Abstract

Looking at the topic of focus” An assessment of Cameroon trade relation with UK”, the continuous trade between Cameroon and UK has had a positive and negative impact on Cameroons economy which on the positive aspects has led to the consumption of variety of goods.

Purposely stressing on the main objectives to identify reasons why states trade, assess the impact of Cameroon trade with the UK on her economy, and bring out solutions to improve Cameroon –UK trade. In other to come out with the results, different theories will be used to explain the concept and the data gotten will be presented on tables and charts with the use of questionnaires that will however prove the trade links between Cameroon and the UK.

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background to Study

This research work aims at assessing the trade relation between Cameroon and the United Kingdom.  Before the coming into existence of trade, there was a form of trade known as the barter system of trade in which people exchanged one object for another( Samuelson,(1939).

During this period, traded goods were usually utilitarian items such as: salt, clothing, tea cowries. According to Andreas Antonopoulos, the first trade in history was about caving paintings” people drew on cave walls for the ultimate purpose of advertising these trades to other people”. One of the oldest trade documents was that of the shells used as tools, with evidence dating as far back as 3200BC. The first long distance trade occurred between Mesopotamia and the Indus valley in Pakistan around 300BC with various materials exchanged such as; spices, metals and cloth.

Around the 130BCE the Silk Road which is one of the oldest trade route connected 5000 miles trade route including China, India, Roman Empire and Persia. As civilization got bigger and human settlement evolved so does trading and it activity developed (Wikipedia).

The economies states have also evolved significantly today as they are organized and well prescribed roles and regulation. In fact, states trade with one another following not only carefully and crafted rules and documents but also respect international law. The world trade organization is the main trade regulatory body now our days which took over from the general Agreement on Tariff and Trade (GATT) headed by a Nigerian born Dr. Ngozi Okonjo Iwaela.

Furthermore, modern International trade has been researched as part of the issue of how the growth of International trade contributes to economic growth and industrialization. Trade flows have been analyzed in the content of great (trading) powers and by focusing on mayor trade routes such as: East Indian – Europe, North-America and Europe (North, 1966, Ahonen, 2005). Despite wars and short – term disruption created for trade, the 17th and 18th centuries were a period of growth and expansion of most empires. During this period France, Netherlands England, U.S.A was the main trading partners in the world.

Trade relations between Europe and Africa nations can be traced as far as the 21th century. In 2000, following the first Europe- Africa   summit held in Cairo, the trade relationship between Europe and Africa entered a new phase. Africa is Europe largest trading partner with trading item such as; oil, bananas, plywood, nuts and many others.

In Cameroon, trading between Cameroon and the U.K can be traced as far back as when Cameroon signed a bilateral trade with the United Kingdom .Cameroon has traded with U.K. as part of the EU for a long time now and on December 17, 2007, Cameroon and the European Union signed an Economic Partnership Agreement (EPA). This agreement set out the terms of trade between Cameroon and the EU and continues to binds the U.K during the transitional period (Article 26) which ended on December 31, 2020.

Under an Economic Partnership Agreement signed, Cameroon’s products such as; bananas, aluminum, processed cocoa product, plywood and other fresh transformed agricultural product can enter the E.U. (including the UK during the transitional period) duty-free and quota free. The U.K is the 5th biggest trading partner of Cameroon within the E.U. and 11th biggest trading partner of Cameroon in the world in the past five years according to Cameroon Trade Hub.

Cameroon has continued to rely on U.K. market to sell its products such as banana, cocoa, pepper etc. In 2019 alone, UN COMTRADE valued Cameroon UK trade as follows: Cameroon imported goods from UK with a total of $55,993,754 and re-exported goods U.K worth a total of $156,113. And still in same year according to report by BKP Economic Advisor, 13% of Cameroon bananas are shipped to U.K. The Economic Partnership Agreement signed between the two countries is said to benefit both as well be further investigated by the research.

1.2 Statement of Problem

This research seeks to assess the trade relation between Cameroon and U.K and it’s contributed to Cameroon’s economy. It is worth noting that Cameroon has been trading with other countries like; France, Italy, USA, UK and China for many decades. Even though Cameroon and France maintains a close friend relationship, the UK has been Cameroon’s 5th largest trading partner as of 2019 (UNCOMTRADE).

Trade plays a major role in Cameroon’s Vision of operation 2035 of becoming an emerging economy. In 2021, Cameroon was ranked number 86 economy in the world items of GDP, 121 total exports, 117 total imports, 147 economy in terms of GDP per capita income and 121 most complex economy according to the Economic Complexity Index (ECI). In 2019, Cameroon imported goods with 55,993,754dollar from UK and in 2020, Cameroon’s total export to UK ranked seven hundred and ninety one million Euro, In 2018, it export rate ranked US 26.33million dollar according to the United Nation COMTRADE data base on International Trade.

Despite the cautious optimism that Cameroon is emerging from its long period of economic hardship, the country still has a precarious trade imbalance with the U.K. The economic growth rate is hence negative resulting from unfavorable balance of trade between the two countries. The above problem raised is transformed into the following research questions.

1.3 Research Question

1. Why do states trade?
2. What is the impact of Cameroon’s trade with the U.K. on her Economy?
3. How can Cameroon’s trade with the U.K. be improved?