By Victor Ofuonye
Trade relations between The Gambia and Senegal have been historically significant, influenced by a shared border and cultural ties. The Gambia, lacking extensive natural resources, has traditionally relied on imports for essential goods, making it economically dependent on Senegal for various products, including food and consumer goods. This interdependence has fostered bilateral trade, with Senegal also seeing The Gambia as a crucial market for its exports.
However, recent developments have exacerbated tensions between the two nations. The introduction of new tariffs by Senegal on certain Gambian imports has raised concerns in The Gambia. These tariffs have not only escalated trade costs but also threatened the livelihoods of local businesses reliant on cross-border trade. The historical context of cooperation is increasingly overshadowed by these economic disputes.
Economic Disputes Leading to Tensions
Several key issues in trade agreements are contributing to rising tensions. Gambian officials have voiced their concerns over Senegal’s unilateral imposition of tariffs, arguing that it contravenes existing trade agreements. These taxes are perceived as protectionist measures aimed at shielding Senegalese industries, effectively disadvantaging Gambian products in the Senegalese market.
The impact of tariffs on local economies cannot be understated. Gambian traders have reported increased costs and reduced market access, making it challenging to sustain their businesses. This economic strain has prompted calls from the business community in The Gambia for government intervention.
In fact just last week, in one of our reports, the president of the Association of Gambian Manufacturers accused Senegal of stunting the growth of manufacturing in The Gambia through its anti ECOWAS and trade policies and border operations.
He averred that members of AGM do have the capacity to manufacture and make good use of the Gambia’s founding membership of the Economic Community of West African States (ECOWAS), but that Senegal, through its policies and border officials, makes it difficult for Gambia manufactured goods to get into the Senegalese market not to talk of passing through to other ECOWAS markets.
“We are suffering from this choking action of Senegal. My members have customers in Guinea Bissau, Mali, etc. but we cannot supply them, all because Senegal will oftentimes not allow our goods to pass through its territory,” he lamented.
He went further to point out the obvious imbalance of these trade restrictions by stating, “At most of our borders, it is a one-way blockade. Goods from The Gambia spend days at The Senegal side, whilst goods from Senegal to The Gambia are quickly cleared and allowed to proceed by same Senegalese officials,” he stated.
Traders argue that immediate action is necessary to negotiate better terms that would ensure fair trade practices and mitigate the adverse effects of tariffs.
Not too long ago, members of The Gambia Transport Union were involved in a spat with their Senegalese counterparts who GTU accused of blocking Gambian registered commercial vehicles from plying their trade in Senegal, whilst Senegalese registered commercial vehicles do so freely in The Gambia.
It took the invention of both well-meaning individuals and the government to assuage tempers. The Gambia in a seemingly retaliatory move, had upped the tariff on imported bags of cement. Analysts and industry watchers say this though in conformity with protecting infant industries in The Gambia, is another way of telling Senegal that two can play that game.
The business sector’s response has been mixed, with some advocating for a diplomatic approach while others are urging immediate retaliatory measures against Senegalese products. The uncertainty surrounding these trade dynamics is leading to increased apprehension among investors and local entrepreneurs alike.
Political Reactions and Public Sentiment
Government officials in both countries have made statements reflecting their respective positions on the trade tensions. The Gambian Minister of Trade emphasized the need for dialogue, urging Senegal to reconsider its tariff policies in light of the economic ramifications they impose on Gambian businesses.
Though members of the National Assembly of The Gambia recently visited Senegal to dilate on issues relating to access for Gambian goods on transit through Senegal, The Vice President, Dr Mohammed B.S Jallow, also visited Senegal and held similar discussions’
But all seems not to be well as conversely, Senegalese officials maintain that the tariffs are necessary for national economic interests, dismissing calls for reconsideration.
Public opinion on the trade tensions is deeply divided. Some Gambians feel that the government must take a firm stance against Senegal to protect local industries, while others express concerns about escalating hostilities. Social media has become a powerful tool in shaping public sentiment, with platforms venting grievances and rallying support for both pro-and anti-trade positions. Campaigns advocating for boycotts of Senegalese products have gained traction, reflecting a broader sentiment of nationalism and self-reliance among some segments of the Gambian population.
Potential Consequences of Continued Tensions
Should the trade tensions persist, the implications for regional stability could be significant. The Gambia and Senegal share economic and social ties that, if strained further, could lead to broader geopolitical repercussions within the West African region. Moreover, economic fallout for both countries could escalate if retaliatory trade measures are implemented, leading to reduced trade volumes and increased prices for consumers.
The prospects for resolution through diplomacy appear essential. Regional organizations, such as the Economic Community of West African States (ECOWAS), may have a pivotal role in mediating the dispute. Continued dialogue and compromise between the two nations will be crucial in restoring trade relations and mitigating the economic risks posed by tariffs. Both governments will need to navigate the delicate balance between protecting domestic interests and fostering regional cooperation.