Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 548

Article in Press

Effects of Regional Trade Policy on Tariff Revenue: Evidence from Latent Gains/Losses by Nigeria

Trade Policy, Tariff, Net Trade, Revenue Gains/Losses.

  •  Received: 04 July 2021
  •  Accepted: 02 August 2021
The study identified all Nigeria’s products of trade, with a view to ascertaining and computing volumes of net trade and corresponding latent gains and or losses sustained in pursuit of Economic Community of West African States (ECOWAS) trade policy objectives. Data were soured from United Nations Commodity Trade (UNComtrade), via Trade Analysis and Information System Window. The inherent most-favored-nations tariffs were identified and applied in computation of the latent revenue gains and losses sustained inpursuit of the sub-regional duty free trade. The net trade (Exports-Imports) and latent revenue gains or losses per product for the years under review were evaluated to ascertain the level to which the country contributes through each traded product in sustaining the regional trade liberalization policy as gauged or inferred. A country being net importer or net exporter of any product is an indication of latent gains or losses in tariff revenue, respectively. The study concludes that Nigeria sustains ECOWAS trade liberalization policy by losing accruable/latent revenues in products where she is net exporter (supplier) to the sub-regional members who import at zero tariff charges, and gains inherent revenues in products where she is a net importer; hence, the losses outweigh gains. All members are advised to pursue and improve the sub-regional trade policy by engaging in production of goods that have extended value chain, culminating to net product exporter status in products where she has a comparative advantage. In this way, members will on the long run maintain an increasing threshold of net export to push the sub-regional policy agenda of growth and development.