WESTAFRICA

 

Inthis report, West Africa refers to Mali, Benin, Burkina Faso, and Chad.  These countries have implementedstructural adjustment policies to reform their economies.  Under these programs, all forms ofgovernment interventions, including commodity subsidies in different sectors,were eliminated.  As members of theWTO and the Economic Community of West African States (ECOWAS), Benin, Mali,and Burkina Faso adopted protection policies that satisfy their commitments toboth entities.  The duty onagricultural products entering these countries has risen under the commonexternal tariff, thus resulting in higher average applied MFN tariffs.

 

Corn and Sorghum

        Corn and sorghum inthese four countries are subsistence crops and there is some technical supportavailable to producers through the development and dissemination of improvedseed varieties.

        There is no officialgovernment policy regarding marketing or price fixation except for themaintenance of buffer stocks for cereals that are released in instances of foodshortages. 

 

Cotton

        In Benin, the producerprice is fixed at the beginning of each marketing year. In 2004/05, producersand ginners agreed on 200 FCFA/kg for first grade seed cotton ($0.55/lb of lintequivalent) and 150 FCFA/kg for second grade seed cotton ($0.42/lb lintequivalent).

        In Burkina Faso, forthe 2005/06 marketing year, the producer price was set at 170 FCFA/kg for firstquality grade ($0.48/lb lint equivalent), 140 FCFA/kg for second grade($0.39/lb lint equivalent), and 120 FCFA/kg for third grade ($0.33/lb lintequivalent).  Cotton producers mayreceive bonuses or deductions accounted for in the following year pre-seasonset price.

        The price scheme inMali is a fixed producer price determined by the Malian Parastatal CottonCompany (CMDT) based on the prevailing world price and marketing and ginningcosts.  The base price isestablished at 160 FCFA/kg for 2005/06 first grade seed cotton ($0.45/lb lintequivalent).

        Chads procurementprices are the lowest among the African countries. 

        There are no specificborder policies to limit cotton imports, mainly because of weak domestictextile industries that exclusively use locally produced cotton.

        Exports of cotton aresubject to a tax, which vary from one country to another.  Mali applies a 3% tax on exports.

 

Rice

        Rice producers inBurkina Faso and Mali are guaranteed a floor price.

        Mali and Burkina Fasoapply a 10% import tax on husked rice.

        Rice imports require anational conformity certificate to be allowed to enter Burkina Faso.

 

Soybeans

        Under the ECOWAS common external tariff, bulksoybean imports are assessed a 5% import duty.  Additional surtaxes may be applied depending on thecountry.  

Sugar

        Sugar imports aresubject to relatively high tariffs. For Mali, a 20% tariff is applied under the CET while a 55% specialtariff is applied for sugar imported from outside the ECOWAS countries. BurkinaFaso also applies a 20% tariff under the CET and an additional regressive taxbased on the reference value of imported sugar. 

 

Wheat

        Among the fourcountries considered, only Chad produces wheat on a limited basis.  Almost all the wheat consumed isimported.  Wheat falls into the categoryof non-sensitive good and is subject to import duty ranging between 5 and 10%,depending on the country. Additional taxes such as statistical tax (1%), community charge tax(1%), and other port charges may also apply.