Analysis of Agri-Food Trade Structures
To Promote Agri-Food Trade Networks
In the Islamic Countries
93
Malaysia was also the top destination for cotton exports in 2013 before being replaced by
Bangladesh from 2014 to 2016. Cotton trade flows from Cameroon to Southeast Asia are
relatively small because Africa is a minor player in the Asian market.67 Furthermore, African
products are negatively impacted by issues of reputation and the perceived belief that African
cotton is low quality. Moreover, a lack of adequate feedback mechanisms means African
exporters cannot negotiate any premiumon the declining international prices.68 Their small size
forces them to trade via foreign merchants preventing them from forming a direct link with the
client. African exporters are thus subject to a lack of information and an inability to receive direct
feedback from clients on their needs.69 Consequently, there are opportunities to enhance trade
flows for cotton in Asian OIC members by encouraging South-South cooperation. There is
consequently a need for Cameroon, perhaps in collaboration with OIC neighbors, to develop an
export market penetration strategy; this could also be combined with a regional business
practice center to support Cameroonian (and other regional) agri-food producers to evolve into
mass producers of agri-food products capable of reliably supplying lucrative non-African OIC
markets.
In terms of Cameroon’s MFN trade policies, there has, however, been little movement. MFN tariff
rates have barely changed over the last decade for agri-food products, fish products, and
agricultural rawmaterials. In 2016, they were 24%, 25%, and 18% respectively. These rates are
relatively high by world standards. The relative restrictiveness of trade policy for agricultural
raw materials is unusual, as these products are inputs into the manufacture of processed goods,
and most countries therefore keep barriers low to encourage light manufacturing. Although the
impact of Cameroon’s policies is significantly lessened by its FTAs, the fact that they are only
partial scope means that more could be done to liberalize agricultural trade not only with
neighbors and longstanding partners, but also with newer export destinations.
Main Barriers and Potential Drivers: Stakeholders´ View
This section summarizes the findings from stakeholder consultations conducted through semi-
structured interviews. While the Cameroonian government has in the last decade sought to
engender economic transformation through the agriculture and agri-food trade sector, growth
is still possible. The following section outlines areas that emerged from a consultation with key
policy actors on the ground. These interviews yielded offered lessons that persons consulted
proposed as areas of possible collaborations among OIC members. Fundamentally, these policy
prescriptions seek to address the inefficiencies that emerge from tariff and non-tariff barriers
as well as mobilize efforts towards greater industrialization, capacity development and
financing.
Government Policies Affecting Agricultural Trade
Trade with the OIC is part of a broader trade development strategy which is centered around
Cameroon achieving Emerging Market Status by 2035. This roadmap recognizes Cameroon's
need to increase agricultural productivity through sustainable intensification and
improvements in infrastructure. Strategic directions include: support for the acquisition of
farming inputs, essential planning of irrigable areas, and supporting producers with structuring
and professionalization.
67 ITC. (2013). Improving Africa’s Cotton Value Chain for Asian Markets . Geneva: ITC.
68 Ibid.
69 Ibid., pp ix