Ghana is among 34 African countries whose exports, with the exception of poultry and diary will enter the Canadian market duty-free and quota-free effective January 1, 2003

The G8 Summit Media Room announced the new Canadian initiative on Tuesday, December 10. The decision means that all eligible imports from these countries will be assessed at a tariff rate of zero, and all quotas on eligible products will be eliminated. According to the release the Canadian government decision follows consultations with interested parties in Canada between March and May of this year.

Already Ghanaian apparels and traditional artifacts are enjoying good patronage on the North America market. What remains to be done is good packaging to meet international standards.

"This initiative responds to African countriess wish, as expresed in the NEPAD, to expand markets for their products by gaining improved access to foreign markets. With 13 per cent of the world's population, African countries currently accounts for only two per cent of international trade", said the statement.

Through the Africa Plan, G8 countries have agreed to work toward duty-free and quota-free access for LDCs. Research has shown that trade can be a powerful engine of growth and poverty reduction in developing countries as it generates foreign exchanges, attracts foreign investment, creates jobs and improves competitiveness.

About half of Canada's imports from LDCs are currently subject to duties or tariffs, which average 19 per cent. Total imports from LDCs represent only 0.1 per cent of all Canadian imports and are valued at about $300 million a year. Major imports include apparel, food and crude oil.

LDCs are designated according to specific United Nations criteria and represent about 10 per cent of the world population or 614 million people in the world's poorest countries.

The release said Canada would announce further details on this initiative in the near future. Measures will be put in place to ensure adequate monitoring and enforcement of the new market access for LDCs, and enhance the international competitiveness of the Canadian apparel and textile industries.

In addition Canada says it will contribute $100 million over three years to create an African investment fund to provide risk capital for private investments in Africa that generate growth. The fund will operate in cornmercially viable and self-sustainable manner and is expected to be financing projects in Africa within the next year.

The Department of Foreign Affairs and International Trade will initially lead the process to establish the fund, ensuring adequate accountability and management of Canada's investment.

There will be an open and transparent process and clear criteria to select a qualified fund manager to direct the fund's activities and to leverage additional resources from the private sector and international financial institutions, says the release.