Diagnostic Analysis of Cameroon’s Performance in Trade Facilitation

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Diagnostic Analysis of Cameroon’s Performance in Trade Facilitation

The  diagnosis  presents  Cameroon’s  baseline  situation  and  highlights  some  major  concerns regarding the implementation of trade facilitation measures.

The  diagnosis  presents  Cameroon’s  baseline  situation  and  highlights  some  major  concerns regarding the implementation of trade facilitation measures.

I- BASELINE SITUATION

The analysis of Cameroon’s baseline situation is based on international indices and national trade facilitation work.

1- Presentation  of  Cameroon’s  ranking  on  international  trade  facilitation indices

Cameroon has embarked on a comprehensive trade facilitation reform programme by adopting several  relevant measures  at  the  legal,  institutional  and  operational  levels.  However, international rankings and recent studies show that much remains to be done, especially in the area of cross-border trade, where delays and costs for imports and exports remain very high.  To  this  end,  Cameroon’s  ranking  in  the  various  indices  calls  for  a  real  review  of  the approaches used in trade facilitation.

The following developments analyse the current situation in order to describe a baseline for the future.

a- World Bank Doing Business Ranking (“Cross-Border Trade” Criterion)

–  Content of the “Cross-border trade” Criterion of Doing Business:

Doing Business measures the time and costs associated with the logistics process of exporting and  importing  goods,  including  the  time  and  costs (excluding  customs  duties and  taxes) associated with meeting documentation requirements and complying with cross-border export and import trade procedures.

The case studies for imports take into account spare and containerised car parts (HS 8708), and for exports, the product for which the country has a comparative advantage (defined by the highest export value) to its natural partner, that is, the economy that is the largest buyer of the product. For Cameroon, the following are taken into account: cocoa-coffee destined for the Netherlands.

Cross-border trade data are collected through a questionnaire sent to local freight forwarders, customs agents and traders. Cameroon was ranked 186th out of 190 economies in the chapter on cross-border trade in the World Bank’s Doing Business 2018 report. .This ranking remained constant in 2019.

Figure 1: Comparison of Cameroon with some countries with similar economies

Source: Doing Business Report (World Bank) 2018

Cameroon’s ranking has not changed in the 2018 Doing Business ranking on the cross-border criterion where the country still ranks 186th. This indicates progress to be made – particularly in terms of accelerating reforms – to catch up with the regional average in sub-Saharan Africa and the performance of comparable developing countries.