Nigeria Content Online

As ECOWAS heads of state met in Sal,
Cape Verde, to adopt a West African industrial policy, the issue of
economic integration and establishment of a free trade area looms even
larger over the sub-region. The ECOWAS Trade Liberalization scheme
(ETLS) was designed to facilitate trade in West African agricultural
and industrial goods, so that goods, persons and vehicles, could move
freely within the region. Although rules to make this vision a reality
have been passed by member states, implementing them has been
difficult. The Trade Hub’s research in nine countries in the ECOWAS
sub-region has helped identify solutions.

A two-day joint Trade Hub-ECOWAS
workshop in June brought together more than 40 representatives of the
organizations and the private sector to discuss the gaps in
implementing the ETLS. The World Bank, the West Africa Monetary
Institute, and Ghana’s ministries of Trade and Industry, Transport,
Foreign Affairs, Finance and Customs also participated. Private sectors
representatives included DHL, Bollore, Maersk, Nestlé, and others. In
his welcome address to participants, Alfred Braimah, ECOWAS Director of
Private Sector, called on those present to find solutions to effective
implementation of trade policies in the region. Kola Sofola, Principal
Program Officer at the ECOWAS Trade Directorate, praised the practical
aspect of the study, which involved interviews with both public and
private sector, highlighting its uniqueness by focusing on genuine
responses in addition to legislative analysis.

Trade policy researchers, Ometere
Omoluabi and Jane Owiredu-Yeboah, presented findings from the most
recent ETLS gap analysis country reports, focusing on Burkina Faso,
Côte D’Ivoire, Ghana, Nigeria, and Senegal. Findings compared both
public and private sectors utilization and understanding of the ETLS.
The studies have highlighted limited awareness of protocols, lack of
enforcement and consistency in application at borders, high levels of
harassment due to complexity and duplication of procedures. Several
participants called for practical solutions and accountability as the
vehicle to effectively implement trade policy. Equipped with pertinent
information, key regional players have seized the baton to flesh out
recommendations. “This is the first comprehensive study on ETLS,”
Braimah said. “The gap analysis study is useful, the timing is right.
ECOWAS resolves to work together and deal with next steps to make ETLS
implementation a reality.” “Sometimes we have protocols signed by
government, but what happens on the ground is different,” said Mawuli
Akpenyo of Delata, a Ghanaian exporter of home décor and fashion
accessories, and an agent for American importers.

Time constraints

Mr Akpenyo
collected handcraft orders from Ouagadougou, Burkina Faso, and brought
them to Ghana to consolidate for shipment from Tema port. Getting the
items from Ouagadougou to the Ghana border was easy enough, but his
difficulties began at Paga, on the other side of the border.
Technically this was a transit shipment; no fees should have been
charged and customs should have granted him an escort to the point of
export. However, customs would not confer exempt status and delayed
him. Ultimately, faced with time constraints, Mr Akpenyo opted
reluctantly to pay nearly 30% of the value of the consignment in import
duties, taxes and processing fees.

“On two accounts this should have been a duty free transaction under
ECOWAS rules,” explained Acting Trade Hub Director Nathan van Dusen.
“The goods were in transit and importing handcrafts into Ghana from
member states should be duty free.” Mr Akpenyo advocates a system with
greater transparency and accountability, and would be prepared to pay a
deposit on transit goods, refundable against proof of export. “Customs
should be made aware… that we are trying to increase trade,” he said.
“They are frustrating West African businesses.”