Report No: 78283 and acs2876



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Report No: 78283 and ACS2876

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Republic of Cameroon




CM-Cross-Border Trade Between Nigeria and CEMAC Countries




Estimating Trade Flows, Describing Trade Relationships, and Identifying Barriers to Cross-Border Trade between Cameroon and Nigeria


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May 7, 2013

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AFTP3




AFRICA

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Standard Disclaimer:







This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

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Copyright Statement:

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Final Report

Estimating Trade Flows, Describing Trade Relationships, and Identifying Barriers to Cross-Border Trade between Cameroon and Nigeria

Acknowledgements

This report was written by a team consisting of Mombert Hoppe (PRMPI, task team leader), Barbara Rippel (AFTPM), Elisa Gamberoni (PRMGE), José Daniel Reyes (PRMTR), Dirck Stryker, Mukhtar Amin, Abdoulbagui Mohamadou, Luc Foleu, Louis Ndumbe, and Perpetua Ahone (consultants). Peer reviewers were Paul Brenton (AFTPM), Ian Gillson (PRMTR), and Faustin-Ange Koyasse (AFPT3). Useful guidance and comments were received from Raju Singh, Peter Taniform, John Litwack, and Jean Kanyamuhanda. Maps have been cleared with GSD on October 19. The team is extremely grateful to Sylvie Ndze for administrative support, and for editing the final report.



Table of Content

Executive Summary 6

Background 13

Drivers for Cross-Border Trade 16

Historical and Cultural Relations 16

Economic Factors 20

Policy Distortions 21

Reality of Cross-Border Trade 27

Magnitude of Existing Trade Flows 29

Detailed estimates for trade flows and products 31

Actors, Processes, and Procedures in Cross-Border Trade 35

Participants in Trade 35

Trade Procedures in Practice 46

Barriers to Cross-Border Trade and Their Relative Importance 52

Quantitative Assessment of Importance of Trade Barriers 59

Potential for Expanded Trade and Economic Activity 68

Response to Trade Stimulus 73

Main Findings and Prioritized Policy Recommendations 74

Policy recommendations 78

Annex A: Case Studies 85

Annex B: Assessment of Economic and Financial Impact of Enugu-Bamenda Road Improvement 94

Annex C: Official & Unofficial Payments along the Onitsha-Bamenda Corridor 95

Annex D: Benchmarking Cross-Border Trade between Cameroon and Nigeria 97

Annex E: Trade Policies in Cameroon and Nigeria 102

Annex F: Major Trade Corridors between Cameroon and Nigeria 112



Table of Tables

Table of Figures

Table of Maps

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