University of Ghana http://ugspace.ug.edu.gh THE ECOWAS PROTOCOL ON FREE MOVEMENT OF PERSONS AND GOODS: ACHIEVEMENTS, CHALLENGES AND THE WAY FORWARD BY DORIS YAW A NENONENE THIS DISSERTATION IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILMENT FOR THE REQUIREMENTS OF THE AWARD OF M.A. DEGREE IN INTERNATIONAL AFFAIRS AUGUST, 2002 • liGON University of Ghana http://ugspace.ug.edu.gh DECLARATION I DORIS YAWA NENONENE, hereby declare .ha. Ibis dissena.ion is !he product of a research conducted by me under the supetvision of Dr. Vladimir Antwi-Danso of the Legon Centre for international Affairs, University of Ghana, LegOil. With the exception of references cited in this work. which have been duly acknowledged. I am solely responsible for any limitations that may be as.socilted with this work . ... ~. DORIS NENONENE (STUDENT) University of Ghana http://ugspace.ug.edu.gh DEDICATION I dedlClft' thl 5 .... orkto Philip Rlchter. my husband and AdclaKic. m)'daugbter University of Ghana http://ugspace.ug.edu.gh ACKNOWLEDGEME:-IT FilS! and foremost, I give thanks to the Almighty God for taking me through this study successfully. I am also grateful to my employers, The Ministry of Foreign Arrai", for nomInating me to participate in this academic programme. Similarly. I wish to express my profound gratirude to my supervisor. Dr. Vladimir Antwi·Danso. whose gUidance, comments, and encouragement greatly improved the final outlook of this study. To Mr. Evans K1utse ofeEPS, Mr. M. K. Gyamfi of the Ghana Immigration Sen'ice (GIS). I am most grateful for your assistance in gathering the relevant data for this work. My special thanks also goes to Miss Theodora Amamoo of Ghana Health Services. Headquarters whose sterling perfonnance helped in typesetting this scnpt I. finally wish to thank all, who in diverse ways assisted me to make this work a success . University of Ghana http://ugspace.ug.edu.gh ABSTRACT Everywhm: in Europe, Asia, Central and Latin America, and. in Africa. some fonn of economic integration/cooperation has been established. 11115 widespread enthusiasm for economic integration derives from the belief that integration is the most viable strategy for development. The Economic Community of West African States (ECOWAS), which was formed to seek the well-being of its nationals among others, has adopted a number of protocols to help facilitate the integration process. These include the Protocol on Free Movement of Persons, Goods and Services. Recognising that free movement of persons. goods and services constitute the bedrock of the integration process, ECOW AS has called on all Member States to take appropriate measures to remove all obstacles and impediments to the realisation of these noble objectives . The .tudy analyses the ECOWAS protocol on fm: movement, examines the level of implementation, highlights some problems encountered in its implementation and provides some recommendations for its successful implementation. The srudy should, therefore be of intcrc:\t not only to the academia and the implementing agencies but also to all ECOWAS nationals and non-nationals who see economic integration as a viable strategy for development. University of Ghana http://ugspace.ug.edu.gh LIST OF TABLES Table I: Status of Implementa.ion of.he ECQW AS Pro.ocol on Free Movement of Persons Table 2: 1990 Plan forlhe implementa.ion of the ETLS Table 3: Status of implementa.ion oflhe ETLS Table 4· Status ofimplementa.ion of Support Measu",,, for the ETLS University of Ghana http://ugspace.ug.edu.gh ASYCUDA : Automated System of Customs Data CEPS Customs, Ex.cise and Preventive Service ClF Cash, Insurance and Freight COMESA Common Market for Eastern and Southern Africa ECOWAS Economic Community of West African States EEC European Economic Community EFT A European Free Trade Association ETLS ECOWAS Trade Liberalisation Scheme EU European Union GIS Ghana Immigration Service HS Harmonised System OAU Organisation of African Unity PTA Pn:ferential Trade Area for Eastern and Southern African States SAOC Southern African Development Community SAOCC Southern African Development Coordination Conference UEMOA West African Economic and Monetary Union University of Ghana http://ugspace.ug.edu.gh TABLE UF CQI\TE'I/TS PAGE CONTENT Oeclarauon [le. University of Ghana http://ugspace.ug.edu.gh 1.5 TIIEORHICAL fRAMEWORK A theory may not necessarily explain events perfectly since one needs empirical validation, it is however central to the creation of concepts, and definitions, which help in analysing issues. Due to the relevance of theories, there IS the need to focus on a theory that explains why nations do integrate. Inspite of the enennous tbeorical concepts underpinning regional integration. one basic theory on which this study leans is the neo- functionalist theory. Neo·funclionalist writings include the work of Ernst Haas, Leon Lindberg, Joseph Nye, Robert Keohane and others. This theory according to Grtlham Evans and Jeffrey Newnhan' emerged in the wake of the quest for European integration in the 1950s when functionalist theory was applied to the integration experience in Western Europe. The major assumption underlying neo--funcnonalism, and Ernst Haas work in panicular, is that no stale is capable of maintaining its economic growth and its existing economic structures and be capable of S8tisfymg the economic needs of its people, if it does not cooperate 4 with other countries. There arises the need for stales to forge Interdependent relations. This assumption may account for the reason why ECOW AS countries do cooperate with each other as well as with other nco-members. This interdependent relation. for Haas, go beyond the confines of the mdividual constituent state. This is due to University of Ghana http://ugspace.ug.edu.gh 1.5 TIIIWKETICAL FRAMEWORK A theory may not necessarily e~plain events perfectly since one needs empirical validation, It is however central to the creation of concepts. and definitions. which belp in analysing issues Due to the relevance of theones. there is the need to focus on a theory that explains why nations do integrate. Inspile of the enormous theorical concepts underpinning regional integration, one basic theory on which this study leans is the neo- functionalist theory. Neo-functionalist writings include the work of Ernst Haas, Leon Lindberg, Joseph Nye, Robert Keohane and others. This theory according to Graham Evans and Jeffrey Newnhan) emerged in the wake of the quest for European integration in the 19505 when functionalist theory was applied to the integration experience in Western Europe. The major assumption underlyjng neo-functionalism, and Ernst Haas work in particular, is that no state is capable of maintaining its economic growth and its existing economic structures and be capable of satisfying the l.'Conomic needs of its peopJe, if it does not cooperate with other countries," There arises the need for states 10 forge interdependent relations. This assumption may account for the reason why ECOW AS countries do coopctllt< with ...,h other as well as with other non·members. This interdependent relations for Haas, go beyond the confines of the individual COIlstihJent stlte. This is due to University of Ghana http://ugspace.ug.edu.gh the fact that functions collectively performed by government in one sector will lead to cooperation in other spheres of inter-state activities. This is what he calls the spill-overeffect. Ernst Haas assumes that decisIon to proceed with integration or to oppose it depend upon the gains or loss expectation by major groups within the units to be integration. Similarly, the successful implementation of ECOWAS protocols depends heavily on these expectallons. For instances, the ECOWAS Trade liberalisation Scheme (ETlS) has not been successfully implenlcntcd due to the fear of loss of revenue from customs duties by some Member Stales. Integrotion will also proceed due to the work of the relevant elites in governmental and non--govemmental sectors. These elites would support mtcgration humg in mind the benefits to be derived from a supranational organisational framework. They are likely to seek out or associate with similarly minded elite ACrosS their territories , This factor could also be identified in the Heads of States of Ghana and Nigeria who initiated the fast Track Approach which seeks (0 facilitate the integration process of ECOWAS. Joseph Nye5 in refining the Neo-functionalist theory. mentions ideological _ identitive appeal. elite complementarity and others as factors mat influence the integration process. These factors could be identified in the founding fathers of ECOWAS. Thus, these leaden bad the same ideology. They recognised the need to minimise Welt African exlcmat dependence, halt its University of Ghana http://ugspace.ug.edu.gh economic backwardness and develop the sub-region. Hence the formation of ECOW AS. AS the Neo-.functionalist theory seeks 10 establish. the factors mentioned are very crucial for the integration of ECOWAS. Their absence would therefore binder the successful economic integration process of ECOWAS. 1.6 LlTERATlJRE REV IEW Much has been written on the issue of regional integration in Africa with special emphasis on the challenges facing the sub·regional groupings and ways of solving these challenges. One such effon is the work of Prof. S. K. 8. Asanle, entitled. 'The Strategy of Regional Integration in Africa". Regional Integration in his view is the only viable strategy for optimal development of the people of Africa and the world as a wbole. He identified factors such as lack of conunitment by the African ruling class, lack of adequate and viable national Instltullons for managing the regional co-operation process. limited role of the private sector and interest group in the integration process, among others, u some of the obstacles to regional integration in Africa. He sees the market IPproach of integration, adopted by Africans as inappropriate due to the non·existence of an industrial 6 base in Africa. The market approach, to him, IS ~u l table for developed countries wbere, iIIfrutructure is already ill place. He IUggested that a more realistic approach to economic integration in Africa must start with the recognition that African counnie. lack most oftbc pre.rcquisites that are considered necessary for effective University of Ghana http://ugspace.ug.edu.gh economic backwardness and develop the sub-region. Hence the fonnation of ECOWAS. As the Neo-functionalist theory seeks to establish, the factors mentioned are very crucial for the integration of ECOWAS. Their absence would therefore hinder the successful economic integrallon process of ECOWAS. I.6 LITERATURE REVn:" Much bas been written on the issue of regional integration in Africa with special emphasis on the challenges facing the sub-regional groupings and ways of solving these challenges. One such effort is the work of Prof. S. K. B. Asante, entitled. '~~ Inregration ip Africa". Regional integration in his view is the only viable strategy for optimal development of the people of Africa and the world .. • wbole. He identified factors sw:b as lack of commitment by the African ruling da~s, lack of adequate and viable nahonal inshrutions for managing the regional co-operation process, limited role of the private sector and interest group in the integration process, among others. as some of the obstacles to regIOnal integration in Africa. He sees the market approach of integration, adopted by Africans as inappropriate due to the non-existence of an industrial 6 base in Africa. The market approach. to him, is suitable for developed couoln.. wben:, infrilstructure is already in place. He suggested that a more realistic approach CO economic integration in Africa must start with the recognition that African countries lack most of the pre-requisites that are considered neccS5Il)' for effective University of Ghana http://ugspace.ug.edu.gh economic integratioo to take place. Writing on measures, which need to be taken to enhance regionalism in Africa, Prof. Asante called for the strengthening of national institutional and managerial capacity, the adoption of • different approach 10 integration (that is the production approaIha- countries in the 1980s. 24 University of Ghana http://ugspace.ug.edu.gh It must bowever be ooted that. white the free movement of persons impact negatively on a member country. the economy of another member country may simultaneously be improving. Despite the negative Implications of the protocol, the free mO\'erne"t of persons has the potential of anracting foreign investtnent into member countncs. which would create more job opportunities for the indigenous people and lead to economic development. 2.7 ACHIEVEMENTS/STATUS m ' lMPI.EMENTATION One major achievement of ECOWAS is the abolition of visa requirement for Community nal10nlls. All the fifteen (IS) Member Stales have fulfilled their obligation in accordance with Phase I of the three·phase progrmune. Community Cllllcns are therefore granled admission into Member Countries without any visa whatsoever and are granted a maximum period of 90 days visitor's pennit. This pennit is however subject to renewal upon request. The abolition of visa for citizens of Member S. .t es has boosted the image of ECOWAS. since it is the only economic gruuping in Africa whose Member Countries have abolished entry visa in order to ease movement of Community citizcnswithintheJUb..region. Funbemtore ECOW AS Member COWltriel bave adopted • uniform format for passports. This p,",spun was launched in June 2000. The ECOWAS passpon is expected 10 emphasise the oneness of the citiuns of the Community. ECOWAS Member States bave also 25 University of Ghana http://ugspace.ug.edu.gh accepIed the use of the ECOW AS Travel Document. For instance, officials from the Ghana lnunigration Service process applications for Ghanaians \\ ho wish to obtain ECOWAS Travel certificate for tntvelling purposes. Community nationals who also use ECOWAS Travel Certificate are not subjected to any barassment by Immigration officials and booths bave been designed at the Arrival HaJJ at Kotoka International Airpon for arriving ECOWAS nationals. Effort has also been made in the reduction of security.cbeck points. For example II out of the 15 member States have reduced the number of security check points. t I However apart from the implementation of the first phase of the protocol, not much has been done on other aspects of the protocol, Ihal is, the Second and Thin! phases. The table overleaf shows the status of implementation aftbe ECOWAS Protocol on free mOVement ofpenons. ~'.0dJ University of Ghana http://ugspace.ug.edu.gh TABLE I SO. PROGRAMME IMPLEMENTATON PERCENTAGE FREE MOVEMENT OF PERSOSS NO. OF COUSTRlES I Abolition of visa and cnb)' permit All Member Stales J0 0'% reauirement 2 Introduction of ECOW AS Travel 7 States 47% Certificate 3 Introduction ofhannonised 0% immigration fonns 4. Establishment of National Committee to Monitor 6()OAt Programmes on free movement of I persons and vehicles 5. Introduction ofECOWAS Brown 12 80% card 6. Stamping of passports without O~O filling in form. Source AsanIe.AbanJcwa "Rcpononstudy oftheunpactofUEMOAonG~Accra 1999p 95 The table indicates that. with the exception of the abolition of visa requirements, much needs to be done by ECOWA S Member States. For instance. no Member Countty has been able to print and put to use the proposed harmonised immigralion forms. Again, only seven (7) oul of the fifteen (15) Member Stales bave introduced the ECOWAS Travel Certificate. Furthennore, much artention has also not been given to the establishment of national committee to monitor programmes on the Community's free movement ofpenons and vehicles. 27 University of Ghana http://ugspace.ug.edu.gh 2.8 PROBLDIS FACED BY THE GHANA IMMIGRATION SERVICE IN THE NPLEMENTAn ON OF THE FIRST PHASE OF THE PROTOCOL The Ghana Immigration Service, the government agency that his been cbarged with the responsibility of enforcing the laws relating to the entry, residence, employment. and exit of persons into and out of the country bas been encountering a number of problems in the implementation of the ECOWAS protocol on free movement of penons. In an mterview with a senior official afthe Service12, it was observed that one major problem is the non--compliance of the rules pertaining to residence pennit by some ECOW AS nationals. Many of such persons fail to renew their permit when they expire . This practice creales a lot of difficulties for the immigration officials who find it difficult 10 tnoce 8IId monitor the acttvities of sucb people. This is due to the provision of false contact addresses on the disembarkation forms filled at the point of entty by tbeoe individuals. This a"Hude i. probably believed to enable sucb people engage in unlawful activities in Member States without been noticed. The use of identity cards by traveller.; or nationals of Member States within the sub--region alJo creates difficulties for the Service. The design of identification cards do not provide room for any endonemen~ therefore holders of identification cuds are not subjected to any conditions of eDtty. The use of the identity cards also 28 University of Ghana http://ugspace.ug.edu.gh 2.8 PROBLEMS FACED BY THE GHANA IMMIGRATION SERVICE IN THE IMPLEMENTATION OF THE FIRST PHASE OF THE PROTOCOL The Ghana Immigration Service, the government agency that has been charged with the responsibility of enforcing the laws ,elating to the entry. residence, employment. and exit of persons into and out of the country has been encountering a number of problems in the implementation of the ECOWAS prolocol on free movement of persons. In an interview with a senior official afthe Service l2, it was observed that one major problem is the non-complianee of the rules pertaining to residence pennit by some ECOWAS nationals. Many of such persons fail to renew their permit when they expire . This practice creates a lot of difficulties for the mumgralion officials who find it difficult to trace and monitor the activities of such people. This is due to the provision of false contact addresses on the disembarkation fonn. filled 01 the point of eolry by these individuals. This attitude is probably believed to enable such people engage in unlawful activities in Member States without been noticed. The use of identity cards by travellers 0' nationals of Member States within the sub--regioo also creates difficulties for the Service. The design of identification cuds do not provide room for any endorsement, therefore holders of identification cards are not subjected to any conditiOlll of entry. The UK of the identity cards aloo 28 University of Ghana http://ugspace.ug.edu.gh in a way gives some officials of the Service the opponunity to maltreat and extort monies from hold"" of such cards. 13 Inspite of the provision in Article 3 of the Protocol !bat national. should enler Member States through officially approved routes. some individuals enter through unapproved routes. This problem is particularly common with border residents and some traders who plan (0 avoid the paymenl of custom duties on goods bought. This practice also results in the non-availability of information on such people at the Immigration Service Illegal acquisition and use of the Ghana Passport by some other nationals has also been identified as a problem for the Immigration Service. Some nationals of other countries. probably for some dubious purposes use the Ghana Passpons for travelling and this practice tends to tarnlSb the image of the Ghana Passport. Inspite of the fact that these problems mentioned above are peculiar to Ghana, most of them are encountered by almost all ECOWAS Member States. 2.9 OTHER GENERAl. PROBLEMS To ensure the successful integration of the West African Sub-region. it is necessary that leaders of Member countries be commited to the programmes of the Community. Unfortunately the political willingness oeeded is absent in the Community. University of Ghana http://ugspace.ug.edu.gh in • way gives some officials of the Service the opportunity to maltreat and exton monies from holders of such cards. I J Inspite of the provision in Article 3 of the Protocol that nationals should enter Member Stales through officially approved routes, some individuals enter through unapproved routes. This problem is particularly common with border residents and some traders who plan to avoid the payment of custom duties on goods bought. This practice also results in the non.availability of information on such people at the Immigralion Service. Illegal acquisition and use of the Ghana Passport by some other nationals has also been identified as a problem for the Immigration Service. Some nationals of other countries, probably for some dubious purposes use the Ghana Passports for ttavelling and this practice tends to tarnish the image of the Ghana Passport. lnspite of the fact that these problems mentioned above are peculiar to Ghana, most of them are encountered by almost an ECOWAS Member States. 2.9 OTHER GEl'iERAL PROBLEMS To ensure the successful integration of the West African Sub.rcgion, it is necessary that leaders of Member countries be commited to the programmes of the Community. Unfortunately the political willingness needed is absent in the Community. 29 University of Ghana http://ugspace.ug.edu.gh The lack of political committnent is exhibited in the form of non-compliancc or DOn-implementation of the protocol. The Liberian Commissioner of ImmigrallOn and Nacu~i"lion." for example. staled chal che ECOWAS protocol bas caused the high influx of aliens into Liberia. The government of Liberia thereby lOok Ihe position nol to implemenl che second phase (the righl of Residence and Establishmenl of business) unlil Ihe Liberalisalion policy which allows Liberians to get priority consideration for employment and business opportunities among other things is fully implemented. Nigeria. which on che oIher hand accepted to implemenl !he second phase of che protocol. bowever, stated that only immigrants in six professional categories would be allowed. These are, teachers. engineers, doctors. health workers. bilingual secretariats, and architects. I' These policies by government, in a way. serve as obstacles 10 the protocol and its effecthre implementation. The creation of West African Economic and Monetary Union and its operational activities also adversely affect the smooth implementation of ECOWAS ProlOCol on free movement. The reason i. chat non-UEMOA ECOWAS members are trealed as chird parties. The difference in the policies of these two intergovernmental organisations (UEMOA and ECOWAS) thus hinders the successful integralion oflhe Wesl African Sub- region. AnoIher problem identified i. !he lack of education on the protocol of free mo\'ement for all stakeholders. In most eases, individuals. or nonanationals are discriminated against by the authorities of member countries inspite of the guaranlccs of their rights. The treatmenl of ECOWA S nationals crossing 30 University of Ghana http://ugspace.ug.edu.gh inter regional borders is often acc:ompanied by bostility and extonion. Given \be imponance of \be sub-regional integration, it has become imperative for \be ECOWA S aulboriltes and all SUlkeholder.; to address these issues 2.10 Sl'M~IARV In thIS chapter. 3D attempt has been made 10 examine the ECOWAS Protocol on Free Movemenl of persons. It was revealed thaI altbough all Member States bave abolished visa requirements of Community natIOnal. the right of Residence and Establishment bave not be effectively implemented. Attempts were also made 10 analyse some economic, political and social implications of the Protocol. Problems encountered by the Ghana Immigration Service in Implementing the protocol were also bighlighled. The next cbapler looks at the Prolocol on Free Movement of Goods. It University of Ghana http://ugspace.ug.edu.gh ENDNOTES West Afncan MoneL\ly lnstiI:aK, "Wca Afnca8 JCJUIMI of Moncuty aDd Eooaoouc lategrabonfl, Vol No.l , 200I, p.30 ECOWAS,Trc:ary, Anlde27 ~~W AS Exccubve SomDnat. OffiC1al JoumaJ 01 ECOWAS, Pan U. A1tJcle 2. June lbK1.Pan.IU , Alt2. ~2 ECOWAS Execubvc Sccrc:tariat. COfflDCt. ValZ. No 3, November 1996. p.4 Ibtdp.S ECOWA5 ExccutJw: Secretanat. Memorandum on Mitumwn Agenda for Action (MArA l)andcutlmt:oIMAFA,l September 1993) ~-T.~Accon:t"DlulyGraphI(May 13*'Z002 ~~WAS ~ Soc:ntarial. Of'ftcW Journal ofECOWAS. Part IV, ArtKJe S, Juoc 10 WeatAfucaMapzane,31-'anuaryI981pp. 24l-14S II ECOWAS"-.. Seaclanat.M~,,,. cit 11 tatcrv.ewwttbMr. M.K Gyunfi ·CODtrollerofJ~Gbanalnurupabon Savice-HeadOffic:c. Ac:cra 13 Petsonal ExpencoceartbcGbana-Togo8onlcrlD Deccmber2001 14 W~Afnca.3"NovcmbctI986.p. 133 15. Ibad J,*I916 pp. 136J-1J64 12 University of Ghana http://ugspace.ug.edu.gh ENDNOTES w. AJhcalI MoadIry IaIIiut. "'W~ Afhcaa Journal of Monewy and EconomIc .........." . Vol . No.1. 2001. pJO ECOW AS. TIQIy. AmcJe 27 ECOWAS Exccub"c Sccrecanat, Officaa] JoumaI ofECOWAS, Part II, AnIdc 2, Juac 19,. IbOd. I'3ItUl An2._2 ECOWAS Executive Secn:t.ariIt. Corwct. Val 2. No.3. November 1996. p.4 Ibldp5 ECOW AS Excc:utiw Sccrctanal Mcmorandum OD Muumum Agenda for Acoon (MAFA '}andoutbnco(MAfA.,l September 1993) -u.. - TotO Strikes Accord" Duly Graphlc M;!IY 13111 2002 ECOWAS Ex.ca,aw Sccrcwut, Official Joumal oCECOWAS. Pan IV. ArtJcJc 5, JUDe 1979 10 West Afnca Mapzmc, 31- JIMa,,.. 1983 pp 243- 245 II . ECOW AS Execub"c Sccrc:&anat, Memorudwn, op cia. 12. Inccmcw wrtb Mt M.K Gyamfi • Controller of InumgratJOn. Ghana lnumaratloo Scrv1Cc-HmdOfficc Accra 13 PcnoaaI&opcncacclidleGbMa-TopBordcranDcccalber2001 14 West Afnca, 3" NcMmbcr 1986· p. 233 U ibid June 1986 ",.1363-1364 32 University of Ghana http://ugspace.ug.edu.gh ENDNOTES Well Afncaa Monct.ry ~ ""\Vat Afi1caA JwmaJ ofMoodaty and EconomIC lu&qJaboa". VoI No.I.20ClI. p.JO ECOWAS. Trcatv. Artidc 27 ECOW AS ExccucJ\.'t: Sccrctanat. Offiaal Joumal of ECOW AS. Part U. ArDdc 2. "- 1979 IbId. PanDl. AJt2. plfa2 ECOWAS beeubwe ~ CDfIfIXf. Vol 2. No J. November 1996, p.4 Ibtdp.5 ECOWAS Exccuovc Secn:tanat. Memorandum on Minimum Agenda for AChon (MAFA ')a1X1oudmeofMAFA/ Scptcmber 1993) ~ - TOF StnkCl Ac:cord" Dally Graphic: May IJ"' 2002 ECOWAS Exccwwe SccraanM.. Officaal Jounaal of ECOWAS, Pan IV, Arude S, JUDe 1979 10. Wca A6lc:a Mapzmc:, 31- JIDUal}' 1983 pp 243 - 245 1 I £COW AS Execubvc Secn:tanat. Memonadwn. op CJI 12. ImcmcwWlthMr M.K G}-amfi ·ControUeroflma'U.iJ'&bon,Gbanalmnua;ratlon Sc:mc:c-HcadOffic:c Ac:ca 13 Pa1c.IExpenc:Dce.tbcGbaaa-T0I!I08onkrIADecc:lllbcr 2001 14 WcIt Africa, J" November 1916 · p. 2JJ 15 IbldJuneIIJKbpp. I16J . I364 32 University of Ghana http://ugspace.ug.edu.gh ENDNOTES WcIl Afnc:an Monc:wy~. '"Welt Afncao Journal ofMondar) and EconomiC ~", VnlNoI , 200I . p30 ECOWAS, Tn:at\.·, ArtJde 27 ~~7~WAS Execub~Sccn:lanal, OfIiaal JOUl1II.I ofECOWAS, Part II, AJOde 2, June tbed PanDl,An2, pual ECOWAS Exccub~SecmanIt,CGMlX1. Vol 2. No.3, November 1996, p.4 Ibldp.S £COW AS Exec:ulivc Sccrccarial Memorandum on Mmunum Agenda for Acaon (MAFA I) and OUdlDC ofMAFA,2 September 1993) "'Gb.a-TapStnltcaAcconf"OadyGraplucMayI3" 2002 ECOWAS EX&QICIwScenwlll. Offic&alJoun.I r::IECOWAS. Pan IV, AItlclc S. Jr.mc 1979 10. WcstAfnc:aMapzIDC. 31-Jua.aryI983 pp 243 - 245 II ECOWAS ExecubVCSecretanat MtmoIaDdwn., op. cit 12. ~wlthMr M.K G)-amfi ~ CootroUer ofln:uJ:ua;ndaon,GhaDaIJllDUlfllbOn ScrvJCc - Hc.tOffic.c Ac:cn 13. PcnoaaI &pcncacc. tbc Gbaat - Toeo Botdcr .. December 200] 14 WCIlAfrica,3"Ncn-anba 1916 · p. 2l3 " IbldJuncl'J8bpp. I163 . 1364 University of Ghana http://ugspace.ug.edu.gh CHAPTER THREE TilE ECOWAS PROTOCOL ON FREE MOVEMENT OF GOODS A!IID SERVICES Since the formation of the Economic Community of West African Stales (ECOWA S), topmost priority has been given to Ihe promotion and development of intno-community trade by the ECOW AS Authority. This bas been so, because mtraeCommuDity trade is regarded as a major means of economic growth Unfonunately, a common feature of West African trade is tbat most of the trading activities arc carried out with non-West African countries. particularly Europe, Japan, and America, resulting .. low level. of trade among ECOWAS countries. For example, intra-regIOnal trade of ECOWAS countries accounted for 2.9"10 in 1970, 10.1"10 in 1980,5.2% .. 1985,8.3% in 1990 and 78'4 in 1992' The low level of trade among ECOWAS countries may partly be explaIned by the non-complementary production structure of the member countries, II well as trade barriers, such as tariff. and quantitative restrictions. These problems, coupled with the mUltiplicity of currency and excbange rate, have slowed the growth of trade among West African States Recognising the need 10 increase trade among ECOW AS countries, and in order for the Community 10 advance .. one regton In searcb for sustained economic gro~ it became economically rational to libera1isc trade Uld adopt a common tariff on Impons from third countnes. It was believed. that trade liberalisation would facilitate the smooth implementation afthe University of Ghana http://ugspace.ug.edu.gh CHAPTER THREE THE ECOW AS PROTOCOL ON FREE MOVE!\! ENT OF GOODS AND SERVICES Since the formation of the Economic Community of West African States (ECOWA S), topmost pnority has been given to the promotion and development of intra-<:<>mmunity trade by the ECOWAS Authority . This has been so, because intra-community trade is regarded as I major means of economic growth Unfortunately. a common feature of West African trade is that mosl of the trading activities are carried out with non·West African countries. particularly Europe, Japan. and America, resulting on low levels of trade among ECOWAS countries For example, intra-regional trade of ECOWAS countries accounted for 2.9% in 1970, 10.1% in 1980, 5.2% in 1985,8.30/. in 1990 and 78% in 1992.1 The low level of trade among ECOWA S countries may partly be explallICd by the non-complementary production structure of the member countries, Ii well as trade barriers, such as tariffs and quantitative restrictions. These problems, coupled witb the multiplicity of currency and exchange rate, bave slowed !be growth of trade amoog West African States Recognising !be need to increase trade among ECOWA S counrnes, and in order for the Community to ath'3l1ce as one region io search for sustained economic growth. it became ccooootically rational to liberalist trade and adopt a common tariff 00 impons from third countries. It was believed, tbat trade liberaiisatioD would fatilitale the smooth implementation of the 13 University of Ghana http://ugspace.ug.edu.gh Protocol on Free Movement of Persons, Goods and Services and gradually lead to the establishment of a customs union 3.1 TRADE LIBERALIZATION Trade liberahsauoD in general terms involves the opening up of a COWlby'S uwket with little or no restncuons to manufactw'es, investors. multinational corporallons and others, so long as they conform to the laws of the country, It IS believed that a liberalised market has many advantages It expands opportunllles for firms or suppliers to reach buy. .... located in an increasing number of countries within a particular region or across regions.2 It also encourages competition which guarantees the consumer cbolce OD the basis of quality service and variety at best price. Consequently. it bas been argued that countries. which liberalise trade and expose their industries to competition have their economies growing faster than those countries that adopt protectionist policies. An example is South East Asia. where the economies and individual incomes haw improved drastically. Trade Liberalisallotl on the other baed Impact negatively on the economies of participating countries. It leads to a sudden increase in imports of goods of all kinds. including used and h""",dous Items. whicb do ha,,'c ad~e effects on the environment _ As indicated by 3 Be. Peasah • trade liberalisation. creates unemployment and can lead to the collapse of potentially viable but weak Industries University of Ghana http://ugspace.ug.edu.gh Protocol on Free Movement of Persons. Goods and Services and gradually lead to the establishment of. customs union 3.1 TRADE LIBERALIZATION Trade liberalisation i.n general tenns Involves the opening up of a country's market with httle or no restrictions to manufactures, investors, multinational corporations and others. so long as they conform to the 13" S of the country. It IS believed that • Iiberalised market has many advantages It expands OpportunIties for firms or suppliers to reach buyers. located in an increasing number of countries within a panicular region or across regions.2 It also encourages competition which guarantees the consumer chOice 00 the basis of quality service and variety at best price. Consequently. it bas been argued that countries. which Iiberalise trade and expose their industries to competition have their economies growing faster than those counbles that adopt protectionist policies. An example is South East Asia, where the economIes and individual Incomes have improved drasrically Trade LiberahsatioD on the other hand Impact negatively on the economies of panlcipa1inl countries. It leads to a sudden increase in imports of goods of all kinds. including used and hazardous lIems. which do have ad\'eBe effects on the cO\1ronmenl. As indicated by 3 BeD Peasab • trade Itberali""ion, creales unemployment and can lead to the collapse of potentially viable but weak industries 34 University of Ghana http://ugspace.ug.edu.gh Protocol on Free Movement of Persons, Goods and Services and gradually lead to the establishment of a customs union. 3.1 TRADE LIBERALIZATION Trade liberalisatlon in general tenns IDvolves the opening up of 8 country 's market with little or no restnctlons to manufactures, investors. multinational corporallons aDd others, so long as they confonn to the laws of the country. It is believed thai • Iiberalised market has many advantages. It expands opponumt.es for firms or suppliers to reach buyeR, located in an increasing Dumber of countries within a particular region or across regions.2 It also encourages competition which guarantees the consumer choice OIl the basiS of quality service and variety at best price. Consequently, it bas been argued thai countries, which Iiberalise trade and expose their industries to competition bave their economies growing faster than those couolnes that adopt protectioniS! policies An example is South East Asia, where the economiCS and individual IDcomes ha .... improved drastically. Trade Liberalisation on the other band .mpact negatively on the ecooomics of participating countries. It leads to a sudden increase in impons of goods of all kinds, IDcludlDg used and hazardous Items, which do ~ ... e ad~ effec~ on the en\1ronmenl. As indicated by Ben Peasah , trade hberahsalton, creates unemployment and can lead to !be collopse of potentially viable bill weak indUSlries University of Ghana http://ugspace.ug.edu.gh Protocol on Free Movement of Persons, Goods and Services and gradually lead to the establishment of. customs union 3,1 TRADE LIBERALIZA TIO:>l Trade liberahsatlon in general (erms involves the opening up of a country's market with little or no restncllons to manufactures. investors, multinational corporations and others, so long as they conform to the laws aflhe country. II IS believed that • hberahsed market has many advantages II expands opportunities fCX' firms or suppliers 10 reach buyers, located in an increasing number of countries within a particular region or across regions? It also encourages competition which guarantees the COl15umer chOice 00 the basis of quality sen.'lce and variety at best price. Consequently, it bas been argued that countries, whicb Iiberali .. trade and expose their industries to competition have their economies growing faster than those counlnes that adopt protectionist policies. An example is South East Asia. where the economics and individual IDcomes haw: improved drastically. Trade Liberalisation on tbe other hand Impact negatively on the economies of partlclpatmg countries. It leads to a sudden increase in imports of goods of all kinds, including used and hazardous IIems, which do have adverse effects on the envuonmenl. As indicated by l Ben Peasab • trade liberalisation, creates unemploymcot and can lead to the collapse of potentially viable b. . weak industries 34 University of Ghana http://ugspace.ug.edu.gh Protocol on Free Movement of Persons, Goods ODd Services and gradually lead to the establishment of. customs union. 3.1 TRADE LIBERALIZATION Trade liberahsauon in general terms IDvolves the opening up of 8 country's market with httle or no reslncllons to manufactures, investors. multinational corporations and others. so loog as they conform to the laws of the country. It is believed that a hbenlliscd market has many advantages. It expands opportumlles for finns or snppliers to reach buy ..., located in an increasing Dumber of countries within a particular region or across regions.2 It also encourages competition which guarantees the consumer chOice OIl the basis of quality service and variety at best price. Consequently, it bas been argued that countries. which liberaJise trade and expose their industries to competition bave their economics growing faster than those COUOlnes that adopt proteclioniS! policies. Ao example is South East Asia, where the economies and individual inComes have improved drastically. Trade Liberalisation on the other hand Impact negatively on the economics of participating countries. It leads to a sudden increase in imports of goods of all kinds, inc:luding used and hazardous Items, which do ~ve adverse effects on the enVIronment. As indicated by Ben Peasab , trade hberahsatJon, creates unemployment and can lead to the collapse nf potentWly viable bUl weak uldustnes. University of Ghana http://ugspace.ug.edu.gh 3.2 THE ECOWAS TRADE L1BERALlSATION SCHEME (ETLS) Taking the benefits of trade Iiberalisation into coosideration, the Lagos Treaty, whicb established ECOW AS provided for a detailed programme for trade Iiheralisation. Article 2, Sub·section 2 of the Treaty and its relevant protocol states. among others, that the "'Commumty shall by stages ensure the elimination as between Member Stales of customs duties and other changes of equivalent effect in respect of the importation and exportation of goods, the abolition of quantitative and administrative restrictions on trade, and the establishment of a common customs tariff and common policy towards third countnes" 4 The objective of tbe ECOWAS Trade Liberalisation scbeme is to progressively establish a customs union among Members States of the Community over a period of fifteen years, starting from January I, 1990, the date of entry into force of the scheme A significant step towards trade liheralisation was therefore taken at the ECOW AS summit of Heads of State and Government beld in Lagos in 1978. The decision was to make 28~ May 1979 the starting date of a two year period, during whicb Member States were obliged to refram from Imposmg new customs duties and from increasing existing ones. The freeze was to help both Member States and the Community to prepare for the subsequent phases of the trade and custom co-operarion programme: 35 University of Ghana http://ugspace.ug.edu.gh A decision was also taken for the ehmination of non-tariff barriers 10 intra-community trade ahead oftbe tariff elimination programme. For this reason, it was resolved that the elimmation of all types of non- tariff barriers sbauld commence from 28th May 1981 and be completed by all ECOWAS countnes wIthin a period of four years For tbe eliminallon of non-tariff barriers, all ECOW AS Member States were to be treated on the same level and the method of IiberalisatioD was left to the discretion of Members States. However at the Cotonou Summit ID May 1982, it was decIded that until the problem of currency convertilibility is resolved, foreign exchange restrictions on transa(tions could not be effcctively eliminated J,J PRum c rs U'IlER TIlE ECOWAS TRADE LlBFRALlSATION S,HE~IE The ECOW AS Trade Liberalisation Scbeme (ETLS) involves three groups of products. namely unprocessed goods, tradlllonallhandicrafts products and industrial products Tbe first groups of goods (unprocessed goods) include livestock, cereal. vegetables, fisb and others that have not undergone any industrial transformation. For the unprocessed goods, • crucial decision was taken in May 1980, when the Community decided in Lome to tOlally eliminate all tariffs and non-tariff barriers. This Implied that no Member State would be compensated for loss of revenue as a result of the ImponatlOD of such. products. University of Ghana http://ugspace.ug.edu.gh A decision was also taken for the elimination of non·tariff barriers 10 intra-community trade ahead oftbe tariff elimination programme. For this reason. it was resolved that the ehmmation of aU Iypes of non· tariff barri ... should commence from 28'" May 1981 and be completed by all ECOWAS couotries within a period of four years. For the elimination of non-tariff barriers, all ECOW AS Member States were to be treaIed on the same level and the method of liberalisation was left to the discretion of Members Stales. However al the Cotonou Summit in May 1982, it was decided that until the problem of currency cODvertilibility is resolved, foreign exchange restrictions on transactions could not be effectively eliminated. 3.3 PRODUCTS L ' 1l1:R Til l: I:COWAS TRAIlI: LlBI:RALlSATION SCII EME The ECOWAS Tndo Liberalisation Scheme (ETLS) involves three groups of products, namely unprocessed goods, tradllionallhandicrafts products ad iodustrial products Tbe first groups of goods (unprocessed goods) include livestock, cereal, vegetables. fish aod 0Iben that have Dot uodergone any industrial transformation. For the unprocessed goods, 8 crucial decision was takeu an May 1980, when the Commufllty decided in Lome to tota1ly eliminate all tariffs and non-tariff barri .... This implied that no Member State would be compensated for loss of revcnuc as a result of the importatioo of such products. University of Ghana http://ugspace.ug.edu.gh A electsoon was also taken for !be elimioallOil of non-tariff berrien to intra-community trade ahead aftbe lantT elimination programme. For this reaso~ it was Rsolved that the elimination of all types of non· tariff berrien should commence from 28'" May 1981 and be completed by all ECOW AS countries within a period of four years. For !be elimination of nOD-tariff barriers. all ECOWAS Member States were to be treated on !be same level and the method of IiberahsatioD was left to the discretion of Members States. However at !be Cotonou Summit an May 1982. it was decided that unhl the problem of CWTency oonvertalibility is resolved, foreign exchange restrictions on transactions could not be effectively eliminated. 3.3 PRODLJC I S L:\IlI:R TilE ECOWAS TRADE L1BER\USA nON SC'IIEME Tbe ECOWAS Tndo Libenllisation Scheme (ETLS) involves three groups of products. namely unprocessed goods. tradltlonallhandicrafts products and industrial products Tbe lint groups of goods (unprocessed goods) include livestock. cereal. vegetables, fish and others that have DOt undergone any industrial transformation. For the unprocessed goods, a crucial decision was taken in May 1980, when the Community decided in Lome to totally eliminate all tariffs and non-tariff barriers. This Imphed thai no Member State would be compensated for loss of rc\'cnue as a result Drthe ImponatlOD of such products. University of Ghana http://ugspace.ug.edu.gh A decision was also taken for the elimination of non~tariff barriers to LDtra~community trade ahead of the tariff elimination programme For this reason, it was resolved that the elimination of all types of non· tariff barriers sbould commence from 28" May 1981 and be eompleted by all ECOW AS countries within a period of four years. For the elimination of non·tariff barriers, all ECOWAS Member States were to be treated on the same level and the method of IiberaJisation was left to the discretion of Members States. However at the Cotonou Summit in May 1982, 11 was decided that until the problem of currency convertilibility is resolved, foreign exchange reStt1Cllons on transactions could not be effectively eliminated. 3.3 PRODUCTS UNDER THE H ·OWAS TRADE L1BERALISA nor; SCHEME The ECOWAS Trade LiberaiisaJion Scheme (ETLS) involves three groups of products, namely unprocessed goods, traditionaVhandicrafts products and industrial products The first groups of goods (unprocessed goods) include livestock, cereal, vegetables, fish and othe ... that have not undergone any industrial transformation. For the unprocessed goods, a crucial decision was taken in May 1980, when the Community decided in Lome to totally elimmate all tariffs and non~Wiff barriers. This implied that no Member State would be eompensated for loss of revenue as a result of the Importation of such products 36 University of Ghana http://ugspace.ug.edu.gh Unprocessed goods were to circulate freely within ECOW AS couotnes if they originate from aoy Member Slate and appear on a list of products annexed to tbe decision 1i bcraJising trade in such products. Furthennore, such goods were to be accompanied by a certificate of origin and ECOW AS Export Declaration Form. The second group of goods (traditional 'handicraft products) ioelude articles made hy hand WIth or WIthout the help of tools or devices activated directly by the craftsman. Like the unprocessed goods. these products also ceased to attract any tariff within the Community right from the commencement of the programme. The necessary conditions required to qualify these products under the Trade Liberalisation Scheme do not differ from those of the unprocessed goods. The third group of goods (industrial products) covers products from approved enterprises from Member States. These products and the enterprises manufacturing them must pass through selection and approval procedures laid down by the ECOWAS Council of MiOlsters in June 19~~ . The ECOWAS Trade Liberalisation Programme started with twenty-five approved industrial products. TbiJ increased to ninety (90) by the middle of 1990 aod currently, more than 700 industrial goods have been approved to benefit from the scheme. A<:cording to Ghana'. Minister of Economic Planning aod Regional Cooperation, Dr. Kwesi Nduom. one hundred and sixteen (116) Ghanaian enterprises and two hundred aod fifty-five (2SS) Ghanaian products bave been registered under the ..h eme by October 2001' )7 University of Ghana http://ugspace.ug.edu.gh Tbe5e Ghanaian products include Kitchen utensil from Ghana Pioneer AluminIum Limited, Chocolate from Cocoa Processing Company Limited, ball pens from PellS aod Plastics among others. To encourage more Ghanaian enterprises to take advantage of the scheme, the MinIStry of Economic Planning and Regional Cooperation has advertised the facility in the national newspapers For an industrial product to be accepled as originating from the Community, 6 It must meet the following necessary conditions. I) The product must be produced from material. of CommuOlty origin, whose value is equal to or higher than 40'1'. of the total cost of the raw materials employed In their production, or whose quantity is equal to or bigher than 60% of the total cost of all raw materials employed. 2) Be produced from materials of foreign or Indetenoinate origin who.e cost. Insurance aod freight (CIF) value does not exceed 60% of the total cost of material employed or whose quantity is equal to or more than 40% of all raw materials employed in its manufacture 3) Has receIved in the process of production, a value added of at least 35% of the ex-factory price before tax. 4) Be manufactured by an enterprise in which Community nationals bold an equity share of at least 25% To benefit from total exemption from taxes and any quantitative restrictions, industnal products just like unprocessed goods arc also expected to be accompanied by a catificale of origin and ECOWA S Export Declaration form aod must appear on the approved lis! of products. WIth rc.pect to the University of Ghana http://ugspace.ug.edu.gh These Ghanaian products include Kitcben utensil from Ghana Pioneer Aluminium Limited, Chocolate from Cocoa Processing Company Limited, ball pens from Pens and Plastics among omer.. To encourage more Ghanaian enterprises to take advantage of the scheme, the Ministry of Economic Planning and Regional Cooperation has advenIsed the facility in the national newspapers For an industrial product to be accepted as origmatmg from the Community, It must meet the following necessary conditions.6 I) The product must be produced from matenols of Community ongm, whose value is equal to or higher than 40'1. of the total cost of the raw materials employed in their produc:tion, or whose quantity is equal to or higher than 60% of the total cost of all raw materials employed. 2) Be produced from materials of foreign or indeterminate origin whose cost, msurance and freight (CIF) value does not exceed 60% of the total cost of matertal employed or whose quantity is equal to or more than 40% of all raw materials employed in its manufacture. 3) Has received in the process of production, a value added of at least 35% of the ex-factory price before tax 4) Be manufactured by an enterpn .. in wbich Community nationals hold an equity share of at least 25%. To benefit from total exemption from taxes and any quantitative restrictions. industrtal products just like unprocessed goods are also expected to be accompanied by • ccnificale of onglO and ECOWA S Expon Declaratron form and must appear 011 the approved list of products. With rapect to the )8 University of Ghana http://ugspace.ug.edu.gh industrial products, the elimination of tariff is 10 be more gradual and the rate of reduction depends on the calegory 10 whicb the producl and the exporting Member State belong. The table below depicts the 1990 time table as well as the rate of tariff reduction on industrial products TABLEZ 1990 PLAN FOR TH~ I .\IPLEM~TATION OF ETLS COl" HRY PRIORITY PRODtlCTS ~ON-PRIORITY PI I'RODl 'CTS PZ ~ Burkina Faso, Cape Verde, 8 years on the basis of 10 years on the basis The Gambia, Guinea-Bissau, 12.5% reduction each year of 10% reduction Mail Maurilllnia, Nioer each year GROUPZ Scnin, Guinea, Liberia, 6 years on the basis of 8 years on tbe basis Sierra Leone, Togo 16.6% reduction each year of 12.S% reduction each vear GROUP) Ghana, Nigeria, COle 4 years on the basis of 6 years on the basis O' ivoire ,Senegal 25% reduction each year of 16.6% reduction each Year Soo= ECOW AS. offic:oaI,..,..,. ECOW AS Coo AlDEC 1I~I8J, DooU ........... !he adophon and. I~ of. IIDIIe Trade LibaaI.iIuioa Scbeme for mdustnal ptoduru. JuncI Q8J From the above table il can be seen thai the industrial products were grouped inlo pnority and non-pnonty products and the rate of tariff rcduetion is fasler for the priority products than the non-priority products. The then University of Ghana http://ugspace.ug.edu.gh sixteen Member States were grouped into three according to their level of economic development and this influenced the rate of tariff reduction. For example. priority commodity imported in 1990 into Ghana attracted a 25% reduction in tariff. while that same product only altnlCted 16.6%, if imported into Guinea and 12.5% in Cape Venle. These counbies in subsequent years will effect further annual reduction at the same rate they started off with. till they reach zero tariffs in their respective termin.1 years. 3.4 SUPPORT MEASURES A3 pan of the ECOWAS TLS, • number of support measures were provided to help facilitate the movement of goods within the Community. Tbese measures include the introduction of a unifonn customs documents and statistical instruments, certificate of origin, custom and statistical nomenclature. These were based on the Hannonised System (HS). In addition. the processing time for non-sealed vehicles is expected not to exceed three hours. Special counters for transit vehicles were to be set up. Otber non-tariff barriers such as the prohibition of goods approved under the ECOWAS TLS were to be mnoved. A protocol on Inter-State and Road Transit (ISRT) and a transil guarantee mecbanism was also adopted. A draft single cusloms document has been prepared in collaboralion with the Wesl Africau Economie and Monelaly Union (UEMOA) and reconunended for adoption' The document is expeeled 10 replace the many differenl 40 University of Ghana http://ugspace.ug.edu.gh sixteen Member States were grouped mto three according to their level of economic development and this influenced the rate of tariff reduction. For example a priority commodity imported in 1990 into Ghana attracted a 25% reduction in tariff, while that same product only attracted 16.6%, if imponed into Guinea and 12.5% in Cape Verde. These countries in subsequent y. ... will effect further annual reduction at the same me they .taned off with, till they reach zero tariffs in their rcspecl!\'Cl cnninal years. 3.4 SUPPORT MEASURES As pan of the ECOWAS TLS, a number of suppon measures were provided to help facilitate the movement of goods within the Community. These mcasures include the introduction of a unifonn customs documents and statistical instruments. certificate of origin, custom and statistical nomenclature. These were based on the Hannonised System (HS), In addition. the processing time for non·seaJed vehicles is expected not to exceed thn::e hours. Special counters for transit vehicles were to be set up. Other non·tariff barriers such as the prohibition of goods approved under the ECOWAS TLS were to be mnoved. A protocol OD Inter-State IIId Road Transit (ISRT) and a transit guarantee mechanism was also adopted. A draft single customs document has been prepared in collaboration with the West African EconomIC and Monetary Union (UEMOA) and recommended for adoption.' The document is expected to replace the lIWIy difTerent 40 University of Ghana http://ugspace.ug.edu.gh customs documents that are currently in use in Member States and to speed up customs clearance procedures. 3.S ECOWAS Ft;ND t'OR CO-OPERATION. COMPENSATION AND DEVELOPMENT A1J indiated by Arthur Hazlewood, the integration of states, which are at different levels of development. tends to concentrate further development in more developed states.· This according to Hazelwood. results in an unequal distribution of the benefits of co-operauon. To ensure the survival of an integration scheme, every member state must be satisfied and must remain satisfied with the distribution of the benefits. To ensure an equal distribution of the gains and losses of regional economic integration. the ECOW AS Treaty9 provides for the compensation of loss of revenue incurred by Member States as a result of tile community's trade liberalisation scheme. Th. ECOW AS Fund was therefon: established as on. of the Community's institutions to provide compensation and provide funds for developing projects in Member States. LosS(,"S in n:venue incurred by Member States in approved industrial products are compensated for according 10 the procedures adopted by the Community's decision-making authorities. An estimated compensation budget is adopted each year and is calculated on the 41 University of Ghana http://ugspace.ug.edu.gh basis of the volume of approved induslrial goods and the level of reduction of tariffs. A Member State's contribution to the compensation budget is calculated on the basis of its share in the value of total intra-community exports of originating manufactured products. I J The more a Member State export to the region, the more its contribution to the compensation fund. Unfortunately. the mechanisms 10 make the fund operational is not being carried out. Some Members States do not pay their conlributions promptly and other members do not pay at all. Only four out of the eleven participating countries have been contributing to the fund. By September 2000, only Burkina Faso, The Gambia and Mali have fully paid up their contributions. Benin and Nigeria have partly paid up their contribution and to date. only Benin has submitted its application for compensation. Ghana's arrears amount to USS220,OOO, which needs to be paid.up when the Community levy. is implemented. This state of affairs shows the disappointing nature of the Fund. However in order to enhance its fmancial resources and enable it mobilise capital on the international markel. the ECOW AS Fund plans to open up its capital to both regional and non-regional partners. 3.6 LEVEL OF IMPLEMENTATION OF THE TRAIIE LlBERALISATlON SCHEME It is gcuerally acknowledged that trade liberalisation programmes, initiated by an integration scheme among developing countries do not 42 University of Ghana http://ugspace.ug.edu.gh live up to expectarion. 12 This situation can be easily related to the ECOW AS TLS. which has not been working despite its long list of initiative. The tables below illustrate the status of implementation of the ECOW AS TLS and the support measures. TABLE 3 Status of implementation of the ETLS as at June 2002 Unprocessed goods Industrial goods Countries that have Benin. Burkina Faso. Cote abolished tariff D'lvoire, Ghana, Mail, according to TLS Gambia, Guinea, Niger, None Nigeria, Senegal Liberia, Sierra Leone, Togo, Guinea· Bissau, Cape Verde 43 University of Ghana http://ugspace.ug.edu.gh live up to expectation." This situation can be easily related to the ECOWAS TLS, which bas nOl been working despite its long list of initiative. Tbe tables below illustrate the status of implementation of the ECOW AS TLS and the suppon measures TABLE) Statua of implementation of the ETLS as at June 2002 Unprocessed goods Industrial goods Countries that have Benin, Burkina Fa so. Cote abolished tariff D'lvoire, Ghana, Mail, according to TLS Gambia, Guinea, Niger, None Nigeria, Senegal Liberia. Sierra Leone. Togo, Guinea- Bissau, Cape Verde Source: Data obtalncd from an interview with the Ag. A.uislant CODUJ\WlOQCt Free Zona (CEPS) 43 University of Ghana http://ugspace.ug.edu.gh live up to expectation. t2 This sitIJation can be easily related to the ECOWAS TLS, which has not been working despite its long list of initiative. The tables below illustrate the status of implementation of the ECOW AS TLS and the suppon measures TABLEJ Status of implementation of the ETlS as at June 2002 Unprocessed goods Industrial goods Countries that have Benin, Burkina Faso, Cote abolished tariff O' lvoire, Ghana. Mail, according to TlS Gambia, Guinea, Niger, None Nigeria, Senegailiberia, Sierra Leone, Togo, Guinea- Bissau, Cape Verde V Soun:e. Dua obtained from an IDlCfVlC'W With the Ag. ASSlStant ComnusslDner Free Zones (CEPS) 43 University of Ghana http://ugspace.ug.edu.gh TABLE 4 Status of implementation of Support Measures COMatries Certificate of origin printed and put Benin. Burldna Faso, Ghana, The Gambia, Guinea, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo Adoption ofhannonised system and Benin. Burkina Faso, Ghana. The customs declaration Gambia, Guinea, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo Implementations of ISRT Benin, Cote D'lvoire, Mali Niger, Togo Designation of national organisation Benin. Burkina Faso, Ghana, The to guarantee transit operation Gambia, Guin .., Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo Sowtt AslOClAtlOnolGbanalDdulcriaandDllnlanabonalConliultancy,ASrudyofGhanaand Rq~lnVJmKlnAca..~_. p.24 As ean be clearly seen from Table 2, very little has been achieved in the implementation of the ECOWAS TLS, particularly with regards to tariff reduction in industrial products. Majority of the Member States have widely removed tariff barriers on unprocessed goods and traditional handicraft, however none has totally eliminated tariff on industrial goods. Even though chmination of tariff on unprocessed goods and handicraft is essential, it will not facilitate intra..community trade on any significant scale, if tariff barrien on industrial goods still exist. As illustrated in Table J, most Member States have adopted the harmonised customs dcclarolion forms, and printed cenifi .... of origin, however University of Ghana http://ugspace.ug.edu.gh TABLE 4 Status of implementation of Support Measures Countries Cenificate of origin printed and put Benin. Burkina Faso, Ghana, The into use Gambia. Guinea. Mali, Niger. Nigeria, Senegal, Sierra Leone, Togo Adoption ofluumoniscd system and Benin, Burkina Faso, Gbana, The customs declaration Gambia, Guinea, Mali, Niger. Nigeria. Senegal, Sierra Leone. Togo Implementations of ISRT Benin, Cote O'ivoire. ~a1i Niger. Togo Designation of national organisation Benin. Burkina Faso. Ghana, The to guarantee transit operation Gambia, Guinea, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo SOW'CC. AiIoI;:ahon of Ghana loma.ia and Dilneemabonai Consuttancy. A SlUdy ofGbaDe and R.e...,.a~IOIIAtf;n,~200,p.14 As Can be clearly seen from Table 2, very little has been acbieved in the implementation of the ECOWAS TLS, particularly with regards to tariff reduction in industrial products. Majonty of the Member States have widely removed tariff barriers on unprocessed goods and traditional handicraft, however none bas totally eliminated tariff on industrial goods. Even though elimination of tariff on unprocessed goods and handicraft is essential, it will not facilitate intra-community trade on any significant scale. if tariff barriers on industrial goods still exist. As illustrated in Table 3, most Member States have adopted the harmaoised c:ustoms declaration forma, and printed cenific:atc of origin. however University of Ghana http://ugspace.ug.edu.gh TABLE 4 Status of implementation of Support Measures CoaDtries Certificate of origin printed and put Benin, Burlcina Faso, Ghana, The into use Gambia, Guinea, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo Adoption ofhannonised system and Benin, Burkina Faso, Ghana. The customs declaration Gambia, Guinea, Mali, Niger, Nigeria, Senegal, Sie"" Leone, Togo Implementations of ISRT Benin, COle D'lvoire, Mali Niger. Togo Designation of national organisation Benin, Bwkina Faso, Ghana. The to guarantee transit operation Gambia, Guinea, Mali, Niger, Nigeria, Senegal, SiemL Leone, Togo Sowc:c: Auocl&llOI1afGbue~mdOllAlllmatioMlCoDlUkancy.ASlUdyofGhanaand a.rp-Itmrp.bonAcaa;~200,p.24 As can be clearly seen from Table 2. very little bas been achieved in the implementation of the ECOW AS ns, particularly with regards to tariff reduction in industrial products. Majority of the Member States bave widely removed tariff barrie", on unproce"'" goods and traditional handicraft, however none baa totally eliminated tariff on industrial goods. E,en though elimination oftarifT on unprocessed goods and handicraft is essential, it will not facilitate intra.community trade on any significant scalc, if tariff barriers on industrial goods still exist. As illustrated in Table 3, most Member States have adopted th. hannonised customs dec1antion forms, and printed certificate of origin, bowever University of Ghana http://ugspace.ug.edu.gh customs forms will also not have any Impact on trade, when they are Dot used and when nOD-tariffbaniers still exist. 3.7 REASONS FOR TIlE DELAY IN IMPLEMENTING THE ETLS 'The inability of Member States to eliminate tariffs, particularly on industrial good& can be attributed to the heavy dependence on customs duties of these countries as sources of revenue. Most of the ECOWAS countries derived a significant proportion of their revenue from indirect taxes, mainly import and export duties and consequently attach much importance to them. In 1973 for example, more than 50% of govenunent revenue originated from customs duties in The Gambia, 49% in Benin, 47% in Burkina Faso, 37% in Sierra Leone and 35% in Cote D'lvoire." Between 1985 and I 989 also, lIade taxes in ECOWAS countries constituted between 11 % to 60% of 14 government revenue. It obvious from these examples that custom dutH:S constitute I very imponant source of income to governments in these countries. As stipulated by Kassim Yahya.15 the elimination of intra-community tariff and levelling of external tariff would therefore, impact neplively on the economies of these countries. bence the failure oftbe Ens. The non-simultaneous implementation of the TLS by Member States of ECOW AS also continues to pose difficulties for accelerated intra West African lIade. Countries that intended to implement the scheme were discouraged by the mactlon of other Member States. The fear of University of Ghana http://ugspace.ug.edu.gh the pessimists was that they might suffer from unilateral implementation, hence the delay in implementing the ETlS. In addition to dlil; difficulty, Kastm Yabyat6 indicates that the difference in the basis of customs valuation between UEMOA and non-UEMOA countries. difference in tnlding philosophies as well as the difference in basis of ex-change control arrangement. all account for the failure oftbc trade liberalisation scheme. 3.8 lEVEL OF I~PlEMENTATION OF ECOWAS TRADE LIBERATION SCHEME BY GHANA'S CUSTOMS, FXClSE AND PREVENTIVE SERVICE (CEPS) Since the government of Ghana attaches much value to West African integration. its efforts or commllment towards economic integration is manifested in what CEPS has been mandated 10 do to ensure the success of the ECOWAS TlS. In an interview with the Acting AsSiStant Commissioner - Free Zones (CEPS)" 00 the ECOWAS TlS, it was made known thaI, CEPS has been confonning to all the ECOWAS requirements as regards the implementation of the TLS. The Service grants exemption on goods impon.d from Member States, which have been approved by the secretariat and it bas reduced tariff barriers through the Automated System of Customs Data (ASYCUDA) system. University of Ghana http://ugspace.ug.edu.gh the pessimists was that they might suffer from unil."'ral implemenlalJon. bence the delay in implementing the ETLS, In addition to Ibis difficulty, Kasim Yahya'6 indicates that the difference in the basis of customs valuation between UEMOA and non-UEMOA counlrie., difference in trading philosopbies as well as the difference in basis of ex.change control arrangement. all account for the failure oftbc trade liberalisation scheme. 3.8 LEVEL OF I:I1PLE:I1E!IITA TlOI" m' ECOWAS TRADE LIBERATION SCHEME BY GHANA'S CUSTOMS, EXCISE AI"D PREVEI"Tn'E SERVICE (CEPS) Since the government of Ghana attaches much value to West African integration, its efrons or commitment towards economic integration is manifested in wbat C'EPS has been mandated to do to eruure the success of the ECOWAS TLS, In an interview with the Acting Assistant Commissioner - Free Zones (CEPS)" on the ECOWAS TLS, it was made known that, CEPS has been conforming to all the ECOWAS requirements as regards the implemenlation of the ns, The Service grants exemption on goods imponed from Member Stales, which ha\c been approved by the secretariat and it has reduced tariff barriers through the Automated System of Customs Ow (ASYCUOA) system, University of Ghana http://ugspace.ug.edu.gh The service also encourages Member States to export more to Ghana due to the easy clearance of goods. In addition to these, it was further made known that an ECOWAS Desk bas been set up at the CEPS Head Office to disseminate infonnation and advice nationals of Member States on export and import procedures and requirements. The Service bas also included in the national customs tariff schedules, names of companies and enterprises and their respective products, which have been approved by the ECOWA S secretariat for the attention of its stafT and the public. 3.9 PROBLEMS DiCOU:-;TERED BY CEPS IN THE IMPI.EM I::NTA TlON OF THE ICCOW AS TLS One major problem identified was lack of understanding of the scheme by the trading public as well as some CEPS stafT. It was noted that most CEPS officials do not understand the scheme and how it operates. In some cases, originating goods, which are also accompanied by appropriate certificate of origin and customs Declaration, are not accorded preferential tariff. In other cases non- tariff barriers, such as quantitative prohibitions or other restrictions, are still imposed on products, originating in the Community even, though such barriers were supposed to bave been eliminated as far back as 1990, when the scherne commenced. Lack of financial resources for training CEPS official. identified was as the major reason (or their lack of knowledge or appreciation of the ETLS. University of Ghana http://ugspace.ug.edu.gh The lack of education by the ttading public ..... hinders the smooth implementation of the protocol on free movement of goods. Most of the trading public, particularly women do not understand that the industrial products, which have been approved by the ECOWAS Secretariat to benefit from the scheme are enterprise specific. This misunderstanding often leads to a situati~ where customs officials have to deal with products, which do DOt satisfy the requirement for preferential rate, but traders expect them to be treatedassucb. Anothcrdifficulty encountered in the implementation ofTLS by CEPS is the failure by authorities of Member States to submit specimen signature to certificate of origin for the authentication of documents. This, has resulted in the escalation of forged documents sucb as invoices and certificate of origin from some Member States. The creation of UEMOA has also impacted negatively on the ECOW AS free movement of goods and services. According to the Acting Assistant Commissioner - Free Zones, economic operators from non-UEMOA countries, exponing approved industrial products, unprocessed goods, and traditional handicnfts do not benefit from agreed preferential treatment. While nOD·UEMOA Member States otTer preferential taritT to all ECOW AS countries as stipulated in the ETLS, this gesture i. not being reciprocated by UEMOA member countries. The ....u lt i. that, import Inlo non.UEMOA countries such as Ghana. Nigeria, enter at low taleS, wherus exports from these countries are subjected to relatively high taritT rates. Products from non·UEMOA counlnes will therefore be unable to enter UEMOA markets and stay competitive. University of Ghana http://ugspace.ug.edu.gh The lack of education by the trading public also hinders the smooth implemenlation of the protocol on free movement of goods. Most of the trading public, puticularly women do not Wlderstand that the industrial products, whicb bave been approved by the ECOWAS Secretariat to benefit from the scheme are enterprise specific. This misunderstanding often leads to a situation. where customs officials have to deal with products, which do not satisfy the requirement for preferential rate, bUI traders expect them to be b"eatedas sucb. Another difficulty encountered in the implementation ofTLS by CEPS is the failw-e by authorities of Member States to submit specimen signature 10 certificate of origin for the authentication of documents. This, has resulted in the escalation of forged documents sucb as invoices and certificate of origin from some Member States. The creation of UEMOA has al.o Impacted negatively on the ECOWA S free movement of goods and services. According to the Acting Assistant Commissioner - Free Zones, economic operalars from non-UEMOA countries, exporting approved industrial products. unprocessed goods, and traditional handicrafts do not benefit from agreed preferential treatment. While non-UEMOA Member States offer preferential tariff to all ECOW AS countries as stipulated in the ETLS, this geature is not being reciprocated by UEMOA member countries. The result i. that, impon into non-UEMOA countries such as Ghana. Nigeria, enter at low rates, whereas exports from these countries are subjected to relatively high tariff rales. Products from non-UEMOA counlnes will therefore be unable to enter UEMOA markets and stay competitive. University of Ghana http://ugspace.ug.edu.gh The lack of education by the trading public also binden; the smooth implementation of the protocol on free movement of goods. Most of the trading public. particularly women do not understand that the industrial products, which bave been approved by the ECOW AS Secretanat to benefit from the scheme are enterprise specific. This misunderstanding often leads to a situation, where customs officials have to deal with products, which do not satisfy the requirement for preferential rate, but traders expect them to be treated as such. Another difficulty encountered in the implementation ofTLS by CEPS is the failure by authorities of Member States to submit specimen signature to certificate of origin for the authentication of documents. This, has resulted in the escalation of forged documents such u invoices and cenificale of origin from some Member StaleS. The creation ofUEMOA has also impacted negatively on the ECOWAS free movement of goods and services. According to the Acting Assistant Commissioner - Free Zones, economic operators from non-UEMOA countries, exporting approved industrial products, unprocessed goods, and traditIonal bandicrafts do not benefit from a~ preferential treatment. While Don-UEMOA Member States offer preferential tariff to all ECOW AS countries as stipulated in the ETLS, this gesture is not being reciprocated by UEMOA member countries. The result i. that, impo11 into non-UEMOA countries such as Ghana, Nigeria, enter at low rates, whereas exports from these countries are subjected to relatively high tariff ratcs. Products from non-UEMOA countries will therefore be unable to enter UEMOA markets and stay competitive. University of Ghana http://ugspace.ug.edu.gh The lack of educalioo by Ibe trading public also binden the smooth implementation of the protocol on free movement of goods. Most of the trading public, particularly women do not understand Ibat the industrial products, whicb have been approved by the ECOW AS Secretanat to benefit from the scheme ace enterprise specific. This misunderstanding often leads to a situation, where customs officials have to deal with products, which do not satisfy the requirement for preferential rate. but traders expect them to be treated as such. Anolber difficulty encountered in tbe implementation ofTLS by CEPS is the failure by authorities of Member States to submit specimen signature to certificate of origin for the authentication of documents. This, has resulted in the escalation of forged documents sucb as invoices and certificate of origin from some Member States. The creation of UEMOA bas also Impacted negatively on the ECOW AS free movement of goods and services. According to the Acting Assistant Commissioner - Free Zones, economic operators from nOR-UEMOA countries, exponing approved industrial products. unprocessed goods, and traditional handicrafts do not benefit from agreed preferential treatment. While non·UEMOA Member States offer preferential tariff to all ECOW AS countries as stipulated in the ETLS, this gesture is not being reciprocated by UEMOA member countrics. The ......I t i. that, impon into non.UEMOA countries such as Ghana. Nigeria, enter at low rates, whereas expons from these countries are subjected to relatively high tariff rales. Products from non·UEMOA counlnes will therefore be unable to enter UEMOA markets and stay competitive. University of Ghana http://ugspace.ug.edu.gh The lack of edUClltion by the IrOding public also hinders the smooth implementation of the protocol on free movement of goods. Most of the trading public, particularly women do not understand that the industrial products, which have bcen approved by the ECOW AS Secretariat to benefit from the scheme are enterprise specific. This misunderstanding often leads to a situation, where customs officials have to deal with products, which do not satisfy the requirement for preferential rate, but traders expect them to be treated as such Another difficulty encountered in the implementation ofTLS by CEPS is the failure by authorities of Member States to submit specimen signature to certificate of origin for the authentication of documents. This, has resulted in the escalation of forged documents such as invoices and certificate of origin from some Member States. The creation of UEMOA has also impacted negatively on the ECOW AS tree movement of goods and services. According to the Acting Assistant Commissioner - Free Zones, economic operator.;. from non-UEMOA countries, exporting approved industrial products, unprocessed goods, and traditional handicrafts do not benefit from agreed preferential treatment. While non-UEMOA Member States offer preferenlial tariff to an ECOWAS COWltries as stipulated in the ETLS, this gesture is not being reciprocaled by UEMOA member countries. The result i. thaI, impon into non-UEMOA countries such as Ghana. Nigeria, enter at low rates, whereas expons from these COWltries are subjected to relatively high tariff rales. Products from non-UEMOA counlnes will therefore be unable to enter UEMOA markets and stay competitive. University of Ghana http://ugspace.ug.edu.gh The lack of ed_tioo by Ibe tnlding public also hinders Ibe smooth implementation of the protocol on free movement of goods. Most of the trading public, particularly women do not uoderstand that the industrial products, which bave been approved by the ECOW AS Secretariat to benelit from the scheme are enterprise specific. This misunderstanding often leads to a situation, where customs officials have to deal with products, which do not satisfy the requirement for preferential rate, but traders expect them to be treated as such Another difficulty encountered in Ibe implementation of TLS by CEPS is the failure by authorities of Member Stales to submit specimen signature to certificate of origin for the authentication of documents. This, has resulted in the escalation of forged documents such as im'oices and certificate of origin from some Member States. The creation ofUEMOA bas also impacted negatively on the ECOWAS free movement of goods and services. According to the Acting Assistant Commissioner - Free Zones, economic operators from non-UEMOA couotries, exporting approved industrial products, uoprocessed goods, and traditional bandicnofts do no! benefit from agreed preferential trealment. While nOD·UEMOA Member Stales offer preferenlial tariff to aU ECOWAS couotries as stipulated in the ETLS, Ibi. gesture i. not being reciprocated by UEMOA member countries. The result i. thaI, impon into non·UEMOA countries such as Ghana. Nigeria, enter at low rates, whereas exports from these countries are subjected to relatively high tariff rales. Products from non·UEMOA countries will therefOR: be unable to enter UEMOA markets and stay competitive. University of Ghana http://ugspace.ug.edu.gh Fail,,", to smoothly implement the ECOW AS Brown Card - Insurance Scheme was also identified as an obstacle. The scheme was instituted, among other things. to hannooise laws and regulations governing liabiHty in respect of motor vehicle accident among Member States. It was hoped that the scheme would enhance the development of trade and tourist exchange. However. lack oftinancial support by the francophone ECOWAS Member States and the introduction of a rival scheme (CIMA Code), as well as the use of counterfeit Brown Card from some Member States have threatened to undennine the provision of standardised insurance coverage for businesses conducted across member countries. Another official of CEPS 18 when interviewed also identified, failure by some economic operators to obtain appropriate documents such as certificate of origin, export ronns and the usage of unapproved routes. as some of the problems faced by CEPS with regards to the ETLS. According to the official, the implementation of the ECOWAS Protocol on Free Movement of Goods and Services (ETLS) is likely not to succeed unless Member Countries enter into bilateral talks. 3.10 VIEWS O!ll THE ECOW \S PllOTOCOL 0:'1 FREE MO\'E\IENT OF Goon, Interviews granted me by two traders con finned that, the trading public lack adequate knowledge oe the ECOWAS Protocol oe Free Movement. The traders recounted occasions when their goods were University of Ghana http://ugspace.ug.edu.gh seized and monies were e'lOrted from !bern by some border officials. They complained of high tariff rates 011 goods and seve.al security check points on the rouk. .. They called for a reduction in the nwnber of check-points IS well as a reduction in customs duties. This, according to them, would help eliminate or reduce the smuggling of goods. They also called for the education of customs. immigration and police officers. as well as the general public on the objectives of ECOWAS and the protocol on free movement, in particular. Another driver, wbo transports manufactured goods between Accra, Ghana and Abidjan, Cote D'lvoire, when interviewed, complained of the delay in the processing of document:,. He also recounted occasions. when be had to bribe some customs and inunigration officials, despite his possession of all relevant documents. The issue of several security checkpoints was also mentIOned. He recommended for a faster processing of documents. a reduction in the number of cbeck points and an end to over ambitions and unprofessional behaviour of some border officials. One other problem ideotified with the Trade Liberalisation Scheme, was the cumbersome application procedure for companies that wish to join the scheme. Applications are 10 be aubntined 10 !he national Ministry in charge of ECOWAS afTairs for onward transmission 10 the ECOWAS Secretariat for approval. Approved applications are further submitted to an approva l Committees as well as the Council of Ministers that meets once or twice a University of Ghana http://ugspace.ug.edu.gh year for final approval. This cwnbersome procedures, discourage companies from joining the scheme. In addition to this difficulty, the ECOWAS Secretariat is unable to penalise Member States that do not comply with the rules of the TLS. 3,11 EFFORTS MADE TOWARDS THE SUCCESS m· TilE ETLS Recognising that me procedures for approval of industrial product. was a serious impediment to trade, the Heads of State and Government at the March 2000 ECOWAS summit directed the ECOWAS Secretariat to study the maner and identify ways of simplifying the procedures. In addition to the directive to the ECOWAS Secretariat, the GhanalNigeria Faat Track Approach, which was initiated to help speed up ECOW AS integration process. had provided recommendations regarding the ETLS1' . These include: I) A lilt of approved industrial products to be published and made availoble to all customs entry points for the application of the 0% rate of duty of July by IS" April 2000. 2) HarmOnisation of any minimum documentation requirement of goods valued at SSOOO or below 3) Hannonisation of Value Added Tax (VAn rate 4) Application of Community levy o(O.S% S) Immediate application of the Inter-State Road Transit Protocol It University of Ghana http://ugspace.ug.edu.gh year for final approval. This cumbersome procedures. discourage companies from joining the scheme. In addition to this difficulty, the ECOWAS Secre1arial is unable to penalise Member S ..... thaI do nol comply with the rules of the TLS. 3.11 EFFORTS MADE TOWARDS THE SUCCESS OF THE ETI.S RecognlSmg thaI the procedures for approval of industrial product, was a serious impediment to trade, the Hcada of State and Governmenl al the March 2000 ECOWAS summit direcled the ECOW AS Secretanat 10 study the maner and idenlify ways of simplifying the procedures. In addition to the directive to the ECOWAS Secretariat, the GhanalNigeria Fasl Track Approach, which was milialed 10 help speed up ECOW AS integralion process, had provided recommendations regarding the ETLS'•. These include: I) A list of approved industrial products to be published and made available to all customs entry points for the application of the 0% rate of duty of July by IS" April 2000. 2) Harmonisation of any minimum documentation requirement of goods valued at $5000 or below 3) Harmonisation of Value Added Tax (VAn rate 4) Applirauon of Community levy of 0.5% 5) Immediate application of the Inter-S. .t e Road Transit Prolocol 51 University of Ghana http://ugspace.ug.edu.gh 6) ECOWAS Common External tariff 10 be adopted for entry into effect on January I" 200 I. Funhermore, a number of joint meetings bad been beld between ECOWAS and UEMOA at which several decisions were taken to resolve the differences in tariffs. It was agreed that, new rules of origin be adopted as the existing rules were considered obsolete. A decision was also taken to simplify procedures for approval under the ETLS. A communique was also SIgned by Ghana and Nigeria In July 2002, 10 ensure the success of the ETLS. Sl::\I~IAR\, In this chapter attempts has been made to analyse the ECOWAS Trade Liberalisation Scheme and the extent to which the scheme has achieved its goals. Considerable attention has been devoted to the reasons for the unsuccessful implementation of the ETLS as well as the difficulties faced by CEPS in implementing the scheme. The critical question now is: what needs to be done, in order to achieve the aims afthe ECOWAS Protocol on free movement? The ncxt chapter deals with the summary of the research findings and attempts to recommend solutions to the problems identified. 52 University of Ghana http://ugspace.ug.edu.gh 6) ECOWAS Common External tariff 10 be adopted for entry into effect on January I' 200 I. Furthennore, a number of joint meetings had been held between ECOW AS and UEMOA at which several decisions were taken to resolve the differences in tariffs. It was agreed tha~ new rules of origin be adopted as the existing rules were considered obsolete. A decision was also taken to simplify procedures for approval under the ETLS. A communiqu~ was also signed by Ghana and Nigeria in July 2002, 10 ensure the success of the ETLS. SUMMARY In this chapter attempts has been made 10 analyse the ECOW AS Trade Liberalisation Scheme and the extent to which the scheme has achieved its goals. Considerable attention has been devoted to the reasons for the unsuccessful implementation of the ETLS u well aa the difficulties faced by CEPS in implementmg the scheme. The critical question now is: what needs to be done. in order to achieve the aims of the ECOWAS Protocol on free movement? The next chapter deals with the summary of the research findings and attempts to recommend solutions to the problems identified. University of Ghana http://ugspace.ug.edu.gh 6) ECOW AS Common External tariff to be adopted for entry into effect on January I" 2001. Funhcnnorc, a number of joint meetings bad been held between ECOWAS and UEMOA at which several decisions were taken to resolve the differences In tariffs. It was agreed tha~ new rules of origin be adopted as the existing rules were considered obsolete. A decision was also taken to simplify procedures for approval under the ElLS. A communique was also signed by Ghana and Nigeria in July 2002, to ensure the success of the EnS. SDI:I1ARY In this chapter attempts bas been made to .wyse the ECOWAS Trade Liberalisation Scheme and the extent to whicb the scheme has achieved its goals. Considerable attention has been devoted to the reasons for the unsuccessful implementation of the ETLS as well u the difficulties faced by CEPS in implementmg the scbeme. The critical question now is: what needs to be done. in order to achieve the aims of the ECOW AS Protocol on free movement? The next chapter deals with the summary of the research finding' and attempts to recommend solutions to the problems identified. 52 University of Ghana http://ugspace.ug.edu.gh E!'IIIIJ :,\uTES UNCT AD, HmcIbook oIlr1lcrtallonal TrIidc md DevdopmeDI Sliitilrics ame...'991. P.l5 2) UNCTAD, WoOd InvalmeDl Report. "Foreign Direct InvallDenl. Mat\.et Stl\lli:b&rt and Competition, 1997 p.1l3 1) Ben Peasah. ""Tnde LiberaI~ and ADti-Oumpitl.& Masurei under she World Trade Orpnllltioa (WTO)" ill LEClA (elf) TM MtJri/GlmJI Tradl"g Syslem: Glrana's Policy 4) ~~~A~~2~~.~~~ee: ECOWAS Revised Tracy Article 35. (Abuja. ECQWAS Executive Sc:cretarial, 1993) S) Kweai Nduo~ Paper oa .. GhaM', ReIAliont with her neighbour! and role III ECOWAS",Accn..Ck:Iobcr2001 6) ECOWAS, SappIcmeo&Iry ProIocoI A1SP/IJlI. uaendina Article 2 of die ProkK:ol .re&atioa SO the OerlQitioa oftbc Concept of oriJinatffia products of the Member SlII1ICS of ECOWAS. New Article 2. in "A compendium of Protocols. Convention and Dcmiom Relatina CO the Free Movement of Persons Iftd Good's, Executive ~ of £COW AS, p.l] 7) AaocaMioo ofG. ... lDduItries (AGO. Daruab lnlcf'nationll Consultancy (DI); A Study ofGhanaanReaionalloIepaboo.Aa;ra,Scp&cmbe:r,2000 8) Arthur Hazclw~ '"The end oftht Eas1 AIricaa Community: What are the lessons for ReaKlRallntegration Schemes?'" See Ralph Onwub. aDd Amadll Seuy (ed.) Tlrefottn of "....u..iIIA..fi"ina,Macmd. . Publisben.1985 p.175 9) £COW AS Trmty. Article 2S 10) ECOWAS. OffICial JoumIIl, ECOWAS Doc AlDec 19/5110. DecimA rela1tna to the application of tbc c:ompcaut&oo procedwa for lou of revenue, sufTCTCd by Member Statcsu a result oftbc ns, lune 1980. II) LEClA (ed.). Regionalism and In~lIon In We.a Africa: The Way Forwud., Acca, LECIA.2000, p.6S 12) Alanle S.K.B., T1w PoI#JaII ECOItOIIIy of R~WJI Iff A/rlCd. A D«OIIe of ECOWAS. New York Pncaer, 1986. p.97. 13) Alantc S.K.B. ""Trade Problems and Prospccts .. m"'Wcst Africa". 2. ." May 1982. p.ll7 I ..) Weal Afncan Monetary lnslitule, "'Wsf. Afi'M:aD JownaJ of ~1onetary and economic Imeplioa"VoI.lNo.l,200I.p.6 IS) Ka.imYIbya;~AUcmatiVCICowalAt'nc:uilDlq.ntioa.Proceu-£COWAS and UEMOA" in LectA (cd) Topk4I &o.wrrtK" IUWI PmIAnu 10 r. fonrttlllllioll GtttJ COftIiw/ofFonill"po/iqinGJuura Accra, 1998 p.17 16) Kaasam Yahya, paper on "ECOWAS ProIoooI on Free Momenl of Persona, Goods and Services" Miniltty of Trade; Accra.Novnnber 1999. 17) ~WlthMr.EvaMK.luueA,.A ....... eo.aau.one-r-FreeZoaCl(CEps) 18) I..mewWltbMr. AduKye1-ScniorColIot:tar(CerS) 19)~orGbaDllnduIIrica,Danish~CoGIultancy,op.cit.p.2S 53 University of Ghana http://ugspace.ug.edu.gh END~OTES UNCfA D, H.wtdbook 0( lnkmItional Tt'Idt and Dewlopmc:nl Stall51IC~. Oencva.I99l. P.25 2) UNCTAD. World lDvemncal Report, HForeign Direct lnvemncnl., Market SWtIlR and Competition. 1997 p.ll3 3) Ben Peasah, -rnde LibenJtsarion and Ancj. Dwapiac MCMWCI under the World Trade ()rp:I..iuOoa ('WIO)" iD LEClA (cd) TIte MllitiUwral Tf'tJdUra Syslem: Gltono:' Po/u:, Clttltcn,Acc:n,Deccmbc:r, 1999. p.41 ECOWAS TraI)', Altice 2.))&n. 2. Sec: ECOWAS Revised Treaty Anide JS. (AbuJa. ECOWAS ExcculiveSecretarial., 1993). Kwcsi Nduom; PIpCf Oft .. Glwaa'a R.dationI WIth her Aelghboun aad. role in ECOWAS". Aecn.0d0bcr2001 6) ECOWAS, ~ P'n:*xoI AiSP/ li1l ••n eod"" Article 2 of the Protocol ,rdatina&otbeDcfiAitiollof\bc~ororiJinabnlprocb&c:t8oftbe MemberStaICSof ECOWAS, New Article 2. in"A compendhun of Protocols, CORvencton and Occisionl Relaling to tile free Mm,emenl of PcnoGI and Good' s, Exec:Ubve IeCrec.riaI of ECOWAS, p.83 """'. ..... ofGbona 100_ (AGI), 0 .... -.......I c.n.ullmccmba-,2000 Arthur Hazelwood; 1be end of the East African Community: What are the lessons for ReJiooalIntegration Scbemes'r' See Ralph Onwub and Amadu Sesay(cd.) The/ulllreof ~_lIfA/rlctJ.MacmillanPublisbers.,198Sp. 1 7S 9) ECOWAS T_, .....1 e 2S 10) ECOWAS, OffICial Joumal, ECOWAS Doc AIDcc 19/5/80, Ooci.ion relallna to the app1icationoflhecompcnutionprocedureaCorlouofreveoue, suffered by Member StalcsasaresulioftileTLS,June 1980 11) LEClA (ed.). RegioMIism and InlCgntKX1 In West Afnea: The Way forward, Accra, LECIA,2000, p.6S 12) Auntc S.K.B., TJw PolItSt:d! E~y of ~u. III A/rlal. A lHcaM of ECOWAS, NA' York Pmcpr, 1986, p.97. 13) AsanteS.K.8,"'TradeProblemsandProspccts"io"WestAfrica".24"Mayl982, p.137 14) W~ Afiican Monewy Institu~, ""W~ Afuc:an Journal of Monetary and Economic lntqnlion" VoI.I No.1, 2001, p_6 IS) KaaimYIbya;"CoaIpecdtcAI&emMi\UCOW'CIIAfnc.aa~ProI:aI-ECOWAS and UEMOA" in LEClA (ed) TopfcGi EaMorrtJc JUlIa PmllWfII to thefonttu/GlIOII fMd CONbM:lo/FfJ'ftgnpo/qltlGlaana. Accra. 1998 p.l7 16) Kasslm Yahya. paper on "EOOWAS Protocol 00 Free Moment of Persona, Gooda and SeMCCI" MimlcryofTRde. Accra, N~ 1999. 17) ~wllbM,. Evllftl K.lutIC AI. A_ _ CommiIIioDtr- FICC Zones (CEPS) 18) ~withMr. AduKya - SenIOtCollcldar(CEPS) 19) AIIociaIioeofGbaDalndUSlncs,DanithIBUl'uDoallec..u.J&Inq,op.eiL p.2S 53 University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR SUMMARY. CUNCLl:SIUN ANIJ R[CO~I:\1ENDA nONS 4.0 SUMMARY The previous chapters analysed the ECOWAS Protocol on Free Movement of Persons and Goods as well as efforts being made by the Ghana Immigration Service (GIS) and Customs, Excise and Preventive Service (CEPS) in ensuring the successful implementation of the protocol. The study highlighted views from the public and some problems encountered by the institutions above in the implementation of the protocol. The study revealed that sov.1ll1 years after the adoption of the protocol, very httl. progress has been made. Apart from the abolition of visa requirements for Community nauonals and the removal of tariff barriers on unprocessed and handicraft products, much has not been done. For instance, the Second and Third phases of the Protocol on Free Movemcot of Persons has not been implemented. Moreover, the idea of establishing a free trade, customs union. and a common market. as envisaged by ECOW AS through its trlde liberaJisation scheme bas ccnainly not come to fruition. A number of reasons were identified to be responsible for the failure of lb. ECOW AS protocol particularly the ETLS. One of such reason. S4 University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR SUMMARY. CO:-iCLUSIO"" AND RECOMME!'lS The findings of this research have adequately answered the research que.stions set up for the study. The formation of UEMOA, lack of political commitment by Member States and lick of education have all been identified as factors militating against the effective implementation of the ECOWAS protocol on Free Movement of Persons and GoodJ. The objectives set for the study have also been adequately met. Thus the Protocol on Free Movement has been examined and recommendations provided for in chapters two, three and four. Recommendadogs: Following the findings made during the research. a number of recommendations arc made to address some of the difficuhies identified. 56 University of Ghana http://ugspace.ug.edu.gh Though the problems of ECOWAS seem intractable. it is the wi.h of the researcher that the recommendations enumerated below would serve as a way forward for the realisation of the objectives of the ECOWAS protocol and the integration of the West African Sub- region as a whole These recommendations are 4.1 INTENSIFICATION OF EDUCATIONAL PROGRA!VI!VII::S It is recommended that, governments of Member Countries should intensify educational campaigns on the Protocol of Free Movements of Persons and Goods for their respecllve nationals. The nationals should be educated to abide by the provisions of the protocol in lerms of their rights as well as their obligations. The educational programmes should be sponsored in a sustamed manner and should embrace all sections afthe population, particularly the private sector. There is also the need for authorities in all Member States to encourage a change in both attitude and code of practice on the part of immigration, custom and security officials. in order to achieve the objectives of the Community. 4.3 INTEGRATION TO BE TAKEN AS A COURSE IN HlGII SCIIOOLS To infuse among the younger generation of West Africa I tradition of integration spirit and thinking. it is recommended that • course in '7 University of Ghana http://ugspace.ug.edu.gh Though the problems of ECOWAS seem intractable. it is the wish of the researcher that the recommendations enumerated below would serve as a way forward for the realisation of the objectives of the ECOWAS protocol and the integration of the West African Sub- region as a whole. These recommendations arc 4.2 INTI!:!'iSIFlCATIO!ll OF EDUCATIONAL PROGRAM\I E~ It is recommended that, governments of Member Countries should intensify educational campaigns on the Protocol of Free Movements of Persons and Goods for their respective nationals. The nationals should be educated to abide by the provisions of the protocol in terms of their rights as well as their obligations. The educational programmes should be sponsored in a sustained manner and should embrace all sections afthe population. particularly the private sector. There is also the need for authorities in all Member States to encourage a cbange in both anltude and code of practice on the pan of immigration, custom and security officials, in order to acbieve the objectives of the Community. 4.3 INTEGRATlU!'i TO BE l AK E,,\ AS A COURSE I N HIGH SCHOOLS To infuse among the younger generation of West Africa a tradition of integration spirit and thinking. it is rcoommcnded that a coun.e in '7 University of Ghana http://ugspace.ug.edu.gh economic integration and regional groupings in Africa sbould be taught in all high schools and/or universities In Africa. 4.4 !\IEED FOR CONSTRUCTIVE CO-OPERATION AND DIALOGUE Of.TWJo:Jo:!'I ECOWAS A!'ID UEMOA To accelerate ECOWAS integration scheme. it iii important for UEMOA ond ECOWAS to sucb as illegal extortion of money by some unscrupulous immigration and CUSlOmI officials and the activities of operators of the informal sector at border posts. it is recommended that a special body be established to monitor the observance of the various regulations go\'cmmg ETLS, free 59 University of Ghana http://ugspace.ug.edu.gh 4.6 STRENGTHENING OF THE ECOWAS SECRET ARIAT For integnuion to succeed, il is necessary thaI .11 principles, rules and objectives should equally bind all Member Stales. In view of this, il i. recommended that the ECOWAS Secretarial should be strengthened to sanction any Member State that does not comply with the rules and agreed decisions of the Community. In addition, there is the need to strengthen the tecbnieal capability of the staff of the Secretarial through training in for example, the identification, design. fannulatlon implementation and monitoring of projects at the sub-regional level. Offices or desks should be established in .U Member Countries 10 receive and address grievances reported by CORUTlunity nationals. 4.7 ESTABLISHMENT OF AN ECOWAS COURT OF JUSTICE Since the absence of an enforcement institution within ECOWAS constitute a serious problem for the West African co"'