article, Member States shall:

(a) pursue the objectives of the Cultural Charter of Africa;

(b) promote and propagate endogenous cultural values;

(c) make every effort to preserve and recover their cultural heritage;

(d) ensure that developmental policies adequately reflect their socio-cultural values in order to consolidate their cultural identity;

(e) exchange their cultural programmes and their experiences, particularly in art, literature, entertainment, sports and leisure activities;

(f) promote and develop sports programmes and activities at all levels as factors of integration.

Article 70

For the purposes of this Chapter, Member States agree to co- operate in accordance with the Protocol on Education, Training and Culture annexed to this Treaty.

Chapter XIII Human Resources, Social Affairs, Health and Population

Article 71 Human Resources

1.Member States agree to co-operate with a view to developing, planning and utilizing their human resources.

2.For this purpose, they undertake to:

(a) adopt and promote a common policy on planning, programming, professional training and harmonize their employment and income policies;

(b) co-ordinate their policies and activities in the fields of training, planning and career guidance and counselling;

(c) improve their information and recruitment services in order to facilitate, in particular, the search for and recruitment of African experts;

(d) encourage consultancy agencies to promote the use of African experts and the development of local consultancy services;

(e) adopt employment policies which shall allow the free movement of persons within the Community by strengthening and establishing labour exchanges which facilitate the employment of available skilled manpower of one Member State, in other Member States having shortages of skilled manpower.

Article 72 Social Affairs

1.Member States agree to ensure the full participation and rational utilization of their human resources in their development efforts with a view to eliminating other scourges plaguing the continent.

2.To this end they undertake to:

(a) encourage exchanges of experience and information on literacy, vocational training and employment;

(b) gradually harmonize their labour and social security legislations with a view to eliminating poverty and promoting balanced socio- economic development within the Community;

(c) take necessary measures for the development, survival and protection of the child against abuse, neglect and exploitation;

(d) provide disabled persons with adequate training likely to facilitate their social integration and enable them contribute to the attainment of Community objectives;

(e) create conditions for the training of young school leavers, and other youth, to enable them to be gainfully employed;

(f) adopt, co-ordinate and harmonize their policies with a view to ensuring a decent life for the aged;

(g) harmonize their efforts to put an end to the illegal production, trafficking and use of narcotic drugs and psycho-tropic substances and formulate sensitization and rehabilitation programmes in this field.

Article 73 Health

Member States agree to promote and increase their co-operation within the Community in the field of health.

2.For this purpose, they undertake to co-operate and develop, in particular, primary health care, medical research, studies on traditional medicine and pharmacopoeia.

Article 74 Population and Development

1.Member States, individually and collectively, undertake to adopt national population policies and mechanisms and implement measures in order to ensure a balance between population growth and socio-economic development.

2.To this end, they agree to:

(a) include population issues as central components in formulating and implementing national policies and programmes for an accelerated and balanced socio-economic development;

(b) formulate national population policies and establish national population institutions;

(c) undertake public education on population matters, particularly, among the target groups;

(d) collect, analyse and exchange information and data on population issue.

Article 75 Women and Development

1.Member States agree to formulate, harmonize, co-ordinate and establish appropriate policies and mechanisms for the full development of the African woman through the improvement of her economic, social and cultural conditions.

2.To this end, they shall take all measures necessary to ensure greater integration of women in development activities within the Community.

Article 76

For the purposes of this Chapter, Member States undertake to co- operate in accordance with the Protocols relating to Human Resources including Women, Social Affairs, Health and Population annexed to this Treaty.

Chapter XIV Co-operation in Other Fields

Article 77

Subject to the provisions of this Treaty, Member States agree to consult, through appropriate Community Bodies, to harmonize their respective policies in other fields for the efficient functioning and development of the Community and for the implementation of this Treaty.

Chapter XV Special Provisions in Respect of Certain Countries

Article 78 Special Provisions in Respect of Botswana, Lesotho, Namibia and Swaziland

1.Member States, recognizing the exceptional situation of Botswana, Lesotho, Namibia and Swaziland within the Community and their membership in the Southern Africa Customs Union, agree to grant them temporary exemption from the full application of certain provisions of this Treaty.

2.For this purpose, Member States shall adopt a Protocol on the Exceptional Situation of Botswana, Lesotho, Namibia and Swaziland annexed to this Treaty.

Article 79 Special Provisions in Respect of the Least Developed, Landlocked, Semi-Landlocked and Island Countries

1.Member States, taking into consideration the special economic and social difficulties that may arise in certain Member States and especially the Least Developed, Land-locked, Semi-Land-locked and Island Countries, shall grant them, where appropriate, special treatment, in respect of the application of some provisions of this Treaty, and any other assistance that they may need.

2 The special treatment and assistance mentioned in paragraph 1 above may consist, inter alia, of:

(a) temporary exemptions from the full application of certain provisions of this Treaty;

(b) assistance from the Community's Solidarity, Development and Compensation Fund, in accordance with this Treaty.

3.For the purposes of this Chapter, Member States agree to adopt a Protocol on the Situation of the Least Developed, Land-locked, Semi- Land-locked and Island Countries, annexed to this Treaty.

Chapter XVI Solidarity, Development and Compensation Fund

Article 80 Establishment

A Community Solidarity, Development and Compensation Fund is hereby established.

Article 81 Objectives and Statutes of the Fund

1.The Statutes of the Fund shall be established by the Assembly in a Protocol annexed to this Treaty.

2.The Statutes shall determine, inter alia, the objectives, share capital, resources authorized for the Fund, Member States' contributions, the currencies in which payments shall be made, the functioning, organization and management of the Fund and any other related matters.

Chapter XVII Regular Budget of the Community

Article 82 Financial Provisions

1.The annual regular budget of the Community, which constitutes an integral part of the OAU regular budget, shall be drawn up by the General Secretariat and approved by the Assembly upon the recommendation of the Council.

2.The budget shall be derived from contributions from Member States in accordance with the OAU Scale of Assessment.Upon the recommendation of the Council, the Assembly shall determine the conditions under which the financial contributions of Member States may be supplemented or replaced where possible, by the Community's own resources.

Article 83 Special Budgets

Special Budgets shall be established, where necessary, to meet the extra-budgetary expenditure of the Community.The Assembly shall determine the contributions of Member States to the Community's Special Budgets.

Article 84 Sanctions Relating to Non-Payment of Contributions

1.Upon the decision of the Assembly, any Member State of the Community with an outstanding contribution to the budget of the Community in accordance with its obligations as stipulated in this Treaty, shall not participate in either the vote or decisions of the Community if the amount of its arrears is equal to, or in excess of the contribution due by such State for the last two financial years. Such a Member State shall cease to enjoy other benefits arising from this Treaty as well as the right to speak.It shall also lose the right to present candidates for vacant posts within the Community and shall not be eligible for office in the deliberative organs of the Community.The Assembly may decide, if necessary, on other sanctions against a Member State for non-payment.

2.The Assembly may, however, suspend the application of the provisions of paragraph 1 above if it decides, on the basis of a well supported detailed report drawn up by the Member State concerned and submitted to it through the Secretary-General, specifying that the non-payment of its regular contribution is due to causes and circumstances beyond the control of the said Member State.

3.The Assembly shall decide on the modalities for the application of this Article.

Article 85 Financial Rules and Regulations

The Financial Rules and Regulations governing the application of the provisions of this Chapter, shall be the same as those of the OAU.

Article 86 Board of External Auditors

The terms of appointment, modalities of employment, and the functions of the Board of External Auditors shall be defined by the financial Rules and Regulations.

Chapter XVIII Settlement of Disputes

Article 87 Procedure for the Settlement of Disputes

1.Any dispute regarding the interpretation of the provisions of this Treaty shall, in the first place, be amicably settled by peaceful means through direct agreement by the parties to the dispute.If the parties concerned fail to settle their dispute, either party may refer the matter to the Court of Justice within a period of twelve months.

2.The ruling of the Court of Justice shall be final and not subject to appeal.

Chapter XIX Relations Between the Community and Regional Economic Communities, Regional Continental Organizations, African Non-Governmental Organizations and Other Socio-Economic Organizations and Associations

Article 88 Relations Between the Community and Regional Economic Communities

1.The Community shall be established mainly through the co- ordination, harmonization and progressive integration of the activities of regional economic communities.

2.Member States undertake to promote the co-ordination and harmonization of the integration activities of regional economic communities of which they are members with the activities of the Community, the establishment of the latter being the final objective towards which the activities of existing and future regional economic communities should be geared.

3.To this end, the Community shall be entrusted with the co- ordination, harmonization and evaluation of the activities of existing and future regional economic communities.

4.Member States undertake, through their respective regional economic communities, to co-ordinate and harmonize the activities of their sub-regional organizations, within their respective regions, with a view to rationalizing the integration process at the level of each region.

Article 89 Relations Between the Community and African Continental Organizations

The Community shall closely co-operate with African continental organizations including, in particular, the African Development Bank and the African Centre for Monetary Studies to ensure the attainment of regional and continental integration objectives. It may conclude co-operation agreements with these Organizations.

Article 90 Relations Between the Community and African Non-Governmental Organizations

In the context of the mobilization of the human and material resources of Africa, the Community shall establish relations of co- operation with African Non-Governmental Organizations, with a view to encouraging the involvement of the African peoples in the process of economic integration and mobilizing their technical, material and financial support.

2.To this end, the Community shall establish a mechanism for consultation with such Non-Governmental Organizations.

Article 91 Relations Between the Community and Socio-Economic Organizations and Associations

1.In the context of the mobilization of the various sectors of socio-economic life, the Community shall establish relations of co- operation with socio-economic organizations and associations including, inter alia, producers, transport operators, workers, employers, youth, women, artisans and other professional organizations and associations with a view to ensuring their involvement in the integration process of Africa.

2.To this end, the Community shall establish a mechanism for consultation with such socio-economic organizations and associations.

Chapter XX Relations Between the Community, Third States and International Organizations

Article 92

1.The Community may conclude co-operation agreements with third States. Such agreements shall first be submitted to the Assembly for approval upon the recommendation of the Council.

2.The Community shall ensure the establishment of relations of co- operation with the United Nations System, in particular, the UN Economic Commission for Africa, UN specialized agencies and any other international organization, with a view to attaining the objectives of the Community.

Chapter XXI Relations Between Member States, Third States, Regional and Sub- Regional Organizations and International Organizations

Article 93

1.Member States may conclude economic, technical and cultural agreements with one or several Member States, and with third States, regional and sub-regional organizations and any other international organization, provided such agreements are not incompatible with the provisions of this Treaty.They shall communicate such agreements to the Secretary-General who shall inform the Council thereof.

2.In the event of incompatibility of agreements concluded, prior to the entry into force of this Treaty among Member States or between Member States and third States, sub-regional or regional organizations or any other international organization, with the provisions of this Treaty, the Member State or Member States concerned shall take the appropriate steps to eliminate such incompatibility. To this end, where necessary, Member States shall assist one another and adopt a common position.

Role of the Community with Regard to Member States in International Negotiations

Article 94

1 Member States undertake to formulate and adopt common positions within the Community on issues relating to international negotiations in order to promote and safeguard the interests of Africa.

2.To this end, the Community shall prepare studies and reports to help Member States to better harmonize their positions on such issues.

Article 95

For the purposes of Chapters XIX, XX and XXI, Member States shall conclude Protocols to be annexed to this Treaty.

Chapter XXII General Provisions

Article 96 Headquarters of the Community

The Headquarters of the Community shall be one and the same as that of the organization of African Unity.

Article 97 Working Languages

The working languages of the Community shall be the same as those of the Organization of African Unity.

Article98 Legal Status

1.The Community shall be an integral part of the OAU.

2.The Community shall be represented by the Secretary-General. To this end, the Secretary-General may, on behalf of the Community:

(a) enter into contract;

(b) be a party to legal proceedings;

3.Subject to prior approval of the Council, the Secretary-General may, on behalf of the Community:

(a) acquire and assign movable and immovable property;

(b) borrow;

(c) accept donations, requests and gifts of every kind.

Article 99 The Treaty and Annexes

This Treaty and the Protocols annexed there-to constitute an integral part of the OAU Charter.

Article 100 Signing and Ratifications

This Treaty, and its Protocols, shall be signed and ratified by the High Contracting Parties in accordance with their respective constitutional procedures. The instruments of ratification shall be deposited with the Secretary-General of the OAU.

Article 101 Entry into Force

This Treaty shall enter into force thirty days after the deposit of the instruments of ratification by two-thirds of the Member States of the OAU.

Article 102 Accession and Admission

1.Any Member State of the OAU may notify the Secretary-General of its intention to accede to this Treaty.

2.The Secretary-General shall, upon receipt of the notification, communicate copies to all Member States. Admission shall be decided by a simple majority of Member States. Thedecision of each Member State shall be transmitted to the Secretary-General, who shall communicate a decision to admit a Member State to the Member State concerned after obtaining the required number of votes.

Article 103 Amendment and Revision of the Treaty

1.Any Member State may submit proposals for the amendment or revision of this Treaty.

2.Proposals for amendment or revision shall be submitted to the Secretary-General who shall transmit them to Member States within 30 days of their receipt.

3.The Assembly, upon the advice of the Council, shall examine these proposals at its next meeting within a minimum period of one year, following notification of Member States in accordance with the provisions of paragraph 2 of this Article.

4.Amendments or revisions shall be adopted by the Assembly by consensus or alternatively by a two-thirds majority and submitted for ratification by all Member States in accordance with their respective constitutional procedures. They shall enter into force thirty days after the deposit of the instruments of ratification by two-thirds of the Member States with the Secretary-General of the Organization of African Unity.

Article 104 Withdrawal

1.Any Member State wishing to withdraw from the Community shall notify, in writing, its intention, a year in advance, to the Secretary-General who shall inform Member States accordingly.At the expiration of such a period, the Member State shall if the notice is not withdrawn, cease to be a member of the Community.

2.During the period of one year referred to in paragraph 1 ofthis Article, any Member State wishing to withdraw from the Treaty shall nevertheless comply with the provisions of this Treaty and shall be bound to discharge its obligations under this Treaty up to the date of its withdrawal.

Article 105 Dissolution

The Assembly may decide to dissolve the Community and determine the terms and conditions for sharing the latter's assets and liabilities.

Article 106 Depositary

1.The original text of this Treaty, drafted in a single original in the Arabic, English, French and Portuguese languages, all four texts being equally authentic, shall be deposited in the archives of the Secretary-General of the OAU who shall transmit a certified true copy to the Government of every signatory State.

2.The Secretary-General shall notify Member States of the dates of deposits of the instruments of ratification and accession and shall register this Treaty with the United Nations.

IN WITNESS WHEREOF, WE, African Heads of State and Government, have signed this Treaty and the annexed Protocols.

Done at........................ on............................. Nineteen Hundred and Ninety One in a single original in the Arabic, English, French and Portuguese languages, the four texts being equally authentic.