CAMEROON TRADE POLICY COMPLIANCE WITH WTO’S PRINCIPLES: CHALLENGES FOR TRADE LIBERALIZATION
Keywords:
Trade Policy, WTO Principles, Developing Countries, Trade Liberalization.Abstract
The increase number of countries membership to the World Trade Organization (WTO) has created many doubts. Many developing countries have joined the WTO. About two thirds of the WTO around 164 members are developing countries. They play an increasing important and active role in the WTO because of their numbers, because they are becoming more important in global economy, and because they increasingly look to trade as a vital tool in their development efforts. Accepting that the WTO’s Agreement contains special provisions on developing countries, this paper seeks to evaluate how far these special provisions aid in the advancement of trade in developing countries in particular and international trade in general. This piece also explores an overview of Cameroon’s trade profile, its compliance with and implementation of the WTO’s principles, while establishing the difficulties faced. The fact that the WTO cannot adequately provide an equal protection to member states, developing countries has tend to engage into Regional Trade Agreements (RTAs) so as to better liberalize trade, protect their domestic industry and enhance trade. This has raised contradiction under the organization which this paper intends to investigate. To achieve this objective and to deal with the research problem, we undertook desk research in libraries, relevant documentation centers, internet websites which enable us to review existing literature on the question. The findings reveal that despite the fact that Cameroon is one of the founding member of the WTO, it has not only waived most of the WTO policies, but it is grossly lacking at the level of implantation of the few WTO rules acceded to. The work concludes with some recommendations.
References
1. It is the fundamental principle of WTO and it is made up of the unconditional Most-Favored-Nation Clause and National Treatment Clause.
2. The country that recently gained accession into the WTO is Seychelles on the 26 of April, 2015 ( www.wto.org. visited 4 May 2018. JCGIBL (2018) 16-32 © Law Journals 2018. All Rights Reserved Page 29
3. The WTO is governed by a Ministerial Government Conference which meets every two years. A General Council that implements the conference policy ’s decisions. It is responsible for a day to day administration. A director general is appointed by a ministerial conference.
4. See Marrakesh Agreement Establishing the World Trade Organization, pmbl., cl.3, Apr. 15, 1994, 1867 U.N.T.S. 154, 33 I.L.M. 1144 (1994) [hereinafter WTO Agreement].
5. Basically, discussing Cameroon and the TPRM and further elaborating on the use of WTO trade measures like contingency measures, anti -dumping and countervailing duties, safeguards, standards and technical requirements, Sanitary and phytosanitary (SPS) measures amongst others.
6. Exploiting the exceptions under the principles of non-discrimination by engaging into regional trade agreements. Our case file here will be centered on Cameroon and the Economic Partnership Agreement (EPA) and its contributions to the promotion of trade in Cameroon.
7. The WTO is the successor to the GATT which was created in 1947 and continued to operate for almost five decades as a de facto international organization.
8. www.wto.org./english/thewto_e/countries _e/cameroon_e.htm) visited 4 September 2017.
9. It should be noted that developing countries constitute about two third of the WTO.
10. GATT was provisional with a limited field of action, but its success over 47 years in promoting and securing the liberalization of much of world trade is incontestable.
11. Under the General Agreement on Trade in Services hereinafter referred to as GATS.
12. Agreement on Trade – Related Aspects of Intellectual Property Rights, hereinafter referred to as TRIPS.
13. The WTO replaced GATT as an international organization, but the General Agreement still exists as the WTO ’s umbrella treaty for trade in goods, updated as a result of the Uruguay Round negotiations. Trade lawyers distinguish between GATT 1994, the updated parts of GATT, and GATT 1947, the original agreement which is still the heart of GATT 1994.
14. Mbi LN . (2013)-free trade and custom control in the developing countries: the case study of Cameroon within the CEMAC ZONE, post graduate Diploma in business law, thesis defended in university of Dschang 2013. p.3 (unpublished).
15. Hereinafter referred to as PGE.
16. Ndiefouo NG. la Douanne Camerounaise a l ’ère de la facilitation des exchanges commerciaux paris, Harmattan . (2011); 17.
17. The Central African Economic and Monetary Community (CEMAC) is composed of six States, of which five are also Members of the WTO and form the subject of this report: Cameroon, the Republic of the Congo, Gabon, the Central
18. African Republic (CAR), and Chad. Equatorial Guinea has observer status in and applied for accession to the WTO in 2007.
19. Cameroon is also a member in other regional trade agreement and integration. For example, African Union, the associated African economic community (AEC), CEMAC, and the economic community of central African state (ECCAS) – see common report chap 2.
20. For example, during the period of 2006 to 2012, Cameroon continued to benefit from the technical assistance and the training provided by the WTO. The organization has spent around sw fr.1, 13 million (not including the salary of the WTO staff involved) mainly for travel and accommodation for the persons designated by the government of Cameroon for training in the various topics dealt with by the WTO. In all, 135 persons took part in 97 activities, an average of 20 each.) See generally WT/TPR/S/285. Cameroon.
21. MFN clause is discussed under Article 1 of the GATT, article 2 of the GATS and Article 4 of the TRIPS. Article 1 of the GATT (1994) states that “any advantage, favor, privilege or immunity granted to one contracting party should be immediately and unconditionally applied to all other contracting parties”. JCGIBL (2018) 16-32 © Law Journals 2018. All Rights Reserved Page 30
22. The principle of National Treatment (NT) is outlined in Article III of GATT, Art XXVII of GATS and Article III of TRIPS, although once again, the principle is handled slightly differently in each of these.
23. GATT Article XXIV provides that regional integration may be allowed as an exception to the MFN rule only if the following conditions are met. First, tariffs and other barriers to trade must be eliminated with respect to substantially all trade within the region. Second, the tariffs and other barriers to trade applied to outside countries must not be higher or more restrictive than they were prior to regional integration.
24. ACP-EU Partnership Agreement signed in Cotonou on the 23 June 2000 (Cotonou Agreement).
25. This is a trade agreement that is formed between the African, Caribbean and Pacific countries and the European Union. In the framework of the ACP -EU Partnership Agreement, signed in Cotonou on the 23 June 2000 (Cotonou Agreement), the parties agreed to conclude new WTO -compatible trading arrangements, progressively removing barriers to trade between them and enhancing co -operation in all areas relevant to trade. This is provided for in Article 36 (1) of the Cotonou Agreement.
26. Free trade Zones in Cameroon – http://www.hallelaw.com. p2.
27. Hereinafter referred to as Ord. no 90/001.
28. WTO document G/VAL/W/25 of 24 April 1998.
29. WTO document G/VAL/W/80 of 11 January 2001.
30. The law was completed by ministerial instruction N o 0246/MINEFI/DD of 30 June 2001.
31. These include; gifts to head of state; materials and product provided free of charge to member states; goods sent to diplomatic and consular services and to foreign members of some international bodies set up in members states; and goods sent to charities with national status.
32. See generally chapter II (4).
33. See law No. 2002/004 of April 19 , 2002 on the Republic of Cameroon Investment Charter.
34. WTO website: www.wto.org. Visited 22 February 2018.
35. In a common knowledge means a government tax on imports and exports.
36. Ad valorem tariff much like a sales taxes is a fixed percentage of the value of the imported product as it enters the country.
37. Cameroon has a geographical position at the crossroads of trading routes on a continent with immense potential, vast and rich farm land, abundant raw materials, plentiful water resources, and a young bilingual population.
38. MINCOMMERCE.
39. MINCOMMERCE’s services have set up a website. Viewed at: http://www.mincommerce.gov.cm/. Visited 20 February 2018.
40. Online information from the Cameroonian Customs. Viewed at: http://douanescustoms-cm.net/. Visited 22 February 2018.
41. Cameroon is also a member of the World Customs Organization (WCO). It is a contracting party to the Convention on Facilitation of International Maritime Traffic of the International Maritime Organization (IMO), and the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention).
42. http://www.wto.org/english/tratop_e/tpr_e/ tp170_e.htm. Visited 10 October 2017.
43. WTO Document G/LIC/N/3/CMR/1 of 17 December 2004.
44. WTO document IP/N/1/CMR/1 of 17 May 2004.
45. TRIPS Article 69 says members agree to cooperate with each other to eliminate international trade in goods that infringe intellectual property rights.
46. WTO document IP/Q/CMR/1, IP/Q2/CMR/1, IP/Q3/CMR/1 and IP/Q4/CMR/1 of 7 June 2004.
47. http://www.wto.org/english/tratop_e/tpr_e/ tp385_ehtm) visited 10 May 2018.
48. UDEAC’s mission was, in particular, the creation of a common market and the harmonization of its members ’ economic and industrial policies.
49. Treaty of 16 March 1994 Establishing CEMAC. JCGIBL (2018) 16-32 © Law Journals 2018. All Rights Reserved Page 31
50. It should be recalled that the WTO has actually encouraged and visa the creation of Regional Trading Agreements between its members as per Articles 24 and 5 of GATT and GATS respectively.
51. WTO document WT/COMTD/N/13.
52. The institutions include: the Central African Economic Union (UEAC), the Central African Monetary Union (UMAC), the Community Parliament, the Court of Justice, and the Court of Auditors. Each of these institutions is governed by a convention. CEMAC ’s main decision -making bodies are: the Conference of CEMAC Heads of State, the UEAC Council of Ministers (Council of Ministers), the UMAC Ministerial Committee (Ministerial Committee), the CEMAC Commission, the Bank of Central African States (BEAC), the Development Bank of Central African States (BDEAC), and the Central African Banking Commission (COBAC).
53. Sanitary and Phyto-Sanitary measures.
54. More so, counterfeit publications and goods “bearing directly, or on their packaging, marks of a nature such as to lead a person to believe that they were manufactured or originated in a member State or in a State with which a relevant agreement has been signed ” are banned from transit (Articles 156 and 157 of the Customs Code.
55. The Customs Code distinguishes between ordinary transit, which is available to all users, and international transit, which is reserved for certain, approved carriers. For ordinary transit, a detailed declaration must be lodged, and the goods must be examined under the same conditions as in the case of goods declared for release for consumption. Subject to sealing formalities, a summary declaration may be lodged for goods shipped in containers. The operator must carry out the transit operation under the conditions laid down by the customs authorities, in particular as regards security, time limits and routes.
56. This committee is composed of national representatives of the road transport industry and customs, together with representatives of the trade associations for carriers and forwarding agents.
57. Cameroon, Gabon and the Central African Republic acceded in 1995, Chad in 1996, and the Congo in 1997. Equatorial Guinea has observer status and applied for accession on 19 February 2007.
58. Least Developed Country.
59. http:// www.wto.org/french/tratop_f/dispu_f/disp u_f.htm.
60. Thus, Cameroon and Congo are among the paragraph 6 countries; Congo is part of the G-33; Chad and the Central African Republic belong to the least developed country (LDC) group; and Chad to the Cotton-4 (C-4) Group.
61. UDEAC already had this status within the GATT Committee on Trade and Development.
62. Online information. Viewed at: http://www.wto.org/french/thewto_f/minis t_f/min11_f/min11_f.htm.
63. The Central African Republic was removed from the list on 1 January 2004.
64. See generally yaounde.usembassy.gov/mobile//spb_0531 2012.html. Visited 10 October 2017.
65. A roadmap defining, among other things, the timetable for the negotiations and the topics to be dealt with was signed by the two parties at Brussels in July 2004.
66. These are the following: Australia, Belarus, Canada, Japan, New Zealand, Norway, Russia, Switzerland and Turkey.
67. These include such as Côte d ’Ivoire (1962), Japan (1962), Senegal (1974), Morocco (1987), Nigeria (1963, revised in 1982), Tunisia (1999), Egypt (2000) and China (1972, updated in 2002.
68. The CEMAC Custom Code of August 2003.
69. Online information from the Government of Cameroon. Viewed at: http://www.spm.gov.cm/fr/documentation/ textes-legislatifs-et- reglementaires/article/loi-n-98-12-du-14- juillet-1998-relative-au-dumping-et-a- lacommercialisation-des-produits- dimporta.html.
70. Décret No. 2005/1362/PM DU MAI 2005 fixant la composition, les modalités de fonctionnement et de saisine du comité Antidumping et des Subventions. JCGIBL (2018) 16-32 © Law Journals 2018. All Rights Reserved Page 32
71. A countervailing measure is also sometimes referred to as an anti -subsidy measure.
72. Subsidies are such as defined in the WTO Agreement on Subsidies and Countervailing Measures (Article 10 of Law No. 98/012.
73. If a quantitative restriction is used, the average of the three previous years ’ imports serves as a benchmark, unless a more stringent measure is necessary.
74. The period may not exceed four years (including the temporary measures). However, it may be extended once if it is established that the injury has not been repaired or that the adjustments to the domestic industry have not been completed.
75. WTO Document G/TBT/ENQ/28, 27 October 2006.) and sanitary and phytosanitary measures, and as the body dealing with notification procedures. (WTO Documents G/SPS/ENQ/20, 6 October 2006 and G/SPS/NNA/9, 25 January 2006.
76. WTO documents G/LIC/N/3/CMR/1-3.
77. Online information from MINCOMMERCE. Viewed at: http://www.mincommerce.gv.cm.
78. This implied that Cameroon on its part will gradually open its market to European exports over a transitional period set to run until 2023. However, a number of products are excluded from this process in order to ensure the protection of Cameroon’s agricultural markets and industries which it regards as sensitive.
79. See generally europa.eu/rapid/press - release_IP-14-884_en.htm. Visited 10 October 2017.
80. The exceptions are Congo (Brazzaville) and Gabon. They have benefited from the regular EU GSP since 1 January 2008. In October 2012, the EU revised its GSP to focus on those countries that most need the GSP preferences. Upper middle income (UMI) countries such as Gabon have not been able to benefit from the revised GSP since 1 January 2014. Only an EPA will offer Congo and Gabon a free access to the EU through a partnership with the EU.
81. Liberalized EU imports are mainly industrial machines (pumps, generators, turbines, etc.), vehicles, and certain chemicals.
82. https://www.wto.org/english/news_e/news 15_e/refc_29jun15_e.htm. Visited 8 October 2017.
83. EC- Bananas III) (DS27 8 November 2012) (Complainant in this case were Ecuador; Guatemala; Honduras, Mexico; United States. Respondent: European committees and third parties = Belize, Cameroon, Canada, Colombia, Costa Rica, Dominica, Dominican Republic, Ghana, Grenada, India, Jamaica, Japan, Mauritius, Nicaragua, Panama, Philippines, Saint Lucia, Senegal, Suriname, Venezuela, Bolivarian Republic of, Cote D ’Ivoire, Brazil, Madagascar. On the 8 November 2012, the parties notified the DSB of a mutually agreed solution pursuant to Article 3.6 of the DSU. (stat.wto.org/countryprofile/WSDBCountr yPFView.aspx?Country=CM&Language= E).
84. WTO document IP/Q/CMR/1, IP/Q2/CMR/1, IP/Q3/CMR/1 and IP/Q4/CMR/1 of 7 June 2004.
85. Its implementing decree reserves to Cameroonians the exercise of small -scale activities (“petits métiers”), namely, street vendors, hawkers ( “buyam-sellam”) and operators of family-run cafés. Cite this Article Pefela Gildas Nyugha . Cameroon Trade Policy Compliance with WTO’s Principles: Challenges for Trade Liberalization. Journal of Corporate Governance and International Business Law. February 2018; 1(2): 16–32p.
