The European Union has reported Nigeria to the World Trade Organisation, WTO, for banning the importation of milk and other diary products.
The WTO Director-General, Ngozi Okojo-Iweala, who disclosed this when she visited the Central Bank of Nigeria, CBN, in Abuja on Tuesday, said the organization would reduce export restrictions on medical supplies and equipment, especially in this era of COVID-19 pandemic.
She told the CBN Governor, Godwin Emefiele, that the EU sent a letter to the WTO expressing displeasure with Nigeria’s policy on dairy products.
“We have a complaint against Nigeria from the EU about the violation of the Balance of Payment (BOP) agreement with respect to trying to protect the dairy industry and they feel that this is not the right instrument.
“As DG WTO, I have to make this known. This is an issue which you said you will like to engage in a little more detail so we can discuss that later about it,” she said.
While explaining that the WTO has some “remedies” that could help Nigeria protect its industries and prevent dumping without “banning things”, Okonjo-Iweala expressed support for Nigeria’s plan to establish a trade remedies authority, saying it would help the country “use those remedies as a tool to help our industries to grow”.
Responding, Emefiele said the process to bring milk and its derivatives had been on for six years, with many producers treating the matter with levity.
He told the WTO team about a company in the dairy business for over 60 years in Nigeria that has not deemed it necessary to engage in backward integration.
“At that meeting (February 2020), we took a decision that those who are not embracing our backward integration programme with the dairy industry should be restricted. It was not my decision, it was a decision taken by all at the meeting,” he said.
Emefiele also told the WTO boss that Nigeria is soliciting help from the organization because “other people might have seen or said a few things about the way we’ve conducted our trade”.
“We need to give a chance to our own local industry to grow; we need to give chance to our local industries to create jobs and employment,” he added.
It would be recalled that the CBN and some companies in the milk and dairy industry, had at their last meeting in February 2020, agreed that “ the importation of milk and its derivatives shall only be allowed for FrieslandCampina WAMCO Nigeria; Chi Ltd; TG Arla Dairy products Limited; Promasidor Nigeria Limited; Nestle Nigeria PLC (MSK only) and Integrated Dairies Limited”.
