The Senate has urged the Federal Government to suspend the ECOWAS Trade Liberalization Scheme (ETLS) and ECOWAS Common External Tariffs (CET) which Nigeria is a signatory to by virtue of her membership of the ECOWAS on account of insincerity of purpose, exploitation, economic sabotage and breach of protocol by member states of ECOWAS against Nigeria.
Moving a motion on Tuesday, 29th November 2016 titled ‘‘The abuse of customs tariff and indiscriminate issuance of fiscal policies and the negative impact on the national economy, urgent need for policy reversal’’ Sen. Hope Uzodinma (PDP:Imo) noted that prior to Nigeria being a signatory to the CET and ETLS, the Nigerian economy was booming with the manufacturing sector having between 70- 75% capacity utilization and oil prices going between $80-120 per barrel.
He observed that the Nigerian economy especially the manufacturing sector had been worsened by the CET and ETLS protocols due to its provision for free movement of goods and services, a provision in the CET which stipulates harmonization of all customs duties across board for all imports from a third party country and a provision in the ETLS that goods can be imported into member states at zero percent duty rate (including prohibited items, provided that such goods have 40% local value addition and satisfy the ‘‘Rule of Origin’’). According to him, some of the consequences of the provisions in the ETLS and CET have forced most manufacturing firms like Dunlop, Michelin, Lever brothers amongst others to relocate to neighboring ECOWAS states to manufacture goods which are shipped back to Nigeria at zero duty, leading to revenue loss and unemployment.
Sen. Uzodinma expressed worries that the ‘‘Rule of Origin’’ concept provided for the ETLS protocol has led to the collapse of the manufacturing sector in Nigeria as member states employ sharp practices to repackage products from Asia into Nigeria at zero percent duty. He also observed that the ratification of the CET and ETLS in the year 2000 were not done in accordance with Section 12 of the 1999 Constitution (as amended) which provides that ‘‘ No treaty between the Federation and any other country shall have the force of law except to the extent to which any such treaty has been enacted into law by the National Assembly’.
The Senate also agreed to urge the Federal Government to review the process of enacting the tariff handbook to identify all abuses and revenue leakages and for the Senate to approve all Tariff regimes before implementation.
