GHANA TO RE-ENGAGE EU ON EPAs

Ebenezer Hanson


The Minister of Trade and Industry (MOTI), Ms. Hannah Tetteh has revealed that government intends to re-engage the European Union(EU); as part of a process of consultation with both internal and external stakeholders on what to do with the Economic Partnership Agreement(EPA).

She said in furtherance of the engagement plan, President John Evans Atta Mills has written to the Prime Minister of the Czech Republic, who is the current EU Chairman inviting EU heads of government and ECOWAS member states to a meeting to discuss the outstanding concerns of the EPA.

In an exclusive interview with Public Agenda on Thursday, Ms. Tetteh further revealed that prior to meeting with the EU, a forum under the auspices of the MOTI would be organised by the end of the month for all local stakeholders to express their concerns on the subject particularly the light EPA that was signed by the Kufuor administration.

“ Before the government took over a lot of concerns were raised on the EPAs, thus an opportunity would be offered for these concerns to be addressed. We want to hear the pros and cons from the stakeholders and the proposals they have on the changes to the initial EPA if any.”

After this forum, she said, the concerns of the stakeholders would be presented to Cabinet for inputs of colleague Ministers, following which the government will take a position to guide iton its re-engagement with the EU.

Ms. Tetteh says the EU have indicated that they want the EPAs signed by June. “But whether Government would accede to this request or not would depend on the outcomes of the consultations. But we will ensure that the EPA is mutually acceptable to all stakeholders”.

She explained that the EPA has implications for both traditional and non traditional products such as poultry, pineapple and cocoa, whether Ghana signs unto it or not .“The issue therefore is not whether to have EPA or not, but to ensure that it works to our advantage and if there are negative consequences, they are reduced to the barest minimum.”

According to her, if the ultimate document turns out to be against our interest, Ghana will get development assistance from the EU to counteract the negative effects to ensure that they reduced to the bares minimum”, he explained.

“ We will negotiate to ensure a balance that will be in the interest of Ghana as whole,” she stressed.

In December 2007 when the EPAs came up for debate in Parliament, the Member of Parliament for Kumawu, Hon. Yaw Baah, made some startling revelations that the EPAs would have adverse impact on West African countries particularly Ghana and Cote d’Ivoire.
According to him, under the EPAs, Ghana, Nigeria and Cote d’Ivoire considered as the three non-Least Developed Countries (LDC) among the ECOWAS countries would not enjoy preferential treatment status granted to other ECOWAS countries and risk losing out under the new trade arrangement.
He thought that Nigeria now predominantly an oil economy would escape the imminent danger that would befall the largely agro-based products of Ghana and Cote d’Ivoire.
“It is the economies of the three that will be badly hit. Nigeria’s economy is no longer agro-based since it is more than 95% petroleum based. In the circumstance it is quite clear that it is Ghana, Cote d’Ivoire and to a little extent, Cape Verde, which are at the greatest risk," he argued.
In 2007 after intense protests and controversy over the trade partnership agreement between the European Union and Africa, Caribbean and Pacific countries, the Ghana government decided to sign what is referred to as an interim Economic Partnership Agreement (EPA)-light with the European Commission.
The trade deal, which made Ghana the second after Cote d’Ivoire was supposed to eliminate tariffs on virtually all of the country’s exports to Europe and on 80% of imports from Europe over 15 years.
According to Hon. Joe Baidoe-Ansah, then Minister for Trade and Industry Ghana and Cote d’Ivoire-the world’s top two cocoa exporters- had taken the move to avoid disruptions to their exports after preferential trade terms expired at the end of 2007.
Ghana’s horticultural exporters urged the government to sign the EPA-light in order to avert the possibility of losing out in business from January 1, 2008 - a situation that compelled civil society groups and other trade sector bodies to push the New Patriotic Party administration to subscribe to the Generalised Preference System (GPS).
The EPA-light is a partial arrangement that ensures that exports of certain sensitive products to the EU markets are protected from higher tariffs, while negotiations on the original text of the EPA continue. It was a compromised proposal from the EU to commit ACP countries to continue trade relations.
The trade regime of non-reciprocal preferences granted by the EU to the African, Caribbean and Pacific countries (ACP) for the past 25 years under the Lome Convention ended December 31, 2007.
ACP’s percentage of world trade dropped from 6.7% in 1975 to 2.5% in 2000. By 2006 there had been further down sliding such that by end of that year the percentage had plummeted to a mere 2.2%.
Hon. Baah stressed, "It was important for the EU to acknowledge that development is at the core of the Cotonou Agreement and EPA, and should not be artificially de-linked from trade issues by being negotiated at different stages." " Specific commitments are required by the EC particularly in respect of EPA support measures and programmes, additional funding earmarked for adjustment costs and their various sources of fund."
The MP for Akim Abuakwa North, Hon. Joseph Boakye Danquah Adu, was of the view that if Ghana had not signed the EPA-light the country’s non-traditional exports would have suffered adversely after December 31, 2007 since there would have disruptions in exports.
The MP for Wa West, Hon. Joseph Yieleh Chireh observed that in Ghana, consultations on the EPA had not been extensive and key players involved were even divided as to the stance government should adopt.
"Exporters do not know what will be the fate of their products and the Association of Ghana Industries (AGI) are also apprehensive about their products at home," he said.
He called on the government to be vigilant regarding the EPA-light in that "although the EU claims that it will open its market from January 1, 2008 it will insist on quality and standards and this where we will have problems as a nation".