The_Open_Door_deel1

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(5) The vulnerability which is the result of a too heavy concentration
on few products in a country's exports became
apparent in the second half of the 1970's. The economic
recession of these years had an adverse effect on the
balance-of-trade (see above) but also on the growth of
the Gross Domestic Product (see the next section).
(6) When excluding "Re-exports", at least 97 percent of Liberia's
exports consisted of raw materials during the
1960 - 1979 period here considered. In 1978 and 1979
"Sawn Timber" and "Other Domestic Exports" represented
2.8 and 2.9 percent, respectively, of all exports. In
other years this figure was even lower. It should be
noted, however, that "Other Domestic Exports" also include
a number of unspecified raw materials.
(7) In 1976 the Federal Republic of Germany took the place of
the U.S.A. as the major market for Liberian products.
Thus, the F,R»G. regained the position it had lost in
1935 (see above). The U.S.A., however, remained Liberia's
single major trading partner although their share in Liberia's
international trade dropped from about 40 percent
(1960) to 20 percent (1979)= As early as 1965 the E.E.C.
constituted a more important export market than the U.S.A.
although in that year the U.S.A. was still a more important
trading partner than the E.E.C. By 1970, however, this
had changed. The E.E.C. absorbed more than 58 percent of
the Liberian exports (the U.S.A. "only" 31 percent) in that
year. The main reason for this phenomenon was the increased
iron ore export to the European market, partly as a result
of the increasing production and export by the Bong Mining
Company, and partly owing to an (overall) increase in the
price of iron ore. Also in 1970, the E.E.C. had taken the
place of the U.S.A. as Liberia's main trading partner. Almost
half of Liberia's trade took place with the European
Common Market, and trade with the U.S.A. represented nearly
one fourth of total trade. This tendency became even
more marked and firm during the 1970's. On the average more
than 60 percent of Liberia's exports were sold in E.E.C.member
countries whereas one third of Liberia's imports
originated from the same countries. This explains the interest
Liberia had in joining the Convention of Lome, the
agreement concluded between the E.E.C. and the so-called
A.C.P. countries. This latter group embraces countries in
Africa, the Caribbean, and in the Pacific. In general they
have in common: (i) a history of being colonised by a European
country, and (ii) strong commercial relations with the
E.E.C., and in particular with the former colonising power.
(9) In 1975 Liberia together with other West African countries
established the Economic Community of West African States
(ECOWAS). AS can be seen from Annex 43» trade with other
ECOWAS members is of little importance to the Liberian
economy, representing only about 2 percent of its total
trade. The same applies to Sierra Leone which in 1973 with
Liberia formed the Mano River Union, a customs union. Trade