Thursday, 3 October 2013

ECOWAS Begins CET Implementation January 1, 2014.

The Economic Community of West African States (ECOWAS) Council of Ministers has recommended January 1, 2014, as take-off date for the implementation of the new five-band regional Common External Tariff (CET).

Among other recommendation of the extraordinary session of the Council, on Wednesday in Abuja, the Council of Ministers also adopted the Regulation on Supplementary Protection measures comprising the Import Adjustment Tax and the Supplementary Protection Tax.

They, however, proposed that the introduction of an Integration Community Levy of 1.5 per cent be revisited after five years.

“The levy is intended to replace the existing 0.5 per cent community levy used to finance the activities of the Community. During this period, a study will be undertaken with a view to achieving convergence on a single rate for ECOWAS and the eight-member Economic and Monetary Union (UEMOA) and determine the taxable base for the levy,” it said.

They directed that all necessary measures be taken to improve the implementation of the ECOWAS Trade Liberalisation Scheme (ETLS) which should be evaluated annually.

With respect to EPA negotiations, Council recommended the resumption of negotiators with the European Union, which has been stalled mainly on the issues of market access offer and the EPA Development Programme.

While West Africa originally offered to open 60 per cent of its market over 25 years, the statement read, it has revised its position to 70 per cent over the same period while the EU is insisting on an 80 per cent market opening.

Council members, therefore, called on West Africa and the European Union, to find the required compromise on all outstanding issues, given West Africa’s development imperatives, while urging Member States to deploy every effort for the creation of the second West African monetary zone as early as possible.

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