afrol News, 13 December - After intense protests and controversy over the trade partnership agreement between the European Union and Africa Caribbean and Pacific countries, Ghana government decided to sign what is referred to as an interim Economic Partnership Agreement (EPA)-light with the European Commission.

The trade deal, which made Ghana the second after Cote d’Ivoire, would immediately eliminate tariffs on virtually all of the country’s exports to Europe and on 80% of imports from Europe over 15 years.

According to Joe Baidoe-Ansah, Ghana’s Minister of Trade, Ghana and Cote d’Ivoire [the world’s top two cocoa exporters] had taken the move to avoid disruptions to their exports after preferential trade terms expires at the end of 2007.

Ghana’s horticultural exporters have recently urged their government to sign the EPA-light in order to avert the possibility of losing out in business from January 1, 2008 - a situation that compelled civil society groups and other trade sector bodies to push the Kufuor government to subscribe to the Generalised Preference System.

The EPA-light is a partial arrangement that will ensure that exports of certain sensitive products to the EU markets are protected from higher tariffs while negotiations on the original text of the EPA continue.

It is a compromise proposal from the European Union to commit ACP countries to continuous trade relations. The current preferential agreement known as the Cotonou agreement expires by the end of 2007, but the EU is not at ease with the ECOWAS demands. It will not renew Cotonou agreement.

The EU wants to start implementing a new trade arrangement known as the EPA with the developing countries by January next year. The new deal will allow exports to the EC ‘duty-free-quota-free’ while the EU in turn enjoys similar preferences on its exports to the developing markets.

By S. Makalo in Accra, Ghana

© afrol News

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