Overview of Trade and Barriers to Trade in West Africa
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European Centre for Development Policy Management Discussion Paper No. 195 July 2016 Overview of trade and barriers to trade in West Africa: Insights in political economy dynamics, with particular focus on agricultural and food trade Avec résumé en français by Carmen Torres and Jeske van Seters ww.ecdpm.org/dp195 ECDPM – LINKING POLICY AND PRACTICE IN INTERNATIONAL COOPERATION ECDPM – ENTRE POLITIQUES ET PRATIQUE DANS LA COOPÉRATION INTERNATIONALE Overview of trade and barriers to trade in West Africa: Insights in political economy dynamics, with particular focus on agricultural and food trade Avec résumé en français Carmen Torres and Jeske van Seters July 2016 Key messages The trade profile of the Intra-regional trade in Actors and factors that Economic Community Of ECOWAS is low, largely explain formal and informal West African States informal, poorly trade dynamics, as (ECOWAS) is little diversi- documented, and believed presented in this paper, will fied, as the region primarily to be dominated by staple need to be taken into exports a limited number of food. Yet, it has account when designing raw materials and imports considerable potential to and implementing policies to industrialised products and, increase, in line with effectively promote intra- increasingly, food items. ECOWAS ambitions. regional trade and value chain development. Discussion Paper No. 195 www.ecdpm.org/dp195 ii Discussion Paper No. 195 www.ecdpm.org/dp195 Table of Contents Acknowledgements ........................................................................................................................................ vi Acronyms ...................................................................................................................................................... vii Executive Summary ....................................................................................................................................... ix Résumé analytique ....................................................................................................................................... xiii 1. Introduction .............................................................................................................................................. 1 2. ECOWAS overall trade features .............................................................................................................. 2 2.1. ECOWAS export composition and trends .................................................................................. 2 2.2. ECOWAS import composition and trends .................................................................................. 3 2.3. ECOWAS countries main trade products and commercial partners .......................................... 5 2.4. ECOWAS trade balance and trends ........................................................................................ 10 2.5. ECOWAS intra-regional trade composition and trends ............................................................ 17 3. Spatial dimensions of ECOWAS trade, with a focus on agricultural and food trade ............................. 24 3.1. Trade corridors ......................................................................................................................... 24 3.2. Trade flows in the region going beyond corridors .................................................................... 27 4. Barriers to trade in ECOWAS ................................................................................................................ 33 4.1. Ambitious regional agreements but lack of implementation ..................................................... 33 4.2. Official barriers to trade ............................................................................................................ 34 4.3. Unofficial barriers to trade ........................................................................................................ 35 4.4. Infrastructure and transport sector ........................................................................................... 38 5. Regional non-trade policies affecting trade in ECOWAS ...................................................................... 39 5.1. Regional policies for agricultural development and food security ............................................ 39 5.2. ECOWAS regional policy for industrial development ............................................................... 39 5.3. ECOWAS regional policies for infrastructure ........................................................................... 40 6. Conclusion ............................................................................................................................................. 41 Annex 1: UNCTAD Standard International Trade Classification ................................................................... 46 Annex 2: Trade trends in ECOWAS between 2005 and 2014 ...................................................................... 48 Annex 3: Estimates of informal intra-regional trade of key food staples in ECOWAS .................................. 57 Annex 4: Production and market flow maps for rice, maize, millet, cowpea and yam .................................. 60 Annex 5: Assessment of volume and value of regionally traded staple commodities (livestock, millet/sorghum and onion) .................................................................................................................. 65 Annex 6: Sorghum/millet and rice market sheds in West Africa during a normal year ................................. 71 Bibliography .................................................................................................................................................. 73 iii Discussion Paper No. 195 www.ecdpm.org/dp195 List of Boxes Box 1: Rice intra-regional trade dynamics in West Africa (Haggblade et al., 2012) ..................................... 30 Box 2: Informal trade in West Africa (based on World Bank, 2015) ............................................................. 32 Box 3: Weak and sometimes competing regional institutions in West Africa ............................................... 34 Box 4: Borderless Alliance road governance verification trip results (November 2015) ............................... 37 Box 5: Value-chains prioritized in regional agricultural policies (PAU and ECOWAP) and in the Regional industrial policy (WACIP) ....................................................................................................................... 40 List of Figures Figure 1: ECOWAS countries food exports (in millions of USD, average 2010-2014) ................................... 3 Figure 2: ECOWAS countries food imports (in millions of USD, average 2010-2014) ................................... 5 Figure 3: ECOWAS countries trade balance (in millions of USD, average 2010-2014) ............................... 10 Figure 4: ECOWAS countries food trade balance (in millions of USD, average 2010-2014) ....................... 11 Figure 5: Evolution of ECOWAS food trade balance (in millions of USD, from 2005 to 2014) ..................... 12 Figure 6: Evolution of ECOWAS cereals imports (in millions of USD, from 1995 to 2014) .......................... 13 Figure 7: Evolution of ECOWAS meat imports (in millions of USD, from 1995 to 2014) .............................. 14 Figure 8: Evolution of ECOWAS milk imports (in millions USD, from 1995 to 2014) .................................... 14 Figure 9: Evolution of ECOWAS sugar imports (in millions of USD, from 1995 to 2014) ............................. 15 Figure 10: Evolution of ECOWAS fats and oils imports (in millions of USD, from 1995 to 2014) ................. 15 Figure 11: Evolution of ECOWAS fish imports (in millions USD, from 1995 to 2014) .................................. 16 Figure 12: Evolution of ECOWAS top 5 intra-regional food exports (in millions of USD, in the last 10 years) ............................................................................................................................................................... 19 Figure 13: Evolution of ECOWAS top 5 intra-regional food imports (in millions of USD, in the last 10 years) ............................................................................................................................................................... 20 Figure 14: Top ECOWAS intra-regional food exporters (% of total intra-regional food exports in value, average 2010-2014) .............................................................................................................................. 21 Figure 15: Top ECOWAS intra-regional food importers (% of total intra-regional food imports in value, average 2010-2014) .............................................................................................................................. 21 Figure 16: Main trade corridors in West Africa ............................................................................................. 24 Figure 17: Trans-Sahelian (orange) and Trans-Coastal (blue) highways in West Africa .............................. 25 Figure 18: Share of transit and intra-regional trade along selected corridors ............................................... 26 Figure 19: Share of transit and intra-regional trade by type of merchandise ................................................ 27 Figure 20: Intra-regional trade flows of cattle, cereals, roots and tubers in ECOWAS ................................. 28 Figure 21: Production and