ECOWAS SEEKS SPECIAL GRANT FOR EPA

Ministers of the Economic Community of West African States (ECOWAS) responsible for the negotiation of the Economic Partnership Agreements (EPA) with the European Union (EU) have called for a "binding and concrete commitment "of the EU to the request of a special fund to support the EPA Development Programme earlier put forward by ECOWAS Heads of State and Government .

The Abuja based ECOWAS Commission is reported to have issued a statement after a recent two day meeting of Trade and Finance Ministers in the region, held in Bamako (Mali), that only a development oriented EPA will protect the interest of member States and enable the region cope with the adjustment costs of the agreement consistent with the mandate of regional leaders.

EU funding for the EPA Development Programme for which West Africa has requested an initial 9 Billion Euros for the first five years and the modalities for liberalising the West African market under the EPA are among the contentious issues that have slowed down the negotiations that were launched in August 2005.

The Ministers who were meeting prior to the next round of negotiations scheduled for Brussels, may have offered to liberalize 70 per cent of its market over 25 years after a five-year moratorium while protecting the remaining 30 per cent since about 12 of its 15 member states are categorized as Least Developing Countries (LDC) and they rely substantially on customs revenue.

They frowned at the attempt by the EU to extend the existing non-execution clause in the Cotonou Partnership Agreement relating to member states' compliance with democracy and good governance requirements into the EPA, arguing that this was not only alien to a trade agreement such as the EPA but also inconsistent with the requirement of the World Trade Organization (WTO). They also insisted that "under no circumstance will there be a departure from the position that the political dialogue instruments contained in the Cotonou Agreement can be used in trade relations between the two regions.”

The Ministers called for greater involvement of the private sector in the negotiation process as they would ultimately bear the brunt when the free trade agreement between the two regions eventually comes into force.