Importance Of Trade In Nigeria

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BARRIERS TO TRADE – NIGERIA According to a report from the office of the United States trade representative, import policies, export subsidies, government involvement, intellectual property rights protection, service barriers and investment barriers were listed as factors that restrict trade with the global world.
Tariffs and Non Tariff barriers; Import policies such as; tariffs and non tariffs measures creates trade barriers for the international industries looking to enter the Nigerian market. “Companies have reported that high tariffs, nontransparent valuation procedures, frequent policy changes and unclear interpretations by the Nigerian Customs Service make importing difficult and expensive” (“USTR Nigeria”). Nontariff measure
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According to the USTR report, foreign investors must content with complex tax administration processes, confusing land ownership laws, arbitrary application of regulations, corruption and crime (“USTR Nigeria”). Also in addition to these factors, Nigeria is ranked one of the most corrupt countries in the world; this would discourage some international investors because of the fear of getting hoaxed. In addition to all these factors listed, Nigeria lacks the infrastructural development to support international trade, the lack of developed transportation system including water , ports , railways and roads, frequent power outages which leads to relying on generator powered systems presents major challenges to the economic growth of the country and also serves as an obstacle to international trade. Majority of the companies wanting to enter the market must be aware of the extra cost that would be involved in production, and choose to push past the barriers to enter the …show more content…
China and Nigeria both have barriers of intellectual property rights protection. In the case of china, their lack of enforcement is due to the fact that the theft of secret is for the benefit of the Chinese government; however, Nigeria’s lack of enforcement is attributed to the lack of appropriate resources to enforce their WIPO treaty. Another similarity between both countries is the present of Import bans. China has import bans on remanufactured products which they classify as used goods; Nigeria on the other hand has import restrictions on certain consumable products. With China being a more developed country than Nigeria, the differences in their barriers to trade is attributed to the fact that China has more regulations in place to protect its economy. China is industrially developed therefore, restrictions such as industrial policies and service barriers are in place to protect their economy. The differences between the two countries lies in the fact that China being a developed country already has industries that it intends to protect. China is one of the leading countries in industrialization, and import and export. On the other hand, Nigeria being an underdeveloped country seeks and welcomes foreign investors who are willing to invest in the industrialization of the country; they may enter negotiations

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