Cameroon calls for strong WTO measures to curb unprecedented deregulation

On 2 September 2021, the Cameroon Minister of Commerce, Luc Magloire Atangana sent a letter to the Director-general of the World Trade Organization (WTO) Mme Ngozi Okonjo-Iweala, on the unprecedented deregulation of international trade marked in Cameroon by soaring costs of imported products.

 “Since the onset of the Covid-19 in the first quarter of 2020, international supply chains have been experiencing serious disruptions. This year, such disruptions have worsened with soaring raw material prices, a steep increase in the prices of food products and an explosion of maritime freight rates (...). For instance, between January and June 2021, the prices of clinker, rebar, and gypsum rose by 100%, 95.54%, and 60% respectively, compared with their rates during that same period in 2020. At the same time, the prices of wheat, soybean, and corn rose by 31.6%, 6%, 73%, and 98.4% respectively and maritime freight rates rose three fold,” the Minister of Commerce wrote. 

According to the official, given the major social problems that such a situation could trigger, the WTO is called upon to react per its mandate set by the Marrakesh Agreement.  

“In that regard, I suggest the organisation should issue a set of strong measures to some of the institutions and bodies in charge of the world economy namely, the International Monetary Fund, the World Bank, or the G20. Those measures will aim at finding ways and means to counter the disastrous consequences of the looming cataclysm,” he concluded. 

In Cameroon, the government is already fraught with rising costs in the cement sector. The cost of a 50-kg bag of cement was usually XAF4, 300, but some weeks ago, producers decided to increase it to XAF4, 900 and even XAF5, 000. They were openly accused of causing such increases and the Minister of Commerce threatened to close some producers’ plants should the projected price increase become effective. In return, the government commenced negotiations to come up with cushioning measures in the sector to help deal with the increase in the price of raw materials imported to produce cement, clinker notably. 

Source: Business in Cameroon of 6 September 2021