AN ASSESSMENT OF WTO RULES AND IMPLICATIONS ON NIGERIAN TRADE

Abstract

The study examines the rules and implications of the World Trade Organization on Nigerian trade.

The study has the following objectives; To examine the Implication of World Trade Organization rules on Nigerian trade, To examine the effect of trade liberalization on Nigerian trade.

Concerning methodology, the population for the study was not large, and data could be collected from all the respondents, the researcher adopted the census sampling technique to successfully complete the study. All 65 respondents were used for this study.  It also explained the mode of data collection and analysis; Questionnaires were used to sample people’s opinion while carrying out the survey. The researcher discarded the secondary data designs so as to get new, accurate findings and data analysis on the subject matter.  Base on fining the study has the sample size of sixty-five (65). Findings from the study revealed the following; WTO plays a vital role in international trade, WTO rules significantly influences Nigerian Trade, there are laid down rules in world trading, trade liberalization has a positive impact on Nigerian Trade, Nigerian trade has been boosted by the assistance of WTO rules.

Table of content

CHAPTER ONE

INTRODUCTION

BACKGROUND TO THE STUDY

1.2 STATEMENT OF THE PROBLEM

1.3 OBJECTIVES OF THE STUDY

1.4 RESEARCH QUESTIONS

1.5 RESEARCH HYPOTHESIS

1.6 SIGNIFICANCE OF THE STUDY

1.7 SCOPE AND LIMITATION OF THE STUDY

1.8 DEFINITION OF TERMS

CHAPTER TWO

LITERATURE REVIEW

2.1 INTRODUCTION

2.2   WORLD TRADE ORGANISATION AGREEMENTS

2.3   DEVELOPING COUNTRIES AND WORLD TRADE ORGANISATION

2.4   THE EXPERIECNE OF THE DEVELOPING COUNTRIES

2.5   NIGERIA’S EXPERIENCE WITH TRADE LIBERALIZATION

2.6   TRADE LIBERALIZATION ANDDE-INDUSTRIALIZATION IN NIGERIA

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION

3.1 RESEARCH DESIGN

3.3 POPULATION OF THE STUDY

3.4 POPULATION SIZE AND TECHNIQUE

3.5 DATA COLLECTION METHOD

3.6 DATA ANALYSIS

3.7 LIMITATION

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1:  Gender distribution

 4.2: Occupational Distribution

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1   SUMMARY OF FINDING

5.2   CONCLUSION

5.3   RECOMMENDATION

REFERENCES

QUESTIONNAIRE

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Nigeria is a middle income, mixed economy and emerging market, with expanding financial, service, communications, technology and entertainment sectors. It is ranked as the 21st largest economy in the world in terms of nominal GDP, and the 20th largest in terms of Purchasing Power Parity. It is the largest economy in Africa; its re-emergent, though currently underperforming, manufacturing sector is the third-largest on the continent, and produces a large proportion of goods and services for the West African sub-region. Nigeria recently changed its economic analysis to account for rapidly growing contributors to its GDP, such as telecommunications, banking, and its film industry (Adeleyo, 2002).

Nigeria's trade relations revolve around the oil and natural gas sectors. After the economic reforms of 2005, the government is making efforts to diversify its export profile beyond the oil sector, such as minerals and agricultural products.Oil and natural gas are the most important export products for Nigerian trade. The country exports approximately 2.327 million barrels per day, according to the 2007 figures. In terms of total oil exports, Nigeria ranks 8^th in the world. As of 2009, Nigeria has approximately 36.2 billion barrel oil reserves. Prior to oil production, which surged after the 1970s, agricultural production was the largest export sector for Nigeria. After the country became a largely oil-intensive economy, the agriculture sector took a back seat. However, it still provides employment to almost 70% of the total working population.

Due to high international oil prices, Nigeria’s import trade is able to balance export revenue. According to the 2009 figures, the country's imports grossed over US$42.1 billion. Machinery, heavy equipments, consumer goods and food products are the major imports. A large portion of the imports arrive from the EU, particularly the Netherlands, the UK, France and Germany. China, the US and South Korea are also major import trade partners.

The abolition/review of many restrictive businesses and financial regulations and the Nigeria’smembership of the World Trade Organization (WTO) have enhanced theNigeria’s position in multilateral trade system.The World Trade Organization (WTO) deals with the rules of tradebetween nations at a global or near-global level. There are a number of ways of looking at the WTO. It’s an organization for liberalizingtrade (Weldon, 1999). It’s a forum for governments to negotiate trade agreements. It’s a placefor them to settle trade disputes. It operates a system of trade rules (Hart, 1997). Essentially, the WTO is a place where membergovernments go, to try to sort out the trade problems they face with each other. Thefirst step is to talk. The WTO was born out of negotiations, and everything the WTOdoes is the result of negotiations. The bulk of the WTO’s current work comes from the1986–94 negotiations called the Uruguay Round and earlier negotiations under theGeneral Agreement on Tariffs and Trade (GATT). The WTO is currently the host tonew negotiations, under the “Doha Development Agenda” launched in 2001.Where countries have faced trade barriers and wanted them lowered, the negotiationshave helped to liberalize trade (santos, 2009). But the WTO is not just about liberalizingtrade, and in some circumstances its rules support maintaining trade barriers — for example to protect consumers or prevent the spread of disease.however, all these calls for need for the assessment of the World Trade Organization rules and implications on Nigerian trade.

The WTO agreements are lengthy and complex because they are legal texts coveringa wide range of activities. They deal with: agriculture, textiles and clothing, banking,telecommunications, government purchases, industrial standards and productsafety, food sanitation regulations, intellectual property, and much more. But anumber of simple, fundamental principles run throughout all of these documents.These principles are the foundation of the multilateral tradingsystem(Adeyemi, 1999).

1.2   STATEMENT OF THE PROBLEM

Lowering trade barriers is one of the most obvious means of encouraging trade. The barriers concerned include customs duties (or tariffs) and measures such as import bans or quotas that restrict quantities selectively.

Since, Nigeria registered the world trade organization treaty in December 1994, therehas been occasional focus on the economic implication of this treaty for the Nigerianeconomy. Nigeria registered the WTO treaty in December 1994 and thus became a fundingmember of the organization in January 1995. The researcher is seeking to assess how Nigerian external trade fared since she became asignatory to the W. T. O. in 1995 and how the adherence to the provisions of theorganization affected non-oil exports and trade liberalization in Nigeria.Although, WTO agreementsallow countries to introduce changes gradually through progressive liberalization.Developing countries like Nigeria are usually given longer period to fulfill their obligations.

1.3   OBJECTIVES OF THE STUDY

The following are the objectives of this study:

1.  To examine the rule of the World Trade Organization.

2.  To examine the Implication of World Trade Organization rules on Nigerian trade.

3.  To examine the effect of trade liberalization on Nigerian trade.

1.4   RESEARCH QUESTIONS

1.  What are the rules of the World Trade Organization?

2.  What are the Implication of World Trade Organization rules on Nigerian trade?

3.  What is the effect of trade liberalization on Nigerian trade?

1.6   SIGNIFICANCE OF THE STUDY

The outcome of this study will further draw the attention of the government, managers of the economy as well as the general public to the problems associated with the full liberalization of trade. It will also assist policy makers in the choice of policy options as it relates to trade, as issues raised in this study will serve as guide. It will further enhance the available literatures on the trade dynamics between developed and developing countries or between centre states and peripheral states. Finally, it is our hope that the findings of the study will stimulate further researches in this field which will further expand the understanding of the position of third world economies in the global trade system.

1.7   SCOPE/LIMITATIONS OF THE STUDY

This study will cover the rules of the World Trade Organization and its implication on both internal and external trade.

LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

REFERENCES

Adeyemi A. Larry (1999): “How Nigeria can push for fair Trade at into summit”. The GuardianNewspaper- November 22nd, 1999. PP. 5859.

Hart M (1997): WTO and the political Economy of Globalization Journal of World Trade Law,Economics, Public Policy. Vol. 31. No. 5 October 1997. Pp 79 – 82

OluAdeleyo (2002): “WTO and the Nigeria Economy” Business GuardianWednesday March 7th 2002. P. 24

Santos T. Dos (2009): The crisis of development theory and that of dependence in Latin American inunderdevelopment (ed) by Harry Berustanpengium Books Ltd. 1073. P 16.

Weldon Bello (1999): Focus on Trade: The Iron cage: the WTO; the Bretton woods institution andthe South. No. 41. November 1999. P. 1