Cameroon: Transport equipment imports skyrocketed in H1-2021 with the 5th phase of EU’s EPA
(Business in Cameroon) - Cameroon’s expenditures on transport equipment imports rose by 60% year-on-year in H1-2021, according to the H-2021 foreign trade report published by the national institute of statistics INS.
The institute provides no reasons to explain such a rise but on closer observation, it occurred after the launch, on January 1, 2021, of the fifth phase of the tariff dismantling process in the framework of the economic partnership agreement with the EU in January 2021.
That fifth phase consecrated the first 10% reduction of customs duties on products with high customs revenue yields like personal cars and motorbikes. On August 4, 2021, when the sixth phase became effective, another 10% reduction of customs tariff was applied to make it a total of 20% reduction now. This could further boost the importation of those equipment in Cameroon.
The customs tariff dismantling has reached 100% over a year ago for products like tractors and motor spare parts belonging to the first group. As for trucks and similar vehicles belonging to the second group, as of August 2021, 75% of the tariffs were already dismantled.
In Cameron and in Sub-Saharan Africa in general, most of the transport equipment in circulation are Asian brands but they are sold by European concessionaires. Those concessionaires usually work with Asian brands delocalized to Europe with enough local labor force to be eligible for the Economic partnership terms.