The Political Economy of Nigerias’ Trade Performance under Cotonou Agreement

Abstract

The paper primarily on thematic analyses of extant relevant literatures, examined the political economy of Nigeria’s’ trade performance under Cotonou agreement. The growth and dominance of regional integration blocs within the global community encouraged the establishment of Cotonou Partnership Agreement especially the provisions on trade. Indeed, the expansion of the EC from its original six members to Twelve and then Twenty-eight members, the formation of the North American Free Trade Area, championed by the United States and including Canada and Mexico and the Asia Pacific Economic Forum exemplify the global consciousness around the idea of bringing about a community of free trade areas in the world. The aim is to establish a form of free trade area between these blocs and Africa. Africa’s products will be allowed to enter these markets free of duty provided African countries are able and willing to reciprocate. In other words, under this initiative, the principle of reciprocity will be enforced. There is no doubt that the emergence of these trading blocs will undermine the African, Caribbean and Pacific group since all its members will now belong to one or the other of the emerging free trade blocks. The paper found amongst others that, based on analysis only Benin and Botswana export meat to the continent. Burkina Faso, Djibouti, Ethiopia, Mal, The Sudan, Niger and Rwanda are the only countries to count live animals among their top five exports to the rest of the region. By the same measure, rice is only exported by Benin and Cape Verde, maize only by Malawi, and vegetables only by Eritrea, Ethiopia, the Niger and Sudan. Thus, we recommend that, since the thirty-one African countries are net exporters of agricultural raw materials to the world, while 37 countries are net importers of food items from the world. All countries that were net food importers from (or net food exporters to) the world were also net food importers from (or net food exporters to) Africa except for Djibouti, Benin, Egypt, Mauritania, Morocco, the Niger, Senegal, and Tunisia which had net exports to the Africa but imported from world, and Ghana, Guinea Bissau, Madagascar, and  Swaziland which had net imports from Africa but exported to the world, more efforts should be made by the regions organizations in Africa to courageously ride the African Nations of  corruption as that is the bane of progress in Africa.