….But CSOs kick against the deal
By: Fred Yaw Sarpong
Ghana and other member
countries within the Economic Community for West Africa State (ECOWAS) region
are to consider the signing of Economic Partnership Agreement (EPA) with the
European Union by October 1, 2014.
Ghana, as a sole country
concluded an Interim Economic Partnership Agreement (IEPA) with the EU in
December, 2007. Even though Ghana initialed the IEPA but it has not yet signed.
It is also noted that the regional EPA will supersede the IEPA when signed.
However, a large number of
Civil Society Organizations (CSOs) and other relevant bodies in the country
have kicked against, and have called on the government not to part of the
Economic Community of West Africa State (ECOWAS) decision to sign the Economic
Partnership Agreement (EPA) with the European Union (EU).
According to the CSOs if
government signs the agreement it will guarantees free access to 75% of West
Africa’s market in exchange for total EU products.
They argued that opening up of
key goods markets in West Africa to duty free and quota-free EU access will destroy
the already weak manufacturing sector of the sub-region.
The CSOs made this call at the
National Forum on the Economic Partnership Agreement held in Accra last week.
The forum was organized by the Ministry of Trade and Industry. The purpose of
the forum was to seek views EPA agreement from CSOs.
They include Association of
Ghana Industries (AGI), Third World Network/ Economic Justice Network, Trade
Union Congress (TUC), Ghana Agriculture Workers Union (GAWU), FAGE, ISSER and
among others.
They believe that signing the
EPA is likely to result in crowding out and eventual collapse of manufacturing
in Ghana, which has over 95% of its exports to the EU market being primarily
raw materials, as well as other countries in the sub-region.
‘The signing of the deal
effectively makes Europe a member of ECOWAS and gravely undermines any
meaningful South-South cooperation and integrated developmental regionalism in
Africa’.
The stated that Ghana stands to
lose import-duty revenue worth US$88.6 million annually up to 2022 if it signs
the EPA, under which the 15 participating countries of ECOWAS will open their
markets gradually.
‘EPA cannot guarantee mutual and
equitable benefits between the EU, ECOWAS and African trading partners but will
contribute to a more free world,’ they added.
However, individual companies
and some CSOs rooted for the signing of the EPA. They include Carghil Ghana
Limited, IMANI, Blue Skies, Sea Freight Exporters Association, Tuna Exporters,
Food Processors International, Golden Exotic and among others.
These companies also argued
that they export almost about 90% of their finish products to the EU market and
failing to sign the EPA will killed their businesses. According to them they
employ a large number of Ghanaians and the EU market is their main source of
revenue.
Mr. Tetteh Homeku Adjei of Economic
Justice Network (EJN) told Daily Express that they expect the sector ministry
to extensive cost benefit analysis on the EPA deal, so that both parties can
study and take final decision. But he was quick to add that, ‘the ministry has
failed us.’
The Minister of Foreign
Affairs, Madam Hannah Tetteh told the gathering that it is very important to
take into consideration the Ghanaian companies who mainly depend on the EU
market.
‘We cannot choose to fail the
majority of manufacturing companies in Ghana who export the majority of their
finished products to the EU market, adding that there is no manufacturer in
Ghana who sole depend on local raw materials,’ she stated.
She noted that the reason why
ECOWAS has delay in signing the EPA was as a result of different tariffs among
the member countries.
She announced that in order to
have a uniform tariff among the member countries, they have agreed to introduce
Common External Tariff (CET) that will allow them meet the EPA deal.
Hon. Haruna Iddrisu, the
Minister of Trade and Industry said in the interest of regional integration and
to continue to enjoy market access for its export to EU, Ghana will be guided
by the collective position of the ECOWAS
in conformity with the regions common goal.
He said that the West Africa-
EU EPA will be well managed to ensure inclusive economic growth and development
for Ghana, if it is signed before 1st October, 2014.
‘It is noteworthy that among
the 16 West African countries, 12 are Least Developed Countries (LDCs) while
four namely, Cote D’ Ivoire, Nigeria, Cape Verde and Ghana are developing
countries. The 12 LDCs in ECOWAS are already operating under everything but arms
(EBA) and therefore will not be affected if they do not sign the West Africa-
EU, EPA. Out of the four developing countries, Cote D’ Ivoire has already
signed an IEPA with the EU and therefore not experience export disruptions to
the EU even iof the West Africa-EU EPA
is not signed before 1st October, 2014,’ said Hon. Iddrisu.
He emphasized that with respect
to Nigeria, about 97% of its export to the EU is made up of crude oil. Nigeria
will therefore not be affected much if it does not sign the West Africa- EU
EPA. Cape Verde is on the other hand has expressed its willingness to sign the
agreement.
The ECOWAS, at its recent 44th
meeting of the Heads of States and Government at Yamoussoukro in Cote D’Ivoire,
failed to sign the controversial Economic Partnership Agreement with the
European Union (EU), owing to some technical concerns raised by Nigeria and
some member states.
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