ADVERTISEMENT
The Sun Nigeria
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
The Sun Nigeria
No Result
View All Result
ADVERTISEMENT
Ley Your Dreams Come Alive – With FCMB Loans
Home Business

Why Nigeria can’t sign WTO trade agreement now

7th February 2017
in Business
0
Why Nigeria can’t sign WTO trade agreement now
0
SHARES
107
VIEWS
Share on FacebookShare on Twitter

By Bimbola Oyesola

Nigeria, in January 2017, became the 107th member of the World Trade Organisation (WTO) to have ratified the Trade Facilitation Agreement (TFA). The agreement signed on the sideline of the World Economic Forum in Davos, Switzerland, now needs only three more ratifications from members to achieve the two-third threshold to bring the TFA into force.

Vice-President Yemi Osinbajo, who led Nigeria’s delegations including the Minister of Industry, Trade and Investment, Dr. Okey Enelamah, submitted Nigeria’s instrument of acceptance to the WTO,  alongside the Minister of Agriculture and Rural Development, Chief Audu Ogbeh. Other officials in attendance were the Minister of Water Resources, Engr. Suleiman Adamu, and the Special Adviser on Economic Matters to the President, Dr Adeyemi Dipeolu.

According to the Minister of industry, “Nigeria’s ratification of the Trade Facilitation Agreement was a reflection of our commitment to the WTO and a rules-based economy. It is evidence of President Muhammadu Buhari’s commitment to rapidly implement his presidential initiative on the creation of an enabling environment for business.”

“Nigeria would like to see a strengthened WTO that reflects the growth principles of developing countries like Nigeria and we praise the effectiveness of WTO Director General, Azevêdo in this regard,” he added.

Background

It could be recalled that Nigeria, had in a similar vein on November 10, 2014, submitted its Category A notification to the WTO outlining which substantive provisions of the TFA it intends to implement upon coming into force of the Agreement.

The TFA will enter into force once two-thirds of the WTO membership has formally accepted the Agreement and ratification, which is a means of expression for a country to be legally bound by a treaty.

Concluded at the WTO’s 2013 Bali Ministerial Conference, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It is also expected to set out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.

It further contains provisions for technical assistance and capacity building in this area.

According to a 2015 study carried out by WTO economists, full implementation of the TFA would reduce members’ trade costs by an average of 14.3 per cent, with developing countries having the most to gain. 

The TFA, the expert added has the ability to reduce the time to import goods by over a day and a half while also reducing time to export by almost two days, representing a reduction of 47 per cent and 91 per cent respectively over the current average. The TFA also has the potential to increase global merchandise exports by up to $1 trillion.

In addition to Nigeria, some other African countries that have ratified are Botswana, Niger, Togo, Côte d’Ivoire, Kenya, Zambia, Lesotho, Mali, Senegal, Swaziland, Gabon, Ghana and Mozambique.

The TFA broke new ground for developing and least-developed countries in the way it will be implemented. For the first time in WTO history, the requirement to implement the Agreement was directly linked to the capacity of the country to do so. 

In addition, the Agreement states that assistance and support should be provided to help them achieve that capacity.

The world body has stated that the Trade Facilitation Agreement Facility (TFAF) was created at the request of developing and least-developed country members to help ensure that they receive the assistance needed to reap the full benefits of the TFA and to support the ultimate goal of full implementation of the new agreement by all members. 

OPS response

In spite of the advantages which TFA seems to project, the Organised Private Sector (OPS) is less enthusiastic about it bearing in mind what the previous trade agreements had done to the nation’s economy. 

The real sector of the economy has been rendered ineffectual with most of the vibrant industrial areas of the country destroyed due to premature closure of the industries. More than 50 percent of companies operating in the country had gone under in the last two decades due to unhindered dumping of goods from other countries as a result of free trade agrements. Textile industry, which in 80s and the early 90s was the highest employer of labour after government has remained comatose despite the several bailouts from government.

Mr Issa Aremu, the Vice President of Industrial and General Secretary of the National Union of Textiles Garments and Tailoring Workers (NUTGTWN) believes that instead of signing a new agreement,  it would be appropriate for the Federal Government to review all trade agreements to enable it rebuild the economy.

“It is high time the government reviewed all trade agreements that we have entered which have promoted dumping of goods, closure of factories and destruction of domestic jobs.

“We should review them in the light of rebuilding Nigeria’s economy.

“The labour leader said that promoting more trade agreement when Nigeria was not producing and trading on any goods would impact negatively on the economy.

“We are not opposing trade but you must be a trading country to enter into agreement with World Trade Organisation. What are we trading on, nothing?

“We are not even producing for domestic market,  not to talk of exporting. We should not be eager to sign trade deals which are inimical to our economic development.

“This is because some of these agreements are injurious to workers. Let us put Nigeria first and get our priorities right,’’ Aremu said.

He said that the government should ensure that the country should first be a productive economy and produce for domestic market since it has the biggest market in the world and export later.

Aremu lamented that high cost of doing business in Nigeria which cut across, the energy cost, transportation, poor infrastructure, harassment by government officials, multiple taxation would impact negatively on international trade. 

“All these add up to high cost of our goods. That is why our goods cannot compete with others from outside. Government should lower the price on the cost of doing business here”, he said. 

Recently, Ambassador Chiedu Osakwe, Trade Advisor to the Minister of Industry, Trade and Investment and Chief Trade Negotiator for Nigeria said that government would soon commence a review of trade policy.

Osakwe said that the review would be done to discourage dumping of substandard products and promote the diversification efforts of the government.

However, if the review eventually sails through,   it would be the first to be carried out since 2002 when the current trade policy was formulated.

But the Director General of Nigeria Employers Consultative Association (NECA), Olusegun Oshinowo, however noted that the government had undermined the interest of the OPS by signing the trade agreement.

He said, ”We don’t know the content of the Trade Agreement and one would have expected government to involve the OPS on whose behalf it signed the agreement. At least we may have one or two things to say. Even if they are going to tell us now, it’s medicine after death. Government should have done that before putting pen to paper.”

The NECA Director General insisted that it was, unfortunate that government had signed the new trade agreement, but warned that “in future government should carry organised private sector along before doing anything like thiat”

Implication for ailing real sector

The President of the Manufacturers Association of Nigeria (MAN), Frank Jacobs, also agreed that there was not enough clarification on the  trade facilitation agreement signed by the government in Switzerland.

“I think what it means is that  countries should facilitate trade. I don’t think it implies that they must trade across border, what I think is to create environment that will facilitate trade”, he said.

Jacobs said as World Trade Organisation (WTO), it will not want economy of countries to collapse because of trade amongst countries; it should however put the interest of country above trading with the rest of the world. 

According to him, “Nigeria should be concerned with trade and businesses,  the growth of businesses within our border first before complying with WTO requirement that we must trade with the outside world. 

“We cannot be talking about trading with outside countries until we develop our infrastructure to be at par with what  we see in the other countries,” he said. 

The MAN President said government should be concerned about creating enabling environment, creating the basic infrastructure, creating the environment that will encourage investment.

He said, “Our cost of fund is too high, power situation is bad, road and rail transportation are so poor, there is no way we can compete with the rest of the world. So government should concentrate on addressing these challenges first. When they are addressed and they talk of opening up border, nobody will object it.”

He stated that MAN was concerned about manufacturers competing with the global players in manufacture because of the disadvantage position of the country  in view of the  operating environment which is very unfriendly and  very harsh.

“If we begin to talk about globalisation or liberalising trade across borders of different countries, obviously we are going to be in a disadvantage position”, he said.

He however reasoned that as Nigeria cannot isolate itself from the rest of the world,  efforts should be made to improve the operating environment for businesses in the country, so that Nigerian products can compete effectively with other global players.

sunnews

sunnews

Related Posts

2022: Manufacturers demand better forex market, infrastructure
Business

Manufacturers’ industrial capacity reduced to 30% over rising production cost

28th June 2022
S’African investor to establish 5,600MW solar power in Kebbi
Business

S’African investor to establish 5,600MW solar power in Kebbi

28th June 2022
Why low air traffic persists amidst insecurity –Akpuriaye, NANTA boss
Business

Why low air traffic persists amidst insecurity –Akpuriaye, NANTA boss

28th June 2022
Next Post
Investors gain N21.8bn as FBN Holdings drive activity at NSE

Investors lose N74.3bn as market starts week negative

TSP

Union shuts Royal Sacks over anti-labour practices

NeGYII

Ireland hails FG’s economic diversification plan

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Highlights

3 die, 2 injured as diesel tanker explodes in Lokoja – FRSC

Aregbesola urges NCoS to track, recapture escaped inmates

Don’t abandon our roads to leave office, Nsukka people beg Buhari

NCFRMI, UNHCR certify Lagos state as refugee-friendly city

Many feared killed as gunmen attack Ebonyi community

Gov Uzodinma’s aide, Nwadike resigns

Trending

Akeredolu assents to bill establishing Ondo Security Trust Fund
National

Akeredolu constitutes Board of Pension Commission

28th June 2022
0

Gov. Oluwarotimi Akeredolu of Ondo State has constituted the Board of the State’s Pension Commission. This was...

Tokyo 2020: Okagbare, Nwokocha breeze into 100m semifinals

Okagbare’s further ban disqualifies Nigeria’s 4x100m squad’s qualifying team for World Championships

28th June 2022
No pregnant woman in our custody – EFCC

No pregnant woman in our custody – EFCC

28th June 2022
explosion

3 die, 2 injured as diesel tanker explodes in Lokoja – FRSC

28th June 2022
Kabba Custodial Centre attack: FG says 1 soldier, 1 policeman dead, 2 Correctional Service Officers unaccounted for

Aregbesola urges NCoS to track, recapture escaped inmates

28th June 2022
ADVERTISEMENT

Follow us on social media:

Latest News

  • Akeredolu constitutes Board of Pension Commission
  • Okagbare’s further ban disqualifies Nigeria’s 4x100m squad’s qualifying team for World Championships
  • No pregnant woman in our custody – EFCC
  • 3 die, 2 injured as diesel tanker explodes in Lokoja – FRSC
  • Aregbesola urges NCoS to track, recapture escaped inmates
  • Don’t abandon our roads to leave office, Nsukka people beg Buhari
  • NCFRMI, UNHCR certify Lagos state as refugee-friendly city
  • Many feared killed as gunmen attack Ebonyi community
  • Gov Uzodinma’s aide, Nwadike resigns
  • ‘I don’t want to Die’, Chacha Eke says as she announces end of her 9-yr-old marriage
  • Insecurity: OPC leader, Adams, backs Mattawalle’s directive on self-defence
  • Untold story of CJN’s resignation
  • Marginalisation: Suit against Buhari, AGF, others get Oct 19 date
  • Ekiti guber poll: Detained pregnant woman, others accused of vote-buying slam N100m suit on EFCC
  • 129 lawyers shortlisted for SAN award
  • Army trains 34 on armament, ammunition management
  • Why women should not beg for Vice-President’s post
  • Manufacturers’ industrial capacity reduced to 30% over rising production cost
  • Applause as Lagos is certified refugee-friendly city
  • Osun: Douye, Wike, 124 others lead PDP campaign

Categories

  • Abuja Metro
  • Anambra Watch
  • Arts
  • Broken Tongues
  • Business
  • Business Week
  • Cartoons
  • Citizen Joe
  • Columns
  • Cover
  • Culture
  • Duro Onabule
  • Editorial
  • Education Review
  • Effect
  • Elections
  • Entertainment
  • Events
  • Features
  • Femi Adesina
  • Food & Drinks
  • Frank Talk
  • Funke Egbemode
  • Gallery
  • Global Square by Kenneth Okonkwo
  • Health
  • Insights
  • Kalu Leadership Series
  • Kunle Solaja
  • Kunle Solaja
  • Letters
  • Lifeline
  • Lifestyle
  • Literary Review
  • Marketing Matters
  • Muiz Banire
  • National
  • News
  • Offside Musings
  • Opinion
  • oriental news
  • Politics
  • Press Release
  • PressClips
  • Public Sphere
  • Ralph Egbu
  • Shola Oshunkeye
  • Sideview
  • South-west Magazine
  • Sponsored Post
  • Sporting Sun
  • Sports
  • Sun Girl
  • Tea Time
  • The Flipside – Eric Osagie
  • The Sun Awards Live
  • The Sun TV
  • Thoughts & Talks
  • Time Out
  • Today's cover
  • Tola Adeniyi
  • Travel
  • Travel & Tourism
  • Trending
  • TSWeekend
  • Turf Game
  • Uncategorized
  • Updates
  • Views from Abroad
  • Voices
  • World
  • World News
  • Home
  • About Us
  • Paper Ad Rate
  • Online Ad Rate
  • The Team
  • Contact Us
  • Privacy Policy

© 2019 The Sun Nigeria - Managed by Netsera.

No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun

© 2019 The Sun Nigeria - Managed by Netsera.

Posting....