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Gambia: Intra-Africa Trade and Tariff Profile Trade Data Update, Issue No Gambia: Intra -Africa trade and tariff profile No. 22 2018 TRADE DATA UPDATE This Trade Data Update provides an overview of Gambia’s intra-African trade relationships, both within the Regional Economic Communities (RECs) and with other individual African countries; the top import and export products traded; and applicable tariffs. Data is sourced from the UN International Trade Centre (ITC) TradeMap and World Trade Organisation (WTO) Tariff databases. The update is accompanied by a visual representation of key data and trends in an infographic. Regional Economic Communities Gambia is a member of two Regional Economic Communities (RECs) – the Community of Sahel-Saharan States (CEN-SAD) and Economic Community of West African States (ECOWAS). Currently, CEN-SAD has 24 Members states (Benin, Burkina Faso, Central African Republic, Chad, Comoros, Cote d’Ivoire, Djibouti, Egypt, Eritrea, Gambia, Ghana, Guinea Bissau, Libya, Mali, Mauritania, Morocco, Niger, Nigeria, Senegal, Sierra Leone, Somalia, Sudan, Togo and Tunisia.).The CEN-SAD Treaty was revived in 2013 but the revised treaty has not yet entered into force because it has not been ratified requisite quorum. Out of the 24 countries, only 13 have ratified the revised treaty. There is still no free trade agreement in place, meaning that the products that are traded are still subject to high tariffs. ECOWAS is made up of 15 countries that are located in the Western African region (Benin, Burkina Faso, Cape Verde, Ivory Coast, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo). There exists an ECOWAS Free Trade Area to facilitate the free movement of goods within the REC. 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 Please consider the environment before printing this publication. Copyright © tralac, 2018 | www.tralac.org | [email protected] | Twitter @tradelawcentre Gambia: Intra-Africa trade and tariff profile Trade Data Update, Issue No. 22 | September 2018 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 Gambia. Gambia applies the ECOWAS CET on imports from outside the REC. Intra-Africa trade In 2017, Gambia exported and imported goods to and from the rest of Africa to the value of approximately US$9.2 million and US$267 million, respectively. Intra-Africa exports accounted for 41% of Gambia’s total exports and intra-African imports for 48% of total imports for 2017. Table 1: Gambia’s intra-Africa export and import products (2017) Intra-Africa export products Intra-Africa import products % total % total HS 2017 HS 2017 Product description intra-Africa Product description intra-Africa codes (US$m) codes (US$m) exports imports 0402 Milk and concentrated creams 2.352 26% 2710 Petroleum oils 163.609 61% Granite and Building 5408 Woven fabrics 1.494 16% 2516 78.75 29% Stones Sugar confectionery incl. 1704 1.248 14% 8429 Construction Vehicles 8.348 3% white chocolate Footwear (excluding water- 6402 0.94 10% 2402 Tobacco and Cigarettes 2.256 1% proof footwear) 2103 Sauce 0.716 8% 2523 Cement 1.699 1% 1905 Bread, pastry, cakes, biscuits 0.623 7% 2517 Road Metalling Material 1.135 0% Passenger Carrying 8506 Batteries and electrical parts 0.329 4% 8703 0.963 0% Vehicle Gypsum, Anhydrite, 0902 Tea 0.259 3% 2520 0.606 0% Calcium 6401 Waterproof footwear 0.224 2% 8701 Tractors 0.558 0% Fuel, wood, sawdust, 0306 Crustaceans 0.161 2% 4401 0.478 0% twigs, logs Source: ITC TradeMap (2018). tralac calculations Gambia’s top 10 export products constitute 91% of total exports to the rest of the continent. The exports to the rest of Africa are diverse but mainly consist of dairy and agricultural products with milk and cream making up 26% of the total exports. Woven fabric, sugar and footwear are also important products for export, with woven fabric, sugar confectionery and footwear (excluding waterproof footwear) making up: 16%, 14%, and 10% respectively. Rounding out the top 10 of Gambia’s intra-Africa exports are: crustaceans, waterproof footwear, tea, batteries, electricals, bread, pastry, cakes, biscuits, sauce, seasonings; mustard flour and meal. 2 Gambia: Intra-Africa trade and tariff profile Trade Data Update, Issue No. 22 | September 2018 Top export destinations for Gambia’s products are Mali and Guinea Bissau making up 68% and 23% respectively. Gambia’s main exports to Mali are: milk and cream (32%), woven fabric (22%) and sugar confectionery (20%). To Guinea Bissau, Gambia exports: sauce (33%) bread, pastry cakes (18%), milk and cream (16%). Gambia’s top intra-Africa imports are petroleum oils and oils obtained from bituminous minerals (excluding crude) from partners in the continent. Petroleum oil imports from African partners make up more than 50% of Gambia’s total intra-Africa imports. Granite, porphyry, basalt, sandstone and other monumental or building stone also form a considerable percentage of Gambia’s imports intra-Africa totalling 29%. Furthermore, construction vehicles (bulldozers, excavators, graders) feature in Gambia’s top products imported from across the continent, although the percentage is relatively low, accounting for only 3%. Cigarettes and tobacco products are also important import products accounting for 1 % as well as cement, which makes up 1% of intra-Africa imports. The top 10 imports account for 97% of intra-African imports. Gambia’s main import sources are Ivory Coast and Senegal which account for 61% and 36% respectively. The main import product from Ivory Coast is petroleum oils (100%) and main imports from Senegal are building materials (82%) and machinery and mechanical appliances (9%). Intra-Africa import tariffs Gambia subscribes to the ECOWAS ETLS enabling all qualifying goods sourced from approved producers in the other ECOWAS member states to be imported into Gambia duty-free. Goods imported from CEN-SAD countries, which are not ECOWAS member states (including Egypt, Morocco, Somalia and Tunisia) and the rest of Africa are levied the MFN applied duty. The MFN applied duty of Gambia is the ECOWAS CET. The highest average ad valorem applied tariff is 35%. The 35% tariff is applicable to numerous tariff lines, including meat and edible offal of bovine, swine and poultry; sausages; sugar confectionery not containing cocoa; cocoa powder and chocolate, yoghurt and waters. Various products are imported free of duty, including medicaments (HS30), orthopaedic appliances (HS9021), printed paper materials (unused postage, newspaper, books, music manuscripts, maps and children’s drawings), petroleum oils (HS2709) and diagnostic laboratory cultures and reagents (HS3821 and 3822). Apart from duty- free and 35%, the ECOWAS CET has three additional tariff bands – 5%, 10% and 20%. Gambia’s top import sources outside ECOWAS are: South Africa (44%), Morocco (28%) and Egypt (18%). These countries account for 90% of imports sourced out of ECOWAS. Main products imported by Gambia from South Africa are: tobacco and cigarettes (63%), milk and cream (13%), vegetable oils (3%) and apples and pears (3%). Gambia’s main imports from Morocco are gypsum and calcium sulphate (41%), petroleum oils (15%) and preserved fish (10%). None of the top 10 import products from outside ECOWAS are imported duty-free. The import duties applicable to the main products imported from outside ECOWAS range between 5% and 35%. Gambia mainly imports tobacco and cigarettes from outside ECOWAS at a 20% duty, followed by plasters consisting of calcium gypsum, calcium sulphate (10% tariff), protein concentrate (7.5% average tariff), milk and cream (6.7% average tariff) and medium oils (8.1% average tariff). Sugar confectionary attracts the highest duty (35% tariff). Linseed oil also attracts a 20% tariff, and sacks and paper bags are also imported at a 20% tariff. 3 Gambia: Intra-Africa trade and tariff profile Trade Data Update, Issue No. 22 | September 2018 Table 2: Gambia’s imports from Africa excluding ECOWAS countries HS 2017 Product description MFN applied tariff Code (US$m) 240220 Tobacco and cigarettes 4.807 20% 252020 Plasters consisting of calcium gypsum, calcium sulphate 1.446 10% 7.5% 210610 Protein concentrates and textured protein substances 0.592 (5%-10%) depending on TL 6.7% 040210 Milk and cream in solid forms 0.29 (5%-10%) depending on TL 8.1% 271019 Medium oils and preparation, of petroleum or bituminous minerals 0.274 (5%-10% depending on TL 170199 Cane, beet sugar and chemically pure sucrose in solid form 0.233 20.0% 160413 Prepared or preserved sardines, sardinella, brisling whole or in pieces 0.176 20.0% 170490 Sugar Confectionery including white chocolate (excluding chewing gum) 0.147 35.0% 151519 Linseed oil in all forms but not chemically modified 0.133 20.0% 481930 Sacks and bags of paper 0.105 20.0% Source: ITC TradeMap (2018) and WTO Tariff Database (2018) 4 .
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