Post by Trade Coach on Jun 7, 2018 21:31:50 GMT 1
NON-ENDORSEMENT OF PROTOCOL HINDERS COCOA EXPORT TO EUROPEAN UNION
Cocoa processing companies said the cost of exporting their products to Europe has been inflated by 30 per cent because of the stalemate in agreeing to new trade terms with the European Union (EU).
Cocoa butter and cake exports, they said, are charged from 4.2 to 6.1 per cent of freight-on-board values as taxes at EU ports without an agreement.
Nigeria is yet to sign the Economic Partnership Agreement protocol on free trade by the EU and African, Caribbean and Pacific countries.
The Federal Government in May 2014 rejected the proposed trade agreement with the EU because it requires abolition of import duties for manufactured goods from Europe, saying it would lead to dumping of goods and loss of jobs.
The move, according to the government, makes cocoa butter and cake less competitive.
The processing companies in the southwest cocoa-growing region have a combined installed capacity of 155,000 MT a year. Since 2011 they’ve run at 25-27 per cent capacity. Nigeria, the fourth-biggest producer, produced 350,000 tons of cocoa in the 2013-2014 season. The the government’s incentive to encourage exporters of agricultural items with subsidies, ranging from five to 15 per cent, has not come into effect. A backlog of applications, since 2011, is still awaiting approval at the Finance Ministry.
