Tariff Elimination Angle of the UAE Deal Apt—Expert

Leading import and export business analysts, Dr. Ken Ugomba has assessed the recent understanding sealed between Nigeria and the UAE which borders on the relaxation of certain tariff in export and import of specific products.

Whereas the Federal Government noted that the tariff elimination would open the UAE market to a wide range of Nigerian agricultural, primary, industrial, and manufactured goods, Dr. Ugomba averred that “If well implemented and effectively monitored, Nigeria may gain more that UAE in terms of new business expansion.

Business Hilights gathered that under agricultural and primary products, the UAE will immediately remove tariffs on fish and seafood, cereals and milling products, oil seeds, live animals and meat products, fruits and nuts, raw hides and skins, cotton and vegetable textile fibres, and other animal products.

Tariffs on cocoa and cocoa preparations, coffee, tea & spices, mineral fuels, wood and wood articles, precious stones and metals, and animal and vegetable fats and oils will be removed over three to five years.

For industrial and manufactured goods, the UAE will immediately remove tariffs on pharmaceutical products, organic and inorganic chemicals, paper and paperboard, printed books, and newspapers. It will also phase out tariffs on machinery, vehicles, electrical equipment, apparel, furniture, footwear, ceramics, and glass over three to five years.

However, the UAE will maintain import prohibitions on 35 products, including pork and pork products, narcotic substances, used tyres, and asbestos-containing products.

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On the Nigerian side, the agreement provides market access for UAE industrial and consumer goods. Nigeria will immediately remove tariffs on mineral fuels, machinery, vehicles, electrical equipment, iron and steel, plastics and related articles, while phasing out tariffs on fish, fruits, vegetables, and apparel over five years.

The ministry noted that Nigeria excluded 123 products from tariff elimination, including meat and dairy products, certain vegetables, vegetable oils, cocoa preparations, cereal and flour products, tomato paste, alcoholic beverages, soaps and detergents, and some cotton yarns and fabrics.

However, “Nigeria’s Import Prohibition List remains in effect as a separate measure.”