Trade between ECOWAS and China
Name:Yang minwei Student ID：S07285
Research paper supervisor:Dr.Seku Conde
Minzu University of China
2007-2008 Academic Year
Abstract:Apparently, organizations have been playing more and more important roles in the world. These global and regional organizations are related to economy, politics, culture, society in content. Here I pick out ECOWAS for the articles to reflect current regional cooperation and have research on how ECOWAS and China enter into trade relations and what it will influence them and the world. Moreover, by means of this analysis I want to explain the importance of cooperation and development for the whole world so as to countries in the world can enhance life standard for the promotion in the future. This article adopts quotation, paraphrase and makes use of some concrete examples along with figures form many resources to support opinions.
Key word: trade ECOWAS and China cooperation and development
Chapter one: introduction of ECOWAS
Economic Community of West African States was established by the Treaty of Lagos in May 1975 to promote economic trade, cooperation, and self-reliance. It is the biggest regional economic multi-cooperation organization of Africa. Its total area is 511 kilometers, accounting for one sixth that of Africa and its population is 230 millions, accounting for one third that of Africa. The organization seeks to harmonize agricultural policies and to facilitate the free movement of peoples, services, and capital between members. ECOWAS members includes Benin, Burkina Faso, Cape Verde, d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo.
The institutions of the Community are: The Authority of Heads of State and Government; the Council of Ministers; the Community Parliament; the Economic and Social Council; the Community Court of Justice; the Executive Secretariat; the Mediation and Security Council [established by the Mechanism] and the fund for Cooperation, Compensation and Development. The headquarters of executive secretary of the organization is located in the capital of Nigeria, and the executive secretary is the most important executive officer, who is appointed by the members with the four years period.[①]
The organization is devoted to development and cooperation in economy, society and culture among members, to the promotion of peoples’ life standard and to strengthen mutual relationships for the purpose of African development.
Briefly, the organization aims at many aspects, including regional free trade, common tariff, free movement of capital and human resources, transportation, telecommunication, electricity, energy, agriculture and environmental protection etc. According to these items, the organization will put emphasis on the construction on infrastructure, strengthening the cooperation of social culture, tourism and regional security. Apparently, some valid measures have been taken to carry out the plan which scheduled by members, here are the concrete examples picked.
The organization set up product standards, especially to the raw material and traditional products, and simultaneously it realized free trade for industry produces, clearing the tariff barriers. It established the common external tariff, with the tariff rate of 0%, 5%, 10%, 20%. The organization also set the commission of capital and staff affairs to promote the free movement. As for infrastructure, the organization have been accomplishing the highway construction and making the road connection which penetrates the west Africa. And they also scheduled on the aviation and train construction. It promoted telecommunication capacity from microwave to satellite and light fiber conveyance. In order to develop the natural energy, the members have planned to establish electric station, unfortunately these items have been cancelled owing to lack of capital. They encouraged to develop private enterprise and foreign investment, but the real influences are seldom. Moreover, the organization have scheduled dissertation protection and water resources management.
Chapter two: the basic conditions or possibilities for trade
Africa and China has a long history of bi-lateral communication. Because both have the following situations and conditions, they set up the fundamental basis for economy and trade cooperation.
At the first of all, they common history misfortune and reality make both have much more commonplaces and feelings. Historically, Africa and China had been eroded by foreign momentum, which destroyed the people’s splendid life seriously. By virtue of this, both have more common feelings and circumstances and this make them eager to carry out a variety of cooperation and communication, including culture, politics, economy and society aspects. Here economy and trade demonstrates especially more often. It is well known that both Africa and China have ancient culture and encountered unfortunate period. For example, China had been destroyed by eight-country imperial army at Qing Dynasty and lost seriously and Africa had been deteriorated by European imperialism.
Secondly, China has been insisting on the diplomatic principle of peace and development, with the wishes to enter into trade relationships with all countries in the world. And at the same time, Africa has the desire to develop bi-lateral or multi-lateral cooperation from the world. Moreover, peace and development are the main theme of the world, which promote Africa and China dedicated themselves to contribute to the people’s beautiful lives. Nowadays, China accelerates economic development for the purpose of promote peace and China’s development is opportunities instead of threats for the world.
Thirdly, Africa and China have the advantageous conditions which are complementary each other for developing trade relationships. The difficulties of ECOWAS are lack of sophisticated technology, capacity and capital, which cause it has more demand for mechanic facility, transport vehicles and accessories, electronic products, chemical products, medical facility, synthetic fiber, leather products and so on. On the other hand, ECOWAS are rich in such materials as coca, peanut, cotton, wood, and all kinds of mineral for gold, aluminum, steel. On the contrary, China has comparative advanced technology, great amount of capital and potential capacity, while it has little average natural resources because of its large population. Therefore, by trade ECOWAS and China can avail of each other’s advantages and make up for disadvantages to enhance they development standard, to realize the win-win model in the international trade.
Finally, history and reality have proved that countries in the world will not really improve themselves until they are aware of the importance of opening to the world and take great measures to communicate to other countries and cooperate with them. China’s 30-year reform and opening have resulted in great success and has supported the discussion. Similarly, ECOWAS has made great progress and as a result, the members of the community have really enhanced they people’s lives standard, the countries have developed at incredible speed and tendency.
Chapter three: the situation of trade between ECOWAS and China
During the latest years, with the strategy to open going, the trade relationship between ECOWAS and China has become more and more intensive, trade amount for China to ECOWAS has increased further. The following figures indicate the situation: from 2001 to 2004, China’s import and export amounts to ECOWAS are respectively $2.59 billions, $2.54 billions, $3.81 billions, $5.05 billions, accounting for that of China’s to Africa 24%, 20.5%, 20.5%, 17%. ECOWAS has been in the role of importing more than exporting and the four years’ trade deficit is $1.99 billions, $2.03 billions, $3.10 billions, $2.89 billions. The energy countries which motivates the increase of China’s export to ECOWAS are mainly Nigeria, Benin, Ghana, Liberia and so on. What is emphasized is that Nigeria is China’s important trade partnership, playing the leader role in promoting trade between ECOWAS and China. In 2003, the import and export trade amounts between China and Nigeria is $1.86billions, in which China’s export amounts is $1.78 billions and import amounts is $77 millions. In 2004, the trade amounts between China and Nigeria is $2.183 billions, increasing by 17.5% based on the same measurable methods. For that, China’s export amounts is $1.72 billions, decreasing by 3.7% and China’s import amounts is $0.46 billions, increasing by 546.4%. From January to September in 2005, the import and export trade amounts between China and Nigeria is $2.16343 billions, increasing by 49.1%, in which China’s export amounts is $1.67208 billions, increasing by 42.3% and China’s import amounts is $4.9135 billions, increasing by 40.7%.[②]
During the former half year, China’s export commodities to Nigeria are mainly electronic products, textile products, high-tech products, chemical products, mineral products and agricultural products. China’s main import commodities are raw oil. From the view of trade, Nigeria is China’s second trade country in Africa and trade between both accounts for near half that of China and ECOWAS. Nigeria has the largest population, biggest market and the strongest economy in ECOWAS. It plays the rather important role and its policy-making can validly affect other member countries following and admittance.
As we can see from that, China and the members of ECOWAS have much more complementary economy. The majority countries of ECOWAS are fruitful for coca, coffee, cotton and natural mineral, which are China’s strategic needs.
Chapter four: reasonable analysis for bi-lateral cooperation
The first, ECOWAS has stumbled toward globalization. Since the community has been established, it has over 30 years history. Yet it has developed so slowly and made so few results that there is a long way to accomplish goals which the community sets. Especially in the near past decade, ECOWAS [...]
). If you have the permission, you can login now.