Government has strongly rejected suggestions of probable collapse of local industries as a result of the interim Economic Partnership Agreement. 

The pact formally kicked off from July 1, 2021 and will now allow EU countries to export to Ghana on duty free and quota free basis. 

There are however concerns that Ghana may end up being the dumping ground for goods from the EU, a development that will not be good for local industries.

But Deputy Minister of Trade Herbet Krapa tell Joy Business Ghana stands to even benefit more from the deal than the EU.

“Apart from it being the Economic Partnership Agreement in terms of trade, it offers Ghana the opportunity to take advantage of development assistance which is being provided by the EU. The projection in terms of revenue is being estimated at 1.0% in terms of revenue losses over the period.”

“But if you juxtapose that with the benefit that we are going to acquire from this agreement - in terms of how much we are enjoying exporting into the UK - the statistics show that between 2016 and now, the export into the EU has increased significantly because of the tariff reduction”, he added.

The Deputy Trade Minister said the country’s strategy going forward is to attract more foreign direct investments.

“We are going to attract more foreign direct investments; the free zones enclave is going to expand and more jobs will be created. The thing about import beauty I think if people are aware that the projection is that only about 1.0% revenue losses in terms of that will be occasioned.    

EU set up fund to assist Ghana in case of negative effect of iEPA

The EU has also set up a fund to assist various sectors of the economy that will be affected as a result of this pact.

The removal tariffs will also be gradually staggered over the next 10 years to reduce any shocks on the economy.

EU and Ghana sign iEPA

Executive Vice-President and Commissioner for Trade of the European Union, Valdis Dombrovskis and Alan Kyerematen, Minister for Trade and Industry of Ghana, signed the iEPA for their respective countries.

A statement said the move is crucial for developing and diversification of the bilateral trade of Ghana and the EU.

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.