Impact of the ECOWAS Common External Tariff on the Rice Sector in West Africa
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Rice is the first strategic product in West Africa since 2008 crisis. To create a customs
union, ECOWAS has adopted in October 2013 the final structure of its Common
External Tariff (CET). This CET established a fifth band of 35% but taxes milled rice
at 10% and will come into force on January, 2015. As the adoption of this CET will
have significant effects on the rice sector, it is necessary to assess its potential ex-ante
impact on this sector within the region. The results obtained using a GCE model show
that this CET will have various effects on the regional rice economies. Urban poverty
was more pronounced than rural poverty and intra-regional trade experienced a
remarkable increase. The negatives effects of the CET are more pronounced in Nigeria
and Guinea. Therefore, the current version of the CET will have rather mixed effects if
support measures are not implemented.