Briefing on the Economic Partnership Agreement Christian Peters, Head of Macro-economic and Trade Section Delegation of the European Union to the Republic of Ghana 25 June 2015

 Free Trade is one of the cornerstones of the European Union: seen as essential tool to boost growth and prosperity in our MS  The Economic Partnership Agreement can bring similar gains to Ghana & West Africa  The EU is Ghana's top trading partner with a trade volume of 6.5 Billion EUR annually, taking half of Ghana's total exports (EUR 3 Billion)  EU is the largest investor in Ghana and the largest provider of ODA.  Paradigm shift towards more focus on Trade & Investment  The EPA is the key tool to accompany this paradigm shift. Economic Partnership Agreement (EPA) - Context

 The EU had granted trade preferences to Ghana and all ACP since the Lome convention signed in 1975  These trade preferences have not been successful in integrating ACP countries into the global economy. The proportion imports from ACP countries to the EU has dropped from 7% to 3% since 1975  Furthermore, preferences have been challenged at the WTO  The EPA seeks to address these challenges: A stable and predictable trade and economic partnership, compatible with WTO rules. Economic Partnership Agreement (EPA) - History

Facilitate and intensify trade between ECOWAS and EU Predictable long-term access to most important export market with 500 Million consumers Attracting investment and jobs, tech and skills transfer Promoting diversification and better integration into global value chains Promote reforms to improve business climate: modern tax system, transparency of public procurement, competition, customs rules, etc. EPA –Objectives

 Duty-free and quota-free access to the EU market for an unlimited period from day 1.  Asymmetric and gradual opening of the Ghanaian market to European goods: Ghana liberalizes 75% of its imports from the EU over 20 years, starting  Fully based on the ECOWAS CET, promotes regional integration  Combined fiscal effects of EPA and CET will preserve fiscal revenues for Ghana EPA Details (1/2)

 Liberalized imports from the EU are mainly goods which are not produced locally, notably inputs used by local industries.  Elimination of import tariffs can reduce the production costs of local companies and will also benefit Ghanaian consumers.  In order to protect sensitive sectors, ECOWAS has excluded a number of agricultural and non-agricultural products from liberalization : Chicken, tomatoes (prepared/preserved), sugar, cereals, flour, frozen fish, tobacco, cotton fabrics, soap, beer  In addition: bilateral safeguards measures, infant industry clause and food security clause EPA Details (2/2)

*No short cuts: There cannot be a compromise on safety standards; quality, SPS issues *No discrimination: The food law applies to all, locally made and imports and must be complied with. But,  One negotiation – 500 Mio consumers;  Fully harmonized import conditions for all food and feed, in-line with international standards;  Flexibility: Objectives must be met, not the letter of the law.  And assistance: Export HelpDesk Development cooperation, Aid for trade and Better Training for Safer Food (BTSF) The EU market Market access conditions are not easy, but …

…there is support to access the EU market: Export Helpdesk EU-Export Helpdesk is a free online service for businesses in developing countries that wish to export to the EU. The Helpdesk provides practical product and country specific information on: Documents needed to access EU markets Import duties, tariffs, excise duties involved Preferential arrangements (such as under the EPA) enjoyed by the country of origin (tariffs, quotas) Trade statistics

The EPA is development-oriented : Aid for Trade with the EPA Development Programme (EPA-DP): The EU & MS had pledged €6.5 Billion to the EPA-DP for , to be continued under the programming period and beyond. Aimed at supporting trade related assistance, infrastructure essential to trade development, institutional reforms (e.g. fiscal systems), capacity building of relevant stakeholders to facilitate the transition towards liberalization (examples to follow). Examples in Ghana: TRAQUE, EBO, EIB …EPA Development Programme

 We know that Governments cannot create sustainable jobs for the growing population West Africa.  Governments can however create the enabling environment for the private sector to operate in.  And that is where EU support to trade and investment and the EPA will play an important role.  Thanks for your kind attention …Conclusions