Article 35 of the Revised Treaty relating to the liberalisation of trade within the region;
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2 Article 35 of the Revised Treaty relating to the liberalisation of trade within the region; Article 36 of the Revised Treaty relating to the customs duties. Article 54 of the Revised Treaty relating to the establishment of an Economic Union. Protocols and regulations on the Free Trade Area.
3 FREE MOVEMENT OF AGRICULTURE AND LIVESTOK PRODUCTS The 1979 decision of Council (C/DEC.8/11/79) initiated the process of trade liberalization with the immediate and complete removal of tariffs on agricultural goods and traditional handicrafts. In 1981, an Authority decision stipulated that Member States were to eliminate non-tariff barriers to intra-regional trade at their own individual pace over a four-year period starting from 28th May, 1981, and in 1982, Council took decision C/DEC.4/5/82 on the definition and nomenclature of the non-tariff barriers to be eliminated
4 FREE MOVEMENT OF AGRICULTURE AND LIVESTOK PRODUCTS By the provisions of the above decisions on the ECOWAS trade liberalization scheme, West Africa became a free trade area for agricultural goods as from January The priority treatment accorded intraregional agricultural trade since 1985 is reflected in these ETLS provisions: all agricultural goods produced in Member States are considered wholly-produced and automatically acquire Community-originating status; unlike industrial products, agricultural goods are not to be subjected to the approval process and are exempted from the certificate of origin requirement
5 The proof of origin of a product under the scheme is the certificate of origin Regulation C/REG.4/4/02: certificate of origin A certificate of origin shall not be required for: Agricultural and livestock products Traditional Handicraft(Hand made articles) For purposes of identifying products, veterinary and phytosanitary certificates are accepted, wherever necessary.
6 Challenges Request for certificate of origin from exporters at the borders Seasonal restrictions in member States Quota Non-recognition of veterinary and phyto-sanitary certificates Imposition of transit taxes Harassment and extortion at borders and along the corridors
7 ECOWAS Initiatives The ECOWAS Commission is finalizing a circular to member States on Priority Treatment of Free Movement of Agricultural Products within the Region The ECOWAS Commission is going to launch a training program for customs officers of member States on the free movement of agriculture products The ECOWAS Commission is in permanent contact with Borderless Alliance and CILSS on facilitation of free movement within the region. (Regional Citizen Forum)
8 CONCLUSION MANDAT DU PRESIDENT DU FASO SUR LA LIBRE CIRCULATION DES PERSONNES ET DES MARCHANDISES Forum Régional Citoyen Task Force Collaboration avec les différentes structures régionales qui travaillent à améliorer la libre circulation des produits issus de l agriculture
9 Background of the CET Art. 3 of the ECOWAS Revised Treaty- one of the main objectives for the creation of the Community is the establishment of a common market through trade liberalization and the adoption of a common external tariff To give effect to this vision, the Authority of Heads of State and Government, 29 th session, adopted per Decision A/DEC.17/01/06, the ECOWAS CET for ECOWAS Member States. 9
10 Management The 29 th session of the Authority of Heads of State and Government also approved the establishment of an ECOWAS/UEMOA Joint Committee for the management of the ECOWAS Common External Tariff (CET) The joint committee comprising representatives of Member States and the ECOWAS and UEMOA Commissions gives advice on tariffs and monitoring of the CET The committee has met 16 times since
11 Structure The ECOWAS CET is a 5-band tariff withthe following categories: 0% - essential social commodities; 5% - essential commodities, raw materials, capital goods 10% - intermediate products 20% -consumer goods 35% - specific goods for economic development 11
12 Structure Category Description Rate Tariff lines 0 Essential social goods 0% 85 1 Basic raw materials and capital goods 5% Intermediate goods 10% Final consumer goods 20% Specific goods for economic development 35%
13 Accompanying measures The harmonization of tariffs in the region requires the development of accompanying measures to ensure a successful implementation to obtain the desired results. A package of measures has therefore been put in place to ensure effective and harmonious implementation of the CET 13
14 Regulations Regulation on Customs valuation- this is to ensure that the same system of customs valuation is applied all member states in the community in view of the ad valorem nature of the ECOWAS CET. This Regulation is based on the WTO agreement on customs valuation. 14
15 Regulations Regulation on highly taxed inputs:-the regulation lays down the procedure to be adopted to ensure that inputs for the manufacture of zero-rated products are not taxed much higher than the final product. The Regulation provides for the regime of temporary importation for inward processing to cover such inputs without any penalty or interests. 15
16 Trade defense measures. Article 9 paragraph 2 of the Decision adopting the ECOWAS CET in 2006 provides for Council of Ministers to decide on other specific measures for the protection of the regional economy.. Regulation on Safeguard measures seeks to remedy injury or threat of injury incurred by a production sector in the region due to massive importation. 16
17 Trade defense measures Regulation on anti-dumping measuresaims to alleviate the injury or threat of material injury suffered by production sectors in the region as a result of imports of dumped goods. Regulation on countervailing measures is to remedy the injury or threat of injury to a production sector in the region resulting from subsidised imports. 17
18 Supplementary protection measures The regulation on Supplementary protection measures which introduces flexibility in the initial application of the CET allows member states to deviate from the rates stipulated in the CET for a maximum of 3% of the total tariff lines. The regulation consists of 2 instruments: Import Adjustment tax and Supplementary Protection tax. 18
19 Supplementary protection measures The import adjustment tax is to help member states gradually adjust to the CET and avert any incidental shock that might arise. The Supplementary Protection tax aims at addressing world market price volatility and its impact on tariffs as well as high volumes of importation. 19
20 Capacity building & sensitization The Commission has already undertaken has undertaken capacity activities building both a regional and national levels. Training programmes and workshops were organized for Customs administrations, freight forwarders, etc. Sensitization is still underway in member states. 20
21 Application of CET CET came into force throughout the Community January 2015 in accordance with directive of Heads of State and Government on 25 October 2013 So far more than 50% of member states have migrated to the CET and are currently applying the regional tariff. The Ebola outbreak and the delay in transmitting the Portuguese version of some CET documents retarded the take-off in some countries 21
22 CONCLUSION
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