The fate over 5000 workers hangs in the balance as companies that export to the European market consider shutting down.

Their action will be influenced by threats from the European Union to impose high tariffs on exports from the country, if Ghana and other ECOWAS countries does not sign the Economic Partnership agreement by October.

Sources say the European Union is willing to allow goods from Ghana into their markets, if the country takes steps to sign the Interim Economic Partnership Agreement.   

JOY BUSINESS is learning that ECOWAS as a block is delaying in signing the Agreement because Nigeria does not want to initial the pack the pact.

The Economic Partnership Agreement will allow Ghanaian Exports enter the European Market quota free and duty free with the exception of rice and sugar.

Some of these firms in Ghana that are being affected by the delays in signing the agreement is affecting them badly.

Corporate Affairs Manager at Fruit Exporting Firm, Golden Exotic says the expected high tariffs on their exports could force them to close their companies.   

“For bananas the tariffs that we have to pay is 19.4 percent, we do not come anywhere close to those margins so if we have to pay such tariffs, we cannot exist.

“We will have to lay off workers and close the company. We are hoping it will not come to that but that is the problem we face,” he said.

He said given the processes and the way the tariffs are structured, where they are made to pay upfront, “no business can decide to do that for a period of time, maybe the first time you might pay but after a few months it is not possible to sustain that.”

Pioneer Food Cannery which is one of Major exporters of Tuna to the European Market say the delay is affecting their ability to attract fresh capital from its shareholders.

Managing Director, Nichol John Elizabeth said “Basically all the investments of the company is frozen, we have to think of a plan B because from November 2016, there is no way we can afford for our products to enter the EU market with a duty of 20.5 percent and we come nowhere close to functioning in the market with this margin.”

He said management has have embarked on some meetings to inform stakeholders ahead of time about any possible layoffs or closing down the company.