ECOWAS gets tough on EU

...As Ghana comes under intense pressure to sign EPAs

The October 31 deadline granted ECOWAS to conclude a regional trade agreement with the EU will soon be due, with trade negotiators pointing out unequivocally that they cannot meet the current deadline because they are not satisfied with current provisions in the proposed agreement.

A meeting between ECOWAS and the EU in Brussels last month did not make any progress due to unresolved issues of market access, and the regional body appears to be firm in its decision after meetings in Lome and Abidjan.

Another of such meetings between ECOWAS trade negotiators and Civil Society Groups is scheduled for Abidjan on October 18 to 22, 2009, and Tetteh Hormeku, a trade expert at Third World Network (TWN) believes the team of negotiators will maintain their firm stance.

Mr Hormeku, who was himself on his way to the meeting observed with admiration how ECOWAS negotiators had taken a firm stand for what would be in the interest of the region.

He said as good negotiators, the team “is insisting on what terms will be in their favour rather than just sticking to deadlines,” and called on Ghanaian negotiators to learn from their example.

On arguments that ECOWAS might just be interested in protecting its current 0.5% community levy, Mr Hormeku remarked that the EU’s promise of 700million dollars in support assistance for 70 countries cannot in anyway compare with what the region can itself generate, stressing “It is important for the regional body to generate its own funds.”

ECOWAS had earlier in May pointed out that disagreements between it and the EU meant a June 30, 2009 deadline for concluding its comprehensive regional Economic Partnership Agreement (EPA) could not be met, for which reason the deadline was extended to October.

The European Union under the new trade arrangements is seeking to allow ACP countries, including those in the ECOWAS region, 100 per cent access to the EU market in return for a reciprocal 80 per cent access to their domestic markets.

But ECOWAS Commissioner for Trade and Industry, Alhaji Mohammed Daramy has maintained that based on the commission’s technical analysis, ECOWAS can afford only up to 65 per cent market access, but would be willing to go up to 70 per cent “at most" in return for a firm commitment by the EU to support EPA-related projects, mainly processing of primary products for value addition.

He told media men at the sidelines of a recent meeting of ECOWAS trade and industry experts in Abidjan that "West Africa is not negotiating for time… all we are saying is to add value to our primary resources in order to create employment for our people.”

Negotiations between the ECOWAS grouping and the EU have dragged with several postponements, compelling Ghana and Cote d'Ivoire to initial interim agreements that ensured trade between them and the West were not disrupted.

Cote d’Ivoire has however gone ahead to sign the stepping stone agreements it initialed, and increasing pressure is reported to have been mounted on Ghana to sign and ratify its own Economic Partnership Agreement (EPA).

…Ghana under pressure

A statement by Hannah Tetteh, Ghana’s trade minister in that past week that government could go ahead to sign the EPAs since the consequences of failing to enter into an agreement could be disastrous for several Ghanaian businesses in the export sector has made civil society conclude that Ghana might finally succumb to EU pressure ahead of a regional agreement.

In line with the minister’s assertion, Emmanuel Awuri, a trade expert at the Ministry of Trade and Industry at a recent training workshop on trade explained to the media that government aims at creating an agric based export led economy, and is pursuing a policy to process 50% of its cocoa with significant investments being attracted into the country.

He explained that Ghana’s failure to initial an interim EPA would have made this sector the first casualty.

He noted that what the country is negotiating currently is a goods only arrangement, with all other issues left in the hands of the regional body, ECOWAS.

Mr Hormeku explains that the Ghanaian Government has come under direct pressure from the European Commission, the British Government and other governments in Europe who are utilizing their Aid agencies to compel Ghana to sign the EPAs.

According to the trade expert, a few firms of European descent producing in the cocoa and banana export market in Ghana are also putting intense pressure on government to sign the EPAs for their own interest.

“These have argued that about 2000 jobs will be lost should government fail to sign the EPAs,” he said.

Even though government ought to consider the needs of all its citizens under the negotiations, Mr. Hormeku believes that “this is a choice between the export of a few bananas and thousands of jobs that will be lost if a number of local industries collapse from the eventual flooding of our markets should the EPAs be signed.”

Mr Hormeku further explains that, comparison of Ghana’s commitment under the interim EPA with those of other countries reveal that Ghana would be going for a worse deal.

Citing an instance, he said whilst Ghana has 15 years to liberalise 80% of its imports by 2022, liberalization in Kenya and other regions will not be complete until 2033.

“Ghana cannot sign the Interim Partnership Agreement (IEPA) as it stands now, without crucial changes”, Mr Hormeku remarked.

He said as the second largest economy in the region, Ghana cannot let down the region by going for a stand-alone agreement.

He indicated that Nigeria had always had a course for complaint as “we have opened up our markets indiscriminately; a situation that has caused our markets to be flooded by cheap imported goods to the detriment of our local industries.”

“Nigeria has fears, for example, that cheap poultry products coming through Ghana could collapse their local poultry industry just as it has happened to our country,” he remarked.

“We have much to loose from strained relations with Nigeria as most of our local industries producing such items as pharmaceutical products, furniture, and textiles, aluminum by-products and plastics have the West Africa region as their main market, of which Nigeria constitutes about 60%.

Ghana’s new government had said when it assumed office that it intended to study carefully the text of the Interim EPA initialed by its predecessors before continuing with negotiations.