ECOWAS member-states urged to work towards free-trade area by the year 2000

Accra (Greater Accra), 23rd July 99 ?

An official of the Economic Community of West African States (ECOWAS) Secretariat warned in Accra on Thursday that the goal of establishing a free trade area by the year 2000 would only be on paper if member states do not redouble their efforts to achieve that goal.

Ms Eileen Iscandari, Principal Officer in charge of trade at the Secretariat, said in order to change this situation, an effective sensitisation campaign must be mounted throughout the region.

She was speaking at a two-day workshop organised by the Ministry of Trade and Industry (MOTI) in response to complaints by economic operators on the ECOWAS Trade Liberalisation Scheme (ETLS).

The scheme aims at facilitating free flow of goods and services, among other things, in the sub-region.

Participants include officials from Customs, Excise and Preventive Service, Immigration Service, Association of Ghana Industries, Ghana Chamber of Commerce, Ministry of Finance, Private Enterprise Foundation, Ministry of Foreign Affairs and Ghana Journalist Association.

Ms Iscandari noted that various policies have been introduced by member states to facilitate the free movement of persons, goods, services and capital. However, the success of these policies depend on the seriousness that members and various actors attach to their implementation.

"The promotion of intra-West African trade is so vital that the 16 heads of state and governments themselves have made it the focus of the entire regional integration process."

She noted that the main instrument adopted for this purpose is the ETLS which is supposed to have a bearing on the progressive establishment of the free trade zone and customs union for a common market.

"However, almost 10 years after the scheme's entry into force, it has made little or no impact on the intra-regional trade."

Ms Iscandari said the scheme has not been implemented faithfully as expected by all member states and called on them to redouble efforts towards achieving the goals.

"We need to develop and nurture economic integration as a powerful tool for the growth and development aspirations of our region."

Mr Peter Herman Peperah, Deputy Minister of Trade and Industry, said some of the rudimentary problems encountered by a number of operators include basic requirements like the completion of application forms.

This is aggravated by the fact that approvals are made by the Council of Ministers only once in a year.

"If an enterprise therefore has the misfortune of not qualifying for one reason or the other, the application has to wait for another year before it is re-submitted for consideration.

"This situation, I consider very frustrating and a disincentive for operators to register under the scheme."

Added to this is the fact that currently, the intra-ECOWAS trade is less than 10 per cent of global trade of member states and this does not augur well for the future of the sub-region.

Mr Peperah noted that individual countries are too fragile to stand on their own and would not be able to withstand the onslaught occasioned by fierce international competition.

He said irrespective of this, and the creation of the West African Monetary Union by West African Francophone countries, Ghana is still committed to the ideals of ECOWAS.

The Deputy Minister asked the business community to furnish MOTI with other problems associated with the implementation of the scheme for redress.

"The ministry will provide the necessary support for Ghanaian companies to penetrate the markets of our neighbouring countries."

GRi