RESTRICTED
WORLD TRADE WT/BOP/R/35
19September 1997
ORGANIZATION(97-3791)
Committee onBalance-of-Payments Restrictions
REPORT ONTHE CONSULTATIONS WITH NIGERIA
1. TheCommittee onBalance-of Payments Restrictions resumed itsconsultations withNigeria
on30and31July1997. These were held under theChairmanship ofMr.Peter R.Jenkins
(United Kingdom) andinaccordance withtheterms ofreference ofArticle XVIII:12(b) andthe
Understanding ontheBalance-of Payments Provisions oftheGATT 1994. TheInternational Monetary
Fund wasinvited toparticipate intheconsultations inaccordance withArticle XV:2 ofGATT 1994.
2. TheCommittee hadbefore itthephase-out plansubmitted byNigeria, WT/BOP/N/27.
3. Theopening statement oftheNigerian delegation isattached asAnnex I.
Discussion intheCommittee
4. Most Members reiterated theview expressed during earlier stages oftheconsultations that
therestrictions inplace forbalance-of-payments purposes were inappropriate andwere notjustified
byNigeria 'sbalance-of-payments situation. Withoneexception, Members found thetime-table, eight
years, forthegradual elimination oftheimport bansfartoolong. OneMember suggested 1999 as
anenddatewhichmightdovetailwithcompletionofthereformoftheNigerianscustomsadministration.
Some Members, while lesscritical ofNigeria 'sproposal, hoped thatasatisfactory solution could be
found atthissession. TheNigerian delegation explained thatfourproducts (sorghum, millet, wheat
flourandgypsum) would bedeleted fromthenotification, astheycould beconsidered prohibited for
safeguard rather thanbalance-of-payments reasons, andarevised planwould besubmitted. However,
interms oftimeframe, hewasnotinaposition tomake anychanges atthistime. Members suggested
thattheCommittee suspend theconsultations untilNigeria could come upwithabetter plan. The
Committee decided toresume inFebruary 1998, withtheunderstanding thatinformal consultations
would beheldwithinterested parties inNovember 1997 inorder togarner some assurance thatthe
internal political process would arrive atasolution thatcould besatisfactory totheCommittee.
Interim Conclusions
5. MemberswelcomedthesubmissionofatimescheduleforthephasingoutofNigeria'sremaining
import prohibitions. Although atleastoneMember considered theNigerian proposal acceptable, most
Members, recalling thattheCommittee hadalready concluded thatthese measures could nolonger
bejustified under Article XVIII:B andtheUnderstanding, called fortheirelimination immediately
oroveramuch shorter time-frame thanthatproposed byNigeria.
6. TheNigerian delegation wasnotinaposition topropose ashorter time-schedule atthismeeting;
therefore, theNigerian delegation agreed tocommunicate theviews expressed byMembers ofthe
Committee totheappropriate andcompetent authorities fortheirconsideration andtoconsult interested
Members inthecourse ofNovember. Onthatbasis, theCommittee decided tosuspend theconsultation
andresume, withaviewtoconcluding, inearly February 1998.
7. Members reserved theirrights under GATT 1994.
./.WT/BOP/R/35
Page2
ANNEX I
Opening Statement bytheRepresentative ofNigeria
Mr.Chairman,
1. Letme,onceagain, onbehalf ofmydelegation thank youandother Members oftheCommittee
forthesupport andcooperation thatyouhaveaccorded usinthecourse oftheon-going consultations.
Welookforwardtoyourcontinuedunderstandingandcooperationasweproceedwitthetaskofreaching
aconsensus onallrelevant issues.
2. Mr.Chairman, during theMarch 1997consultations withthisCommittee, Members reaffirmed
theposition thattheimport prohibitions inforce inNigeria could nolonger bejustified under
Article XVIII:B andtheUnderstanding ontheBalance-of-Payments Provisions oftheGATT 1994.
Onthatoccasion, Nigeria hadalsostated itscommitment toproceed withtheearly elimination ofthe
restrictivetrademeasures,aswellastodisinvokeArticleXVIII:B.Consequently,theCommitteeinvited
Nigeria toconsult withMembers whoexpressed interest, anddrawupatimeschedule fortheelimination
oftheremaining import prohibitions.
3. Inlinewiththatobjective, Nigeria hassubmitted aneight-year timeschedule fortheelimination
oftheremaining restrictive trade measures. Indrawing upatimeschedule, Government tookinto
consideration theneednottodestabilize theeconomy, aswellasallow timefortheon-going customs
andportreforms totakerootsoastoensure theeffective administration oftheresulting price-based
measures. Inaddition, Government hasalsodecided toaddress theissue ofimport prohibitions
comprehensively, hence theproposed timeschedule covers allitems under import prohibition. Most
important ofall,theproposed timeframe istoallow theeconomy toconsolidate ontherecent gains
thathavebeenachieved intheareaofreduced inflation, improved external reserves position, andthe
relative stability ininterest andexchange rates. Thiswillalsoensure thatexisting balance-of-payments
pressures donotrender thepresent favourable developments unsustainable.
4. TheGovernment ofNigeria hastaken intoaccount theinterests ofallourtrading partners.
Theproposed timeschedule represents asignificant stepforward. We,therefore, request forthe
continued understanding andcooperation ofallMembers ontheproposed timeschedule.
5. Thank youforyourattention.