The Minister for Trade and Industry, Alan Kyerematen, and Executive Vice-President and Commissioner for Trade for the European Union, Valdis Dombrovskis, have announced the implementation of the interim Economic Partnership Agreement (iEPA).
The agreement is between the European Union and Ghana and is scheduled to commence today, July 1, 2021.
In a joint statement by the duo, it explained that, the Agreement is crucial for developing and diversification of bilateral trade between the two parties
“It also creates better opportunities for EU companies to trade and invest in Ghana and produce goods for export to the wider African market under the preferences available under the African Continental Free Trade Area.”
Per the agreement, the EU market will accept goods from Ghana on the duty-free quota-free access policy. Also, the country will loosen access to its market for 80% of the total volume of EU exports.
“This is crucial for developing and diversification of our bilateral trade. It also creates better opportunities for EU companies to trade and invest in Ghana and produce goods for export to the wider African market under the preferences available under the African Continental Free Trade Area.
“The removal of tariffs on intermediary goods and machinery from the EU under the iEPA will mean cheaper inputs for Ghanaian production. This will also make locally produced goods more competitive and support industrial development in Ghana and the country’s integration into global value chains.”
Reformation of revenue system
Additionally, the statement further revealed that trade-related development cooperation under the iEPA will facilitate reforms of the fiscal revenue system.
Similarly, it noted that the agreement will improve the business environment and promote the upgrading of the productive sectors in Ghana.
According to the release, trading under the iEPA reaffirms the deep interest of both Ghana and the EU. By this, the joint collaboration between the EU and Ghana seeks to strengthen longstanding trade and economic relationship.
“It also underscores their shared ambition to enhance relations between the EU and the Economic Community of West African States (ECOWAS) and African States more broadly”.
The interim Economic Partnership Agreement was signed by Ghana in December 2007, and ratified in 2016. However, the implementation of the tariff liberalisation schedule was delayed pursuant to technical adjustments agreed between the EU and Ghana.
The necessary rules of origin documents pertinent to trading including the certificates of origin and origin declarations have now been developed.
Also, the codes and systems are in place for the start of the effective implementation of tariff cuts for EU products entering Ghana.
Ratification of iEPA
In 2016, Ghana’s parliament ratified the Economic Partnership Agreement (EPA) between government and the European Union (EU). Government earlier signed onto the agreement (interim) but was awaiting ratification from Parliament.
The ratification of the agreement by Parliament led to the entry of a percentage of imports from Europe to Africa and vice versa, free of tariffs.
Prior to its ratification a number of business associations as well as civil society organizations kicked against the agreement. They argued that the deal will do more harm than good for the country.
Coordinator of the Third World Network, Dr. Yao Graham revealed that the EPA will not be beneficial for Ghana or West Africa.
He further explained that it will loss of jobs and other means of livelihood, in the manufacturing and other industrial sectors.
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