Liberia is rich in natural resources. With its relatively large deposits of iron ore, diamonds and gold - and the suitability of the country’s soil to the production of key commercial crops, such as palm oil, cocoa, coffee and rubber- it comes as no surprise that Liberia’s exports are predominantly natural-resource dependent. Export volume of US$454,790,119.96 was recorded in 2013 and the figure is expected to rise in 2014 due to increased trade activities in the mining sector. Over the period rubber exports dropped sharply offset by increases in iron ore.
The major exports from Liberia are:
• Iron Ore
• Scrap Metal
• Cocoa beans
• Coffee beans
• Palm Oil
• Woods Chips
Liberia’s major trading partners are China, the European Union, the United States of America and Ivory Coast. Given its trading partners, Liberia intends to boost exports by benefiting from several duty free quota free arrangements.
Duty Free Arrangements
The Ministry of Commerce and Industry has a mandate to grow business, facilitate trade and improve the business environment. All trade activities are regulated by the Ministry. The Ministry of Commerce and Industry is the Designated Authority that facilitates duty free-quota free trade across borders in Liberia. Today, the Ministry has institutionalized duty free stamps for Europe, under the “Everything But Arms” Agreement, and China, under a Preferential Trade Agreement with LDCs.
The AGOA Toolkit: http://http://www.agoatoolkit.com/en/
Liberia benefits from AGOA and the Third Country Fabric Provision. Access to the US market has not been adequate for Liberia and Liberian SMEs. Market access has not been utilized due to lack of trade competitiveness and limited access to finance - critical inputs for business development. Hence, Liberia intends to “pitch” AGOA to potential investors to woo investments and partnership in potential sectors, such as, fabric and agriculture.
European Union: Everything, But Arms Agreement
As a Least Developing Country, Liberia benefits from the EU’s Everything But Arms Arrangement. That means, Liberia enjoys full duty free quota-free access to the EU for all its exports with the exception of arms and armaments. The European Union is one of Liberia’s three biggest trading partners. Liberia is a part of the regional negotiation with the EU on the Economic Partnership Agreement (EPA). The proposal would lead to trade reciprocality – and a liberalization of 70% of 5,899 tariff lines across each country in the region. When concluded, the EPA would present a more open trade front with the EU.
China Preferential Trade Arrangement with LDCs
See link below:
Liberia participates in China’s Preferential Trade Agreement with LDCs. Liberia signed a 95% duty free quota free agreement for exports to China, a market that is actively trading with many African countries. Liberia intends to model its nascent industries on the concept of active partnership and participation in the value chains of concessionaires and transnational corporations. In Liberia’s strive to achieve middle income status, trade with China could help boost local job creation and develop local business capacity in standards, etc. Liberia provides cheap labor and a young and dynamic workforce for SME growth and development. China is increasingly become Liberia’s prime trading partner.
|Sum of CIF Values|
|Country of Destination||Country Abbreviation||Total|
|Cote D' Ivoire||CI||23,695,656.82|
MATERIALS THAT WERE EXPORTED IN 2013
|China||Scrape Metal, Iron Ore, Cam Wood, Logs, Rubber Wood|
|France||Logs, Iron Ore, Rubber, Processed Rubber, Coffee Beans|
|Spain||Iron Ore, Cocoa Beans|
|Germany||Logs, Iron Ore|
|Belgium||Rubber, Processed Rubber, Re-export (equipments0 Scrap Metal|
|USA||Rubber, Palm Oil, Barite, Processed Rubber, Rubber Wood Chips, Rubber Latex, Soil Sample, Re-export (Diplomatic Goods), Cocoa Beans|
|Luxembourg||Iron Ore, Palm Oil|
|Cote D' Ivoire||Oil Sample, Re-export (mining Equipments, X-Ray Machine) Processed Rubber, Assorted Uncle Sam Rice, Assorted Fish|
|Netherlands||Rubber, Cocoa Beans, Coffee Beans Robusta Coffee, Cam Wood, Re-export (mining Equipments, Anesthesia Machine)|