Trade experts opt for liberal trade regime...reject EPA’s and opts for GSP
The Statesman, Ghana
Trade experts opt for liberal trade regime...reject EPA’s and opts for GSP
By Suleiman Mustapha
27 April 2007
Advocacy groups in the country have recommended to the country’s negotiating team in the new trade agreement with the European Union to opt for a more liberal trade pact known as the Generalised System of Preferences plus-scheme.
The group, which is made up of Third World Network and Oxfam, Ghana, has at various forums called for the rejection of the current trade talks, which will result in the implementation of the Economic Partnership Agreement between the European Union and the African, Caribbean, and Pacific Countries.
Head of Programmes at the Third World Network Africa Tetteh Hormeku who presented an Oxfam and TWN Africa report on the findings and recommendations of the effects of the Economic Partnership Agreement on the livelihood of Africans said the degree of market opening under EPA could have significant negative impact on rural livelihoods, current and future industries, and government revenue.
In an interaction with the Parliamentary Select Committee on Trade and officials of the Ministry of Trade, Industry and President"s Special Initiatives and the media, Mr Hormeku argued that under the GSP+ the EU could readily provide ACP countries including Ghana good market access for exports into 2008 at levels very similar to access under the Cotonou Agreement, in ways that are compatible with World Trade Organisation rules.
The GSP+ or ’Special Incentive Arrangement for Sustainable Development and Good Governance’ scheme provides preferential access that is substantially higher than GSP for countries implementing certain international standards in human and labour rights, environmental protection, the fight against drugs, and good governance. Currently, 15 developing countries, mainly in Latin America, are granted preferential access to the EU under this scheme.
At the moment, exports from ACP countries into the EU are governed by the Cotonou Preferences and by separate Commodity Protocols for sugar, bananas, beef and veal, and rum. GSP+ would provide a high level of coverage for ACP exports that currently utilise Cotonou Preferences.
In 88 percent of the cases where the standard-GSP applies higher tariffs than Cotonou, duty-free access is provided under the GSP+.
All ACP export that would face a tariff jump of 20 per cent or more in its ad valorem duty under the standard-GSP would receive duty-free treatment under GSP+. In the majority of cases where GSP-plus is not duty free, it offers the same level of access as Cotonou.
The study analysed the coverage of GSP-plus in detail for all the developing countries in the Eastern and Southern Africa and Economic Community of West African States negotiating blocs as well as Papua New Guinea - the largest economy in the Pacific region - the largest economy in the Pacific region.
Most significantly, the key export sectors of horticulture, fisheries, and wood, which are the sectors of greatest concern to many ACP countries, would have duty-free access into the EU market under GSP-plus.
"Admitting ACP countries into GSP-plus in 2007 would provide exporters and investors in these key export sectors the certainty they need to continue exports” he stressed.
This he said would take the excessive and undue time pressure off the EPA negotiations and enable ACP countries to continue negotiations beyond 2007 with zero or negligible interruption of current trade.
Mr Hormeku noted that ACP countries have a wide a wide range of options than the EU is suggesting “In the event that the ACP nations are not ready to sign by the end of the year, the EU could still provide them with a high level of market access, under the GSP-plus scheme, without breaching the WTO rules,” said Hormeku.
But the Multilateral, Regional and Bilateral Director at the Ministry of Trade, Industry and President’s Special Initiative L.Y Sae-Brawusi disagreed with the proposal saying that the GSP-plus is just a gift from the European Union, which could be taken anytime the European Commission feels like doing so.
Mr Sae-Brawusi is also among the country’s negotiators said the GSP-plus does not provide clarity for development purposes and so will be risky for the country to opt for the scheme.
Chairman of the Parliamentary Select Committee on Trade Nana Akomea proposed a dialogue with the trade experts and the Committee to address shortfalls in the country’s trade negotiations.
The European Commission has threatened some of the world’s poorest countries with lower access to the EU market if they fail to sign the new free trade deals known as the Economic Partnership Agreement by the end of 2007, when their current market preferences expire.
