The ECOWAS Common External Tariff

THE launch, last week, of a Common
External Tariff (CET) for West African
nations by Heads of State and
government of member-countries of the
Economic Community of West African
States (ECOWAS) is a major step towards
economic integration in the sub-region.
The adoption of a common external tax
regime in the sub-region, which is
expected to take effect from January, next
year, is the outcome of the regional
body’s 46th Ordinary Session which held
in Abuja last week. This move
undoubtedly signifies a bold resolve to
bring the 2006 decision of the member-
states to facilitate growth through a
common tax administration into reality.
We heartily support this move. It is,
indeed, a crucial milestone on the road to
the creation of a customs union for West
Africa. Far-reaching benefits could come
from this initiative if unnecessary
bureaucracy is not allowed to impede its
implementation.
With this development, significant
improvement in the implementation of the
ECOWAS Trade Liberation Scheme (ETLS)
is hopefully in the offing. It should also
check the dumping of inferior goods in the
West African sub-region. Although the
concept of a regional customs union has
been in the pipeline for decades and has
now been formally adopted, its
implementation still requires strong
political will.
Without doubt, a common external tax
regime is a healthy development. For
instance, under the scheme, goods
imported into a Francophone country will
not necessarily be cheaper or more
expensive than those entering another
Anglophone country such as Nigeria or
Ghana. What is required in addition to the
political will of the regional leaders is
unity of purpose.
If this plan comes on stream, it would be
an effective instrument for harmonising
the import policies of member-states.
This will, in turn, strengthen the
framework for the realisation of a
common market.
In addition to the expected improvement
in customs revenue within the sub-region,
we expect that key sectors of member-
countries will get a fair measure of
protection as the plan will boost national
productivity through a remarkable
reduction of customs duties on items such
as raw materials for industrial production.
Nigeria should be a key beneficiary of
this, as the country is the fastest growing
economy in the region and one of the
fastest in Africa, the present economic
downturn notwithstanding.
To actualise the immense benefits of a
common regional tax administration, all
hands are required on deck. The heads of
government of member-states should,
therefore, walk the talk and make the plan
a reality. Available statistics show that
West Africa is at the moment one of the
fast growing regions in Africa, with
economic growth of an average of seven
percent last year, and Nigeria’s record a
6.5 percent growth in GDP in the same
year (2013).
It is, however, worrisome that much has
not been done to address the challenges
of insecurity of life and health, such as
the dreaded Ebola Virus, before the
effective date which is just a few weeks
away. Member states should step up
awareness campaigns on the plan among
their populace and the government
agencies that hold the key to the
successful implementation of the
economic integration programme.
Tackling the challenges posed by
terrorism, diseases, piracy and other
obstacles is crucial, as peace and security
are critical to the success and
sustainability of any programme that will
earn the confidence of the people.
In this connection, we charge ECOWAS
countries to accelerate their efforts on the
implementation of a common tariff regime
in the asub-region.