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[dropcap style="square" color="#017a25" bgcolor="#ededed" sradius="5" font="play"]The[/dropcap] Economic Trade Liberation Scheme (ETLS), a well-known path to economic prosperity for many countries, has been described to be marred by smuggling and evasion of duties, which have further have become destructive drainpipes for an ailing economy.
An analyst further described the country as a young, unprotected, naïve but extremely beautiful lady, who everyone tries to take advantage of, liking the Nigerian economy to a victim of circumstances.
Previously, there is an ongoing oil and gas boom in Nigeria, which translates into an attractive market. However, unfortunately, the central government appears too pre-occupied to protect all these from economic predators both within and outside the country, leaving the nation constantly exposed to violation.
The swift crash of crude oil per barrel in the international market to $45.89 should not only be a wakeup call to the Nigerian government on the need to revamp the other sectors of the economy especially the crude Palm oil Sector.
This can be done by increasing the internal and local production which will help meet up with the internal demand of the product and subsequently boost the export of the commodity.
In 1990, the Economic Community Of West African States (ECOWAS) launched a the Economic Trade Liberation Scheme (ETLS) among its member states with the primary objective of establishing a Customs Union aimed at the total elimination of Customs duties and taxes of equivalent effect and removal of non-tariff to protect goods produced in Member States.
The ECOWAS Trade Liberalisation Scheme (ETLS) is a trade instrument designed by the Regional Economic Community and administered by the ECOWAS Commission to encourage Intra-ECOWAS trade.
There is no denial that the ETLS is the main ECOWAS operational tool for promoting the West African region as a Free Trade Area and the Commission’s first step towards the realisation of the objective of the community which is the establishment of a common market through: “The liberalisation of trade by the abolition, among Member States, of customs duties levied on imports and exports, and the abolition among Member States, of non-tariff barriers….” (Article 3 of ECOWAS Treaty).
The ETLS was established as a medium for increasing productivity and market access for products originating from the Region’s domestic economy. The concept was originally intended at benefiting the private sector in particular, and ultimately boosting 1 the West African economy.
It was also targeted at reducing the massive importation of goods which West Africa has been known for. Its ultimate goal targets at generating employment among the member States of ECOWAS and increasing intraregional trade.
Unfortunately, practical experiences from the private sector engaged in cross border operations have rather continued to show that the implementation of the ETLS despite its enviable goals has remained shoddy and has led to the unattainable realisation of the noble objectives of the founding fathers.
The result is that West African intra-regional trade has remained abysmally poor revolving around 10-12 percent. The foregoing predicament coupled with unattractive reports on the ETLS implementation among member states, goes to show how much West Africa may be the architects of her poor performance at the global trade arena.
Crude Palm Oil (CPO) under ETLS is classified under processed goods hence enjoys certain concession upon entry into a different ECOWAS state. The three groups of goods under the scheme enjoy the following concessions:
- Total exemption from import duties and taxes
- No quantitative restriction,
- Non-payment of compensation for loss of revenue for unprocessed goods and traditional handicraft product as a result of their importation.