Cameroon has recorded more than 10 billion CFA francs of losses since the entry into force of the Economic Partnership Agreements (EPAs) signed with the European Union.
By Achille Mbog Pibasso
Four years after the entry into force of the EPAs between the European Union (EU) and Cameroon, the rating is rather salty for this country of the Economic and Monetary Community of Central Africa (CEMAC). Cameroon, which has decided to plunge alone into this partnership with the EU in the face of the procrastination of the countries of the sub-region which were all initially favorable for a regional agreement, has a deficit of 10.6 billion FCFA.
“The first year of dismantling did not have an acceleration in the rate of fiscal loss. We were at 703 million CFA francs of budget loss. But as for the second year, it has really accelerated, “we recognize in the customs administration. Products concerned include, among others, vehicles, pharmaceuticals, fertilizers, computers, machinery, chemicals … which were the main sources of customs revenue. Apart from a few agricultural products and raw materials, Cameroon being a major producer of goods and services for export to the EU, all suggests that EPAs have a more negative impact on the national economy.
In any case, because of the signing of the EPAs, the General Directorate of Customs (DGD) displays its pessimism about the financial benefits could reach 830 billion FCFA in 2023 and 1907 billion CFA francs in 2030. Indeed, explain experts, “when we say dismantling, we are dismantling the tax and so that means that there is no immediate gain in terms of the budget. The gain may be, if it is necessary to remain global, linked to externalities that are read more economically.
As part of the fourth phase of dismantling, the General Directorate of Customs has published the list of related products and rates concerning imports from and from the European Union. The applicable products and rates are classified in groups. Thus, for products complying with Group I eligibility conditions, the DDI of the relevant Group 1 products will be reduced by 100%; other duties and taxes remaining unchanged. Customs duty on imports of the relevant products in Group 2 will be reduced by 45%; other duties and taxes remaining unchanged.
The EPAs came into effect on August 4, 2016, seven years after the signing of the Status Agreement. They provide duty exemptions ranging from 15% to 75% of products from European Union countries.
