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Manufacturers disagree over new trade terms

By on August 31, 2013

Nigerian manufacturers have disagreed with the trade terms of the European Union, describing them as capable of hindering the nation’s industrial growth.

The new trade agreements, Common External Tariff (CET), Community Levy and the Economic Partnership Agreement (EPA), which are still being negotiated, are designed to become operational in respect of business relationship between EU and Economic Community of West African States (ECOWAS) countries.

MAN explained that the CET could compromise the needed protectionist profile required to safeguard the interest of the nation’s industrialists.

The association’s Director-General, Rasheed Adegbenro, expressed the hope that a consensus that would favour Nigerian industries would become feasible in the new CET regime.

The CET is a precursor to a regional customs union, which is predicated on the harmonisation and convergence of national fiscal, monetary and trade policies of member states for the attainment of economic integration by the 15-nation economic community with a combined population of more than 300 million people.

At the March meeting in Praia, Cape Verde, regional ministers of finance had endorsed a new five-band tariff regime for West Africa, after 10 years of internal negotiations, driven by the technical committee of the Commissions of the ECOWAS and the eight member West African Economic and Monetary Union (UEMOA), following the 2006 decision by the ECOWAS Heads of State and Government.

The new tariff regime covers 5899-tariff lines with the rate ranging between zero and 35 per cent for the 130 tariff lines that fall into the category of specific goods that contribute to the promotion of the region’s economic development.

Under the new regime, five per cent duty is applicable for 2146 tariff lines under the basic raw materials and capital goods category 10 per cent for the 1373 tariff lines that qualify as intermediate products category; while 20 per cent duty is reserved for the 2165 tariff lines under final consumer products.

 

 

 

[Vanguard]