Benin adopts export surcharges to control prices of certain agricultural products

Despite the good performance of agriculture, the Benin economy is facing since the second half of 2020 a continuous rise in prices of some agricultural products due to the increasing demand from neighboring countries, which has caused prices to soar due to their reduced availability in the internal market.

To address this situation, the Council of Ministers of Benin has decided to introduce export surcharges on certain agricultural products, such as soybeans, cotton, processed and unprocessed cassava, shea butter, paddy rice, yams (tubers and pods) and cashew nuts. These products will attract surcharges of 20% if their internal demand is very high and of 10% for products whose supply is in excess with respect to the national demand.

Moreover, an additional surcharge will be introduced, equal to 10 CFA francs per kg on shea nuts, 20 CFA francs per kg on cashew nuts, 30 CFA francs per kg on soybeans, and 50 CFA francs per kg on maize and gari (a flour obtained by processing the starchy tuberous roots of freshly harvested cassava). This levy, that will be charged on these goods exclusively if exported through the land borders, is aimed at encouraging their export by sea.

These measures represent an expression of protectionist policies that although not prohibited by the WTO, are against the spirit of the AfCFTA (which Benin has signed in July 2019, but not yet ratified), because of the distortionary nature that they have on trade, and moreover are not compatible with the ECOWAS Revised Treaty, that at art. 3.2.d(i)  calls for member States to abolish all customs duties on both imports and exports.