Negotiations on the Economic Partnership Agreement between West Africa and the European Community are being held to take the measures necessary to achieving a mutually beneficial agreement by the end of the October deadline, in conformity with the conclusions of previous meetings. The Economic Partnership Agreement (EPA) is a trade agreement between members of the African, Caribbean and Pacific group of states (ACP) on one hand, and the EU on the other. It is to replace the Cotonou Partnership Agreement (CPA) which was signed on June 23, 2000 between fifteen EU member-states and seventy-seven ACP states including Ghana. The Cotonou Agreement failed to achieve its main objective of diversification of ACP states' exports - members still export just a few basic products; improvement of competitiveness of ACP states' industries; and the overall growth of ACP states' economies. The overall objectives of the EPA are to strengthen regional integration of ACP states into the global economy, promoting sustainable development in ACP states and creating a development¬ friendly free-trade area compatible with World Trade Organisation (WTO) rules and improving the competiveness of ACP industries through capacity-building and upgrading of their productive sectors. The EPA was to replace the CPA in January 2008, but the EU and ECOWAS failed to sign the full EPA at the end of December, 2007. ECOWAS proposed that the two parties should continue negotiations till a consensus is reached, while maintaining its position to sign an EPA as a single custom territory. The EU, on the other hand, proposed that the parties should agree on a minimum agreement on market access for goods before consensus is reached called an interim EPA, which Ghana signed on December 13, 2007. The European Union and West African countries have agreed to conclude a regional agreement on trade in goods and development cooperation by October 2009. EU Trade Commissioner Catherine Ashton and Commissioner for Development and Humanitarian Aid Louis Michel met Presidents Chambas and Cisse of the two regional organizations, ECOWAS (Economic Community of West African States) and UEMOA (Union economique et monetaire ouest-africaine) and West African Ministers in Brussels. Both sides reaffirmed their commitment to moving forward the longer-term process to build a lasting partnership between the EU and West Africa. The agreement, to be reached by October 2009 with the whole West African region, will cover trade in goods, some trade rules and development cooperation, and will lay the foundation for a comprehensive agreement between the EU and West Africa. The "EPA Programme for Development" (PAPED) was identified as an essential pillar to boost competitiveness of the region, reduce adjustment costs of the EPA, and support regional integration. EU-West Africa bilateral trade was worth €43.6 billion in 2008, with more than half of this EU-Nigeria trade. The EU mainly exports industrial goods, in particular machinery (including electrical machinery, 23%), and vehicles (7%) to the region. Aside from oil from Nigeria (55% of West African exports), the region's main exports to the EU are cocoa (11 %), iron (8%) and rubber (6%). The Business & Financial Times reports that at least three meetings between the negotiating partners have been held between the previous deadlines of June, 2009 to date, with some outstanding issues still on the table. For instance, Ghana and Cote d'Ivoire do not mind liberalising their markets with the EU to a level of 80 percent, while the ECOWAS is advocating liberalisation of the market only to 60 percent over a period of 25 years with a moratorium of five years. Additionally, the proposed EU Development Fund of 9.5 billion Euros does not sit well with West Africa since it believes the amount is grossly inadequate and it is ignorant as to how the EU arrived at the figure as the total adjustment cost West African economies would have to face for assenting to the EPA. As at the time of going to press, B&FT could not reach Ghana's chief negotiator on the EPA process for comment as the deadline approaches, since he is out of town on official business. Source: B&FT