Customs Union as A Form Of Regional Economic Integration: Examining Its Implications on Revenues and Customs Laws from an Ethiopian Perspective
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Date
2014-07
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Addis Ababa University
Abstract
Globalization is the last jinest triumph of mankind. It is inevitable and irreversible. Free market
is a major player in globalization. Regional economic integration is a segment of the move
towards globally F ee market. It is well known economic point of view that trade is created when
countries form integration among themselves. Simultaneously, the issues of international trade
and economic growth have gained substantial importance with the introduction of trade
liberalization policies on the globe Jollawing the formation of General Agreement on Tariffs and
Trade (GATT), the present World Trade Organization (WTO), in 1945. To virtually come across
liberalized economic integration amongst them, countries are supposed to progressively go
through uniquely known degrees of economic integration which are categorized into jive stages
deriving towords political union. These include.' Preferentioltrade area (PTA), Free Trade area
(FTA), Customs Union (C U). Common Market , and Economic Un ion.
Distinct Fom other forms of economic integrarion CU requires member srales of any regional
economic community to have a large degree of similarizing rheir national laws with rhe
commonly agreed principles and laws of regional economic communiries. Wirhour such a serious
commitment (0 implement regional economic integra/ion agreements in conformity with their
respecrive national laws, there connor be a progress in the desired objecrive of inregrarion.
DOing norhing or too lillie to implement agreed programmes at the national level can severely
hamper the integration process. As long as regional economic integration initiatives do require
such domes tication of legal and institutional strategic approaches, it will not be an exception to
Ethiopia 's national revenues and CUSlOms laws 10 consider economic integration principles into
account in the existing fasr tracking economic integration regime. Reasonably, signing and
ratifYing of treaties and protocols alone cannol lead to effective regional economic integrations
unless such agreements are reduced into appropriately enforceable local laws. It is only through
implementation of the provisions of such trearies and protocols which are domesticated into
national laws that an actual economic integration can be eventually realized.
Having long lasting ambition of economic growth, Ethiopia has got membership in at least two
regional economic communities: namely, COMESA and IGAD. Even if IGAD is at its infant
stage in terms of economic illlegration, sOll1e COMESA members have joined. to CU level of
economic integration. Even though Ethiopia is not a member to COMESA 's FTA and CU, theris an immediate need to pursue its economic development through the instrumentality of deeper
economic integration. To have this integration process a reality, ensuring the legal basement of
Ethiopian Revenues and Customs laws in line with regional economic integration principles is
the primwy assignment that the government should comply.
In the process of regional economic integration, the smooth relation of countries to conjirm and
implement their commonly agreed laws is essential. In particular, when a regional economic
integration is escalated into CU level, a special requisite of being subject to CET can be
introduced into the ground. The introduction of CET in the CU level of economic integration
requires the commitment of countries to disregard their national revenue Fom the customs tariff
side and look for strong economic integration to collect the best advantage in the long run.
Regional economic integration in terms of CU has a huge implication on Ethiopia's revenues
and customs laws. In doing so, understanding the economic situation of the counliy to rapidly
engage in the globally amplified regional economic integration having the existing revenues and
customs laws in hand is important. To extroct the right approach of regional economic
integration in the legal sense, extensive examination of Ethiopia's revenue sector laws and
interviewing !he concerned person is taken as an important (DO/.
Indeed, the study would have an insight that eD'ective regional economic integration demands the
inclusion of its principles and goals into the respective national laws of member countries for the
proper implementation where such an incidence could introduce an injiuence on the nature of
the national laws in turn.
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Customs Union as A Form of Regional Economic