zero or low tariffs on imports of inputs can generate sufficient competitiveness to their exports.<sup>3</sup> Similarly, the high tariffs on manufactures and on intermediate goods provide little by way of protecting producers in the Sahel, because the contribution of domestic manufacturing of tradable goods is quite small, as is their capacity for efficient import substitution. Those perceived as infant industries, e.g. fruit juice, textiles, or cement adding up as the supply capacity of the CEMAC region is not even sufficient to meet demand in Chad; leading to extra-regional imports entailing a substantial welfare loss from the high CET rates to consumers in Chad. Hence, the justification of maintaining the high degree of escalation should be reviewed and linked to the performance of the industry in terms of competitiveness, otherwise it should be phased out over time.

In addition to tariffs and other ad-hoc tariffs, a number of non-tariff barriers impact trade: barriers at the border through bans or quotas that are occasionally applied to sectors with domestic competing products. These largely apply to food products and can be imposed seasonally to protect local producers and industries. Some ECOWAS members have, on occasion, imposed export restrictions, usually on grains, and largely short term to help cope with temporary food security problems. Perhaps the most significant nontariff barriers are the complex, duplicative, and often unnecessary Customs procedures (based on outdated manual systems). This complexity provokes and facilitates collusion and favors corruption among traders, officials, and intermediaries. It also provides incentives for extensive smuggling and informal trade. Customs officials also extract payments for goods in transit, as well as force lengthy procedures for clearance at border crossings, holding up shipments for days or even weeks. Even though ECOWAS made regional commitments to eliminate the need for certificates of origin for food products, some members continue to require them. And despite ECOWAS countries signed technical agreements for mutual recognition of sanitary and phytosanitary certificates, border officials still require traders to obtain duplicate certificates. This may in part be due to lack of information but may also be in the interest of creating an opportunity to collect fees or bribes. Finally, efforts at regional harmonization, such as for seeds and other agriculture inputs, have not been fully implemented requiring duplicative certifications, while the lack of harmonized grades and standards on grains and legumes impedes the movement of staple foods from surplus to deficit regions and hurts the potential for agri-based global value chains.

# Landlocked Countries with Distance to World Markets: What Does Nigeria Offer?

Countries close to large world markets should strive to benefit from proximity to high economic density and become an extension of the large markets. Mexico, he Caribbean, the European Union (EU) accession countries, and the Republic of Korea are linked, respectively, with the U.S., EU, and Japanese markets.<sup>4</sup> Closer integration with Nigeria, mainly by Niger and Chad, could contribute to MCNG trade growth in goods and services. The West Africa market is dominated by Nigeria, followed by Ghana, Côte d’Ivoire and Senegal—together these countries account for 80 percent of regional GDP and 75 to 80 percent of agriculture imports and exports. Nigeria is the largest economy in Africa that is set to double in size by 2030. The size of the Nigerian economy, diversity, demographics, and projected growth trajectory are likely to offer the greatest market potential in agriculture trade for MCNG Sahelian countries. Anecdotal evidence points to much two-way informal exports, but staple foods and livestock exports dominate the flows from Sahel countries to Nigeria and exports of millet and sorghum from Nigeria to its neighbors. The scale of informal trade provides de facto evidence of strong complementarities that exist between Nigeria and the prospects for market synergies, positive externalities and scales that improve efficiencies and better

> 3 This is more critical for agriculture-based products as recent estimates of real exchange rates based on agriculture prices, among SSA countries, found that the level of real appreciation is highest for Mali, Niger and Chad (Zafar, 2018). 4 WDR (2009).

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