Benin’s economic growth has accelerated over the last decade, averaging 5.1 percent per year, establishing the country as an emerging economy in the area. This growth can be attributed to its trade policies. Some of its trade agreements are discussed in this article
Cotonou Agreement
The Cotonou Agreement is a treaty between the European Union and the African, Caribbean, and Pacific Group of States (“ACP countries”). It was signed in June 2000 in Cotonou, Benin’s largest city, by 78 ACP members (excluding Cuba), as well as the European Union’s fifteen member states at the time. It was first implemented in 2003 and then amended in 2005 and 2010.
The Cotonou Agreement aims to reduce poverty and eventually eliminate it while also contributing to long-term growth and the gradual integration of ACP countries into the global economy. Through the International Criminal Court, the amended Cotonou Agreement also addresses the battle against impunity and the promotion of criminal justice.
Probably the most significant shift brought about by the Cotonou Agreement is in the area of trade cooperation. The EU has offered non-reciprocal trade privileges to ACP members since the First Lomé Convention in 1975. The Economic Partnership Agreements (EPAs), a new structure that went into force in 2008, replaced this system under the Cotonou Agreement. This new deal establishes reciprocal trade arrangements, which means that not only does the EU grant duty-free access to its markets to ACP goods, but the ACP countries also grant duty-free access to their markets to EU exports.
However, under the Cotonou principle of differentiation, not all ACP nations are required to open their markets to EU products after 2008.
The Least Developed Countries Group has the option of continuing cooperation under the Lomé Accords or under the “Everything But Arms” guideline.
Non-LDCs, on the other hand, can be transferred into the EU’s Generalized System of Preferences (GSP) or the Special Incentive Arrangement for Sustainable Development and Good Governance (GSP+) if they determine they are unable to enter into EPAs.
Germany and Benin Bilateral Relations
Since 1962, the Federal Republic of Germany has had continuous diplomatic ties with Benin, with a focus on development cooperation.
In Benin, German support is highly valued. Germany allocated roughly 60 million euros for bilateral projects from 2019 to 2020 during the intergovernmental negotiations in October 2019, in addition to the 19 million euros provided to Benin as part of global programs.
Bilateral cooperation is carried out following the 2018 National Development Plan. Decentralization and local development are the top three goals, followed by drinking water, water management, sanitation, solid waste management, food security, and agriculture. Agricultural development is critical for poverty reduction. Experts from Germany are advising the government on how to implement the national agricultural policy to ensure food security. Agricultural value-added chains (cotton, shea, cashew nuts, rice, and so on) are also being promoted throughout Benin.
Germany and Benin have a small trading relationship. In 2018, bilateral trade with Germany increased marginally. Benin ranked 154th in terms of export partners and 187th in terms of import partners for Germany, with 39.598 million euros in exports and 793,000 euros in imports.
Through a Norwegian subsidiary of Heidelberg Cement, Germany’s private sector owns a controlling stake in the local company CIMBENIN. Since 1984, DHL has been operating there as well.
Switzerland – Benin
Switzerland and Benin have a positive bilateral relationship that is primarily focused on development cooperation.
Switzerland and Benin have signed bilateral agreements on trade, investment protection, and technical collaboration since 1966, as well as agreements on air transport, technological cooperation, and the entry, residency, and return of persons since 1981. (2010).
On August 1, 1960, Benin declared independence, which was immediately recognized by Switzerland, and the two countries established diplomatic relations the next year. Bilateral relations with Benin are now handled by the Swiss embassy in Accra, Ghana.
Since Benin’s independence, Switzerland has collaborated on development projects with the country. After the two countries signed a formal framework agreement in 1981, cooperation intensified. Switzerland established a cooperation office in Cotonou in 1983.
Switzerland and Benin will commemorate 40 years of partnership in 2021.
Benin was a French colony from 1894 until 1975, when it became independent, and was known as the Republic of Dahomey.
Benin – China
The present and historical relationship between Benin and the People’s Republic of China is referred to as Benin-China relations. In November 1964, the two countries established formal relations for the first time. Benin recognized the Republic of China (Taiwan) in January 1966 and severed ties with the People’s Republic. Benin and the People’s Republic of China resumed diplomatic ties in 1972, during the reign of Mathieu Kérékou in Benin. Benin and PR China exchanged high-level visits regularly, with Kérékou visiting Beijing in 1976, 1986, and 1998. The focus of the relationship has been on business development. Benin has backed the One China Policy of the People’s Republic of China since 1972.
China has supported Benin in the construction of a hospital in Lokossa and the Cotonou Friendship Stadium, among other public works projects. A 160 million yuan grant for the construction of an overpass in Cotonou, as well as the construction of an Economy and Trade Development Center, is among the most recent Chinese development loans to Benin. The center was completed in 2009 at 50 million yuan by Zhejiang Tianshi International Economic and Technological Cooperation Co.
