Akomea calls for more discussions on EPA

…as advocacy groups and Ministry officials disagree on the new EU trade agreement

Chairman of the Parliamentary Select Committee on Trade and Industry, Nana Akomea has called for more discussions and deliberations on the Economic Partnership Agreements (EPA), which has been rejected by some NGOs.

The NGO’s notably Oxfam and the Third World Network have held workshops and also openly stated their disagreements with the Ministry of Trade, Industry, PSD and PSI over the negotiations and proposed adoption of the new trade deal.

The new deal is being sponsored by the European Union to replace the existing regime, and they have threatened that the already low access to the EU markets could be further reduced if the countries fail to sign the new trade agreement by the end of 2007.

Nana Akomea, who is also MP for Okaikwei South and former Information Minister in a contribution at an Oxfam organized forum said as a country we should rather be worried about the threat being posed by the general Asian market.

His argument is that the European market already has a better share of African markets and will prefer that the country concentrates on how to deal with the influx of Asian goods.

Baba Tahiru of Oxfam Ghana says Ghanaians know very little about the EPA and advocated an educational campaign to get Ghanaians to understand and register their displeasure about the proposed trade agreement.

He also argued that the EPA will create a scenario where products coming from the industries will not be able to stand the cheap and free imports that will be coming from European countries. They will be entitled to 80% share of markets in all African, Caribbean and Pacific (ACP) countries in exchange for free access to their marketplace.

Mr. Tahiru called for the total rejection of the new agreement, insisting that future of the various countries would be bleak if it is signed.

Dr. Yao Graham of TWM asked the parliamentary committee on trade to show greater concern and interest in the EPA because trade remains one of the main factors to the attainment of our middle income status.

Tetteh Hormeku also of the TWN called on African governments not to be afraid of the intimidation by the EU because there would be no option apart from the EPA.

They EPA if signed Mr. Hormeku said will be costly for the economy and the people of Ghana because though a 100% access to the EU market has been promised, it is not certain if it will be delivered.

There is also the problem of removing tariffs on European goods under the EPA, and according to Mr. Hormeku that will result in a devastating loss of revenue and diversion of trade among others.

The TWM official is rather calling for the adoption of the Generalized System of Preferences-plus (GSP+) because it will provide all ACP countries with a high level of market access for their exports beyond the expiry of the Cotonou Preferences because ACP countries will meet the requirements of the GSP-plus.

Sae Berawusi, in charge of the Multilateral Regional and Bilateral Trade Division of the Ministry of Trade and Industry disagrees with Oxfam and TWN.

He told a forum in Accra that the EPA is a much more effective trade agreement that will enhance the opportunities of ACP countries in the EU market.

He further disagreed with claims by Mr. Hormeku that the opening of African markets by 80% will lead to a situation where local producers will be outplayed by their foreign counterparts. According to him, the issue of free trade products and our local market being affected is not a valid assertion because the negotiations have not been completed yet.

Mr. Berawusi also said that the GSP+ recommended by both TWN and Oxfam as an alternative to the EPA will not help. He said the GSP+ can be used by ACP countries during negotiating, but not a good substitute for the EPA.