BUDGET: Trading with Europe

Accra, Nov. 15, GNA - Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, on Thursday said West Africa and the European Commission were looking for an interim arrangement to ensure that trade was not disrupted when the current trade waiver expired on December 31 2007.

Mr Baah-Wiredu explained that even though the Economic Partnership Agreements (EPAs) negotiations were expected to be concluded by 31st December 2007, it had been acknowledged by both sides that it was not possible given the outstanding work, which remained to be accomplished by West African countries.


The EPA is a proposed trade agreement by the European Union that advocates free trade with African, Caribbean and Pacific countries. The Finance Minister, who made the statement as part of the 2008 Budget Statement read to Parliament, pointed out that the negotiations could continue until both sides agreed on a true development-oriented EPA that would not cause economic dislocation in the Sub-Region. Mr Baah-Wiredu explained that the Economic Partnership Agreement with the European Union (EU) was to replace the existing non-reciprocal Cotonou Preferential Trade Regime under which about 97 per cent of the exports of the African Caribbean and Pacific (ACP) countries, including Ghana entered the EU duty-free.


He said the current regime was being implemented under a waiver, which would expire on 31st December 2007.


"Under the new regime, the West African countries and the other five ACP regions negotiating similar agreements with the EU are expected to also open their markets in an asymmetrical manner to EU exports over time."


Mr Baah-Wiredu said the when the EPA was finally signed it would be accompanied by EU-supported measures to accelerate West Africa's integration processes, upgrade industries and build productive capacity and competitiveness to enable West Africa to take full advantage of market access opportunities offered by the EU as well as integrate into the global economy.

Mr Baah-Wiredu, who also touched on the activities of the Export Development Investment Fund (EDIF), said the fund was geared towards increasing foreign exchange earnings through enhanced exports of non-traditional products.


An amount of GH=A216.5 million has been disbursed to 50 companies operating in various sectors of the economy.


He announced that the National Board for Small-Scale Industries (NBSSI) established eight additional Business Advisory Centres (BACs) in New Abirem; Nsakaw; Dambai; Bole; Goaso; Gwollu; Kedjebi and Saltpond to make business support services easily accessible to rural entrepreneurs.


The Business Improvement Programme (BIP), the Finance Minister noted, was also organized for 6,410 entrepreneurs and supported 100 micro and small enterprises to participate in international and national fairs under the EDIF programme.


In a bid to promote international trade the Ghana Export Promotion Council (GEPC) facilitated the participation of 35 companies and four products associations in the Ghana-South African Investment Forum. Mr Baah-Wiredu said GRATIS Foundation had designed a Jatrofa processing plant for bio-diesel production, four-ton palm oil expeller; a starch processing plant and a 2.5 cubic capacity movable bin for waste collection. The Foundation, he said, had also trained 60 youth in metal fabrication. The Minister said The President's Special Initiatives (PSI) programme trained 3,200 sewing operators at the Clothing Technology Centre in Accra and negotiated with two new investors in garment and textiles to operate in Ghana. The programme also rehabilitated sedimentation ponds, procured two bulldozers for farming operations to facilitate land clearing for registered cassava farmers at Ayensu Starch Company Limited at Awutu-Bawjiase. Two new cassava varieties with higher starch yield have been cultivated, he announced.