Ivory Coast: Intra -Africa Trade And

Ivory Coast: Intra -Africa trade and

tariff profile – 2018

No. 12 2019 TRADE DATA UPDATE

1. Regional Economic Communities

Ivory Coast is part of two regional economic communities (RECs): the Economic Community of West African States (ECOWAS) and The Community of Sahel-Saharan States (CEN-SAD).

ECOWAS currently has 15 member states (Benin, Burkina Faso, Cape Verde, Ivory Coast, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo). All 15 countries are part of the ECOWAS Free Trade Area and all, but Cape Verde, are in the process of implementing the ECOWAS Common External Tariff (CET). The ECOWAS Trade Liberalisation Scheme (ETLS) facilitates the free movement of goods through the region. Intra-ECOWAS goods that qualify for duty-free and quota-free access are unprocessed goods, traditional handicrafts and certain industrial products of ECOWAS origin. To benefit from the Scheme producers in member states must apply for approval and if granted will be issued the Certificate of Origin granting specified products duty-free and quota-free access to the ECOWAS market. In 2017 Mauritania and ECOWAS signed an Association Agreement for the re-admission of Mauritania to the REC by 2019; Morocco’s application to join ECOWAS has been granted ‘in principle’ but is awaiting final approval; and Tunisia has recently obtained ECOWAS observer status. Qualifying imports from approved ECOWAS producers are imported duty-free into Ivory Coast and Ivory Coast does apply the ECOWAS CET on imports from outside the REC.

CEN-SAD currently has 24 member states (Benin, Burkina Faso, Central African Republic, Chad, Comoros, Ivory Coast, Djibouti, Egypt, Eritrea, Gambia, Ghana, Guinea-Bissau, Libya, Mali, Mauritania, Morocco, Niger, Nigeria, Senegal, Sierra Leone, Somalia, Sudan, Togo and Tunisia) aspiring to the establishment of an Economic Union which includes the free movement of goods, services and commodities. In 2013 a revised CEN-SAD Treaty was approved, aimed at revitalising the region. However, the Revised Treaty is yet to be ratified by the prerequisite quorum required for entry into force, consequently there is currently no free trade agreement in place.

Ivory Coast: Intra-Africa trade and tariff profile – 2018 Trade Data Update, No. 12/2019 | July 2019

2. Intra-Africa trade

In 2018, Ivory Coast exported and imported goods to the value of US$2.86 billion and US$2.5 billion, respectively to and from the rest of Africa. Intra-Africa exports accounts for 24% of Ivory Coast’s total exports and imports for 23% of total imports for 2018.

Table 1: Ivory Coast’s intra-Africa export and import products

Intra-Africa export products Intra-Africa import products % total % total HS 2018 HS 2018 Product description intra-Africa Product description intra-Africa codes (US$m) codes (US$m) exports imports Petroleum oils and oils 2710 602.28 21% 2709 Petroleum oils, crude 1,287.67 51% (excluding crude) 7108 Gold, unwrought 282.87 10% 0303 Frozen fish 366.24 15% Petroleum oils (excluding 1511 Palm oil 180.31 6% 2710 169.22 7% crude) 2716 Electrical energy 174.05 6% 2523 Cement 61.32 2% Beauty or make-up 3304 166.78 6% 2402 Cigars 41.53 2% preparations 3401 Soap 102.01 4% 8704 Goods vehicles 36.98 1%

0901 Coffee 71.95 3% 3004 Medicaments 31.40 1% Coffee and tea extracts, Flat-rolled products of 2101 69.35 2% 7208 17.54 1% essences and concentrates iron or non-alloy steel Paper cartons, boxes and 3923 Plastic packaging 68.78 2% 4819 17.42 1% cases Petroleum gas and other 2713 Residues of petroleum oil 61.38 2% 2711 16.15 1% gaseous hydrocarbons

Source: ITC TradeMap (2019). tralac calculations

• Between 2017 and 2018, Ivory Coast’s world and intra-Africa exports decreased by 6% and 1% respectively. The decrease in intra-Africa exports can mainly be attributed to a 25% decrease in unwrought gold exports and 5% decrease in exports of electric energy. Exports to Ghana and South Africa decreased by 24% and 12% respectively.

• 37% of intra-Africa exports are petroleum oil (not crude), unwrought gold and palm oil.

• Between 2017 and 2018 world imports increased by 14%, while intra-Africa imports increased by 29% - imports of petroleum oil (crude) increased by 59%, while frozen fish imports increased by 15%. Imports from Nigeria increased by 52%.

• The main import product was crude petroleum oil (51% of intra-Africa imports mainly from Nigeria). Other imports include frozen fish (15%), not crude petroleum oil (7%), cement (2%) and cigars (2%).

• In terms of total intra-Africa trade (exports + imports) Ivory Coast mainly trades with Nigeria (29% of intra-Africa total trade), Burkina Faso (12%), Mali (11%) and South Africa (9%).

Ivory Coast: Intra-Africa trade and tariff profile – 2018 Trade Data Update, No. 12/2019 | July 2019

• Ivory Coast mainly trades with countries in ECOWAS – 78% of intra-Africa exports and 71% of intra-Africa imports are to and from other countries which are ECOWAS member states.

• The main destination markets are Burkina Faso, Mali and Ghana. South Africa is the main destination market outside ECOWAS, accounting for 12% of Ivory Coast’s total intra-Africa exports.

• The main African source market is Nigeria (53% of intra-Africa imports). Morocco and Mauritania are the main source markets outside ECOWAS for imports; however, these countries are members of CEN-SAD.

• Outside ECOWAS and CEN-SAD South Africa is the main source market, accounting for only 5% of Ivory Coast’s total intra-Africa imports.

3. Intra-Africa import tariffs

Ivory Coast prescribes to the ECOWAS ETLS enabling all qualifying goods sourced from approved producers in the other ECOWAS member states to be imported into Ivory Coast duty-free. Goods imported from CEN-SAD countries, which are not ECOWAS member states (including Egypt, Morocco, Mauritania, Somalia and Tunisia) and the rest of Africa are levied the MFN applied duty. The MFN applied duty of Ivory Coast is the ECOWAS CET which have five tariff bands – duty-free, 5%, 10%, 20% and 35%.

• At the HS10 level the highest ad valorem applied tariff of 35% is applicable to 2% of the tariff lines. including meat and edible offal of bovine, swine and poultry; sausages; tomatoes and potatoes; sugar confectionery not containing cocoa; cocoa powder and chocolate; yoghurt and waters; palm oil and woven cotton fabrics.

• 5% and 20% import duties are applicable to 37% and 36% of tariff lines respectively. 5% import duties are levied on live animals (including horses, sheep, turkey, ducks, bees and fish); unsweetened and sweetened concentrated milk and cream; buttermilk; seed (beans, peas, wheat, rye and oats); grains and maize (not seed); mineral ores and concentrates and vehicles for assembly. Imports of fish fillets; smoked fish and seafood; fresh flowers and vegetables; nuts, fruit and spices; cereal flours; jams and peanut butter; wine and other liquor; beauty products; bathroom fittings and fixtures; fabrics, clothing and footwear; shapes of iron and seats (motor vehicles, aircraft, upholstered and cane) are levied a 20% import duty.

• 23% of tariff lines have a 10% import duty, including most fresh and chilled fish; coffee; green and black fermented tea; rice and starches; oils (seed, crude soya bean, olive and palm); raw hides; wood products and veneer sheets and nickel wire.

• 2% of the tariff lines are free of duties. Duty-free imports include medicaments (HS30), orthopaedic appliances (HS9021), printed paper materials (unused postage, newspaper, books, music manuscripts, maps and children’s drawings), petroleum oils (HS2709) and laboratory cultures and reagents (HS3821 and 3822).

22% of Ivory Coast’s intra-Africa exports (US$615 million) are to African countries outside ECOWAS. 46% of export products are unwrought gold, 11% coffee and 10% medium oils. 56% of exports are to South Africa. 29% of intra- Africa imports are from countries outside ECOWAS; mainly Morocco, Mauritania and South Africa. Imports from outside ECOWAS are highly diverse; accordingly, the top 10 import products account for only 57% of Ivory Coast’s imports from non-ECOWAS countries. In 2018 imports from outside ECOWAS were valued at US$724 million; 3

Ivory Coast: Intra-Africa trade and tariff profile – 2018 Trade Data Update, No. 12/2019 | July 2019

56% were imports of products levied a 10% import tariff (at the HS6 level) and 23.8% of imports were levied 5% import duties. Imports of products levied 35%, 20% and 0% import duties account for 0.5%, 11.8% and 7.8% of imports respectively. Of the top 20 products Ivory Coast imports from non-ECOWAS countries none are products facing 35% import duties. The majority of imports are levied 10% import duties (including frozen fish and mixtures of odoriferous substances). Five products are levied 5% import duties (goods vehicles for the assembly industry; coiled flat-rolled products, bars and rods of iron or steel; polypropylene in primary form and fertilisers) and two products face 20% import duties (paper cartons and boxes and fresh apples). Liquefied butanes, medicaments, urea and superphosphates are the only products imported duty-free.

Table 2: Imports from Africa excluding ECOWAS countries

2018 % of imports from MFN applied HS Code Product description (US$m) outside ECOWAS tariff 030354 Frozen mackerel 122.38 17% 10%

252310 Cement clinkers 58.91 8% 10%

030353 Frozen sardines 56.22 8% 10%

030389 Frozen fish, not elsewhere specified 48.90 7% 10%

030355 Frozen jack and horse mackerel 33.22 5% 10%

870421 Goods vehicles for the assembly industry 31.22 4% 5% Flat-rolled products of iron or non-alloy steel in coils, 720839 16.45 2% 5% simply 481910 Paper boxes, cartons and cases 15.85 2% 20%

271113 Butanes, liquefied 15.69 2% Duty-free

330210 Mixtures of odoriferous substances and mixtures 15.31 2% 10%

300490 Medicaments 14.91 2% Duty-free

390210 Polypropylene, in primary forms 12.54 2% 5%

701090 Glass containers 7.69 1% 10%

271019 Medium oils and preparations, 6.54 1% 10%

310210 Urea 6.17 1% Duty-free

080810 Fresh apples 5.80 1% 20% Electric conductors, for a voltage <= 1.000 V, insulated, 854449 5.75 1% 10% not fitted with connectors, not elsewhere specified 310311 Superphosphates 5.71 1% Duty-free Bars and rods, hot-rolled, in irregularly wound coils, of 721391 5.21 1% 5% iron or non-alloy steel

Sources: ITC TradeMap (2019) and ITC MacMap (2019)