ASSESSMENT OF NON-TARRIF BARRIERS IN THE ECOWAS SUB-REGION

KWAME NKRUMAH UNIVEARSITY OF SCIENCE AND TECHNOLOGY, ASSESSMENT OF REGIONAL INTEGRATION AND NON-TARIFF BARRIERS WITHIN THE ECOWAS SUB-REGION BY BENONY KUDJOH ADINKRAH AUGUST 2010 ASSESSMENT OF REGIONAL INTEGRATION AND NON-TARIFF BARRIERS WITHIN THE ECOWAS SUB-REGION by ADINKRAH BENONY KUDJOH B.ED English AND French (HONS) A Thesis Submitted to the Department of Marketing and Corporate Strategy, School of Business, Kwame Nkrumah University of Science and Technology in partial fulfillment of the Requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION (Marketing), COLLEGE OF ART AND SOCIAL SCIENCES AUGUST 2010 DECLARATION I, Benony Kudjoh Adinkrah, declare that this submission is my own work towards the MBA and that, to the best of my knowledge, it contains no material previously published by another person nor material that has been accepted for the award of any other degree of the university, except where due acknowledgement has been made in the text. Benony Kudjoh Adinkrah ………………………… ………………………… (PG1878107) (Student Name & ID) Signature Date Mr. Samuel Y. Akomea ………………………… ………………………… (Supervisor) Signature Date Dr. Kofi Poku ………………………… …………………………. (Head of Department.) Signature Date DEDICATION This dissertation is dedicated to my lovely wife, Eunice, and my children Etoenyeakpe, Rosemary, Mavis, Deborah, Precious, Elikplim and Jilof, and my dear mother Christiana who sacrificed their comfort for the realization of this dream. ACKNOWLEDGEMENT “I can do all things through Christ who strengthens me.” I am very grateful to the Almighty God who is the source of wisdom, knowledge, strength and power for bringing me so far. I am greatly indebted to Mr. S.Y. Akomea, the Head of the Marketing Department and my supervisor, for his laudable suggestions, encouragement, patience and expertise, which have made it possible for the realization of this dissertation. Worthy of mention are; Mr. J.K. Turkson, Mr. Kyeremanteng, and Mr. Annan all of KNUST School of Business; Mr. Kumah of Value Properties, Obuasi; Mr. Amenyeawu Daniel, Mr. Prince Hayibor and Mr. Dickson Penty, for their morale and financial support without which I would not have been able to accomplish this programme. I cannot conclude without expressing my deep appreciation to Mr. Daniel Boateng and Ms. Diana Biamah for their patience and time in typing out the manuscript. ABSTRACT The study sought to assess regional integration and non-tariff barriers within the ECOWAS sub-region and their effects on the implementation of trade facilitation among member states in the sub-region. The researcher collated views from three categories of respondents; traders and customs officials at Aflao-Togo-border, and Accra and Kumasi transit stations to enable him ascertain the types of non-tariff barriers that are predominant in the sub-region: drivers,. An appraisal of the hurdles the three categories of respondents go through was carried out through interviews and the administering of questionnaires to them. The results of the study showed that there are several existing non-tariff barriers which obstruct the full implementation of ECOWAS’ agenda relating to free trade and movements of goods in the sub-region. Both traders and drivers complained about delays at border posts, extortions and inhumane treatments meted out to them by some border agents, customs officials, and policemen at borders and on the routes to their final destinations. Customs officials on the other hand complained about lack of modern communication gadgets and adequate infrastructure at the border posts to facilitate their operations as well as ignorance on the part of some drivers and traders with regard to their operations. The major recommendations are that citizens of member states should be educated on the ECOWAS’ Trade Liberalisation treaty. Border posts in the sub-region should be interconnected and well equipped with infrastructure, and customs officials and border agents should desist from harassing traders. LIST OF ABBREVIATIONS AAA Analysis and Advisory Activities ACP African, Caribbean, Pacific ARIA Assessing Regional Integration in Africa ASEAN Association of South East Asian Nations ASYCUDA Automated System of Customs Data CEMAC Economic and Monetary Community of Central Africa CET Common External Tariff COMESA Common Market of Eastern and Southern Africa ECA Economic Community of Africa ETLS ECOWAS Trade Liberalisation Scheme EPA Economic Partnership Agreement GATS General Agreement of Trade in Services GAT General Agreement on Tariff and Trade FAT Free Trade Agreement ISI Import Substitution and Industralisation NEPAD New Partnership for Africa’s Development NTBs Non-Tariff Barriers OECD Organisation for Economic Co-operation and Development REC Regional Economic Community RIAS Regional Integration Assistance RTA Regional Trade Agreement SADC Southern African Development Community SSA Sub-Saharan Africa SAP Structural Adjustment Programme SSATP Sub-Saharan Transport Policy Program SPS Sanitary and Phytosanitary Standards TBT Technical Barriers to Trade PRSP Poverty Reduction Strategy UEMOA West Africa Economic and Monetary Union UDEAC Union Douanière et Economique de l'Afrique Centrale UNECA United Nations Economic Union for Africa UNCTAD United Nations Conference on Trade and Development WTO World Trade Organisation TABLE OF CONTENTS PAGE Declaration……………………………………………………………………………iii Dedication……………………………………………………………………………..iv Acknowledgement……………………………………………………………..............iii Abstract………………………………………………………………………………...vi List of Abbreviations………………………………………………………………….vii Table of Content………………………………………………………………………ix List of Tables…………………………………………………………………………..xiii List of Figures…………………………………………………………………..............xv CHAPTER ONE 1.1 INTRODUCTION……………………………………………………………..1 1.2 Problem Statement ……………………………………………………................3 1.3 Objectives of the Study …………………………………………………………3 1.4 Research Questions……………………………………………………………...4 Significance of the Study………………………………………………………..5 Scope…………………………………………………………………………….5 Limitations……………………………………………………………………….6. Organisation of the Study ……………………………………………………….6 CHAPTER TWO LITERATURE REVIEW…………………………………………………………7 2.1 Introduction………………………………………………………………................8 2.2 History of ECOWAS /CEDEAO…………………………………………………..9 2.2.1 Achievements of ECOWAS in Terms of Trade…………........................................11 2.2.2 Current Development within ECOWAS…………………………...........................14 2.2.3 ECOWAS and the Benefits of Regional Integration……………………..................15 2.3.1 Regional Integration………………………………………………………………..17 2.3.2 Dynamics of Regional Integration..……………………………………………….18 2.3.3 Regional Integration and Growth…………………………………..........................20 2.3.4 Services in Regional Integration…………………………………………………..22 2.4.1 Trade Liberalisation within ECOWAS Member States…………………………...25 2.4.2 Criticisms of Trade Liberalisation………………………………………………..28 2.5 Concept of Trade Barriers…………………………………………………………29 2.5.1 Non-Tariff Trade to Barriers ……………………………………………………...29 2.5.2 Taxonomy of Non-Tariff Barriers (NTBs)………………………………………...30 2.5.3 Recent trend in trade barriers ……………………………………………………31 2.5.4 Non-Tariff Barriers to Trade Flows………………………………..........................32 2.5.5 Non-Tariff Barriers and Regional Integration………………………...................34 2.5.6 Tariff and Tariff Rate Quotas …………………………………...............................35 2.6 Conceptual Framework……………………………………………………………37 2.6.1 Artificial Barriers…………………………………………………………………..37 2.6.2 Technical Barriers…………………………………………………………………38 CHAPTER THREE 3 METHODOLOGY………………………………………………………………39 3.1 Introduction……………………………………………………………………….39 3.2 Sources of Data…………………………………………………….........................39 3.2.1 Primary Data …………………………………………………...............................40 3.2.2 Secondary Data……………………………………………………………..........40 3.3 Target / Sampled Population…………………………………………………….40 3.4 Sample Size and Sampling Procedure ……………………………………...........41 3.5 Research Design …………………………………………………………...............42 3.5.1 Method of Data Collection……………………………………………………….42 3.6.2 Research Instrument………………………………………………………............43 3.6.3 Method of Data Analysis/Statistical Procedure ……………………………………44 3.6.4 Limitation.…………………………………………………………………................45 CHAPTER FOUR 4 ANALYSIS AND DISCUSSION OF DATA……………………………………….47 4.1 Introduction…………………………………………………………………………...47 4.2 Respondents’ Educational Background…………………………………..................47 4.3 Responses to Questionnaires ……………………………………………………….47 4.3.1 Non-Tariff Barriers………………………………………………………………….48 i. Comfortable level of Customs officials at border posts…………………………..48 ii. Customs Officials Views on the Impediments of RI……………………………….49 iii. Drivers and Traders Assertion on the Number of Roadblocks……………………50 4.3.2 Impact of Non-Tariff Barriers on Regional Integration……………………………..51 i. Satisfaction level of traders and drivers at border posts…………………………….51 ii. Complaints often received from traders drivers……………………………………..52 iii. Traders attempt to lure Customs officials with money………………….. ……….53 iv. Views on full implementation of ELTS…………………………………………….54 4.3.3 Consolidating the Removal of all NTBs and RI……………………………………..55 i. Customs officials’ views on Regional Integration…………………………………..55 ii. Suggested Views of Traders and Drivers on the Eliminating of NTBs…………….56 4.4 Comparing views of All Respondents……………………………………………….57 i. Duration of customs procedures at border posts…………………………………….58 ii. Reasons for delays at border posts………………………………………………….58 iii. Current conditions and free trade……………………………………………………60 CHAPTER FIVE 5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1 Introduction ………………………………………………………………...............61 5.2 Summary of Findings ……… …………………………………………………….61 5.3 Conclusion………………………………………………………………………….62 5.4 Recommendations…………………………………………………………………..64 References………………………………………………………………………….67 Appendices………………………………………………………………………….73 LIST OF TABLES Table Page Table 1 Education Background of Respondents 61 Table 2 Customs Officials’ opinions in dealing with traders and drivers 62 Table 3 Impediments to the Implementation of Regional Integration 63 Table 4 Number of borders posts and check points on the roads 64 Table 5 Traders’ satisfaction with customs procedures at border posts 65 Table 6 Complaints received from traders & drivers 66 Table 7 Traders attempt to lure customs officials with money 67 Table 8 Impediments to the implementation of the ETLS 68 Table 9 Recommended Measures for the elimination of NTBs 70 Table 10 Duration of customs procedures at border posts 71 Table 11 Reasons for the delays at border posts 74 Table 12 Favourability of current conditions to free trade 74 LIST OF FIGURES Figure Title Page Figure 1 Traders’ level of satisfaction with customs procedures 50 Figure 2 Complaints received from traders & drivers 51 Figure 3 Traders attempt to lure customs officers with money 52 Figure 4 The Effectiveness of the implementation of ETLS 54 Figure 5 Responses related to reasons for the delays at border points 58  CHAPTER ONE INTRODUCTION 1.1 Background of the Study Regional integration refers to the emergence of a governance level between the national and global levels within the system of world governance based on cooperative behaviour and the designs of common policies and institutions by actors that traditionally belong(ed) to the national governance level. Sambo, (2004) opined in his paper titled “ EU-ECOWAS EPA”: ‘Regional Integration, Trade Facilitation and Development in West Africa’ that the aim of the regional economic grouping among others is to promote cooperation and integration, leading to the establishment of an economic union in order to raise the living standards of the people in the sub-region while maintaining and enhancing economic stability and fostering relations among member states so as to achieve a meaningful human centered development in the sub-region in particular and the continent as a whole (Sambo,2004). The challenge of globalisation has given governments a strong justification for undertaking reform in pursuit of such co-operation. Over the last 15 years regional trade agreements (RTAs) have become defining features of the modern economy and a powerful force for globalisation. As of July 2007, more than 380 RTAs had been notified to the World Trade Organization (WTO) of which nearly 205 were active (WTO, 2008). The promise of trade as the engine of growth often seems to have been broken for many of the world's developing countries. Nowhere does trade seem less promising than in sub-Saharan Africa (SSA), a region with the world's largest concentration of least-developed economies. There are several reasons that SSA trade is considered problematic with respect to its effect on the region's economic development. One is that the primary sector dominates the economies of most countries in the region, and their lack of export diversification limits their gains (Dean et al, 1998). In the last forty years, the world has seen a gradual reduction in tariff barriers, taxes imposed by nation’s government when it wants to restrict the flow of goods and services among nations, in most developed nations. However, in parallel to this, non-tariff barriers (wide heterogeneous range of policy interventions other than border tariffs that affect and impede trade of goods, services and factors of production) have substantially increased in developing countries. Non-tariff barriers can be more elusive and can be more easily disguised. The effect, however, in some ways can be devastating because they are unknown quantity and are much less predictable (Isobel and Robin, 2000). The continuous existence of Non-tariff barriers to trade within regional integrations, especially in West Africa, has constituted a great challenge as well as an impediment to the success of these regional groupings. (Deardorff and Stern, 1998). The main objectives for the establishment of ECOWAS on the 28th of May, 1975, were the elimination of all tariffs and non-tariff barriers between members, the establishment of a customs union, unified fiscal policy and co-ordinated regional policies in the transport, communication, energy and other infrastructural facilities. Today, as the role of traditional trade barriers gradually vanishes, the focus of trade policy has shifted to the remaining non-tariff barriers to trade, including trade facilitation (Clarke, G, 2005). Problem Statement Non-tariff barriers (NTBs) are a growing concern in Africa. Customs officials, police roadblocks and constant harassment by immigration officials hamper free trade. They also reflect the slow implementation of regional integration agreements to remove tariff and non-tariff barriers to trade. Thus, the ECOWAS Trade Liberalization Scheme (ETLS) has been marked by the unwillingness of many member countries to implement its provisions relating to elimination of tariff and non-tariff barriers to trade and the functioning of a compensation mechanism (Ajayi, 2005). This is reflected by the difficulties in standardizing and harmonizing of customs documents and tariff schedules; failure to extend total exemption from duties and taxes for unprocessed goods and traditional handicraft products, and failure to apply preferential tariffs to approved industrial products. The question now is what are the hurdles that bedevil the complete implementation of ECOWAS treaty on free movement of goods within member states? And what are the continued existing non-tariff barriers in the sub-region? However, the research sought to assess the non-tariff barriers within ECOWAS that are serving as impediments to the full implementation of ECOWAS treaty on free trade and movements of goods. 1.3 Objectives of the Study The purpose of the study is to assess non-tariff barriers to trade within the ECOWAS sub-region. The specific objectives are: To investigate non-tariff trade barriers within the Togo-Aflao and Burkina Faso corridor in the ECOWAS sub-region. To examine the impact of trade policy reforms and regional integration vis-à-vis non-tariff trade barriers (NTBs) in the ECOWAS sub-region. To assess the impact of the existing non-tariff barriers on regional integration within the sub-region. To justify the need for ECOWAS to take bold and prompt initiatives to implement her agenda in relating to free trade and movements of goods among member states in the sub-region. To ascertain the pragmatic measures needed to consolidate the total removal of all non-tariff barriers and regional integration and trade facilitation within the ECOWAS sub-region. 1.4 Research Questions The pertinent questions that will direct this research include the following: What are the non-tariff trade barriers within the ECOWAS corridor? What is the impact of non-tariff trade barriers vis-à-vis trade policy reforms and regional integration in the ECOWAS sub- region? What are the impediments to free trade and movements of goods within the ECOWAS sub-region? Why the need for ECOWAS to expedite action on the implementation of ECOWAS accord signed in Abuja, Nigeria in July, 1993? Which pragmatic measures should be taken to expedite the consolidation of regional integration and trade facilitation in West Africa? 1.5 Significance of the Study Conducting research in this area was favoured as the researcher sees it as a challenge to the full implementation of ECOWAS’ treaty on free trade and movement of goods which are the benefits of regional integration. The significance is that the study will Serve as a point of reference to the Ministry of Foreign Affairs in formulating strategic plans aimed at promoting intra-community trade between member states in the sub-region. Provide useful suggestions to the customs officials, border agents, and the police operating along the ECOWAS corridor to carry out their operations with all diligence in the interest of regional integration. Unveil some of the existing non-tariff barriers to trade that serve as impediments to regional integration within the sub-region to help ECOWAS executives to streamline their operations. Serve as a baseline data for students and researchers who may be interested in conducting further study on the topic. 1.6 Scope Recent events have seen comments from policy makers and the general public suggesting that the free movements of goods within the sub-region is seriously being impaired due to the continuous existence of non-tariff barriers. However, it was not possible for the study to cover the entire sub-region in view of limited time and resources. Consequently, the study was restricted to Togo-Aflao border, customs check points and transit stations from Aflao, Accra to Kumasi only. 1.7 Limitations Though the study on non-tariff barriers to trade is a broad topic that should be thoroughly investigated, getting information from books for the literature review was increasingly difficult so the researcher had to rely, in most cases, on information from journals, presentations and articles from the internet. Again, the research was constrained with time and resources. The combination of work with attending lectures and conducting research was very daunting. By and large, the researcher managed to make headway for the study. 1.8 Organisation of the Study This study is made up of five chapters. In chapter one, the topic to be discussed is introduced as well as the background of the study is discussed with regard to regional integration, ECOWAS treaty in regard to free movements of goods within the sub-region, and non-tariff barriers to trade. The current or existing problem(s) and conceptual frame work are defined. The chapter also covers the objectives, the scope and the organization gives a brief summary of all the five chapters. Chapter two reviews the literature with respect to regional integration and non-tariff barriers to trade, ECOWAS treaty on free trade and movement of goods, tariff and non-tariff barriers to trade expressed by other writers on similar subjects. Chapter three presents the methodology. This consists of the population and sample size, sampling procedures, research instruments like questionnaires among others, administration of the instruments and data collection process. Chapter four depicts the presentation and discussion of findings from the methodology, analysis and interpretation of data in relation to the study. Chapter five states the summary of the report with recommendation and conclusion of the writer and the bibliography or references and appendices are provided at the end of the report. CHAPTER 2 LITERATURE REVIEW 2.1 Introduction The terms “regional integration” and “regional cooperation” have in common the involvement of neighbouring countries in collaborative ventures. However, regional cooperation implies that this is organized on an ad hoc and temporary basis through contractual arrangements of some sort, around projects of mutual interest, while regional integration involves something more permanent (Lavergne et al, 1994). The concept of regional integration takes on a predominantly economic slant in the literature, to the point of confusion with that of “economic” integration. However, it should not be viewed exclusively in such terms. Regional integration can cover the full range of public-sector activity, including not only the coordination of economic policies, but also regional security, human rights, education, health, research and technology, and natural resource management. The concept of regional integration is thus a broader one than that of economic integration. The expression “economic integration” can be used in different ways. As Foroutan (1993) points out, it can be used generically in reference to growing economic ties among countries which may not be geographically contiguous — linkages between Africa and Europe, for example. However, the term is used more restrictively to refer to increased trade and factor flows between neighbouring countries, as a result of trade liberalization or the coordination of economic policies. The revival of interest in regional integration and cooperation is a worldwide phenomenon, inspired by the success of the European experience. It also reflects a growing appreciation of the benefits to be derived from regional unity’ and cooperation in meeting the challenges posed by increasingly competitive world markets (Velde et al, 2006). In Africa, regional unity is seen as a possible solution to the continent’s deep and prolonged economic and social crisis, at a time when private energies are being released thanks to the strengthening of civil society and the deregulation and privatization of national economies, while the continuing decline of state-imposed barriers to intercountry flows is paving the way for increased regional trade (World Bank, 2006). Brada and Mendez (1988) are of the view that regional aspirations as shared by West African statesmen, intellectuals, and citizens alike reflect a general desire to break the confines of the nation-state, and a denial of all that divides the region, including the multiple barriers to the free movement of goods and services, people, and capital among countries, and differences in legal, governmental, and educational structures. Aryeetey (2002) opined that West Africans are aware that the kingdoms and cultures of West Africa were relatively well integrated in pre-colonial times, as accounts of the region amply attest , and the quest for regional unity is in many respects a search for one’s roots. Oyejide (1999) also asserted that these regional aspirations also constitute a response to the manifest incapacity of the state to generate development. They thus include a search for solutions extending beyond what existing nation-states appear capable of providing, including better regional infrastructure, better management of the region’s resources, and even a broader range of freedoms. Former Executive Secretary of the Economic Community of West African States (ECOWAS), Abass Bundu, presented a vision of all that ECOWAS could be, and called for renewed leadership and commitment from the member states. He assessed the impediments to regional integration in West Africa, but pointed to some of the factors increasing the odds of success in the present conjuncture, in particular the more liberal economic policies recently being adopted in most countries, the advance of democracy in the region, and the approval of the revised ECOWAS Treaty by the Authority of Heads of State and Government in 1993. With trade liberalization and currency devaluation figuring prominently in ongoing economic reform programs, the potential importance of preferential trading arrangements pale in comparison. Trade barriers of the tariff and non-tariff varieties remain excessively high in West Africa, but tend to come down too little and too slowly when this is done as part of preferential trade schemes. Macroeconomic policy reforms are without a doubt more important. Yet macroeconomic policies have been a neglected dimension in regional integration schemes over the last 20 years (Blomström, 1997). 2.2 History of ECOWAS (CEDEAO) The Economic Community of West African States (ECOWAS) was formed in May 1975 by 16 independent West African states. It is one of the largest economic communities in Africa bringing together Anglophone, Francophone and Lusophone countries with diverse cultures and different levels of underdevelopment. ECOWAS was to offer its members a ray of hope towards addressing the sub-regional socio-economic and political problems. The Community's central objectives are "to promote co-operation and integration leading to the establishment of an economic union in West Africa in order to raise the living standard of its people; and to maintain and enhance economic stability, foster relations among member states and contribute to the progress and development of the African continent" (ECOWAS 1993:7). Among the steps or measures to be taken to realize these central objectives was the establishment of a common market through: (a) the liberalisation of trade by the abolition, among member states, of customs duties levied on imports and exports, non-tariff barriers in order to establish a free trade area; (b) the adoption of a common external tariff (CET) and a common trade policy vis-à-vis third countries; and (c) the removal, between member states, of obstacles to the free movement of persons, goods, services and capital, and to the right of residence and establishment. (African Development Report, 2000). ECOWAS was conceived as a means toward economic integration and development intended to lead to the eventual establishment of an economic union in West Africa, enhancing economic stability and relations between member states. In actuality, ECOWAS was an attempt to overcome the isolation of most West African countries following the colonial period and the period of post-independence nationalism. Less than a year after its founding, the heads of State of Nigeria and Togo proposed a formal defense treaty that resulted two years later in a non-aggression Pact. This pact entered into force in September 1986. In July of 1991, members agreed to a declaration of political principles, committing them to uphold democracy and the rule of law. The Economic Community of West African States (ECOWAS) is a regional group of 15 countries that was founded by treaty in May 1975. ECOWAS members are: Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. (Venables, 2003), Additionally, ECOWAS leaders adopted two important defense protocols in 1978 and 1981. These protocols call for mutual respect and non-interference in internal affairs and the establishment of a regional mechanism for mutual assistance in defense matters. Uniquely, however, these protocols place equal emphasis on threats from without and within--domestic fissures and fission. It states in Article 4 that ECOWAS is compelled to intervene in "internal armed conflict within any Member State engineered and supported actively from outside likely to endanger the security and peace in the entire Community." The protocol allows for legitimate intervention in internal affairs of member states, unlike the non-intervention clauses in the UN and OAU charters. These provisions have facilitated regional conflict resolution efforts initiated by ECOWAS. The ECOWAS Monitoring Group (ECOMOG) was established initially on an ad hoc basis as a multinational peacekeeping/peace enforcement force, and was the first such group to be established by a regional body. ECOMOG was principally responsible for the restoration of peace in Liberia. In addition, ECOMOG forces have been deployed to Guinea-Bissau and Sierra Leone as well to address conflicts in those states. 2.2.1 Achievements of ECOWAS in Terms of Intra-Trade Remarkable changes have occurred in West Africa since the signing of the ECOWAS Treaty1 on 25 May 1975 just as the external environment has undergone considerable changes (Odularu, 2004). The vision that the founding fathers had at the time of the creation of ECOWAS was one of collective self-sufficiency through the integration of the sixteen West African countries into an economic block with a single market organised around an economic and monetary union. This concern was born out of the realisation that the domestic markets of the member States taken individually were, as a result of their smallness, far from being competitive in a world environment marked by the existence of large trade blocks. In view of the slowness in the progress recorded by ECOWAS, the 1975 treaty has been revised. The principle of supranationality in the application of decisions and the autonomous funding of the budgets of the institutions has been introduced. Furthermore, the creation of supranational institutions of control and arbitration has been envisaged in the application of decisions: a court of justice, a parliament and an economic and social council (Odularu, 2004). In spite of the difficulties, ECOWAS has chalked remarkable progress in the area of free movement of persons; construction of regional (inter-State) roads, development of telecommunication links between the States and maintenance of peace and regional security. It is in the area of the integration of markets that the efforts of the Community have been frustrating. In fact, the trade liberalisation scheme is not yet operational as shown by the low level of the intraregional trade which is only 11% as compared to trade with third countries (Appendix. Tables 1&2). Besides, the common ECOWAS external tariff has still not seen the light of day and the economic and financial policies have not been harmonised although a framework has been established for this. Oyejide et al., (2003) have indicated that the results of the integrational efforts made in West Africa by ECOWAS have been clearly below expectations. However, there are promising signs which indicate better prospects for the future. For example, it has been observed that recent events in the political and economic scenery of West Africa have gradually helped to remove the principal obstacles to integration. Among these are: the advent of democracy in most ECOWAS countries, particularly, in Ghana and Nigeria ( the dominant economies in West Africa); the gradual withdrawal of the State from the sectors of productive activity, and the realisation that the private sector must be the mainspring of growth and economic integration; the adoption of a strategy for accelerating the ECOWAS process of integration in order to create a single regional market based on trade liberalisation, to establish a common external tariff and to harmonise economic and financial policies; the recognition of the relevance of a different approach in the march towards integration as found in the initiative of the non-UEMOA countries in creating a second monetary zone in West Africa which would merge up with the UEMOA zone to give rise to a single ECOWAS monetary zone in the year 2004 (yet to be fully implemented); the harmonisation of the programmes of ECOWAS and UEMOA in connection with the acceleration of the process of integration. the liberalisation of national markets and external trade that resulted from adjustment and reform programmes and which led to some amount of convergence in macroeconomic policies; the common challenge that is thrown by the creation of trade blocks in other regions of the world and globalisation which risks marginalising Africa; this makes it necessary to accelerate the transition towards an autonomous and self-financed development within the framework of African integration; the restructuring of the Executive Secretariat and ECOWAS Fund within the framework of the improvement of their operational procedures. The member States of ECOWAS must lean on these prospects for enhancing the process of regional integration and accept the development challenge of the 21st century (ECOWAS, 1993:7). 2.2.2 Current Developments within ECOWAS Some recent developments are favorable for a re-examination of Bank support to regional approaches in West Africa. First and foremost, Nigeria, the largest economy of the sub-region, has made steady progress in implementing its reform program. In 2004, it demonstrated a clear break from a long history of uncontrolled boom and bust cycles caused by oil price fluctuations. GDP is estimated to have grown at 6 percent, the fiscal surplus reached 10 percent of GDP on a cash basis, and inflation decelerated sharply (World Bank, 2006). Second, ECOWAS has agreed to adopt the UEMOA common external tariff with four tariff rates and a maximum tariff of only 20% by 2008. This is particularly significant for Nigeria as it represents a major liberalization of that economy. More generally, it is an important step in ensuring that regional integration will be relatively open in nature, serving to promote rather than retard integration into the global economy. This development may also help build awareness and acceptance – inside the region an beyond – of West Africa as a truly regional market (World Bank, 2006). Third, the two regional bodies, the ECOWAS Secretariat (in charge of fostering economic cooperation among the 15 countries of the sub-region) and the UEMOA Commission (in charge of the economic and monetary union among a subset of 8 countries in the sub-region, which are all part of the CFA Franc zone) have reinforced their cooperation. They have produced a regional Poverty Reduction Strategy Paper (PRSP). In addition, the UEMOA Commission has prepared a Regional Economic Program (REP). These two documents call for enhanced regional integration to help reduce poverty in the sub-region, and provide a strong basis for improving cooperation with the donor community. On the other hand, the lingering political crisis in Côte d’Ivoire has taken a toll on regional integration efforts. The regional integration process in UEMOA used to be led by Côte d’Ivoire. The country has now to rely on its neighbours to help it resolve an identity crisis, which has profound repercussions beyond its borders. On the positive side, ECOWAS involvement in brokering peace has helped Sierra Leone, Liberia and Guinea-Bissau move out of their respective crises. ECOWAS and UEMOA have reinforced their cooperation in recent years. A memorandum of understanding was signed in 2004, and measures are being taken to improve coordination between the two secretariats. Donors, including the World Bank, have strongly encouraged closer cooperation between the two regional institutions. In December 1999, the Heads of State meeting decided that ECOWAS was to become a customs union, by generalizing the UEMOA CET to all member countries in 2002, and a monetary union by 2003/4. Both deadlines have been extended, though in the latter case, this is probably just as well. On the other hand, a CET based on the UEMOA tariff has now been approved in principle, for final adoption by 2008, and some countries have already begun implementation. This is a very positive step, but only a first step (World Bank, 2006). 2.2.3 ECOWAS and the Benefits of Regional Integration The economies of the sub-region need to become more competitive and capable of participating in globalization. This is due to the immense benefits to be derived from regional integration by ECOWAS. Among these are; 1. The provision of economies of scale and increased competition on a larger and open sub-regional space. This can be achieved by integrating goods and factors markets, including non-trade activities, such as infrastructure services. 2. The sub-region will become more attractive to private investors through a more open policy, which is consistently applied and credible. Regional integration can help achieve this, by providing joint commitments acting as locking mechanisms and restraints against unsound and inconsistent policies. This would improve macroeconomic convergence and stability, and strengthen national liberalization programs. 3. It will also help in dealing more effectively and humanely with labour migration issues. By facilitating population movements across the sub-region, regional integration would provide the framework for developing a more effective supply of labor force in growth poles, while allowing the fruit of growth to be redistributed across the sub-region, thus helping alleviate poverty. 4. Finally, regional integration may help deal more effectively with common causes and cross-border issues, such as shared resources, security and health, and to increase bargaining power in world forums. Regional integration can provide the framework for dealing with positive (e.g. conservation, river basin management) and negative (e.g. communicable diseases, conflicts) trans-border externalities (Oyejide, 2003). The Regional Integration will therefore help improve the competitiveness of the small and fragmented West African economies, and would generate economies of scale, reduce costs, and enhance competition in a larger and open space. 2.3.1 Regional Integration According Kirk (2008) regional integration in African, Caribbean and Pacific (ACP) countries takes a broad view of regional integration and includes various aspects of regional trade integration such as tariff reduction and covers behind the border dimensions of regional trade integration such as cooperation and harmonisation in standards, services and investment, etc. but also regional policy cooperation in areas such as infrastructure, agriculture, economic co-operation and political integration. The lack of regional co-operation leads to increased growth constraints and this no integration has a cost in terms of foregone growth. The literature on regional (trade) integration dates back to Viner (1950) who suggested that the effects of regional trade integration can be either trade creating when trade replaces or complements domestic production or trade diverting when a partner country replaces trade from the rest of the world. If a country becomes a member of a region that “diverts” trade to its members it would have been better to liberalise globally. However, this traditional effect is based on a number of assumptions. For instance, when transport costs are include in the modeling regional integration can be seen as more positive. Furthermore, there are also dynamic effects of regional integration. 2.3.2 The Dynamics of Regional Integration According to Neary (2001), many authors argue that the important effects of RI are dynamic whereby competition as a result of intra-regional trade liberalisation results in increased output and productivity effects. The new trade theory emphasises long-run productivity effects of trade (Grossman and Helpman, 1991). Productivity spillovers can occur via importing and exporting (Coe and Helpman, 1995; Coe, Helpman and Hoffmeister, 1997). Not only does a country’s efficiency increase due to allocation effects, trade helps actors to learn from each other and appropriate R&D spillovers. These learning effects can be translated into long-run efficiency gains. For example increased import of capital- and technological intensive goods stimulates further the processing of innovations and new technologies through which labour and capital productivity will increase and economies of scale will be reached. The stimulation of foreign and domestic investment is often quoted as a potential dynamic effect of regional integration due to a larger market leading to higher returns on capital (Grossman and Helpman, 1991; Krugman, 1990). Increased FDI can actually be such a catalyst through spillovers in terms of technology transfer and other linkages with local firms. The standard theory of economic convergence assumes that poor countries grow faster than rich ones as a result of openness. The income gap between poor and rich economies will close over the time and economic convergence would be reached. This implies that developing countries should open their markets for foreign trade and investment and benefit from imported goods, technology and know-how (Sachs and Warner, 1996). There are many (dynamic) links between trade rules and FDI. For instance, larger, more integrated markets tend to be associated with higher productivity, lower prices and increased quality. Larger, more integrated markets will attract more FDI, with a positive impact on productivity. On balance RTAs should lead to increased extra regional FDI, but more ambiguous results for intra-regional FDI. An important reason for the ambiguity of the effects of trade rules is that MNEs are motivated by exploiting firm-specific assets (e.g. firm specific fixed costs) and hence want to enjoy economies of scale and scope, in addition to jumping trade barriers. Both Blomström and Kokko (1997) and Dunning (1997) acknowledge that the effects of regional integration (trade rules) and FDI depend on pre-existing rules in the region and the extent to which regional rules will actually change such rules. Countries and industries that are already integrated prior to regional integration due to geographical and historical reasons can expect to see more limited effects than other countries and sectors. A stronger actual change to the investment climate i.e. whether national policies are changed dramatically and locked into a regional framework, will reinforce these effects. Blomström and Kokko (1997) argue that regional integration leads to efficiency gains and higher growth. There can thus be long-lasting effects on growth and productivity in addition to a one-off effect based on a more efficient allocation of resources. Ethier (1998) suggests that smaller and poorer countries may have incentives to form a region in order to attract investment away from other members, particularly extra regional FDI, so that regional integration can promote convergence. The costs and benefits of regional integration are often distributed unevenly among member countries. In a comparative static analysis one assumes equal trading partners, given world market price and total elasticity of supply. In this situation, a “win-win-situation” is the more likely the more trade creation is dominating over trade diversion, which again depends on the production structure of trading partners. The (dynamic) effects of regional integration on growth will ultimately depend on local policies, institutions and economic conditions. Regional integration can set the conditions for investment and trade to take place but domestic policies and institutions can enable a country to make the most of these flows. For instance, the literature on trade, growth and poverty suggests that more flexible labour markets, more developed capital markets, and good quality and appropriate education enable countries to benefit more from integration, and this also applies to regional integration (Kirk, 2008). 2.3.3 Regional Integration and Growth The empirical evidence on the effects of RI on growth remains disputed. There is no consensus whether countries grow because they export or whether are they able to export because they grew (Rodrik, 1999). Henrekson (1997) used a cross-sectional regression to suggest that European integration leads to growth in members. Brada and Mendez (1988) and De Melo (1993) failed to find a positive association between RI and growth. Vamvakidis (1998) estimated cross-country and time-series growth regressions over 1970-90. He found that open economies grow faster and that economies that have open and large neighbours grow faster; but the growth rate of neighbouring economies has no significant impact on a country's growth rate. Countries tend to benefit from being located close to large, developed, and open economies. Vamvakidis examined the impact of ASEAN, the Andean Pact, the CACM, UDEAC, and the EU on the growth in its members. He found no significant impact for any except the European Union and suggests that South-South agreements among small, closed developing countries are unlikely to lead to faster growth. However, using more recent data and a larger selection of countries and regional agreements including ACP regions such as COMESA, SADC, UEMOA and CEMAC, Te Velde (2008) suggested that while regional integration itself is not associated with faster growth at the macro level (when accounting for other factors such as trade and investment), there are positive effects through the effects of regional integration on trade and investment. He further commented that trade and FDI promotes growth, and because regional integration tends to increase trade and FDI, regional integration will have a positive impact on growth in its members through the effects of increased trade and investment on growth. Schiff and Wang (2003) indicated that “there has been no empirical evidence of the dynamic effects of RIAs based on their impact on technology diffusion from partner and non-partner countries”. They then showed that NAFTA imports have raised productivity (between 5.5-7.5%) in Mexico through imported foreign knowledge stocks, while extra-regional imports did have no effects. These are long-lasting effects that can in the long-run benefit the poor. They added that there could also be long-lasting effects on productivity through learning by-exporting, and such effects may be appropriated particularly when dealing with more developed partners and these tend to be extra regional. Te Velde (2008) and Schiff and Wang (2003) also suggested that regional integration could be associated with dynamic growth effects. This applies also to ACP regions, e.g. in small African countries which normally do not stand to gain much from increased static allocative efficiency. Te Velde (2008) again, examined whether the destination of exports matters for exporters’ productivity in the manufacturing sector. He came out that firm level regressions for Benin, Malawi and South Africa indicated that exporting firms show a higher productivity but that regional exports are statistically associated with the same productivity levels as exporters that export mainly to the rest of the world. In the case of South Africa, regional exporters are statistically more productive than worldwide exporters. Based on an econometric analysis using data from 46 African countries Hammouda et al (2007) assessed the level and rate of the convergence of income for the members of SADC, COMESA, ECOWAS, CEMAC and UEMOA. They found that the link between regional integration and income convergence is low for which they classified three main reasons. These are the slow growth of output, productivity and accumulation of factors of production, the low levels of intra-regional trade, the bias towards commodity trade and the low factor mobility, and third, the limited inflow of FDI which further constrained capital accumulation. 2.3.4 Services in Regional Integration Stephenson and Prieto (2002) defined three main components of services agreements in regional (Western Hemispheric) service agreements: • Coverage describes the four modes of supply (as in GATS: cross-border delivery, consumption abroad, commercial presence, and movement of people), and whether the agreements take a negative list approach where all services sectors are included subject to exceptions (called non-conforming measures), or a positive list approach specifying the type of access offered to service suppliers in scheduled sectors. • Liberalising principles include the fundamental principles of National Treatment (NT – no discrimination between foreign and domestic suppliers), Most Favoured Nation (MFN – no discriminations amongst source of foreign suppliers), local presence requirement (is a local presence required to supply the service), quantitative non-discriminatory restrictions (e.g. on number of TV frequencies). • Depth of commitments includes transparency (informing members of existing restrictions on services trade), ceiling binding, freeze or standstill on nonconforming measures (no return to less liberalisation), ratcheting, list or lose (nonconforming measures can be maintained only when they are listed in appendices) and future liberalisation. Nikomboriak and Stephenson (2001) also discussed differences amongst RTAs. In particular they highlighted the different approaches taken in ASEAN and those in the Western Hemisphere. The latter are based (mostly) on a negative list approach with commitments being ‘GATS-plus’. ASEAN on the other hand is based on a positive list approach and so far with similar commitments as in GATS. An economic assessment of regional services provisions follows a simple causal chain analysis as implicit in CGE models. The first step is to identify the trade barriers to services trade, and then assess the economic effects of eliminating these trade barriers. There will be trade and welfare effects and these are derived from two main effects: Allocative efficiency: when a regulatory change allows foreign firms with superior technology and lower costs and prices to supply the domestic market. Dynamic efficiency: when the removal of barriers to local and foreign investment raises the level of competition. The effects are expected to lower the prices of services to reflect more closely their marginal product. This will have benefits in the form of lower consumer prices and lower business operation costs which benefits the services and other (e.g. manufacturing) sectors. Services provisions may have important effects on investment through mode 3 commitments (commercial presence), because, as discussed above, countries can offer market access to foreign providers of services, the trade rules contained in a region provides for a transparent framework conducive to private sector services activities, reducing uncertainty and encouraging investment. Uncertainty may have negative effects on investment, when investment involves large sunk and irreversible costs coupled with the option to delay the decision to make the investment until further information becomes available. countries that make regional services provisions can signal their willingness to seriously consider development of the services sectors in a regional context. In order to understand whether services liberalisation at regional level provides better outcomes than liberalisation at world level, Stephenson (2002) defined four different categories of services 1. Infrastructure-type services: financial, telecom, energy and transport 2. Business-type services: distribution, professional services, other business services, tourism, construction and engineering services, and environmental services 3. Social services: educational and health services 4. Other services: recreational, cultural The empirical evidence on regional service liberalisation is not directly for regional services provisions. Indirectly, Te Velde et al (2006) found that multilateral (GATS) mode 3 provisions have helped Caribbean countries to attract FDI in the tourism sector. Te Velde et al (2006) have also discovered that Regional Investment Provisions in RTAs have helped to attract FDI from outside the region. Neary (2001) also indicated that liberalisation in financial services and telecommunication services can have a positive effect on economic growth. 2.4 Trade Liberalisation within ECOWAS Member States Odularu (2004) in his study revealed that in 1990, the Community introduced the Trade Liberalisation Scheme (TLS) with the ultimate aim of increasing the volume of trade in the sub-region, which has been low in relation to the total ECOWAS trade with third countries. Before then, it had introduced limited measures to eradicate barriers to free movement of persons (e.g. the introduction of ECOWAS Travel Certificate). This means that other enabling programmes such as the free movement of people, goods and services, and the right of residence for Community citizens to reside in any part of the Community must be put in place for the TLS to realise its objectives. Trade liberalisation involves the consolidation and harmonisation of customs duties and the consequent elimination of all forms of barriers within the member states of an integrating union and the imposition of a common external tariff (CET). It is a process that is facilitated through the articulate designing and implementation of policies by the Community, which requires the active participation of non-state actors (private economic operators). The ECOWAS Trade Liberalisation Scheme entered into force on January 1, 1990, with provisions for tariff reductions in unprocessed goods, handicraft and industrial products of community origin. The main thrust of the liberalisation programme is on the free movement of unprocessed goods and traditional handicraft products, which should be exempted from import duties and taxes. The second aspect of the programme involves the gradual removal of customs duties and equivalent taxes on industrial products of community origin and, thereafter the lifting of non-tariff barriers to intra-community trade. The liberalisation of trade in unprocessed goods are livestock, fish, plant or mineral products that have not undergone any industrial transformation while traditional handicraft products are articles made by hand, with or without the help of tools, instruments or devices that are manipulated by the craftsman. They are to be circulated freely, fully exempt from import duties and taxes and are not subject to any quantitative or qualitative restriction. No compensation is envisaged for revenue loss attributable to the importation of such articles. The list of unprocessed goods and traditional handicraft products as well as the nomenclature of non-tariff barriers to be lifted were approved as far back as 1979, which means that trade in these products has, to all intends and purposes, been liberalized (Oyejide, 2002). Oluyinka (2010) had observed that though ECOWAS Trade Liberalisation Scheme (ELTS) was launched since 1990, it is still being impeded by competitive nationalism. However, he remarked that in recent times, stronger moves have been made by private sector operators towards ensuring the actualisation of the ECOWAS Trade Liberalisation Scheme (ETLS) which was launched in 1990. The objective of the ECOWAS Trade Lberalisation Scheme is to ensure free movement of goods which satisfy the rules of origin of the Community. He further asserted that the multiple effect of this scheme is if fully implemented is that there will be a market for exports in the sub-region, there will be more jobs created, poverty reduced and foreign exchange earnings improved. However, almost all the governments in the region have not made concrete moves to ensure the actualisation of the scheme in spite of the obvious advantages of this scheme However, various reports have shown that trade between ECOWAS member states is still about 10 percent of the total volume of trade that goes on in the region. These reports reveal that the member states of ECOWAS trade more with European countries and the United States than between themselves. But in recent years, Ghana has started opening up its economy to encourage Foreign Direct Investments (FDI). Michael Ajayi, a Ghana-based Nigerian businessman said, “Ghana depends mainly on FDI, so they are very eager to receive foreign investors (Oluyinka, 2010). The magnitude of intra-ECOWAS trade compared with the rest of the world (Table 1and 2, Appendix ‘B’) suggests that regional integration process is still far from the ideal in West Africa. While more than 70% of the EU total trade happens within the community, intracommunity trade in ECOWAS remains far less than 15%. The above shows that the existing arrangement requires intensive reform. An area which requires immediate attention is the dismantling existing barriers to intra-regional trade as a basis for motivating various forms of trade facilitation processes. (Olumuyiwa, 2006) In order to accelerate the creation of a West African common market, UEMOA and ECOWAS have undertaken to harmonise their trade liberalisation schemes. Further effort needs to be made to finalise the work started. In order to attain this goal, it will be necessary for ECOWAS countries to seek donor support towards their balance of payment, to enable them withstand the transitory costs related to compensation of customs revenue lost through application of the trade liberalisation scheme. In this regard, ECOWAS countries must, in preparing their national economic programmes, take account of preferential tariffs, particularly the component of structural adjustment programmes relating to fiscal measures. This question should be raised by Member States in discussions with the Bretton Woods institutions relative to the preparation of economic reform programmes. 2.4.2 Criticisms of Trade Liberalisation A number of criticisms have been levelled against the scheme among which are: The complexity of procedures for enterprise to benefit from the compensation account. The complex method of calculating members' contributions to the compensation budget. The ECOWAS Secretariat and Fund lack the necessary power to enforce the scheme and to punish offenders. Solomon Onafowokan, LCCI immediate past president recently noted that it was regrettable that not much progress has been made in the realisation of the economic integration of the West African sub-region. He said, “The movement of goods and products across the various borders in the sub-region is still a nightmare. Over the years, we are supposed to have progressed from a Free Trade Area to a Customs Union and eventually to a Monetary Union. But we are yet to even successfully establish a Free Trade Area in the region which is the first level of integration process.” He noted that the reasons for these were multiple check points and imposition of tariffs in spite of ETLS at many of the borders of the countries in the region. He stressed, “Our concern is that economic integration is being embraced all over the world. It gives access to bigger markets, promotes economies of scale, enhances efficiency and ultimately improves the welfare of citizens” (Oluyinka, 2010). 2.5 CONCEPT OF TRADE BARRIERS 2.5.1 Non-Tariff Trade Barriers Non-Tariff to trade barriers (NTBs) refer to the wide and heterogeneous range of policy interventions other than border tariffs that affect and distort trade of goods, services, and factors of production (Beghin 2006). "Non-Tariff Barriers”, as defined in ECOWAS revised treaty on 24th July 1993, means barriers which hamper trade and which are caused by obstacles other than fiscal obstacles. Common taxonomies of NTBs include market-specific trade and domestic policies such as import quotas, voluntary export restraints, restrictive state-trading interventions, export subsidies, countervailing duties, technical barriers to trade, sanitary and phytosanitary (SPS) policies, rules of origin, and domestic content requirement schemes. Extended taxonomies also include macro-policies affecting trade. No taxonomy can be complete, as NTBs are defined as what they are not (Deardorff et al, 1998). NTBs are complemented by related entries on anti-dumping, border effects, countertrade, gravity equation, quotas and tariffs, and trade costs. NTBs can be classified into official (operationalised by the government) and unofficial barriers. Government motivated NTBs have been maintained by more than half of ECOWAS states as an instrument trade control. Import prohibitions and quota restrictions have featured regularly in West African countries’ trade policy processes. A major contradiction to the principles on which ECOWAS was established is the extension of these tools to intra-regional trade. For instance, Nigeria still maintains import prohibitions on some products, including those originating from ECOWAS member States. Unofficial NTBs, which directly impedes trade facilitation include bureaucracy, corruption in customs processes, slow port operations, poor roads and communication infrastructures, wastage and thefts at ports, poor storage conditions, harassment by police and border personnels at numerous road blocks within the region, and inter-country payment difficulties (World Bank, 2001 & WTO, 2005). 2.5.2 Taxonomy of Non-Tariff Barriers to Trade (NTBs) Deardorff and Stern (1998) suggested the following taxonomy; A first broad category covers quantitative NTBs and similar restrictions. It includes import quotas and their administration methods (licensing, auctions, and others); export limitations and bans; voluntary export restraints, a limit on imports but managed by exporters; foreign exchange controls often based on licensing; prohibitions such as embargos; domestic content and mixing requirements forcing the use of local components in a final product; discriminatory preferential trading agreements and rules of origin; and countertrade, such as barter and payments in kind (Beghin et al, 2001). A second category covers fees other than tariffs and associated policies affecting imports. This category includes variable levies triggered once prices reach a threshold or target level; advanced deposit requirements on imports, anti-dumping and countervailing duties imposed on landing goods allegedly exported “below cost” or with the help of export subsidies provided by foreign governments; and border tax adjustment such as value-added taxes potentially imposed asymmetrically on imported and domestic competing goods (Deardorff et al, 1998). A third category is extensive. It collects various forms of government policies, including a wide set of macro-economic policies. This category covers direct governmental participation and restrictive practices in trade, such as state-trading and state-sponsored monopoly and monopsony; government procurement policies with domestic preferences; and industrial policy favoring domestic firms with associated subsidies and aids. In addition, the category extends to macro-economic and foreign exchange policies; competition policies; foreign direct investment policies; national taxation and social security policies; and immigration policies. Where to draw on the NTB definition is context-dependent (Deardorff et al, 1998). Two better-targeted categories deal with customs procedure and administrative practices, and technical barriers to trade, which are central to NTBs. The former covers custom valuation methods that may depart from the actual import valuation; customs classification procedures other than the international harmonized system of classification to levy further fees; and customs clearance procedures, such as inspections and documentation creating trading cost. Technical barriers to trade (TBT) relate to health, sanitary, animal welfare, and environmental regulations; quality standards; safety and industrial standards; packaging and labeling regulations and other media/advertising regulations (Henson et al, 2005). 2.5.3 Recent Trend in Trade Barriers Except export subsidies and quotas, NTBs have become more prominent relative to tariffs. Tariffs on manufacturing goods have been reduced to low levels through eight successive rounds of the World Trade Organisation (WTO) and its predecessor, the General Agreement on Tariffs and Trade (GATT). As of 2005, the unweighted average tariff is roughly 3% in high-income countries, and 11% in developing countries according to the World Bank, from respective levels at least three times as high in 1980. Export subsidies have almost disappeared except in a few agric-food markets. Quotas have become less important, as they have been converted into two-tier tariff schemes, the so called tariff-rate quotas. As tariffs have been lowered, demands for protectionism have induced new NTBs, such as TBT interventions (Deardorff et al, 1998). The United Nations Conference on Trade and Development (UNCTAD, 2005) estimates that the use of NTBs based on quantity and price controls and finance measures has decreased dramatically, from a little less than 45% of tariff lines faced by NTBs in 1994 to 15% in 2004, reflecting commitments made during the Uruguay Round. However, the use of NTBs other than quantity and price controls and finance measures increased from 55% of all NTB measures in 1994 to 85% in 2004. The use of TBT almost doubled, from 32% to 59% of affected tariff lines during the same period. The use of quantity control measures associated with TBT showed a small increase, from 21% to 24% of affected tariff lines, suggesting that trade impediments within TBT are rising. Kee, Nicita, and Olarreaga (2006) compute a 9% tariff equivalent of NTBs, including price and quantity controls, finance measures, and TBT on average for all goods. The average tariff equivalent is about 40% for the goods affected by these NTBs (UNCTAD, 2005) 2.5.4 Non-tariff Barriers to Trade Flows In the opinion of Olumuyiwa (2006), Non-tariff barriers (NTBs) constitute the most significant hindrances to integration, trade and more importantly export supply response capacity of West Africa. The NTBs include government instruments, such as, import prohibition and quota restrictions. NTBs can be classified into official (operationalised by the government) and unofficial barriers. Government motivated NTBs have been maintained by more than half of ECOWAS states as an instrument trade control. Import prohibitions and quota restrictions have featured regularly in West African countries’ trade policy processes. A major contradiction to the principles on which ECOWAS was established is the extension of these tools to intra-regional trade. For instance, Nigeria still maintains import prohibitions on some products, including those originating from ECOWAS member States. Unofficial NTBs, which directly impede trade facilitation include bureaucracy, corruption in customs processes, slow port operations, poor roads and communication infrastructures, wastage and thefts at ports, poor storage conditions, harassment by police and other personnel at numerous road blocks within the region, and inter-country payment difficulties (World Bank, 2001 and WTO, 2005). This paper categorizes existing NTBs into two major groups, namely; institutional (including administrative and procedural) barriers and those created by deficient infrastructure. In addition to tariffs, the roadmap for implementation of the ECOWAS customs union contains many elements that are linked to the reduction or elimination of non-tariff barriers to trade. These include overcoming the informal and illegal barriers along the major trade routes, simplification of customs procedures, implementation of a system for granting certificates of origin at the national level, and implementation of the Inter-State Road Transport (ISRT), procedure for goods in transit from one country to another. Other interventions that might be applied include establishment of frontier markets to facilitate border crossings, reduction in the number of control posts, placement of control posts for bordering countries next to each other to reduce delays, establishment of a computer system for monitoring truck movements so as to eliminate the need for customs escorts and convoys, and use of laser technology to detect contraband. 2.5.5 Non-Tariff Barriers and Regional Integration Regional trade arrangements are an increasingly important element of the global trade environment. Indeed, it is estimated that between 50 and 60 per cent of global trade now benefits from regional preferences (WTO, 2000b). According to Hanson et al, (2000), for developing countries (DCs), integration into global markets offers the potential of more rapid growth and poverty reduction. Yet the existing tariff and non-tariff barriers hamper key developing countries’ exports, making it difficult for them to take full advantage of this opportunity. The issue of improved market access for goods has been taken up by successive GATT rounds. Significant progress in reducing tariff barriers overall has been counterbalanced by non-tariff barriers (NTBs) that persist and may even be on the increase in new and possibly more discrete forms. It is often hard to evaluate the importance of the NTBs due to the lack of transparency concerning their scope and effects. In addition, measures that traders encounter may or may not be legitimate under WTO agreements. With the Doha Development Agenda (DDA), the use of NTBs is once again the subject of multilateral negotiations. Opportunities for addressing DC concerns relating to NTBs are also provided by regional and other fora pursuing trade liberalisation. For example, developing countries report having difficulties in meeting what they perceive are increasingly complex new technical regulations, product standards and SPS measures implemented by developed-country trading partners (OECD, 2002; Henson et al, 2000). Over the past several years, developing countries have filed a growing number of cases under the WTO’s Dispute Settlement Understanding (DSU), some of which voice important market access concerns in areas of NTBs. The true number of grievances could be still higher: for many DC complainants, preparing and presenting a case at the WTO represents a significant task. Filing of legal challenges is often constrained by a lack of financial resources and technical expertise in working through the process of settling disputes. Therefore, NTBs introduced into a dispute settlement mechanism are likely indicative of serious trade-impeding effects. (Nobert, 2005) 2.5.6 Tariffs and Tariff Rate Quotas Tariffs, which are taxes on imports of commodities into a country or region, are among the oldest forms of government intervention in economic activity. They are implemented for two clear economic purposes. First, they provide revenue for the government. Second, they improve economic returns to firms and suppliers of resources to domestic industry that face competition from foreign imports (Krugman, P.1990). Tariffs are widely used to protect domestic producers’ incomes from foreign competition. This protection comes at an economic cost to domestic consumers who pay higher prices for import competing goods and to the economy as a whole through the inefficient allocation of resources to the import competing domestic industry. Therefore, since 1948, when average tariffs on manufactured goods exceeded 30 percent in most developed economies, those economies have sought to reduce tariffs on manufactured goods through several rounds of negotiations under the General Agreement on Tariffs Trade (GATT). Only in the most recent Uruguay Round of negotiations were trade and tariff restrictions in agriculture addressed. In the past, and even under GATT, tariffs levied on some agricultural commodities by some countries have been very large. When coupled with other barriers to trade they have often constituted formidable barriers to market access from foreign producers. In fact, tariffs that are set high enough can block all trade and act just like import bans (O’Riordan et al, 1994). A tariff-rate quota (TRQ) combines the idea of a tariff with that of a quota. The typical TRQ will set a low tariff for imports of a fixed quantity and a higher tariff for any imports that exceed that initial quantity. In a legal sense and at the WTO, countries are allowed to combine the use of two tariffs in the form of a TRQ, even when they have agreed not to use strict import quotas. In the United States, important TRQ schedules are set for beef, sugar, peanuts, and many dairy products. In each case, the initial tariff rate is quite low, but the over-quota tariff is prohibitive or close to prohibitive for most normal trade (Clarke G. 2005). Explicit import quotas on the other hand used to be quite common in agricultural trade. They allowed governments to strictly limit the amount of imports of a commodity and thus to plan on a particular import quantity in setting domestic commodity programs. Another common non-tariff barrier (NTB) was the so-called “voluntary export restraint” (VER) under which exporting countries would agree to limit shipments of a commodity to the importing country, although often only under threat of some even more restrictive or onerous activity. In some cases, exporters were willing to comply with a VER because they were able to capture economic benefits through higher prices for their exports in the importing country’s market (O’Riordan et al, 1994) 2.6 CONCEPTUAL FRAMEWORK Non-Tariff Barriers Authors own source; 2010 2.6.1 Artificial Barriers Artificial Barriers are the impediments created by humans under the disguise of certain existing technical regulations related to intra-regional trade which frustrate free movements of goods. No matter the existing trade agreements certain administrative procedures have to be followed. Some custom officials and border agents under the cover of carrying out these administrative procedures and their duties, frustrate businessmen/women by creating unnecessary delays at borders, illegal and unofficial roadblocks, and intransigence of custom officials which directly impede trade facilitation. For example bureaucratic procedures, corruption in customs processes, wastage and thefts at border posts, poor storage conditions, harassment by police and other personnel at numerous road blocks within the region, and inter-country payment difficulties which finally leads to the extortion of money from travelers and traders (Oyejide, et al., 2004). Besides, artificial barriers according to Oluyinka (2010), are also caused by improper road networks and the absence of modern communication gadgets to monitor the transit of goods and services within the corridor. These and other factors such as mistrust and border security go a long way to undermine free movements of goods and trade within the sub-region. Hence, they become non-tariff barriers. 2.3.2 Technical Barriers Technical Barriers on the other hand are the catalytic elements for artificial barriers. They are standard or technical regulations, or procedures to assess conformity with standards or technical regulations. These become technical barriers to trade if used in a way to impede international trade rather than for the purposes of achieving a legitimate objective. These include restrictive licenses which require standardized products, certificate of origin, sanitary and photosanitary conditions, products packaging, intellectual properties among others. In the process of carrying out these legal responsibilities, custom officials many times make the procedures so cumbersome that the aim of the exercise is defeated hence they become technical barriers to trade (Henson et al, 2005). CHAPTER 3 METHODOLOGY 3.1 Introduction This chapter discusses the objective of employing a particular methodology for this research, the actual data, and expected alternatives to this method (if any), what instruments were used, how these instruments were administered and how sampling was carried out. It highlights the following: Sources of data Primary data Secondary data Sample size Research design Method of collecting data The study used both primary and secondary data sources in form of interviews, discussions and intercept surveys of custom officials, interstate commercial drivers and traders, and statistics on road blocks and non-tariff barriers within the sub-region. 3.2.1 Sources of Data The research was based on two categories of data collection. They were primary and secondary data. These were supplemented with desk study, interviews and discussions. The desk study was a review of relevant literature of previous studies on the subject matter 3.2.2 Primary Data The primary data were collected through the use of questionnaires, interviews and observations conducted on the management/staff of Customs Excise and Preventive Service (CEPS) at their various duty posts from Aflao up to Kumasi. Besides the Customs Officials, the researcher also collected primary data from both traders and drivers plying the corridor between Togo, Ghana and Burkina Faso. The researcher also decided to use participant observation status simply because it allowed him to have an informal interaction with some of the drivers and traders at Aflao Border Post, Accra and Kumasi transit stations that trade between Togo Ghana and Burkina Faso. 3.2.3 Secondary Data The secondary data were basically collected from books relating to the Non- tariff trade Barriers and Regional Integration as well as books written by other authors and articles related to the study. The internet also helped very much, especially, information was cheaper and easily accessible. Examples of such materials used include books on the subject, training manuals, journals and presentations particularly. 3.3 Target/ Sampled Population The target population of this study was made up of the management / staff of Customs Excise and Preventive Service (CEPS), and interstate drivers at Aflao-Togo border. Management and staff were chosen because they were in to provide certain information and insight as regards their operations and the impediments of free trade and movement of goods. As regards the interstate drivers and traders, it was taught wise to seek their views since it would enable the researcher know the extent to which non-tariff barriers affect their transactions. For the purpose of this research a specific number of respondents were chosen from Aflao-Togo border, Accra and Kumasi transit stations respectively. At the time of conducting the survey for the study (January 2009), there were 50 customs officials at the Aflao Togo border and 25 at the CEPS regional headquarters in Kumasi respectively. There were about 200 traders and 120 interstate drivers plying Aflao-Accra Kumasi route. 3.4 Sample Size and Sampling Procedure Sampling is the act, process or techniques of selecting a suitable sample or a representative part of a population for the purpose of determining a parameter or characteristics for a whole population. The study covered fifty (50) customs officials; thirty-five (35) at Aflao-Togo border and fifteen (15 in Kumasi), thirty (30) interstate drivers, and forty (40) traders, summing up to one hundred and twenty (120) respondents as the actual sample size used for the study. The respondent’s ages ranges between eighteen and above and both genders were interviewed. A systematic random sampling method was used in selecting respondents from the customs officials with the consent of their management. The researcher had to visit the border post at Aflao, as well as the CEPS regional headquarters in Kumasi to ascertain first hand information in regards to the operations of customs officials and their views on non-tariff barriers to trade, and their impact on their operations. The researcher had to visit these places prior to the administering of the questionnaires to the respondents. Similarly, a systematic random sampling was used in selecting respondents from the category of interstate drivers and traders at Aflao-Togo border, and at Accra and Kumasi transit stations respectively. 3.5 Research Design Research design is simply the framework or plan for a study that guides the collection and analyses of the data (Gilbert Jnr, 1997). Saunders et al (2007) also describes research design as a general plan of how the researcher goes about answering his research questions, and which contains clear objectives derived from the research questions specifying where the researcher intends to collect data, taking into consideration the possible constraints involved and the possible ethical issues that may evolve in the course of the study. The research design used for the study was the descriptive research method. In this research, emphasis was placed on traders, drivers and customs officials who represent the final report of the study. Data collection was conducted mainly at border posts, some major transit points and lorry stations in Aflao, Accra and Kumasi; this was to give the researcher easy access to the relevant respondents. This exercise was carried out mainly in both day and in the night times. The responses gathered from the respondents were relied on for the analysis of the problems at hand and addressed them accordingly. 3.6 Method of Data Collection Survey method was used in the collection of information and generating data; questionnaire and interviews which were designed for three separate clusters were specifically used. In addition unstructured interviews were done with management/ staff of CEPS, drivers and traders. Some of the problems encountered were the unwillingness of some of the respondents to respond to questions and also some information was deemed to be confidential and as such was difficult to obtain. In order to generate quantitative primary data, the administrations of well-designed questionnaires were adopted as the medium of collection of the research data. Care was taken to make the questions concise, unambiguous and unbiased. The questionnaires were mainly made up of close ended questions with multiple choices. Some of the questions required a simple tick for yes or no. Besides, interviews were also conducted in local languages, English and French languages based on the structured questionnaires. This was inevitable since some of the interviewees were illiterate and come from neighbouring French speaking countries respectively. Interviews were conducted alongside the questionnaires to ensure that sufficient information is collected for proper assessment of the situation in order to achieve the set objectives of the study. 3.6.1 Research Instrument For the achievement of the objectives of the study, views, opinions and suggestions were solicited using interviews and questionnaires as the main research instruments. As pointed by Sander, et, al (1997), questionnaires provide an efficient way of collecting responses from a large sample. Interviews provide a ground for clarification of responses not clearly understood. Though these instruments have their lapses, there is that conviction that, combining them will yield much more fruitful results. These methods of data collection were intended to solicit factual information from the three categories of respondents in relation to their respective operations within the ECOWAS corridor. The research instruments also solicited the challenges and perceived impediments to free trade and movements of goods within the corridor. The set ‘B’ questionnaire was for drivers and traders plying the corridor within ECOWAS. It collected the background information of respondents, and sought to know whether they were aware of ECOWAS trade liberalisation scheme, and further wanted to know from them the types of difficulties they go through in transacting their various businesses, and whether they think the treaty enshrined in ECOWAS’ treaty on free trade and movement of goods and people are being fully implemented. The set ‘A’ questionnaire was for customs officials. It collected the background information about respondents, and sought to know about their operations and their inherent problems. It also sought to collate their views on whether ECOWAS’ treaty on free trade and movements of goods and people are being implemented fully. 3.6.2 Method of Data Analysis/Statistical Procedure The data gathered was processed for consistency of the responses. The master list of items in the questionnaires was used, and the codes assigned to the various items were defined. Statistical Package for Social Students (SPSS) was used to analyse the data. The work was screened; data was developed in SPSS and various items were entered. The researcher after the data entry did data cleaning to make sure that all entries conform to various items in the questionnaires. The SPSS software was used to generate graphs and charts which were presented in the research work. This would help to present, describe and examine the relationships and trends within the data. 3.6.3 Limitations This paper is limited in some ways; the limited duration of time and the genuineness of respondents’ answers to questionnaires have affected the scope and depth of the research. Furthermore, non sampling error can occur because of error in conception, logic, and interpretation of replies, statistics, arithmetic, tabulating, coding, or reporting. To attempt to discuss every way a study can go wrong could be a hopeless venture (Churchill, Jr, 1992). These errors can be reduced by improving upon the method rather than increasing the sample size, and the analyst is in the better position to reduce them. Besides, resources in terms of money and time were not adequate for the project. For example, transportation cost in relation to the work made it difficult for the researcher to visit all the relevant stakeholders as envisaged. CHAPTER 4 ANALYSIS AND DISCUSSION OF DATA 4.1 Introduction This section presents the results of the assessment of regional integration and non-tariff barriers within Aflao, Accra and Kumasi in the ECOWAS sub-region. This chapter deals with the analysis and interpretation of the views and opinions of traders, drivers and custom officials along Aflao-Accra and Kumasi transit routes (based on traders and drivers plying the Togo, Ghana, Burkina Faso and Mali Corridor). The data for discussion were obtained from drivers, traders and customs officials responses to questionnaire administered during both the pilot stages and actual data collection stages of the research. At both stages data were obtained from the same sample. Male respondents outnumbered their female counterparts. In all one hundred and twenty (120) questionnaires were sent and administered to all the respondents who were willing to respond to the questionnaires; fifty (50) to customs officials at Aflao-Togo Border and Kumasi (at the CEPS regional office), forty (40) to traders and thirty (30) to drivers plying Aflao-Accra-Kumasi corridor respectively. The responses gathered from the questionnaires were as follows. 4.2 Respondents’ Educational Background Table 1: Educational background of Respondents Customs Officials Drivers Traders No. % No. % No. % Basic - - 30 25 12 10 Secondary 34 28.3 - - 24 20 Tertiary 16 13.3 - - 4 3.3 The results show that the least literate among the respondents had basic education represent 30% of the total respondents; This category of respondents were traders (15%) and drivers (30%) represented 35% of the total respondent. 65% of the respondents had secondary or tertiary education. 4.3 Responses to Questionnaires 4.3.1 Non-Tariff Barries i. Comfortable levels of Customs officials in Carrying out their duties Table 2. How do you feel when dealing with traders Drivers and Goods? Very Comfortable Comfortable Somehow Very Uncomfortable . No % No % No % No. % . Traders 22 44 24 48 2 4 12 24 Drivers 18 36 22 44 30 60 - - Goods 6 12 22 44 22 44 - - The information in Table 5 summarizes the responses of customs officials’ responses to the question on how they feel when dealing with traders, drivers and goods in transit at border posts and check points. In response to dealing with traders 44% of respondents indicated that they felt comfortable, while 4% expressed mixed feelings, and 24% said they felt uncomfortable. In view of drivers, 36% indicated that they felt very comfortable, 44% said they felt comfortable, and 60% also expressed mixed feelings. In regards to goods in transit, 12%, of the respondents expressed absolute satisfaction, 44% expressed mixed feelings. This indicates that customs officials do not feel very comfortable when dealing with traders and drivers. Furthermore, the researcher also sought the opinions of customs officials on the satisfaction of traders vis-à-vis their interactions with them. (See details in table 5) ii. Customs officials’ views on impediments of regional integration Table 3: Impediments to the Implementation of Regional Integration. Responses No. % Lack of modern communication gadgets 24 48 Ignorance of traders about legal and custom procedures 40 80 Constant interference of duties by political and influential people 16 32 Lack of trust and political will by member states 36 72 Dishonesty and fraudulent practices by traders 40 80 The use of diverse currencies by member states 24 48 Forty (20) respondents of the customs officials representing 80% indicated that the ignorance of traders about the legal and customs procedures, and dishonesty and fraudulent practices served as a major impediment to the efficient implementation of the ECOWAS treaty on free movements of goods; Thirty-six (36) representing 72% of the respondents indicated that lack of trust and political will by member states was another impediment to the efficient implementation of the free movement of goods as enshrined in the ECOWAS treaty. iii. Drivers’ and Traders’ Assertion on Number of Roadblocks Table 4. Number of border posts and check points on the roads Drivers Traders Total No. of respondents Number of Borders Posts No. % No. % No % 1 - - - - - - 2 20 66.7 20 50 40 57.1 3 - - 10 25 10 14.3 4 4 33.3 10 25 14 20.0 5 2 20 10 55 12 8.6 Number of Check Points / Road blocks 2 - - - - - - 4 - - - - - - 6 - - - - - - Numerous 30 100 40 100 70 100 AUTHOR’S OWN SOURCE Twenty (20) drivers and twenty (20) traders representing 57.1% of this category of respondents indicated that they cross at least two (2) border posts before arriving at their final destinations. Twenty percent (20%) representing fourteen (14) of the respondents indicated they cross four (4) borders. Whereas 8.6% representing only twelve (12) of the respondents (i.e. only drivers indicated they cross five border posts). Both respondents (i.e. drivers and traders) indicated they had to pass though several road blocks/ check points on their journey. From table 13 above, it is evident that there are several unofficial barriers, check points and road blocks on the routes within the ECOWAS corridor. 4.3.2 Impact of Non-Tariff Barriers on Regional Integration i. Traders and Drivers Satisfaction at Border Posts Table 5. Are Traders Satisfied With Your Operations? Responses No. % Not at all - - Sometimes 24 48 Somehow 8 16 Very much 12 24 No response 6 12 Figure 1: Traders Satisfaction with Customs Procedures AUTHOR’S OWN SOURCE Out of the 50 respondents of the customs officials, representing 48% indicated that traders are sometimes satisfied, 16% of respondents revealed that traders often portray mixed feelings about their operations, 24% also indicated that traders were very much satisfied, whereas 12% of the respondents did not give any response. This was further explored to ascertain the duration of customs procedures in relation to the clearing of goods in transit. Table 10 summarised the views of the entire respondents on this issue. ii. Complaints received from Traders & Drivers Table 6: What Type of complaints do receive from Traders and Drivers? Response No. % Unnecessary delays 30 60 Strictness 20 40 Extortions 26 52 High duties on goods 32 64 Figure 2: The distribution of Traders and Drivers complaints AUTHOR’S OWN SOURCE More than half of the respondents (15) amidst the customs officials, representing 60% indicated that they have been receiving complaints from traders and drivers on unnecessary delays. Whereas sixteen (16) representing 64% of the respondents from the customs officials indicated that they have been receiving complaints from traders about higher tariffs; thirteen (13) respondents representing 52% indicated that traders & drivers have been expressing their concern about extortion of money from them by some officials. Ten (10) of the customs officials respondents indicated that they have also been receiving complaints about strictness of some customs officials when they were carrying out their duties. iii. Traders and drivers attempt to lure customs officials with money Table 7. How often do traders and drivers lure you with money? Response No. of Response % Sometimes 26 52 Always - - Rarely 10 20 Not at all 14 28 Figure 3: The Frequency at which officials are lured with money AUTHOR’S OWN SOURCE Fifty two percent (52%) represent 13 respondents of the customs officials indicated they were sometimes lured with money by traders and drivers to influence them ignore some of the customs procedures in their favour. Five (5) of the customs officials respondents representing 20% indicated that rarely were they lured with money to influence them: seven (7) of the respondents representing 28% indicated that they have never been at any time influenced by drivers nor traders using money or otherwise in the process of carrying out their duties. This has proven that traders at times condone with some customs officials to manipulate taxes on goods. iv. Responses on the full implementation of ELTS Table 8: Is the ETLS Fully Implemented? Response No % Yes 6 12 Somehow 36 72 Not at all 8 16 Figure 4: The Effectiveness of the Implementation of ETLS AUTHOR’S OWN SOURCE Thirty-six (36) of customs officials (respondents) representing 72% of respondents, in this category, indicated that the implementation of ETLS has not been effectively implemented. Six (6) of the respondents representing 12% responded in the affirmative, while eight (8) of the respondents representing 18% responded in the negative. 4.3.3 Consolidating the removal of NTBs and Regional Integration i. Customs Officials’ Responses on Consolidation of RI The researcher further sought for suggestions from the customs officials in question 20 (see appendix A) on the type of interventions needed to help improve upon their operations. Surprisingly, all the fifty respondents unanimously endorsed all the options in the questionnaire as the interventions needed to improve upon their services. These are: Provision of effective and adequate facilities and networking of all the border posts within ECOWAS corridor The use of laser technology to detect banned and contraband goods Simplification of customs procedures Members within the ECOWAS region should be educated on the operations of CEPS. Seasoned and enough CEPS staff should be sent to man border posts. ii. Traders and Drivers Suggested Measures the Consolidation of RI Table 9. Measures for the elimination of NTBs Traders Drivers Reponses No. % No. % Total % Simplification of customs procedures 20 100 10 66.7 30 50 Removal of numerous and illegal check points 12 60 12 80 24 40 Police and custom should stop extorting money from traders 15 75 12 80 27 45 The use of a single currency within the member states 6 30 - - 6 10 Traders and drivers should be accorded respect at border posts & check points 5 25 6 20 11 18.3 AUTHORS OWN SOURCE The information in the table 15 summarizes the responses to the question which sought to find out the opinions and suggestions from respondents (drivers and traders) on how non-tariff barriers could be eliminated. The findings were that 50% of the respondents suggested that customs procedures should be simplified; 45% suggested that extortion of money by the police and some customs officials should be stopped; while 40% of respondents suggested the illegal and numerous check points within the corridor should be removed; and 18.3% indicated that traders, drivers and citizens from member states should be accorded some form dignity at border posts and check points; whereas 10% suggested the use of a single currency among member state. 4.4.5 Comparing the views of all the respondents i. Duration of customs procedures at border posts Table 10: Duration of customs procedures at border posts Days 1 – 2days 3 – 5days 1wk & above few hours no response Respondents No. % No. % No. % No. % No. % Customs Officials 18 36 16 32 - - 10 20 6 12 Drivers 10 33.3 14 46.7 4 13.3 2 6.7 - - Traders 24 60 10 25 - - 6 15 - - Total 52 43.3 40 33.3 4 3.3 18 15 6 5 AUTHOR’S’ OWN SOURCE Table 10 reveals that respondents gave varied responses as to the duration of customs procedures. Amongst the 120 respondents, 26.7% indicated that customs procedures take between 3-5 days to be completed whereas twenty (20) of them representing 33.3% indicated that customs procedures take between 1-2 days; 9 of the respondents representing 15% of both respondents indicated that customs procedures take only few hours, whereas 2.2% of respondents (i.e. 2 respondents) said procedures take about a week to be completed. Surprisingly 6 of the respondents were silent on this issue. Further investigations revealed that the diverse responses given were based on the type of goods in transit and other factors taken into consideration. ii. Reasons for delays at border posts Table 11: Reasons for delays at border posts Customs Officials Driver Traders No. % No. % No. % Total % Lack of travelling documents - - 12 40 12 30 24 20 Lack of relevant documents covering goods 22 44 18 60 16 20 48 40 Complex and lengthy customs procedures 20 40 26 86.7 34 85 80 66.7 Unnecessary delays by Customs Officials - - 20 66.7 28 70 48 40 Confistication of goods 16 32 8 36.7 6 15 30 25 Depends on type of goods 30 60 16 53.3 24 60 70 58.3 Figure 5 : Reasons for delays at border posts AUTHOR’S OWWN RESOURCE Table 11 and Figure 5 indicate the reasons for delays at the border posts; 58.3% of the respondents attributed it to types of goods that were being processed while 40% of the respondents (i. e. traders and drivers) attributed it to unnecessary delays by customs officials. Forty-one percent (41%) of the respondents also ascribed it to the complexity of customs procedures. Twenty four (24) of the respondents representing 20% indicated that some delays are due to the absence of relevant documents covering the goods in transit fifteen (15) of the respondents representing 25% of the bulk respondents attributed it to confiscation of goods. Thorough analysis of respondents’ responses in this category indicates that each respondent gave more than a reason for the delays at the border posts signifying that the data collected were unbiased. iii. Current conditions and free trade Table 12. Do current conditions favour free trade? Very much Not much Not at all Respondents No. % No. % No. % Customs Officials 6 12 44 88 - - Traders - - 28 70 12 30 Drivers 6 20 14 46.7 10 33.3 Total 12 8.6 86 61.4 22 15.7 AUTHOR’S OWN SOURCE Eighty-six (86) respondents, representing 61.4% of the bulk respondents, indicated that current conditions at the border posts and within the ECOWAS corridor do not facilitate very much free movement of goods; twenty-two (22) representing 13.7% of the respondents indicated that the current conditions do not facilitate free movement of goods at all within the ECOWAS corridor. Only twelve (12) of respondents representing 8.6% of the respondents indicated that the current conditions existing at our border posts do not much facilitate much free movement of goods in the sub-region. CHAPTER 5 SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1 Introduction Given the structure of West African economies, which is clearly in contrast with that of other regions of the world, the importance of regional integration should not be over emphasized. The need for technical and financial supports must be emphasized if ECOWAS is to achieve any meaningful gain from the emerging scenario, both in the short and long run. Analysis showed that a flexible formula is the most beneficial for developing and least developed countries; this should therefore be the target of West African countries. 5.2 Summary of Findings The study has revealed that apart from illegal charges at border points, several (mostly illegal) checkpoints are mounted right from the border points (Appendix A, table 4). This contributes significantly to the costs of doing business in the sub-region. As shown in the table 3 (see appendix A); there are approximately 7 checkpoints per 100km on the highway between Lagos and Abidjan, 3 per 100km between Cotonou and Niamey; 2 per 100km between Accra and Ouagadougou; 3 per 100km between Abidjan and Ouagadougou; and 6 per 100km between Niamey and Ouagadougou (ECOWAS, 2003 and Anadi, 2005). All these checkpoints are engaged in illicit business of extortion. The numerous (uncontrolled) check points still existing along the community’s highways contrary to the provisions of various protocols have revealed the lack of commitment of national governments to integration. Furthermore, the study the study has also revealed that trade policy reforms have positively impacted on the existing non-tariff barriers to trade worldwide. Due to the serious trade impeding effects of non-tariff barriers on trade facilitation, this issue has been taken up by successive GATT rounds and the World Trade Organisation and has led to significant reduction in tariff barriers and a continuous fight against existing non-tariff barriers within regional integrations. The study has also revealed that the existing non-tariff barriers can be categorized into two major groups; artificial barriers and technical barriers. The artificial barriers are human factors. In the process of executing legitimate responsibilities, the following hurdles crop up; formal administrative duties that result into illegal/informal barriers give birth to lengthy/corrupt customs procedures leading to intransigence of customs officials and border agents, which finally lead to bribery and corruption. All these are ascribed to the absence of modern communication gadgets to help in expediting customs processes, monitoring trucks with goods in transit, and detecting banned and contraband goods (infrastructural barriers). The study also revealed that technical barriers serve as indirect catalyst for artificial barriers, precisely non-tariff barriers to trade. These are government control measures of member states to control both domestic and external trade. Certain mechanisms are put in place to protect the local industries and the health of citizens. These include product standard, certificate of origin, sanitary and phytosanitary conditions, packaging conditions, intellectual property, and import bans. As custom officials and border agents carry out these restrictive mechanisms which are purely technical turn into non-tariff barriers to trade due to their rigid implementation. 5.3 Conclusion The responses from all the respondents have substantiated the continued existence of non-tariff barriers within the ECOWAS corridor which are seriously undermining the free trade and movements of goods. Besides, the continuous existence of such barriers within the sub-region has become a serious concern to traders and businessmen, and inter-state transport operators. Again, the existence of artificial barriers to trade among ECOWAS countries negatively affects export performance. Other trade restrictive measures such as rules of origin, import duties and taxes, import prohibitions, quantitative restrictions and licensing should be reduced to the barest minimum if not completely eliminated. In conclusion, therefore, the existence of non-tariff barriers represents an imminent threat to the cause of regional integration and free trade in the sub-region, and therefore need to be addressed with all seriousness. The study has further unearthed the following challenges that face the implementation of ETLS which serve as a catalyst to the continued existence of Non-Tariff Trade Barriers in the sub-region. Basic technology and equipments to improve patrols and policing are almost non-existent. Technology is needed to enhance the ability of officers to detect in a more predictable way, increase deterrence and protect border integrity. Processing a traveler is now basically labour intensive with little technological underpinning. This causes unintended delays at the border posts. Data use and data sharing among agencies at the borders is completely unavailable. A lot of time is taken to process alert records which are done manually at most of our border controls. . The infrastructure especially buildings at most of our border posts are not functionally designed. Lack of communication, cooperation and partnership at the local and regional level of border agencies, thwart efforts to deal effectively with increased trade flows. Lack of infrastructure in terms of automation, provision of equipment, use of scanners, passport readers among others by the border agencies. . Lack of awareness of ECOWAS citizens about the protocols and their rights and responsibilities. It is also worthy to mention that the current performance of ECOWAS member states in the area of free movement of persons and goods, have seen some real achievements such as the abolition of visa requirements and the introduction of travel certificates have been made. It is important, however, to acknowledge that much remains to be done, especially in the area of removal of numerous non-tariff barriers. Such barriers have succeeded only in creating insecurity and affect the facilitation of trade, and lead to conflicts and resentment. In the light of the sketched operational milieu of the ECOWAS revised treaty on trade facilitation, comprehensive and integrated planning and action is needed as a prerequisite for its effective and efficient implementation to facilitate trade processes. 5.4 Recommendations On facilitating cross-border movement of goods, the Global Enabling Trade Report 2008 on conducive 2008 World Economic Forum, made this observation; that the cost and time factor, the operational issues in the day-to-day movement of goods across borders require a well-functioning and easy-to-operate interface between business and government. Only transparent, reliable, internationally harmonized transport, customs, and road traffic codes—as well as legislation that is to the development of a strong, competitive business environment—can encourage fair and open conditions and efficient regional integration. Institutional challenges that often result in duplication of work among agencies and ministries and between countries as well as a lack of coordination with the private sector overburden the process. To address these challenges, the following recommendations are made; There should be regular checks on the high rate of extortion and intimidations within the corridor; an effective monitoring institution has to be put in place, to observe and report, before an effective plan could be designed on how it can be nipped at the bud. A regional steering committee must be established to monitor and evaluate the implementation of decisions made especially with regard to free trade and movement of goods within the sub-region. Data use and data sharing among agencies at the borders should be encouraged. Personnel at the various borders also need a specialized training and capacity building in requisite areas, to enhance effective coordination. Sharing of information and intelligence between agencies is vital. The quality of data collection and analysis should be improved and if possible there should be a central database to allow for interagency access between border posts within member states. Citizens of member states, border residents and traders, should be enlightened and sensitized to respect the provisions of the ECOWAS protocols. The adoption of common external tariffs along the various borders and sea ports within member states is a prerequisite for effective and efficient free flow of trade. Introduction of harmonised immigration and emigration forms to facilitate free movements of goods and people. 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They (TBTs) refer to technical regulations and voluntary standards that set out specific characteristics of a product, such as its size, shape, design, functions and performance, or the way a product is labelled or packaged before it enters the marketplace. Sanitary and phytosanitary (SPS) is any measure applied to protect animal or plant life or health within the territory of a country from risks arising from the entry; establishment or spread of pests, diseases, disease-carrying organisms or disease-causing organism to protect human or animal life or health within the territory of a country from risks arising from additives, contaminants, toxins or disease-causing organisms in foods, beverages or foodstuffs arising from diseases carried by animals, plants or products thereof. Antidumping duty is applied to imports of a particular good from a specified country in order to eliminate the harm being caused by the dumping to the domestic industry of the importing country. Countervailing duties (CVDs) are duties imposed under WTO Rules to neutralize the negative effects of other duties. They are imposed when a foreign country subsidizes its exports, hurting domestic producers in the importing country. Certification is defined by ISO/IEC Guide 2:1996 as “a procedure by which a third party gives written assurance that a product, process or service conforms to specified requirements. Common External Tariff (CET) streamlines the gnarled process of paying different duties. Corridor efficiency can be defined as a collection of routes linking several economic centres, countries and ports. APPENDIX B Table 1 ECOWAS Trade Structure 1996-2001 (as a % Total ECOWAS Exports Value) Countries/Years 1996 1997 1998 1999 2000 2001 Intra-ECOWAS 10.86 12.66 14.59 10.08 8.40 9.25 Other African Countries 14.69 16.20 18.53 13.59 9.59 8.70 European Union 41.80 38.47 42.51 31.54 28.81 31.44 Northern America 23.06 25.81 19.47 26.11 36.69 31.00 Asia 8.79 11.16 7.52 19.02 17.12 14.68 Sources: ECOWAS Handbook of International Trade 2003 Table 2 ECOWAS Trade Structure 1996-2001 (as a % Total ECOWAS Imports Value) Countries/Years 1996 1997 1998 1999 2000 2001 Intra-ECOWAS 11.25 10.93 10.54 12.44 16.79 13.61 Other African Countries 13.94 13.02 13.01 15.29 19.60 na European Union 47.73 46.30 50.09 51.68 48.31 45.50 Northern America 12.46 11.77 10.98 11.26 8.73 9.59 Asia 16.23 19.15 17.88 19.19 21.89 20.89 Source: ECOWAS Handbook of International Trade2003 Table 3 Checkpoints along Intra-ECOWAS Highways Highway Distance Check Points Check Points/Security Posts per 100 km Lagos-Abidjan 992 Km 69 7 Cotonou-Niamey 1036 Km 34 3 Lome-Ouagadougou 989 Km 34 4 Accra-Ouagadougou 972 Km 15 2 Abidjan-Ouagadougou 1122 Km 37 3 Niamey-Ouagadougou 529 Km 20 4 Source: ECOWAS official site 2003 Table 4 Exports of goods and services (% of GDP) Year Country Burkina Benin Faso Coted'Ivoire Niger Senegal Togo Ghana Sierra Leone Nigeria 1960 6.1 4.9 34.2 7.1 18.9 31.1 28.2 - 9.2 1965 7.3 4.7 36.8 9.5 19.7 32.0 17.1 28.9 10.9 1970 15.2 5.5 35.8 10.8 26.4 49.6 21.3 31.0 8.4 1975 14.5 7.3 36.7 19.2 35.4 43.4 19.4 25.1 18.3 1980 15.8 9.0 35.0 24.6 26.9 51.1 8.5 22.9 29.4 1985 23.7 9.6 46.8 20.7 28.6 48.4 10.7 14.8 16.1 1990 14.3 11.3 31.7 15.0 25.4 33.5 16.9 22.4 43.4 1995 20.2 12.4 41.8 17.2 34.5 32.4 24.5 17.4 44.3 2000 15.2 9.1 39.7 17.8 29.9 30.7 49.0 17.3 53.3 2003 14.0 8.5 46.7 16.0 28.4 33.8 40.3 22.4 50.0 Source: World Development Indicator, WDI, 2005 Table 4 Imports of goods and services (% of GDP) Year Country Burkina Benin Faso Coted'Ivoire Niger Senegal Togo Ghana Sierra Leone Nigeria 1960 12.1 15.8 22.9 7.4 16.2 31.5 35.4 - 16.9 1965 14.9 11.4 30.1 14.0 19.3 31.1 26.7 31.3 16.0 1970 24.5 16.1 29.1 18.1 30.0 38.8 22.7 29.3 11.2 1975 33.4 30.2 36.6 31.0 39.8 53.7 18.4 34.5 22.8 1980 37.3 31.3 41.2 38.1 43.6 56.4 9.2 38.2 19.2 1985 36.6 32.0 32.4 32.8 42.0 57.1 13.6 16.6 12.4 1990 26.3 24.3 27.1 22.0 30.3 45.3 25.9 23.8 28.8 1995 33.0 27.1 34.4 24.3 40.1 37.4 32.9 24.8 42.2 2000 28.1 25.3 32.8 25.7 39.8 50.7 67.5 33.3 37.5 2003 26.8 23.4 33.8 25.2 40.5 47.4 52.2 49.5 40.9 Source: World Development Indicator, WDI, 2005. Table7 Final mfn Bound Tariffs (%) West African Countries Binding Coverage Maximum Country All Agric Non-Agric All Agric Non-Agric Benin 39.4 100 30.1 100 100 60 Burkina Faso 39.2 100 29.9 100 100 100 Cote d’Ivoire 33.1 100 22.9 64 64 25 Gambia 13.7 100 0.5 1 10 110 110 Ghana 14.3 100 1.2 9 9 99 99 Guinea 38.9 100 29.6 75 75 40 Guinea-Bissau 97.7 100 97.4 50 40 50 Mali 40.6 100 31.6 75 75 60 Mauritania 39.3 100 30.1 75 75 75 Niger 96.8 100 96.3 200 200 200 Nigeria 19.3 100 6.9 150 150 150 Senegal 100 100 100 30 30 30 Sierra Leone 100 100 100 80 80 80 Togo 14.0 100 0.9 80 80 80 Source: WTO, World Trade Report ECOWAS Trade Structure 1996-2001 (as a % Total ECOWAS Imports Value) Countries/Years 1996 1997 1998 1999 2000 2001 Intra-ECOWAS 11.25 10.93 10.54 12.44 16.79 13.61 Other African Countries 13.94 13.02 13.01 15.29 19.60 na European Union 47.73 46.30 50.09 51.68 48.31 45.50 Northern America 12.46 11.77 10.98 11.26 8.73 9.59 Asia 16.23 19.15 17.88 19.19 21.89 20.89 Source: ECOWAS Handbook of International Trade2003 APPENDIX C QUESTIONNAIRE I am a final year student of Kwame Nkrumah University of Science and Technology and as a part of the award of Master of Business Administration (MBA) degree in Marketing, I am conducting a research into “Assessment of Regional Integration and Non-Tariff Barriers within the ECOWAS Sub-Region”. The exercise is purely academic and any response from you will be highly held as confidential. The questionnaire is purposely meant to serve as a source of information for the research and would want to assure respondents that all information provided would be treated confidential. Please take your time to answer the following questionnaires as much as possible according to your ability and knowledge. SECTION “A” Questionnaire for customs officials Gender : Male [ ]; Female [ ] Qualification : Middle School/ Junior Secondary School [ ] Secondary School/ Senior High Secondary School [ ] Tertiary Institution [ ] How long have you been with this service? 1-5 yrs [ ]; 6-10yrs [ ]; 11-15yrs [ ]; 15-20yrs [ ] How many languages do you speak? -One [ ] -Two [ ] -Three and above [ ] How comfortable are you in dealing with people, customers, traders, drivers and goods in transit? Traders Drivers Gods in transit Very comfortable [ ] [ ] [ ] Comfortable [ ] [ ] [ ] Somehow comfortable [ ] [ ] [ ] Uncomfortable [ ] [ ] [ ] Very uncomfortable [ ] [ ] [ ] Which categories of goods usually move into/ out of the country? -Agricultural products [ ] -Handicrafts [ ] -Goods manufactured in the sub-region [ ] -Repackaged foreign goods [ ] How long does it take commercial vehicles carrying goods to go through custom formalities? -Few hours [ ] -Between 1 and 2 days [ ] -Between 2 and 5 days [ ] - 1 week [ ] -More than a week [ ] Which of the following is/are the reasons for answers ticked? [ ] It depends on the type of goods being checked [ ] Unpreparedness of traders to pay the required tax on goods [ ] Most of the customs processes are carried out manually [ ] Suspected contraband and banned goods have to go through stringent screening. 9. Are traders satisfied with your services at the border post? Not at all [ ] Sometimes [ ] Somehow [ ] Very much [ ] Which of these reason(s) and instance(s) is/are responsible for the response(s) ticked? [ ] Ignorance of some traders about customs procedures [ ] Inability of traders and drivers to produce documents covering the goods [ ] Lengthy and cumbersome customs procedures [ ] Traders inability to pay the required taxes on goods 11. Do traders/drivers at times try to lure you with any form of gift(s) to expedite customs procedures in their favour? Sometimes [ ] Always [ ] Rarely [ ] Not at all [ ] 12. Do you receive complaints from traders? Yes [ ] No [ ] 13. If yes, then which of the following are some of their complaints do you receive often? [ ] High taxes [ ] Delays and lengthy procedures [ ] Inhuman treatment and intransigence of some customs/ police officials [ ] Extortion by some officials 14. Do you think something could be done about them? Yes [ ] No [ ] 15. If yes, then which of the following suggestions do you think could serve as possible solutions to these complaints? [ ] Revision of taxes on goods [ ] Members within the ECOWAS region should be educated on the operations of CEPS. [ ] Public officials, Immigration and other border agencies to stop the harassment of businessmen and travelers [ ] Introduction of harmonized immigration and emigration forms. [ ] The adoption of common external tariffs along the various borders within member states 16. Are you aware of the ECOWAS treaty on the free movements of goods within the ECOWAS corridor? Yes [ ] No [ ] 17. (a) If yes, do you think this treaty is being fully implemented? Yes [ ] Somehow [ ] Not at all [ ] 18. Which of the following do you think are some of the factor(s) that impede(s) the smooth operations in carrying out your responsibilities? Lack of modern communication gadgets to monitor movements of goods and people.[ ] Ignorance of travelers about legal requirements needed for goods in transit. [ ] The absence of modern equipments for easy and fast tracking of customs procedures. [ ] Constant interference of political leaders and influential people in the course of carrying out legitimate responsibilities. [ ] Dishonesty and fraudulent behaviours of traders within the ECOWAS sub-region.[ ] Goods in transit not bearing certificate of origin. [ ] 19. Are you satisfied with your services? Very much [ ] Quite satisfied [ ] Not very much [ ] Not at all [ ] 20. Which of the following measures would you recommend for the improvement of services at border posts? [ ] Provision of effective and adequate facilitates and networking of all the border posts within ECOWAS corridor [ ] The use of laser technology to detect banned and contraband goods [ ] Simplification of customs procedures [ ] Members within the ECOWAS region should be educated on the operations of CEPS [ ] Seasoned and enough staff of CEPS should be sent to man border posts. 21. Do the current conditions at our border posts encourage free movements of goods within the ECOWAS? [ ] Very much [ ] Not very much [ ] Not at all 22. Which of the following measures would you recommend for the facilitation of free trade and movements of goods in the sub-region? [ ] Elimination of informal and illegal barriers along major routes [ ] Establishment of frontier markets to facilitate border crossing [ ] Provision of effective communication gadgets and networking of all the major border posts [ ] Introduction of common currency for member states [ ] Implementation of Inter-State-Road Transport procedures for goods in transit [ ] The adoption of common external tariffs along the various borders Section B Questionnaire for drivers/traders 1. Gender: Male [ ]; Female [ ] 2. Academic qualification: Middle School/ Junior Secondary School [ ] Secondary School/ Senior High Secondary School [ ] Tertiary Institution [ ] 3. How long have you been driving/trading within the sub- region? 1-5yrs [ ] 6-10 [ ] 11-15 [ ] 16 and above [ ] 4. Which categories of goods have you been transporting across these countries? -Agricultural products [ ] -Industrial processed products [ ] -Textiles [ ] -Lumber [ ] 5. How many border posts/checkpoints do you have to cross before arriving at your destination? No. of Border posts Check points Traders Drivers Traders Drivers 1 [ ] [ ] [ ] [ ] 2 [ ] [ ] [ ] [ ] 4 [ ] [ ] [ ] [ ] 6 [ ] [ ] [ ] [ ] 8 [ ] [ ] [ ] [ ] Numerous [ ] [ ] [ ] [ ] 6. How many days does it take you to pass through custom formalities at the major border posts before proceeding on your journey? Traders Drivers Just a day [ ] [ ] Between 1 and 2 days [ ] [ ] Between 3 and 5 days [ ] [ ] 6 days and above [ ] [ ] 1 week [ ] [ ] 7. Which of the following can be ascribed to the delays at the border posts? The absence of proper travelling documents [ ] The absence relevant documents covering the goods in transit [ ] Arrests and confistication of goods at the border posts [ ] Unnecessary delays by the police and custom officials [ ] Complex and long custom procedures [ ] 8. Are you satisfied with the services of customs officials at the various border posts? Yes [ ] No [ ] 9. Do you always use approved routes in your transactions? [ ] Always [ ] Not always [ ] Not at all 10. Which of the following is/are some of the teething problems you encounter when plying the transit routes within the ECOWAS corridor? [ ] Extortion of money by customs officials and the police [ ] Intransigence of custom officials [ ] Illegal and numerous check points [ ] Complex and lengthy custom procedures 11. Do you think current conditions prevailing at border posts and on routes within the sub-region encourage free movement of goods? [ ] Very much [ ] Not much [ ] Not at all 12. Which of the following measures would you recommend for the facilitation of free trade and movements of goods in the sub-region? [ ] Provision of adequate facilitates and infrastructure at the border posts. [ ] The use of laser technology to detect banned and contraband goods [ ] Simplification of customs procedures [ ] Establishment of frontier markets to facilitate border crossing [ ] Elimination of informal and illegal barriers along major routes [ ] Implementation of Inter-State-Road Transport procedures for goods in transit [ ] Traders and drivers should be accorded respect at border posts & check points [ ] The use of a single currency within the member states PAGE \* MERGEFORMAT i PAGE PAGE \* MERGEFORMAT 85 Series1 Extortions High duties On goods Strictness delays Unnecessary 70 60 50 40 30 20 10 0 Human Barriers Administrative Procedures Intransigence of Custom Officials Restrictive licenses Intellectual Property Product Standard Sanitary and Phytosanitary Conditions Lengthy / Corrupt Custom Procedures Informal /Illegal Barriers Infrastructural Barriers Bribery / Corruption Import Bans Roads and Communications Artificial Barriers Technical Barriers Packaging Conditions Certificate of Origin