The decision to sign or not to sign the Economic Partnership Agreement (EPA) with the European Union (EU) has generated heated debates for some years now.

And with the October 1, 2016 deadline fast approaching, a research by GN Research, a subsidiary of Groupe Nduom (GN), on EPA benefits, indicate that many exporters to the European market are worried about extra-costs on their balance sheets and have threatened to relocate if government refuses to sign on.

The research points out that over the past few years, many micro, small and medium size enterprises have benefited from the Business Sector Advocacy Challenge (BUSAC) Fund whereas several government organisations like the Food and Drugs Authority (FDA), Ghana Standard Authority (GSA), Ghana Export Promotion Agency (GEPA) among others have received support from the EU.

According to the research, Ghanaian exporters enjoy some tariff reliefs to European markets which have increased the percentage of non-traditional exports (over 30%) to Europe drastically.

Broadly, the EPA, the research indicates was designed to encourage diversification and increase production capacities, development of intra-regional trade and facilitation of access to the global market, improvement and strengthening of trade-related national and regional infrastructures, realisation of indispensable adjustments and consideration of other trade-related needs.

That largely, according to the research, influenced the drafting of the Ghana National Export Strategy for the non-traditional sector scheduled to be implemented within 2012 to 2016.

Specifically, the research indicated that government targeted to grow the non-traditional exports sector to reach $5 billion by the end of 2016.

However, GN Research said latest statistics released by GEPA indicated that Ghana’s non-traditional exports has been growing at an average of 3% since 2012 and stood at just $2.51 billion by end of 2014.

Government national budgets since 2012, GN Research noted, have failed to consider pragmatic solutions to diversify the economy, promote exports or make us competitive on the global market.

“And thus, clearly, Ghana is not ready to benefit extensively from the EPA as productive capacity remains low, cost of production escalates, exporters struggle to meet quality standards and government fails to commit to long term productive strategy plans,” the GN Research stated.