By Tobi Awodipe
The United States has condemned Nigeria’s ban on the importation of 25 product categories, saying the restrictions are severely limiting market access for U.S. exporters.
In a statement posted on its social media platform yesterday, the Office of the U.S. Trade Representative (USTR) said the restriction, which affects agricultural products, pharmaceuticals, beverages and consumer goods, creates “significant trade barriers” and leads to “lost revenue for U.S. businesses”.
These items include live or dead birds including Frozen Poultry, pork, beef, bird eggs, refined vegetable oil excluding refined linseed, castor and olive oil, cane or beet sugar and chemically pure sucrose, in solid form containing added flavouring or colouring matter, cocoa butter, powder and cakes, spaghetti and Noodles of all kinds, fruit juice in retail packs, waters of all kinds, including mineral waters and aerated waters, containing added sugar or sweetening matter or flavoured, ice snow and other non-alcoholic beverages.
Nigeria is one of the countries seen by the USTR as involved in unfair policies against American exporters. Others are China, Algeria, Angola, Peru, Brazil, Japan, India, EU, Ecuador and Colombia.
In 2016, the Nigerian government banned the importation of 25 items. The items banned then included beef, pork, poultry, fruit juices, medicaments, spirits, and alcoholic drinks, among others.
Just last week, Nigeria was hit with a 14 per cent tariff on its exports to the U.S., adding pressure to an already-strained economic relationship. The development came amid rising global trade tensions, with the U.S. imposing tariffs ranging from 10 to 65 per cent on different countries.
President of the Nigerian-American Chamber of Commerce (NACC), Sheriff Balogun, said the ongoing tariff war between Nigeria and the U.S. “is concerning and detrimental to the budding trade relations between both countries. Most people that do business, either on the import or export side, are currently not sure of what to do and trade activities are basically in limbo”.
The fallout from the trade dispute sent shockwaves through the stock market on Monday, with the NGX’s all-share index (ASI) dropping by 1.23 per cent.
Investors lost approximately N659 billion, marking the biggest single-day decline this month. Stocks such as Oando and Honeywell Flour Mills saw steep losses, with Oando plunging by 10 per cent to N37.80.
Reacting to the tariffs on Monday, the country’s Ministry of Industry, Trade and Investment said the government is in consultation with the U.S. and, in the meantime, working to boost non-oil revenue to cushion the impact of the tariffs on the economy.
