SECOND MEETING OF THE TECHNICAL COMMITTEE ON TRADE, INVESTMENT & TAX ISSUES

BANJUL, THE GAMBIAAPRIL 1-2, 2008

In accordance with the programme directed in the Banjul Declaration of 2005, the West African Monetary Institute (WAMI), in collaboration with the Department of State For Trade, Industry and Employment, organized a meeting of the Technical Committee on Trade, Investment & Tax Issues in Banjul, The Gambia on April 1-2, 2008. Participants in the meeting were representatives from The Gambia, Ghana, Nigeria and Sierra Leone.

Following presentations by WAMI and extensive deliberations, the following recommendations were proffered by the committee:

5.1 Removal of road checkpoints

(i) Number of checkpoints along a transit route should be limited to one for every 300 km.

(ii) Inspecting agencies should do joint inspection and only at a designated checkpoint along the transit route.

(iii) Regular check on compliance with designated number of checkpoints along transit corridors should be undertaken by the Corridor Management Committees and periodically by WAMI.

(iv) WAMI should hold biannual review meetings to evaluate performance of member countries on compliance with ECOWAS trade-related protocols, including the number of checkpoints.

(v) Regular bilateral and tripartite meetings should be held by member countries with trading partners and the implementing agencies (Customs, Immigration and the Police in particular) to address related issues and copies of the reports made available to WAMI.

5.2 Speeding up customs procedures

(i) Each member country should adopt ECOWAS approved simplified and harmonized documentation for clearance of goods

(ii) Automated systems by all ECOWAS member states should be deployed to facilitate customs clearance at all approved entry and exit points.

(iii) Transit fees and other charges should be harmonized across the Zone.(iv) Member countries should agree on modalities for joint investigations of non-

compliance with the criterion of origin under the auspices of the ECOWAS Commission.

(v) There should be a tripartite meeting involving ECOWAS, UEMOA and WAMI to resolve the issue of application of the ECOWAS CET and the fifth band as well as differences in policies.

(vi) There should be single joint inspection by the adjoining countries and an agreement needs to be signed by member countries to enforce protocols.

(vii) Member countries should comply with the provisions of the ISRT as it affects mode of presentation of goods and approved routes for transit routes, among others.

(viii) Member countries should establish a data base for ETLS registered companies and products for ease of reference by inspecting agencies and also for statistical and planning purposes.

(ix) Member countries should sign a common Treaty to enable businessmen have access to the ECOWAS court to address grievances.

5.3 Double Taxation

There is need for a WAMZ-wide treaty or agreement on taxation with a view to avoiding occurrences of double taxation on parent and subsidiary companies operating in the zone. A draft text, on this and other related issues, prepared by WAMI should be presented at the next Convergence Council meeting for their consideration.

5.4 Other recommendations

(i) Trade issues should always be on the agenda of meetings of the Convergence Council of the WAMZ, given the centrality of trade in monetary union.

WAMZ TRADE MINISTERS FORUMACCRA, GHANA

AUGUST 27-28, 2009

The 2nd West African Monetary Zone (WAMZ) Trade Ministers’ Forum took place at the M-

Plaza Hotel, Accra, Ghana from 27th to 28th August, 2009.

The West African Monetary Institute (WAMI), in collaboration with the Ministry of Trade and

Industry, Ghana, organized the Forum. In attendance were Mr. Humprey Aba, Minister of State

for Commerce and Industry, Nigeria and Ms Hannah Tetteh, Minister of Trade and Industry,

Ghana. Representatives from The Gambia, Ghana, Guinea, Nigeria and Sierra Leone as well as

the WAMI and African Export Import Bank (AFREXIM) participated at the Forum.

Following presentations by WAMI and the member countries and extensive deliberations

thereon, the Forum made the following recommendations to facilitate implementation of the

ECOWAS trade related protocols in the WAMZ.

i. In order to create and sustain confidence in the certification and verification process of

the ETLS, ECOWAS Commission should constitute a Standing Committee comprising

representatives of Customs, food and drugs administration board, standard organizations,

ministry of trade and the organized private sector from each member country to

periodically verify the ETLS products and certificates. The Committee should also be

assigned the responsibility of settling disputes arising from the ETLS implementation in

the sub-region. WAMI was directed to prepare the terms of reference for the proposed

Committee.

ii. Sierra Leone should endeavour to rejoin the ETLS by end-December 2009.

iii. Member states should create a dedicated website on ETLS information to be hosted by

Ministries of Trade/Commerce. They should deploy ICT platform in Customs and

Ministries of Trade/Commerce to facilitate online verification of companies and products

by December 2010.

iv. Member states should pursue sensitization and education of all stakeholders on the ETLS

by Ministries of Trade/Commerce and WAMI

v. Member Countries should ensure that they use current ECOWAS approved harmonized

documentation for clearance of goods, and also use automated systems to process

customs data at all approved entry and exit points.

vi. ECOWAS should speed up action to introduce the community customs code by end June

2010

vii. Member countries should introduce joint check points to reduce their number to a

maximum of three on all major corridors by December 2009.

viii. Member countries should introduce satellite tracking system by December 2010.

ix. Member states should apply same Business Registration fees for nationals and ECOWAS

nationals by end December 2010.

x. Member states should endeavour to complete all regional highway projects by December

2013

xi. Member states should implement the Yamoussoukro Agreement on open skies by June

2010.

xii. Member states should create enabling environment for private-public partnership to

provide relevant infrastructure including rail and power.

xiii. Trade Ministers of member countries should endeavour to participate in the annual Trade

Forum and the Convergence Council Meetings.

REPORT OF THE THIRD WAMZ TRADE MINISTERS’ FORUM ABUJA, NIGERIA.

MAY 20th and 21st, 2010

The Third West African Monetary Zone (WAMZ) Trade Ministers’ Forum took place at the ECOWAS Commission, Abuja, Nigeria, on 20th and 21st

May, 2010.

The Forum was organised by the West African Monetary Institute (WAMI), in collaboration with the Federal Ministry of Commerce and Industry, Federal Republic of Nigeria. In attendance were Senator Jibril Matins-Kuye, Honourable Minister of Commerce and Industry, Federal Ministry of Commerce and Industry, Nigeria; Honourable Abdou Kolley, Minister of Trade, Regional Integration and Employment of The Gambia and Honourable Ms. Josephine Tapgun, Minister of State for Commerce and Industry, Federal Republic of Nigeria. Members of National Assemblies and Parliaments from The Gambia, Ghana and Sierra Leone were also present as well as representatives of Ministries, Departments and Agencies of WAMZ Member States, financial institutions, organised private sector, the African Export Import Bank (AFREXIM) African Finance Corporation (AFC), the ECOWAS Commission and WAMI participated in the Forum. Guinea and Liberia were not represented at the Forum. The list of participants is attached as Appendix

PRESENTATIONS

REPORT OF THE FOURTH MEETING OF ECOWAS-WAMI JOINT TASK FORCE ON TRADE RELATED ISSUESMr. Hussein Thomasi, Director, Legal and Ag Director, Operations and Regional Integration at the West African Monetary Institute, made a presentation on the Report of the Fourth Meeting of the ECOWAS-WAMI Joint Task Force on Trade-relate issues, which was held on 7 th & 8th May,

2010. In the presentation he highlighted the purpose of the meeting which was to carry out final review of the draft Terms of Reference for the proposed ECOWAS Standing Committee on Rules of Origin and to validate it for presentation at the Third WAMZ Trade Ministers’ Forum and, also, to review the Terms of Reference of the ECOWAS-WAMI Joint Task Force and

prepare an action plan for the Task Force for the current year.

He highlighted the recommendations made at the meeting as follows: That the proposal for the establishment of the ECOWAS Standing Committee on Rules of Origin should be referred to the ECOWAS Technical Committee on Trade to enable a region-wide deliberation and decision on the proposed Standing Committee on Rules of Origin; ECOWAS should draft Rules of Procedure for the ECOWAS-WAMI Joint Task Force as a way of regularising its establishment; and the ECOWAS Commission and WAMI should ensure implementation of the activities under the action plan during the year 2010.A presentation was made by a representative from the AFC. He highlighted facilities under infrastructure financing that the corporation provides.

COMMUNIQUE OF AFREXIM BANK/WAMI SEMINAR

Dr. Francis Mbroh, Director, Research, Planning and International Cooperation, African Export Import Bank (Afreximbank) presented a communiqué of the one-day Seminar on “Obstacles to Intra-Regional Trade in West Africa-The Challenge of Non-Tariff Barriers and Poor Trade Settlement System”, jointly organised by Afreximbank and WAMI, in collaboration with the Federal Ministry of Commerce and Industry of Nigeria and held at the ECOWAS Commission, Abuja, Nigeria on 19 th May, 2010.

He stated that the objective of the seminar was to contribute to ongoing efforts at addressing non-tariff barriers to trade and the poor trade settlement system in the ECOWAS region by offering Member States and

participating agencies an opportunity to exchange information and share ideas on how to mitigate these inhibitions to trade for the socio-economic advancement of the ECOWAS region.

He highlighted the following as the recommendations of the seminar:

I. Member states should improve financial sector infrastructure such as payments system infrastructure in the region.

II. Strengthen the capacities of institutions promoting trade through adequate staffing and training to enable them carry out their trade promotion policies and programmes.

III. Minimise multiple membership to regional economic organisations of similar mandate to reduce cost of policy coordination.

IV. Improve infrastructure such as railways, roads, sea and air transportation in the region to facilitate movement of goods and services across the ECOWAS.

V. There is need for Member States to build analytical and statistical capacity to assess non-tariff barriers affecting their exports and adopt approaches to deal with them.

VI. Increase value added of products originating from member states and enhance their international competitiveness.

VII. Establish a legal framework for trade dispute resolution within the region.

VIII. Harmonise common laws and civil laws within the region with a view to creating an appropriate legal environment to support intra-ECOWAS business.

IX. Afreximbank should extend correspondent banking services to more banks within the region.

X. Involvement of, and partnership with, the private sector including banks in inter-agency meetings as they are very relevant in trade integration process in the region.

XI. There is need for Afreximbank to intensify marketing of its services through organization of seminars/workshops on trade financing in West Africa.

XII. Organise policy fairs to sensitise the public on not only products and services but also public policy especially in relation to trade and trade related matters.

XIII. Develop a comprehensive information and communication strategy for the region.

XIV. Afreximbank should make its presence felt in the region through the support of initiatives on trade issues such as those undertaken by WAMI.

COUNTRY PRESENTATIONS ON IMPLEMENTATION OF THE RECOMMENDATIONS OF THE SECOND TRADE MINISTERS’ FORUM

ECOWAS Standing Committee

The West African Monetary Institute in consultation with the ECOWAS-WAMI Joint Task Force on Trade-related Issues has drafted the Terms of Reference of the proposed ECOWAS Standing Committee on Rules of Origin as directed by the WAMZ Convergence Council and the report submitted to the Trade Ministers for further guidance.

Sierra Leone should endeavour to rejoin the ETLS by end December 2009

Sierra Leone lifted the suspension of its participation in the ETLS in 2009 following the resolution of the issues by the ECOWAS Commission in consultation with the country authorities.

Member states should create a dedicated website on ETLS

None of the member countries has created a web-site exclusively dedicated to dissemination of information on ETLS. However, in the interim, most

Member States are using existing departmental or Ministry websites to disseminate information on ETLS and other related matters. Efforts are being made with the support of donors and development partners to set up ETLS website in Nigeria and Sierra Leone. Ghana Customs (CEPS) has engaged a consultant to redesign its web page with sufficient ETLS content. Gambia has reaffirmed its commitment to the designing of the web site.

Sensitisation and education of all stakeholders on ETLS by Ministries of Trade/Commerce and WAMI

Sensitisation activities in respect of ETLS are generally dormant in the zone. Gambia has set up an Inter-institutional Committee comprising relevant stakeholders. The Committee embarked on a test convoy in relation to the convention relating to Inter-State Road Transit (ISRT) and also conducted a number of radio and television programmes in respect of public education on ETLS. Ghana has prepared a sensitisation programme intended for a nation-wide coverage and is seeking support from the ECOWAS Commission for implementation. Nigeria has set in motion sensitisation activities in three regions and intends to hold the first sensitisation in the second and third quarters of 2010. A national task Force has been set up for the purpose in Sierra Leone but no activity has been planned for 2010.

Member states should ensure that they use current ECOWAS approved harmonised documentation for clearance of goods and also use automated systems to process customs data at all approved entry and exit points

The WAMZ member countries are at different levels of automation. The Gambia is gradually migrating to ASYCUDA++. The software has been installed and the officials are under going training. Ghana is well ahead of the rest of the zone in relation to the wide use of automated customs clearing system. Ghana is currently using EDI and has introduced a single window system. While Sierra Leone is being supported by UNCTAD and

DFID to fully automate its customs clearing system, the country is running manual and ASYCUDA++ automated systems concurrently. Nigeria is operating an ASYCUDA++ electronic clearing system and has deployed it at a number of selected major entry and exit points. The ECOWAS Commission is looking into the possibility of interconnectivity among member states to allow country IT infrastructure to interface.

ECOWAS should speed up action to introduce the Community Customs Code by end-June 2010

Work on Community Customs Code has stalled. It was reported that a draft report has been submitted by the consultant, in 2007, to ECOWAS Commission. ECOWAS requested for an extension of the deadline to end June 2011.

Member countries should introduce joint check points to reduce their number to a maximum of three on all major corridors by December 2009.

Efforts are on going to establish joint border post along the northern flank of the Gambia/Senegal corridor. Under the IRST project sponsored by the World Bank. Ghana is making efforts to establish joint check points along its major corridors. Nigeria has set up an inter-institutional surveillance committee to reduce the number of multiple check points to three. In Sierra Leone, European Union is lending support for joint border post along major corridors in the Manor River Union.

Member countries should introduce satellite tracking system by December 2010

The Gambia Revenue Authority has initiated negotiations brokered by WAMI to introduce an electronic tracking system in collaboration with GCnet of Ghana. The introduction of a satellite tracking system has since become a front line activity in the action programme of the Gambia Trade

Policy formulated in 2009. Ghana has been using electronic tracking system for several years. Nigeria is making progress and has re-affirmed its commitment to implement this recommendation before the deadline. Efforts are being made to introduce the system in Sierra Leone.

Member countries should apply same business registration fees for nationals and ECOWAS nationals by end December 2010

The Gambia, Ghana, Nigeria and Sierra Leone reported that they have no discriminatory business registration fees.

Member states should endeavour to complete all regional highway projects by December 2013.

Regional road construction projects are on-going in many of the WAMZ member countries and member states are committed to redoubling efforts in implementing the road projects.

Member countries should implement the Yamoussoukro Agreement on open skies by June 2010

All member countries are implementing the Yamoussoukro Agreement. Gambia and Sierra Leone reported registration of new Airlines. Nigeria has deregulated the airline industry and there has been increasing registration of private airlines. The volume of airline traffic is said to be on the increase in Ghana.

Member countries should create enabling environment for Private-Public Partnership (PPP) to provide relevant infrastructure including rail and power

There are no restrictions on public private partnership. Examples of PPP in the Gambia include Independent Power Producers, fuel storage depot, etc. Ghana has a very conducive environment for PPP and there are a number of them e.g. GCNet and APP. Nigeria supports PPP and there are a lot of examples of PPP, in the road, rail, air and sea transport sectors. Sierra

Leone has recently embarked on several initiatives to strengthen partnership with the private sector.

Trade Ministers of member countries should endeavour to participate in the annual Trade Ministers and Convergence Council meetings

The Honourable Minister of Trade, Regional Integration and Employment of the Gambia stated that Trade Ministers are committed to the meeting and that once informed in good time, barring any unforeseen exigencies would certainly attend such meetings.

PRESENTATIONS OF UPDATES ON THE ETLS, ECOWAS COMMON EXTERNAL TARIFF (CET), COMMUNITY CUSTOMS CODE, FREE MOVEMNET OF GOODS/PERSON, ROAD TRANSPORT FACILITATION PROGRAMME

Mr. Felix Kwakye Consultant, Customs at the ECOWAS Commission presented paper on the ETLS and ECOWAS CET. In his presentation he highlighted the genesis of the ECOWAS Trade Liberalization Scheme (ETLS) as rooted in Article 3 of the ECOWAS Revised Treaty. He further stated that several protocols and regulations have been enacted to improve the scheme. REGULATION C/REG.3/4/02 as establishing procedure for the approval of originating products to benefit under the ECOWAS Trade Liberalization Scheme; He also pointed out there is existence of a structure of dispute resolution mechanism to address practical challenges arising out of the implementation of the scheme.

He concluded the paper by saying that the ETLS is a major building block in the construction of a common market and the march towards free circulation of goods. Even though the scheme in its current state might not address all the needs of the region, it represents an important step in our drive towards a common market. On the ECOWAS CET, he noted that final

rates have been determined but final agreement on alignment of the products in the different categories is yet to be reached.

The ECOWAS Commission also presented a paper on free movement. The presentation emphasised the need to remove obstacles to free movement of persons and goods to create a single market in West Africa in order to compensate for the limited size of national economies on free movement. The presentation cited abolition of entry visa for ECOWAS citizens and the freedom to exercise any vocation within the community without exception as some of the most remarkable achievements of the Protocol.

ACTIONS AND RECOMMENDATIONS

After exhaustive deliberations, the Forum made the following recommendations:

That the proposal for the establishment of the ECOWAS Standing Committee on Rules of Origin should be submitted to the President of the ECOWAS Commission for referral to the ECOWAS Technical Committee on Trade for consideration to enable a region-wide deliberation and decision on the proposed Standing Committee on Rules of Origin.

i. The Forum called for greater sensitization and public education on ETLS.

ii. There is a need for Member States to discuss ECOWAS protocols at the parliamentary level to ensure ease of ratification and domestication of such protocols into their national laws

iii. Member States should adhere to deadlines on implementation of decisions of the Heads of State on the ECOWAS Protocols.

iv. The Forum reiterated its call for the ECOWAS Commission to come up with a sanctions regime that would be imposed on Member States for non-adherence to ECOWAS Protocols.

v. The Forum urged Afreximbank to provide financial and technical support to WAMZ Member States through WAMI for the implementation of trade related programmes.

vi. The Forum encouraged WAMI to further collaborate with Afreximbank to implement the recommendations in the communiqué in particular export development programmes for the WAMZ member states.

vii. The need to encourage patronage of the ECOWAS Member States’ products and services to alleviate poverty in the region.

viii. Recommendations, made at the Second Trade Ministers’ Forum held in Accra, in August 2009, whose implementations are on-going should be completed by Member States and the ECOWAS Commission on schedule.

UPCOMING EVENTS

SIXTH TRADE MINITERS’ FORUM

Objective: Assessment of trade performance in the WAMZ as well as the presentation of the WAMZ Maiden Trade Integration Report 2013

Venue/Location: Conakry, Guinea

Date: November 27-29, 2013