What Cameroon Will Lose From AGOA Dismissal
If Trump’s request is granted, Cameroon will from the day of approval of this request have to pay customs duties on all her exports to the United States. Commands from the chocolate and coffee giants like fast-food chains will certainly review their Cameroon supply for alternative markets.
This AGOA legislation gives Cameroon preferential market access for well over 6400 tariffs lines (products) without paying custom duties. These products include agricultural products, oils and gas, manufactured, textile, garment and apparel products. This gives Cameroon a competitive market over other countries exporting Simi products to the US market.
In 2018, Cameroon exported goods and services approximately 63 million US dollars under the AGOA agreement which were tax-free. Exporters will have to start paying taxes from 2020.
This comes at the time when Cameroon is currently experiencing a dwindling economy with the crisis in the northwest and southwest regions, the recent fire incident at the country’s lone oil refining company, SONARA. It has been difficult to produce and export cash crops giving that most of these come from the conflict-ridden regions.
So will Cameroon and Cameroonian businessmen extend their tentacles elsewhere or will the government ameliorate rights situation in the country to be re-admitted into AGOA?