Effect on Burkina Faso’s withdrawal from ECOWAS: CIDEF receives reassurance from Customs

• There are commercial and customs implications

• But the government has taken mitigation measures

• The ability to sign bilateral agreements

LThe Interprofessional Business Council of Burkina Faso (CIDEF), on November 5, 2024, in Ouagadougou, held its 2.^e The Council extended to the members of the year 2024. At this legislative meeting, the president of the Cidef Board of Directors, Lassiné Diawara, indicated that the organization was resilient against the security situation of the country. He said he wanted as proof that the Council was working regularly in 2024 and that all the special commissions were able to fulfill their tasks, not forgetting Cidef’s participation in national meetings and international and training on business opportunities.

January 30, 2025 will definitely mark the departure of Mali, Niger and Burkina Faso from the Economic Community of West African States (ECOWAS), so the opportunity was taken to discuss the news topic, “Burkina Faso Withdrawal from ECOWAS : consequences and mitigating measures in customs matters”, by Directorate General of Customs (DGD). The answers were given by the Director of Customs Management, Assistance and Cooperation, the Chief Customs Inspector, Moumouni Guillaume Moumwé.

Some effects

For the speaker, the impact of Burkina Faso’s withdrawal must be assessed taking into account the trade regime provided by ECOWAS, the harmonization of tax and customs legislation, the management of transit from coastal countries and customs cooperation. As with any divorce, there is the other side of the coin, therefore, it was unclear, which is that the exit of Burkina Faso from the ECOWAS region will have the effect: the inadequacy of the preferential tax due to the rules that determine the origin of the ECOWAS Goods for countries that are not members of UEMOA and tax on goods originating from ECOWAS countries and non-UEMOA member countries to a common tax outside UEMOA (CET). The withdrawal of Burkinabé state sovereignty will allow the country to determine its own trade policy in accordance with the rules of the WTO and UEMOA.

Moumouni Guillaume Moumwé points out that the withdrawal of the country from ECOWAS means the inadequacy of the provisions of the ECOWAS Customs Code which has replaced most of the provisions of the WTO Trade Assistance Agreement, the Kyoto Convention audited and to introduce the WCO SAFE Standards Framework, against the UEMOA Customs Code from 2001. Regarding movement, he said, Burkina Faso must expect that the provisions of the ECOWAS Customs Code regarding movement will no longer be applied, as well as Convention A/P2/5/82 29 of the May 1982, signed in Cotonou, between ECOWAS Member States, governing interstate road transport (TRIE-ECOWAS), it will not applies further.

Not forgetting that Additional Act A/SA.6/12/18 of December 2018 relating to financial assistance and cooperation between the customs administrations of ECOWAS Member States will no longer operate. Despite all these effects that affect trade, it is still that Burkina Faso benefits from the mitigation effects, because, the Director General of Customs, the Regional Inspector, Adama Ilboudo, will say so much with Burkina Faso on the ECOWAS countries, so much. because they need access to their commercial market (see box 1).

Burkina Faso has exit doors

Optimistic, he concluded by stressing that the withdrawal will definitely have an impact, but that the proposed mitigation measures, if properly implemented, could prevent the effects of leaving ECOWAS. Likewise, he notes that operating the treaty that creates the AES Confederation and negotiating bilateral trade agreements with partners may be a short-term solution. . Also, Adama Ilboudo suggested that the day after the three ECOWAS countries withdrew, they, the technicians, met in July 2024, in Niamey, Niger, to develop a battery of mitigation measures that are still secret. Better, he said, against some fears, Burkina Faso, a sovereign state, can sign bilateral trade agreements with any ECOWAS member country.

Cidef intends to take an active part in the national government/private sector meeting, on November 22 and 23, 2024, in Bobo-Dioulasso. Cidef intends to engage in the sub-theme: “The role of the private sector in the implementation of endogenous development initiatives”. The Council did not register any new memberships and there were no withdrawals or de-registrations in 2024.

ACS

Box 1

Some mitigation measures

ABurkina Faso’s membership in two customs unions (ECOWAS and UEMOA) makes it possible to overcome certain conventions such as the ECOWAS / UEMOA CET (ECOWAS-UEMOA joint committee for the management of the CET);

There are bilateral and international migration arrangements and participation in bilateral or regional migration that allow migration activities to be carried out by all ECOWAS Member States (SIGMAT);

Direct use of international conventions ratified by Burkina (AFE, CKR etc.) to compensate for some community texts;

Adopt the new Customs Code of Burkina Faso as soon as possible to replace the ECOWAS Customs Code with the provisions related to conventions ratified by Burkina Faso such as the AFE, the CKR and the SAFE Standards Framework;

Consider interim arrangements within the framework of the free trade scheme;

Prepare for bilateral agreements with some countries that are not members of the UEMOA area on customs matters (origin, mutual assistance, free movement of goods, etc.);

Redistribution of the PC for the benefit of the Treasury, with a name change.

Source: DGD Presentation

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