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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

As Normalcy Returns To ANLCA, Newly Elected Management Team Visit Ag CGC In Abuja

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Authors: Muhammad Bashir.

The Acting Comptroller General of the Nigeria Customs Service, on Wednesday, 20th September 2023, says the Service will maintain its position of consulting relevant stakeholders to enable its administration to succeed.

The CGC made this known when he received members of the Customs Consultative Committee led by the Chairman of the Council, Aare Hakeem Olanrewaju, at the Customs Headquarters, Abuja, along with newly elected excos of the Association of Nigeria License Customs Agents.

He urged the newly elected leaders of the Association to consider their peculiar privilege in sustaining peace amongst them, which, according to him, will encourage the Service to take them as vital partners.

“I want to use this opportunity to rekindle the good understanding and peace between yourselves so that we will be able to synergize in eradicating threats against revenue collection and national security.” He added.

He said that “the ball is now in the coat of the executive, new management committee and, of course, the board members. I urge you to swing into action and start work because there is much to do to bring sanity and professionalism to the industry.”

He said that the Nigeria Customs Service now shares the challenge of consolidating the recent victory with the association – which will clear the way for innovations in the automation of procedures and benefit authorised economic operators.

The Acting Comptroller-General told the new leaders of ANLCA that the Nigeria Customs Service is willing to collaborate with them to ensure the successful facilitation of trade, adding, “We are going to hold a meeting to Customs Agents to ensure that we bring the required sanity into our operations.”

On his part, Mr. Hakeem Olanrewaju, the Chairman of the Customs Consultative Committee who led the delegation, said they were at the Corporate Headquarter of the Customs to present the newly elected National Executive Council of ANLCA to the Ag. CGC.

Mr Olanrewaju, who congratulated the Ag. CGC, on his appointment by President Bola Ahmad Tinubu, also assured the CGC that the Association had been put back on the rail after having a long time of experiencing hot fracas, adding that “with the intervention of the Ag. Comptroller General of Customs, the Association of Nigeria Licensed Customs Agents has embraced a collaborative peace.”

He also recalled how the Nigeria Customs Service, under the stewardship of Ag. CGC Bashir Adewale Adeniyi approved the establishment of a Customs Consultative Committee to broker peace in the Association of Nigeria Licensed Customs Agents.

Speaking at the venue, the newly elected president of the association, Emenike Kingsley Nwokeoji, appreciated the Ag CGC for taking the bull by the horns to engineer the peace deal between the faction of the association, affirming that his team have already swung into action to move the association forward.

The president, who described the Ag. CGC as the sole competent officer to lead the Service rightly, adding that “your appointment is timely and most deserving that our dear country needs the most for economic and development growth.”

He, however, extolled the Ag. CGC’s style of leadership as one that accommodates and understands issues at stake and promptly proffers solutions to them, adding that “in that regard, we wish to inform you that we count on you; we know your antecedent, and we hope you will count on us too, to achieve your objectives.”

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Customs Corner

Nigeria Customs Backs UN-Habitat’s Effort to Combat Smuggling

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Author: Muhammad Bashir, Abuja.

The Acting Comptroller-General of Customs, Bashir Adewale Adeniyi MFR, has said that the Service, under his watch, will implement every necessary action against saboteurs of Nigeria’s economy to cripple their ‘illegitimate’ business of smuggling.

The CGC restated this on Tuesday, 19 September 2023, when he received Ambassadors of the United Nations Human Settlements Programme, UN—Habitat, led by Dr. Raymond Edoh, at the Customs Headquarters, Abuja.

The Ag. CGC said, “On behalf of the entire Management Team of the Nigeria Customs Service, I wish to inform you that we will partner with you in this campaign, and we will grant you all forms of support you may need to carry out this campaign — and I want to assign one of our amiable DCGs, Abba Kura, to work with you closely.”

He appreciated how they travelled from afar to intimate the Nigeria Customs Service of their campaign against smuggling, which, according to him, the Nigeria Customs Service has already started yielding positive results in suppressing the menace of smuggling.

The CGC also welcomed Dr Raymond’s offer to engage officers and men of the Service in capacity—building to enhance their understanding of digital literacy skills, adding that the Service has already started embracing technology to advance its work by introducing related courses to officers.

The CGC appreciated the collaborative effort between the Nigeria Customs Service and UN—Habitat and believes that the collaboration signifies a commitment to tackling smuggling and enhancing trade facilitation in the nation, setting the stage for a more prosperous future.

The CGC said, “What we’re trying to do is to raise a modern Customs Service through partnering with stakeholders to achieve our goals because we value partnership, and I am happy that you extended your hands of collaboration to work with us.”

He also appreciated their pledge to train officers and men of the Service in digital literacy skills, assuring that the Service will continue to prioritize proficiency in the fight against smuggling through technological approach.

He underscored the importance of digital skills, promising that the relevant Service department will enhance trade facilitation.

On his part, the Director of UN—Habitat, Dr. Raymond Edoh, appreciated President Bola Ahmed Tinubu for reposing the responsibility of heading the Nigeria Customs Service on the Acting Comptroller-General, describing him as “a competent Customs officer who knows the terrain and masters the job.”

According to him, they decided to visit the Ag. CGC at the Customs Headquarters to express their interest in partnering with the Service.

He appreciated the Service for being a “gatekeeper of the country” that protects citizens against border threats, stressing that his organization will collaborate with NCS to mitigate the smuggling of illicit goods and train officers and men of Customs on digital literacy skills and certification.

UN-Habitat is the United Nations entity responsible for developing urban policies and translating them into action to create sustainable cities and promote viable urban development and adequate shelter for all.

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Customs Corner

Shuaibu Takes over Ogun 1 Command as Makinde proceeds to Customs Headquarters

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Author: Vivian Daniel.

Following the recent redeployment of Area Controllers and Heads of Units by the Ag. Comptroller-General of Customs Bashir Adewale Adeniyi MFR, the Deputy Comptroller of Customs, Ahmadu Bello Shuaibu was posted to Ogun 1 Area Command to take over the mantle of leadership from Comptroller Bamidele Makinde.

According to a statement issued by Superintendent of Customs Hameed Bukoye Oloyede,
Public Relations Officer, Ogun 1 Area Command on 18th September 2023; until his relocation, Comptroller Bello Shuaibu was the Ag. Area Controller of Ogun II Command.

During his handover speech at the Command’s Headquarters in Idiroko Ogun State, Comptroller Bamidele Makinde congratulated the new Area Controller while admonishing Officers for their unwavering support of the new leadership of Deputy Comptroller Ahmadu Shuaibu and wished him a successful tenure in Office.

“May I call on Officers to redouble their efforts and give the incoming administration maximum support and cooperation to sustain the performance tempo of the Command. In a similar vein, I wish to solicit the unflinching support of our critical stakeholders for the new Customs Area Controller”.

Comptroller Makinde further disclosed that during his 17 months in office, the Command had generated a total sum of N225,009,835.50 as revenue for the nation and seizures with a Duty Paid Value (DPV) of N6,604,107,655.92. He attributed the achievements recorded during his administration to the hard work of his gallant Officers and Men, the Command’s dynamic synergy with the critical stakeholders and the general assistance of the Nigeria Customs Service Headquarters.

The Deputy Comptroller, Ahmadu Shuaibu, while addressing newsmen at the occasion, appreciated everyone for their envisaged maximum support and open-mindedness.

He congratulated his predecessor, whom he described as “an articulate and result-oriented leader”, on his successful tour of duty with laudable achievements. He pledged to sustain the successes recorded by the Command under his watch.

He specifically expressed his gratitude to the Ag. CGC for finding him worthy of the new position and pledges to discharge his duties diligently and facilitate legitimate trade within the Command’s Area of Responsibility while upholding the goals and objectives of the Nigeria Customs Service.

“I am a team player. I seek the total cooperation of all stakeholders to succeed. We must work together, and Nigeria must move forward,” he stated.

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