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BORDERLESS 2018 “EFFECTIVE CORRIDOR MANAGEMENT FOR IMPROVED TRADE AND TRANSPORT IN WEST AFRICA” Panel 4: Review of the Implementation of Regional Agreements in West Africa (Ziad Hamoui, National President, BA Ghana)
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BULKY PROCEDURES SLOW DOWN REGIONAL TRADE
“98 steps to import rice from Dakar, Senegal to Bamako, Mali” UNCTAD’s recent regional workshop in Morocco on April 24-25, on enhancing administrative transparency to support Trade Facilitation in West Africa
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INADEQUATE INFRASTRUCTURE INCREASES COST
Congested ports across West Africa increase dwell time Road infrastructure wear out very fast (heavy loads, low-quality) Border crossings do not provide safe parking areas for quick processing Most of the roads have no planned rest stops (road safety) or breakdown areas
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GOOD REGIONAL/INTERNATIONAL TEXTS
ECOWAS Trade Liberalization Scheme (ETLS ) provides for free movement within West Africa Common External Tariff (CET) helps harmonize tariffs internally within the region WTO’s Trade Facilitation Agreement provides an opportunity for cross-border collaboration between agencies UEMOA has regional regional Trade Facilitation Secretariat for coordination of efforts among member states ECOWAS is working on establishing similar regional Secretariat very soon
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BAD NATIONAL IMPLEMENTATION
Local groups complain of unfair tariff schemes and lobby against implementation of regional/int’l texts New regulations, without due consultation Shortage of capacity-building for uniformed personnel Information not readily available for traders and operators No functional mechanisms for real-time complaints to a reliable third party
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Impact on Trade and Transport across Africa
Lack of predictability of time or cost, especially for transit cargo Low level of economic integration within the region: intra-regional trade levels in Europe 71%, Asia 53%, South America 48%, Africa 15% (RECs between 3.5% & 20.5%) Businesses are unable to tap into regional market
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Volume of African Intra-Regional Trade
Intra-African Trade as % of total trade (2015) REC % of total exports % of total imports Intra-REC Trade (% of Total Trade) Position SADC 20.9 20.6 20.75 1 EAC 18.8 7.2 13 2 ECOWAS 10.8 9.3 10 3 IGAD 15.5 3.1 4 COMESA 12.2 5.9 9 5 CENSAD 6 5.95 AMU 4.4 3.2 3.8 7 ECCAS 1.8 5.2 3.5 8 Africa 17.7 13.6 15.65 Source: AfDB, 2017
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Logistics performance in West Africa
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Doing Business in West Africa
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Other Relevant Logistics Studies
(e.g: USAID / TFP Report on Port Prices and Charges in Ghana) (source: USAID / TFP, 2017)
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Information Dissemination
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Support at the Border Crossings
4 6 TIMELINE Ghana/Togo (August‘11) B. Faso/Ghana (September’12) Benin/Nigeria (December‘12) Dakar Port (March‘13) Ghana/Cote d’Ivoire (May‘13) Senegal/Mali (2018) Cote d’Ivoire/ B. Faso (2018) 2 7 3 1 5
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Voicing Complaints; the BORDERLESS Platform for reporting Non-Tariff Barriers (NTB) in West Africa
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TELL US What is the problem? Where did it happen? When did it happen?
How can we reach you?
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Summary Good texts, bad implementation
No mechanisms for enforcement except ETLS Task Force (non binding) Local interest groups with protectionist inclinations fuel the controversy Need much capacity-building both to uniformed personnel and traders/operators on latest trade updates Shortage of Trade information outlets must be addressed Must set up reliable and credible arbitration mechanisms on national level
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