Ghana caught up in a dilemma as EU fixes EPA deadline

As the European Union's (EU) deadline for its trade partners to sign up on the Economic Partnership Agreement (EPA) approaches its final stages, Ghana is currently in a fix as to whether or not to sign the full agreement.

Ghana has already signed an interim agreement with the EU on the EPA since 2007 and had since not decided to go ahead with the agreement even though the EU had signed up free trade with other countries in the West Africa subregion.

With the EU finally setting deadline of October 2014 for all its trade partners in the Africa Caribbean Pacific (ACP) group to sign up to the agreement, Ghana is caught up in a dilemma.

The EPA is noted to have an important and powerful fiscal effect in terms of the revenue of governments of countries that sign up to the pact and prevents disruptions in trade flows.

However, speaking on the Super Morning Show on Joy FM, Tuesday, the Trade and Industry Minister, Haruna Iddrisu noted that there was need to take another look at the agreement as it forms a larger issue of Ghana's bilateral relationship with the EU.

To arrive at the decision Ghana would adopt regarding the final signing of the EPA, the Minister indicated that there would be a major stakeholder consultation in the country in the 1st quarter of 2014, where plans would be taken to improve the domestic competitiveness and make a way of compensating for whatever decision the EU may finally take.

Having signed an interim trade agreement with the EU, the minister disagreed with arguments that Ghana is breaking the front of ECOWAS, which is a common front for West African countries in the EPA.

He therefore suggested that the country increases its exports and re-direct its trade so as not to bear the heat of the EU decision. "Government will be advised on what would be of the best interest of Ghana", the Trade and Industry minister intimated.

According to Haruna Iddrisu, Ghana has conveyed to the EU, the economic implications the EPA would have on it if eventually signed as export taxes could undermine its revenues, which are key indicators for the development of the country.

Meanwhile, Programmes Officer of the Political Economy Unit of the Third World Network, Mr. Gyekye Tanoh noted on Super Morning Show that the EPA process is illogical and potentially divisive through its decision of giving different trade regimes to different countries.

He intimated that, the EU by its laws, have already taken out Ghana from the EPA and would not consider it on the October 2014 deadline provided.

According to him, the EPA provides the European market an integrated market than that of Ghana and the West African sub region, thereby giving an urge over Ghanaian producers and exports. He however, suggested that Ghana should protect its preferences by introducing tariffs on goods.