The Independent (Banjul)
Momodu Gassama & Alieu Darboe
21 February 2005
Banjul — The economic implications of net transport costs have widened the scope of trade distortions in 8 West African countries, as statistical figures indicate that the net value increased to $30 million, culminating from multiplicity of barriers, corruption, and harassment of travelers using the roads.
Dawning reports into the enigma, reveals that at a time when The Gambia is in the process of working out modalities for the implementation of the ECOWAS protocol on the free movement of goods within ECOWAS countries, SoS for Trade, Industry,and Employment, Edward Sighateh, has said that recent studies in 8 West African countries indicate that trade is being distorted within the region, showing a net transport costs of $30 million US dollars.
While enunciating that "the implementation of the Inter-state Road Transit (ISRT) would strengthen our traditional role as a hub for re-export to countries in the sub-region", he acknowledged that re-export, as indicated by our trade statistics, has increasingly become important in our economy, considering its contribution to foreign exchange earnings, as well as increasing employment opportunities.
SoS Singhateh recalled that in May 1982, ECOWAS member countries have signed a convention for the establishment of an ECOWAS Inter-state Road Transit System (ISRT), which aims to set a framework within which member states would work to ensure free movement of goods in the sub-region with a view to promote the development of trade within ECOWAS.
"To facilitate the implementation of the modalities, the member states signed the supplementary convention (A/SP 1/5/90 of 29 May 1990) to set up a guarantee mechanism for ISRT", he indicated, which if any member state contravenes could possibly face repercussions of the deal binding the convention.
"The increasing importance of trade as an instrument for economic development require active participation of both economies in the circle of international trade if they are to avoid being marginalised", he added, noting that the implementation of ISRT is therefore not only aim at promoting regional trade but also creating conducive environment for regional economies to enhance participation in the global trade.
He further lamented the rate of increase transport costs in the region, citing that the cost of transporting a container by road from Lagos to Accra, which is approximately 400km costs 3 times higher than transporting the same container from European countries to Lagos, mainly because of interference with the free flow of goods in the West African region.
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