Nigeria calls for duty-free market access for LDCs

Nigeria's President Muhammadu Buhari is calling on developed countries to provide duty-free and quota-free access to markets for products from the world's least developed countries, including the 46 nations in this category. The President's request aims to support the struggling economies of these nations, many of which are facing heavy debt burdens and challenges in achieving sustainable development goals. To delve deeper into the topic, Professor Ken Ife, the Lead Consultant for Industry and Private Sector Development at the ECOWAS Commission, shared insights in a recent CNBC Africa interview. Professor Ife highlighted that while it is reasonable to make such a request, the complexities of international trade agreements play a significant role. He emphasized that while bilateral and plurilateral agreements exist that offer preferential treatment to some countries, the issue of duty-free access for all developing countries remains a challenge at the WTO level. He pointed out examples such as the African Growth Opportunity Act (AGOA) and the Economic Partnership Agreements (EPAs) with the European Union that grant special preferences but are not universally accessible. Regarding the Africa Continental Free Trade Area (AfCFTA), Professor Ife acknowledged progress in regional trade infrastructure and initiatives like the Pan-African Payment and Settlement System (PAPSS). However, he also noted disparities in rules of origin within regional trading blocs like ECOWAS and the AfCFTA, which need to be harmonized to facilitate smoother trade. When questioned about the critical factor needed to boost intra-African trade, Professor Ife highlighted the importance of establishing efficient cross-border payment systems. By simplifying currency exchanges and reducing reliance on the US dollar, seamless settlement mechanisms could significantly enhance trade and services across the continent. He stressed the need to streamline cross-border transactions to eliminate obstacles caused by currency fluctuations and shortages. In conclusion, while President Buhari's plea for duty-free market access for LDCs is a valid endeavor to support struggling economies, the complexities of global trade dynamics present formidable challenges. Achieving comprehensive preferential treatment for developing nations at the WTO level requires concerted efforts from all stakeholders involved. As Africa continues to push for greater intra-continental trade through initiatives like the AfCFTA, addressing fundamental issues like payment systems and harmonizing trade regulations will be crucial for realizing the continent's economic potential.