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Eye Opener: Working African Global Trade Wars to its Advantage

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Eye Opener- Working African Global Trade Wars to its Advantage

Africa can work Global Trade Wars to its advantage by asserting independence and better negotiating the value of its resources

Global Trade wars are roiling economies and international relationships in 2018 like never before. by A south African Insider

Eye Opener- Working African Global Trade Wars to its Advantage

CAPTION: African Global Trade Wars – A second-hand clothing market in Kigali losing out in Rwanda’s second-hand clothes war, as the government hikes import duties on US used clothes. Image Courtesy of Alamy

In the long term, African nations can come out ahead if they prioritise inter-African trade and carefully select foreign trade partners. African nations with important commodities to sell, from Mozambique’s natural gas and Nigeria’s oil to the Democratic Republic of Congo’s minerals and South Africa’s abalone shellfish, have never been in a better position to play one foreign trade partner off another. This is particularly true when it comes to realigning East versus West relations based on trade issues.

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Global Trade wars seek to undercut African economic advancement

However, there is a more sinister aspect to the current global trade wars, which were launched by the United States under the Trump administration with a round of tariffs aimed at adversaries such as China, as well as allies like Canada. While it is true that China has a lopsided balance of trade with the US, the American economy had been thriving under the former system.

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US companies depend on Chinese-made components, and American consumers enjoy low-cost Chinese products. In light of the latest US tariffs imposed on Chinese goods, valued at US$ 200 billion, economists wondered why the heavy-handed approach of ever-increasing tariffs was necessary while negotiations may possibly be carried out to address the balance of trade issues.

The reason is not good economics but US politics. Anti-foreign sentiments have been stirred up by the US President, who uses foreign trade as a sub-theme. There is also an overtly aggressive element to this: Washington imposing its economic might because it can. In other words, bullying.

To China, there is another sinister motive involved, and this one impacts all US trade partners, including Africa. Beijing believes that the US is using trade war in a way very much like real war, to attack a foreign rival and undercut its economy. China feels the US wishes to reverse China’s impressive economic gains, lessening its competitiveness as a global trade partner, and undercutting its rise as an economic powerhouse.

Global Trade Wars - China is rising as a global economic powerhouse, expanding its share of global trade faster than any of the other rising powers in 30 years of ascent. Image Courtesy of FP

Global Trade Wars – China is rising as a global economic powerhouse, expanding its share of global trade faster than any of the other rising powers in 30 years of ascent. Image Courtesy of FP

This concern might also be held by African countries. With the US economy booming, there is no need to strong-arm impoverished African countries on trade issues, making demands, setting ultimatums and imposing sanctions instead of talking things through. However, Mr Trump is not a statesman but a businessman, who sees business as a zero-sum game in which other countries gain only at the US’ expense.

Consequently, he is baffled by the need for the African Growth and Opportunity Act (AGOA) because it allows qualifying African countries tax-free and quota-free access to the American market. Meanwhile, US products are still taxed when imported into Africa. Mr Trump finds this ‘unfair’, fundamentally misunderstanding the goal of AGOA. This trade initiative is intended to give African economies a boost so that they will become robust and eventually become better customers for US goods, while also becoming more stable and secure through their stronger economies. AGOA provides trade giveaways for the US’ long-term benefit.

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Customs Corner

JBPT Sector 2 Records Seizures Worth N1.6 Billion Within Six Months

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Author: Abass Quadri.

The Joint Border Patrol Team (JBPT) Sector 2, Southwest Zone, has recorded seizures of illegal goods, with a Duty Paid Value of N1.6 billion.

Deputy Comptroller Mohammed Shuaibu in charge of JBPT Sector 2, availed the team’s activities under his stewardship in a press briefing held at Abeokuta on Wednesday, 24 April 2024.

The coordinator noted that the team’s area of responsibilities, which covers all six southwestern states, is mandated to “curbing anti-smuggling activities, channelling of procedures, and combating other cross border crimes that threaten Nigeria’s national and economic security.

“The sector wishes to announce the seizures of illegal goods, which include Cannabis Sativa, secondhand clothings, and means of conveyance smuggled into the country with a Duty Paid Value of N1,663,646,360 and petroleum products valued at N52,486,215 which were auctioned out due to their inflammable nature.”

According to him, the seized goods were recorded between November 2023 and April 2024, adding that “no fewer than 15 suspects were arrested with some charged to court and others prosecuted”.

Handing over the seized Cannabis Sativa at Ogun II Command to the representative of the National Drug Law Enforcement Agency (NDLEA), Deputy Commandant Narcotics Ogun state, Nnyigide Alexander, DC Shuaibu commended the dedication, doggedness and professionalism of officers involved in the interception of the substances which would have caused more security threat.

On revenue generation, the border drill coordinator stated that N36,318,727 was generated through the issuance of Demand Notices (DN) on vehicles and other goods improperly imported into the country.

Receiving the seized Cannabis Sativa, DC Alexander thanked Shuaibu for his hard work, adding that this synergy fulfils the existing Memorandum of Understanding (MOU) between NCS and NDLEA.

In his words, “I feel highly happy that we are doing what we call sister agency collaboration, which has led to the result we have here. I expect to see more in the future because I know they are capable.”

Similarly, DC Shuaibu, who was also on a working visit to Seme and Ogun 1, Idiroko Area Commands, also handed over seized Cannabis Sativa to representatives of the NDLEA at Seme.

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Customs Corner

Customs Sensitise Retired Senior Officers on Automated Retiree Verification System

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Customs Sensitise Retired Senior Officers on Automated Retiree Verification System

By Muhammad Bashir

The Nigeria Customs Service (NCS) commenced the sensitisation program on Monday, 22 April, 2024, for the enrollment of an automated retiree verification system for high-ranking officers who have retired from the Service.

The programme, the first of its kind, was designed to serve as a platform through which all retired Deputy Comptroller Generals (DCGs), Assistant Comptroller Generals (ACGs), and Comptrollers could be electronically verified to modernise the analogue process of benefits application for retired officers.

Addressing the retirees at the Customs Headquarters in Abuja, the Comptroller-General of Customs, Bashir Adeniyi, represented by Deputy Comptroller-General of Customs (DCG) in-charge of Finance Administration & Technical Service, Festus Okun, described the initiative as timely and assured them of a seamless verification exercise.

He said, “Esteemed retirees, it is with great honour that I address you today on behalf of the Comptroller-General of Customs, Bashir Adewale Adeniyi. This initiative to engage in a seamless verification exercise is timely and proof of the service’s commitment to ensuring your welfare and well-being after years of dedicated service to the Customs Service.”

“We understand the importance of this verification process in ensuring that you receive the benefits and entitlements you rightly deserve. Rest assured, we are dedicated to making this process as smooth and efficient as possible, with the utmost transparency and accountability.

“As Deputy Comptroller-General of Customs overseeing Finance Administration & Technical Service, I assure you that your concerns and needs are our top priority. We value your contributions to the Customs, and we are committed to supporting you in every possible way as you transition into retirement. Thank you for your service, and we look forward to assisting you through this verification process.”

During the verification exercise, some retired officers who voiced their feedback applauded the initiative, stating, “This positive reception emphasises the significance of this endeavour in streamlining access to benefits and entitlements, reaffirming the dedication to serving retirees with the utmost care and diligence.”

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Customs Corner

Compt Awe Charges Officers On Performance Towards Increased Revenue Generation

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Compt Awe Charges Officers On Performance Towards Increased Revenue Generation

By Femi Anamelechi

Comptroller Michael Awe, in charge of Murtala Muhammed Airport Command, has called on officers and men of the command to rededicate themselves to duty to ensure an increase in revenue generation.

The new Customs Area Controller (CAC), while addressing officers at his inaugural parade at the command on Wednesday, 24 April 2024, called for synergy and cooperation of officers while also warning against any act of sabotage.

He said, “I need your synergy not less than 100% and above. You can do your job diligently with diplomacy, and you will achieve results. Please, and please, try to strategise to ensure your objectives are achieved. Your examination should be 100%. Our pledge is to surpass what we have been generating monthly and daily.”

The CAC also noted the need for all officers to ensure due diligence and maintain discipline in their official duties, as it is the only way to increase revenue generation.

Stating further, Comptroller Awe assured regular appraisal and commendation of officers based on outstanding performance.

“Henceforth, any officer that performs very well, either monthly or quarterly, will be appraised and commended,” he noted.

The Area Controller also urged officers to always dress properly and smartly in the official uniforms approved by the Nigeria Customs Service so as to attract self-respect and dignity.

He assured of a rewarding work relationship with their cooperation.

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