BUDGET: Challenges remain on EPA

Accra, Nov. 15, GNA - Although the first phase of scheduled negotiations on the Economic Partnership Agreements (EPAs) between the European Union and African, Caribbean Pacific countries have been completed, some challenges are still outstanding and need to be resolved if the agreement is to present mutual benefits to both parties. The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, who was presenting the 2008 Budget to Parliament on Thursday said the position of ECOWAS on the matter was that EPAs should come into force by 1st January 2011 instead of the January 2008 as provided under the Cotonou Partnership Agreement.

He said the extension was deemed necessary to allow for further negotiations of the many outstanding issues including the strengthening of the regional integration process; implementing a region-wide Common External Tariff; implementing fully the ECOWAS ELTS; harmonizing tax and investment regimes in the Sub-Region; unresolved issue of market access; and liberalization of services and the absence of support measures through the establishment of an EPA regional funding mechanism. Mr Baah-Wiredu said energy continued to be one of the critical challenges to growth and development in the Sub-Region. To this end, ECOWAS (Economic Community of West African States) had been implementing some key energy programmes to ensure sustainable and affordable energy supplies to the Sub-Region and to mitigate the impact of the current crisis that the area faces, he said. These include the West African Gas Pipeline (WAGP); the West African Power Pool (WAPP) and the ECOWAS Initiative on Access to Energy Services.

Major construction activities with respect to the WAGP had been completed, he said, adding that deliveries were expected to begin as soon as some unforeseen technical difficulties that had cropped up had been resolved.

Mr Baah-Wiredu said priority projects under the WAPP were also at various stages of implementation in Ghana; Nigeria; Benin; Togo; Mali; Burkina Faso and Cote d'Ivoire.

The ECOWAS Commission was also supporting member States to build the necessary institutional framework, and formulate national energy access strategy and investment programmes for the implementation of the ECOWAS Initiative on Access to Energy. "When all these programmes and projects come on stream, West Africa will have sufficient energy in the medium term to achieve accelerated growth and development." Mr Baah-Wiredu said the West African Monetary Zone (WAMZ) region continued to maintain appropriate fiscal and monetary policies during the period under review.

"Half year convergence report of the West African Monetary Institute (WAMI) for the zone indicates that macroeconomic performance over the period has been broadly satisfactory. "Real GDP growth picked up modestly, with inflation pressures easing significantly despite unfavourable oil price trends. Marked improvements were also recorded in the external sector." Mr Baah-Wiredu said even though zone-wide real GDP growth was projected around 7.9 per cent in 2007 as against the 5.7 per cent real growth achieved in 2006,adding that preliminary data indicated that the zone was likely to achieve a slower growth rate. 15 Nov. 07