Mali, Burkina Faso, Niger Implement Import Tax to Support New Alliance

Politics AES, AFRICA, ALLIANCE OF SA, ALLIANCE OF SAHEL STATES, ASIA, BURKINA FASO, CHINA, COUP, ECONOMIC COMMUNITY OF WEST AFRICAN STATES, ECONOMIC INTEGRATION, ECOWAS, ECOWAS BLOC, GHANA, MALI, NIGER, NIGERIA, REGIONAL AFFAIRS, REGIONAL COOPERATION, STATES, THE STREET JOURNAL, WEST AFRICA Dante Raeburn April 1, 2025

Mali, Burkina Faso, Niger Implement Import Tax to Support New Alliance

Mali, Burkina Faso, and Niger have introduced a 0.5% tax on imports from Nigeria and other ECOWAS nations to fund their newly formed alliance, following their withdrawal from the larger bloc. This tax excludes humanitarian aid and marks a significant shift in regional trade dynamics.

Mali, Burkina Faso, and Niger have announced a new 0.5% tax on imports from Nigeria and other members of the Economic Community of West African States (ECOWAS). This levy, which takes effect immediately, was disclosed in a joint statement released on March 28. The move indicates a shift towards financing their newly formed three-nation union after separating from the larger ECOWAS bloc.

The new tax will be applicable to all imports into these three countries, excluding humanitarian aid. It is intended to support the activities of the newly established bloc, although no specifics about its allocation or usage were provided. This action signifies the conclusion of free trade within West Africa, marking a distinct separation between the trio of nations and more stable democracies such as Nigeria and Ghana.

Following military takeovers in 2023, Mali, Niger, and Burkina Faso initiated the Alliance of Sahel States (AES) primarily for security cooperation, which has since evolved into discussions regarding economic union. Plans for enhanced military and financial integration include the prospective implementation of biometric passports.

These three nations exited the ECOWAS framework last year, citing inadequate support from the organization in combating Islamist insurgency and securing their territories. In retaliation, ECOWAS has levied economic and political sanctions against them to encourage a return to constitutional governance, although those measures have not yielded significant results.

In summary, Mali, Burkina Faso, and Niger have instituted a 0.5% import tax on goods from Nigeria and ECOWAS members, aimed at financing their new alliance. This tax represents a significant shift away from free trade in West Africa and underscores the deepening rift between their military-led governments and other regional democracies.

Original Source: thestreetjournal.org