Nigerian Traders: Employing Trade as Vehicle of Integration
Nigerian Traders: Employing Trade as Vehicle of Integration
By Ugochukwu Chimeziri
Introduction
Article 3 of the revised Ecowas Treaty sets the Ecowas economic integration agenda at liberalizing trade among member states. This will be achieved through elimination of tariff and non-tariff barriers and the ultimate achievement of an economic and monetary union in the region.
While this Article which occupies the main reason why Ecowas was set up in 1975 remains the focal point of Ecowas activities since its inception, the Article has actually been far from realisation. The Article has been politicized in various ways, making it quite difficult for the aspirations of Ecowas to be harnessed.
In effect, for 36 years the protocol was pursued, trade among member states has not surpassed four per cent according to a presentation by Mr. Edwin Ikhuoria, a trade consultant at a recent regional consultative forum on the Resuscitation of the defunct West African Traders Association (WATA). This situation has over the years kept the region behind other regions of the world in terms of regional trade development.
Challenges to Ecowas Trade
Several literatures have highlighted from one angle to the other the myriads of hurdles that have not allowed Ecowas to grow economically.
Some of the problems as itemized by Ikhuoria in his presentation include non domestication of Ecowas protocols by some member states. While this is so, most member states are busy promulgating national laws that run contrary to the Ecowas treaty. There is lack of both common currency and the political will to have one. Ecowas, unlike the European Union, (EU) has not thought of providing a mechanism for enforcing the rights of citizens whose rights from the Ecowas treaty have been infringed upon. Infact the Ecowas court exists more or less in principle. A clear demonstration of this lapse was when Ghanaian government in 2010 singled out Nigerian traders in Ghana and demanded $300,000 from each of them before they could open shops or have their shops permanently shut if they could not pay the whooping fee to the ministry of trade. But there are Ecowas protocols on Right of Residence and Investment which could not be enforced by the Ecowas Commission on Ghana. In order to put up a defense, Ghanaian government was quoted as saying that the outcry by Nigerians in Ghana was as a result of misinterpretation of a national trade reforms which affected some Nigerian traders in Ghana. Even Nigeria's high commissions office in Ghana was not even useful until the affected traders were able to establish communication to Nigeria's seat of power in Abuja in Nigeria. It was when this happened that Ghana began to listen to options of resolving the face-off.
On customs tariff, Ecowas has Common External Tariff (CET) which has not in anyway been able to address disparity in custom tariffs across the nations in the region. Still on the tariff, you still find lack of common tariff structure ruling which is principally responsible for promotion of smuggling activities and other unwholesome trade practices in the region. There is widespread corruption in the national borders in the region.
The process of certifying manufactured goods of the region under the Ecowas Trade Liberalisation Scheme (ETLS) is very cumbersome especially in Nigeria where the ETLS committee sits only twice in a whole year to approve products.
There is also multiplicity of custom checking point for goods on transit along the corridor routes. This has given rise to insecurity of lives and properties along the corridor. Also women traders along the corridor face various forms of harassments.
Language and cultural barriers which are artificially created by colonial heritages on member states pose very strong problems even till today. There is lack of good knowledge of the existing trade laws and prevalence of dishonest traders in the region. All these and others not contained in this article inhibit trade development in the region.
Intervention by Non State Actors
With the expiration of Cotonou Convention last 31st December 2007, Ecowas was supposed to key into a new trade treaty with the EU at least to trade in World Trade Organisation's (WTO) friendly platform. Also the treaty-Economic Partnership Agreements (EPAs) was supposed to place all partners on an even plane while at the same time preaching total removal of barriers to trade between the EU and the African Caribbean and Pacific (ACP) countries where the EPAs will apply.
At the beginning, the EU was furious with Ecowas on the slow pace at which Ecowas was responding towards the signing and execution of the treaty. But after a while, the EU decided to adopt other systems by sending its officers to talk to big trade groups in the region. Under this arrangement, the EU officials had talks with the Cocoa Processors Association of Nigeria (Copan). The aim of this strategy was to convince the respective trade groups into mounting pressures no their respective governments on the need to sign which would culminate into governments of the region coming up to sign the EPAs. But unfortunately, this pushing through trade groups did not go far. Then EU adopted the use of intimidations and force but only few countries like Ghana, Cote D Ivoire signed with the rest in the likes of Nigeria still adamant. EU, as part of the measures to get the EPAs through had slammed high tariffs to semi and fully processed products coming into the EU from any of the ACP nations that has not accepted to sign the EPAs protocol. This tariff penalty cut up with Nigeria and so may other nations. This like others, failed to get into the hook most of the countries.
Then the EU had to stoop low to see that much is required in a region like Ecowas before EPAs could be accepted and signed.
By bending down, the EU saw that Ecowas could better be described simply as a replica of a merger of heterogeneous elements. Having identified this as a major reason why no treaty or sanction could move Ecowas, EU began to seek for internal/ regional harmonization of these heterogeneous components to upgrade the region to at least a Free Trade Area (FTA). EU knew very well that if this is achieved it will facilitate easy signing of the EPAs while other stages of Ecowas' regional integration could fall in place with time.
Vivid investigation showed that the use of Non State Actors (NSAs) would be indispensable. Then there was need for NSAs in the region to apply for EU's support for trade facilitation in the region.
After rigorous selection processes which was multi-staged, the National Association of Nigerian Traders (Nants) emerged as the only qualifying NSA from Nigeria.
Swiftly, Nants went into action by first of all advising other successful NSAs in the region and Africa on the necessity of accountability and commitment to service.
Since then Nants has conducted various trainings, workshops, seminars amongst others both at national and regional levels. These have won for Nants total regional recognition even in some countries where other NSAs reside.
The recent chronicles of Nants activities at regional level was the attempt to resuscitate the defunct West African Traders Association (WATA).
Mr. Ken Ukaoha, president, Nants, while delivering his speech at an event that drew completely without any omission or apology at least one president of organized traders group in each of the Ecowas nations said that it was clear truth that trade is the most efficient instrument for the facilitation of a progressive and successful regional integration all over the world. He noted that traders in the process of regional economic integration are infact the end users of the product integrated economy'. He was optimistic that harmonization of Ecowas' inherent heterogeneous values would be achieved through establishment of a regional united and federated traders' network. His postulations were embraced by all the Ecowas nations including the Portuguese speaking Ecowas who were all fully in attendance.
At the end of the summit, there was the birth of the Federation of West African Traders Association (FEWATA) or Federation des association des Commercants de I'Afrique de I'Quest (FACAO) in French version whose objectives are same with the defunct WATA.
The message about Fewata has gone round the Ecowas that a new traders' force has come into place. The Fewata will also provide a platform for enforcement of rights of citizens whose rights have been violated. Fewata will work in close proximity with the Ecowas and even the EU as well as all organized traders' groups across the Ecowas. Fewata would have its tentacles wired from the grassroots to the seats of both national and regional powers identifying and tackling every anti-trade practices in the region.
Unlike WATA, Fewata is strictly institutional and would completely represent the interest of Ecowas citizens especially traders while fast tracking the harmonization process in the region.
In the meantime, Ecowas Commission has thrown its weight behind Fewata expecting a seamless working relationship with the new regional traders' network.
The message was delivered recently in Lagos by Mrs. Akom Ukpanyang, principal programme officer, drug control and civil society who represented Dr. Sintiki Ugbe, director, gender development/youth, sports and employment/drug control and civil society, Ecowas commission Abuja.
Another area Nants has worked has mounted focus in recent times has been to rid the region of fake and substandard products. In other to tackle this, Nants has identified and engaged through dialogue the Chinese government.
Speaking at the epoch making event in Lagos recently, Nants chief identified that trade between Nigeria and China is estimated at $13.3billion an increase of $10 billion from $3 billion recorded in 2006. The trade record showed a clear indication of an increasing economic corporation between both countries. He indicated that with the corporation that is amplifying between Chinese government and Standard Organisation of Nigeria (SON), which is expected to extend to National Agency for Food and Drug Administration and Control (Nafdac), the issue of low quality goods would soon be an issue of the past.
Responding to this demand, the Chinese ambassador to Nigeria, Mr. Deng Boqing noted that 2010 witnessed trade value of $7.76 billion as Nigeria becomes 4th largest trading partner and second largest export market of China in Africa. He acknowledged that only supply of good quality products would sustain the high trade volumes between Nigeria and China.
Boqing summarized the issue of Chinese quality inconsistencies by putting forward to Nigerian government as well as Nants what he described as proposals.
In his proposals, Boqing called on the governments of Nigeria and his country China to join hands in setting up an effective product quality inspection and supervision channel and a compliant mechanism to fight fake and sub standard products originating from his country to Nigeria.
His second proposal was a call on trade associations to strengthen self regulation measures, asking the Chinese and Nigerian companies and businessmen to advocate morals in business, enhance the sense of social responsibility, and produce and sell products with reasonable price and high quality meeting the demand of the Nigerian people.
His third proposal was an advice to the Chinese institutions and businessmen to eschew crookedness and deal uprightly with their Nigerian counterparts.
At the end of the seminar which was co-organised by Nants, the proposals were carried. Nants is currently planning more trade missions of which Ukraine in one. There are still more trainings, seminars amongst others both at national and regional levels.
Conclusion
Testimonies from Ecowas nations show that the activities of Nants within the region is actually impacting and contributing to the regional integration.
Nants is currently concluding plans to launch a surveillance team that will parade the 998 kilometer Lagos to Abidjan trade corridor. The aim was to identify, spot and expose all evil trade practices at various national borders on the trade corridor as a way of improving integration in the region.
Other NSAs are therefore advised to borrow a leaf from Nants and start effectively on activities that would help create an integrated Ecowas. It is now and Nants needs to be supported in everyway so that Ecowas could actually move from the Ecowas of State which it is now to Ecowas of people.
With Fewata coming on board, traders in the region would soon have many obstacles to trade evaporated leaving behind a seamless economic and monetary united Ecowas.
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