Business News of Wednesday, 12 September 2007

Source: Joseph Coomson

Govts should get involved in EPAs negotiations

The Economic Partnership Agreements (EPAs) negotiations between African Caribbean and Pacific (ACP) countries and the European Union (EU) have been heavily criticised for their lack of transparency, consultation, and informed debate. For many ACP countries, negotiations are largely the preserve of technical negotiators based in very weak regional institutions, where the EU often pays staff. In the West Africa Region, the regional negotiating structure of the Economic Community of West African States (ECOWAS) Secretariat is so weak that civil society and governments have expressed serious concerns about its management capabilities. EPAs are a scheme to create a free trade area (FTA) between the European Union and the ACP countries. They are a response to continuing criticism that the non-reciprocal and discriminating preferential trade agreements offered by the EU are incompatible with WTO rules.

A number of civil society organizations have expressed disappointment with ECOWAS Trade Ministers for not giving clear directions on how to deal with consequences of not being able to reach an EPA by the deadline, which is now generally admitted to be unrealistic.

They noted that a key part of the problem at the meeting was the unconstructive role played by elements within the ECOWAS Secretariat, which was supposed to serve as the secretariat of the meeting and form the negotiating bodies.

At the West Africa Ministerial Monitoring Committee of the EPA, Ministers admitted that it was difficult to conclude the negotiations by the original deadline of December this year contrary to the insistence of the EU. However, The ECOWAS Secretariat reported to the EU that the deadline of December 31st 2007 would be reached. It was even because of this that Nigeria took the opportunity to meet the European Commission (EC) in Brussels for the second time under ‘a special EPA package offered to Nigeria’ by the EC last weekend. Civil society cautioned Nigeria to be careful, as the meeting could be a double-edged sword.

In a draft communiqué of Civil Society Organizations (CSOs) from West Africa and Africa as a whole signed in Ghana last week condemned the European Union (EU) for abusing the December deadline to put unjustifiable pressure on African governments to concede to its terms in the ongoing negotiations in the Economic Partnership Agreements between the EU and African Caribbean and Pacific (ACP) countries. They cautioned African governments not to buy into the EU's false claims. The CSOs from several African countries meeting in Accra yesterday re-stated that Africa had everything to lose and nothing to gain by signing the EPAs with the European Union.

They said contrary to European Union claims, African countries did not need to sign the EPAs to maintain their current market access levels to the European market. Inter-Ministerial Committee of Ghana’s Ministry of Trade and Industry oversee all negotiations pertaining to the EPAs.

However, Mr. Tetteh Hormeku, Head of Programmes of the Third World Network an advocacy organization leading the campaign against EPAs describes it as almost dead. “That committee is almost dead. They don’t invite us to come and express our view for a national position on EPAs and what to do. The only time they talked to us when they brought the EU services paper and they asked us to comment on it,” he said.

He further said the institutional committee was not working and everything was centered in the Ministry.

“It is only civil society organization who by ourselves has established our own economic desk network which gives civil society voice in the struggle,” Mr. Hormeku said. The Former Deputy Minister of Trade and Industry, Mr. Affram Assiedu said the Ministry has been formulating negotiation positions but would only adopt the final negotiations of the EPA done by the ECOWAS Secretariat.

Most of impact assessment studies commissioned are incomplete.

According to a source at the Ministry, consultants working on the EPA study have cautioned Government against negotiating for the EPA because they are bad.

Furthermore, studies have been done by the Economic Commission for Africa, IMF and World Bank and especially on Kenya, which has same characteristics as Ghana.

Civil society has also done theirs called the GSP looking at Ghana. From that study and experience, they cautioned government against EPAs and opted for the General System of Preferences as stated in the Cotonou Agreement to which Government has not responded except by saying that “the EU has agreed and willing to be flexible” in the negotiations. Civil society stressed that African countries can adopt the General System of Preference plus (GSP+) which will enable African countries to continue to have access to EU market at levels similar to what they enjoy now, and even an improved one.

"The EU claim that only the EPAs can guarantee this continued access is totally false", said Mr. Tetteh Hormeku of Third World Network-Africa (TWN-Af).

He said signing onto the EPAs will trigger severe loss of jobs, threaten the peace of the continent and strangle Africa's right to evolve and pursue its own development agenda and lead to re-colonization of Africa by Europe.

Ghana’s Trade negotiator, Mr. Bera Wusi is also frustrated because EPA materials do not get to him on time from the sub regional secretariat for him to read and analyse. Sometimes the materials are all in French and he does not speak French. He sits in meetings held in French and has been denied an interpreter.

The structure is set up theoretically well but its workings and operations undermine his participation.

He does not get materials in advance to prepare and not timely translation. Even after taking decisions, the ECOWAS secretariat undermines it.

The secretariat is obliged to provide bilingual services but they are deliberately not doing it. The state should insist on their right.

Ghana has got more to lose than Niamey. The secretariat has nothing to lose. So Ghana, Nigeria and Cote d’Ivoire who are going to lose should insist on their right. Civil society sees structures for the negotiations at the regional level are usurping the mandates given to them by the Ministers. “On three occasions, Ministers gave them mandate and they changed them, Ministers wanted a three-year extension to the deadline but they colluded with the European Commission and changed it to December,” Mr. Hormeku told Business Chronicle in an interview in Accra.

He said Ministers wanted investments, competition and government procurement not included in the EPAs but ECOWAS Secretariat together with the EU included investment and competition. Frantic efforts are also being made to include procurement.

He was sad that the negotiation structures are undermining countries sovereignty because they are not taking the lead from their national governments. “Civil Society is not treated with respect. Even our own parliament is treated with disrespect what about us,” said Mr. Tetteh Hormeku of TWN.

Ghana’s private sector has been left completely from the negotiation even though it would bear the blunt of influx of European goods and services after the EPA is signed and ratified. Ken Ukaoha, President of the National Association of Nigerian Traders called on the private sector to stand up and be counted. The Association of Ghana Industries (AGI) and its President, Anthony Oteng Gyasi seems to have run out of steam after they started with vigour during the beginning of the negotiations. A source at AGI said they have relaxed because their views have not been taken on board.

According CSOs, the sub regional body is deliberately thwarting their effort at negotiating for a fair and balanced trade pact with the EU.

Among their request to the Ministers was a suspension of talks on the Economic Partnership Agreement to allow for grassroots consultations, cost benefit analysis of the pact, and the time lap for the implementation of the Agreement.

One important turn in the run up to the December 31st deadline is the involvement of political parties. The youth wings of political parties in Ghana called on the Ghanaian Parliament not to ratify the Economic Partnership Agreements (EPAs) if the ECOWAS Secretariat in its current state signs it.

In their conclusion after a debate, the youth wings of the New Patriotic Party (NPP), National Democratic Congress (NDC), People’s National Convention (NCP), Great Consolidated Party (GCPP), Convention People’s Party (CPP) and the Democratic Freedom Party (DFP) demanded an extension of the negotiation timetable beyond the deadline of 31st December.

They said while endorsing the decision of the ECOWAS Ministerial Monitoring Committee not to negotiate on the ‘Singapore Issues’, they urged them to stand firm by their decision. Their resolution further stressed that the ECOWAS Commission, that is negotiating on behalf of countries in West Africa should ensure a prolonged time frame for the liberalization process and to widen the scope of coverage of sensitive sectors and products with a review clause enshrined in the agreement.

As trade liberalization entails reduction and harmonization of tariffs and relaxation of quantitative barriers, it could stifle the domestic economy by killing the infant (or uncompetitive) industries, which will be exposed to unfair competition from their counterparts in the rest of the world. Trade liberalization, particularly in the agricultural sector, may have dire consequences for the liberalizing economy in terms of poverty and food security directly or indirectly.