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Tag: EPA

  • EPA is counter-productive, says ex-Tanzanian President

    EPA is counter-productive, says ex-Tanzanian President

    Former Tanzanian President Mr. Benjamin Mkapa has advised Nigeria to resist pressure to sign the Economic Partnership Agreement (EPA) with the European Union (EU) because, according to him, such contract is counterproductive.

    Mkapa sounded this warning as guest speaker at a forum organised by the Manufacturers Association of Nigeria (MAN). He warned the Nigerian Government and other African leaders not to touch EPA as he likened it to a poisoned chalice.

    He wondered how the continent can be asked to allow finished goods from advanced economies. He said such agreements are not in line with the aspirations of African countries.

    Mkapa noted that African leaders should imbibe home-grown solution to address some of the developmental needs facing the continent especially in industrialisation.

    He lamented a situation where African countries are encouraged to export primary products instead of adding value to them, which in turn are sent back to Africa as finished products at a higher cost. He said this can only be likened to modern day slavery.

    “We should not follow global trend but rather work on where we have comparative advantage. Unfortunately globalisation has made it almost impossible for national concept and value chain to prosper. African leaders must come to terms with what is good for their people and pursue it,” Mkapa said.

    He also advised that African leaders should desist from following the options presented by the Europeans, but rather look to China in terms of development and adaptation.

    He said adopting the Chinese model is not only cheaper, but can easily lead to technology transfer and faster development judging from the growth of the Chinese economy in a short space of time.

    Consequently, Mkapa encouraged African countries to “undertake some degree of industrialisation to add value to their agricultural and primary products and natural resources and ultimately increase government revenue.”

    MAN President, Dr. Frank Udemba Jacobs said his association sees the EU’s EPA suggestion supposedly ‘appetizing carrot’ as a dagger directed at the heart of Nigeria’s industrial sector.

    He explained that they have advised government that signing the agreement in its present form would impact negatively on local manufacturing and result in shutdown of industries with heavy job losses, because of the unfair competition that will evolve.

    “Nigeria’s manufacturers are obviously unimpressed by the promised EU package of about $9 billion to the 15 members of ECOWAS, over a five year period, as MAN estimates that the Nigerian treasury could lose over $1.3 trillion revenue from a significant reduction in import duties if the EPA is also endorsed in its present state,” Udemba said.

  • Why Nigeria should review stance on EPA

    •As EU douses tension of unfair rivalry

    The European Union (EU) has again urged the country to review its opposing stance on the Economic Partnership Agreements (EPA), stating that the opportunities of trade interaction were more than conceived apprehensions.

    Head of Trade and Economics Section, Delegation of EU to Nigeria, Mr. Filippo Amato, who spoke at the Lagos Chamber of Commerce and Industry (LCCI) Stakeholders Forum, said the agreement would not threaten domestic products but expand export windows.

    According to him, the pursuance of infrastructural development, capacity expansion for Small and Medium Enterprises (SMEs) and stability of interest rates should simultaneously run with achieving long- term stability in attracting foreign direct investment in, for instance, the  agricultural or textile value chain.

    On the sensitivity to domestic production, Amato said the agreement also respected protectionism of locally manufactured products, such that unhealthy competition would be deterred by exclusion.

    “This is an agreement not all about trade but development. It is a device to compliment the development corporation activities which EU has been carrying out in Nigeria by adding trade as tool to get our sectors on board to thrive development, growth and industrialisation of the region. It is in a way that Europe will open completely its market to any good coming from West Africa in terms of duties. On the other hand West Africa will remove duties only on the imports machinery, capital goods which are necessary to the local industry. We are leaving protection on the goods which local industries are able to produce. So basically all the agribusiness industry is going to be protected”.

    He reiterated the flexibility in the agreement noting in the event that something was not protected, there is a possibility to still protect the local industry and there is a review clause every five years that makes it possible to review everything.

    However, while the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) admitted that protectionism might hamper the quest to achieve a sustainable economy, the President Iyalode Alaba Lawson, insisted that certain sectors of the economy may be scuttled by global competition.

    Represented by a NACCIMA executive, Uzor Nwaije, she said: “Challenges facing the real sector such as poor infrastructure, high interest rates and a devalued currency make it difficult for the real sector to take full advantage of the EPA. It is therefore in view of the Association that the country’s infrastructure deficit challenge needs to be improved considerably as this will enhance productive capacity of the Organised Private sector.”

    The ECOWAS Commissioner, Laouali Chaibou said its main concern is to help manufacturers in the  region improve their production competitiveness while ensuring a greater influx of private investment into the ECOWAS union.

    He said: “These advantages offered by the EPA tend to make our region production the center for export to Europe. The integration of ECOWAS and Nigeria in the global value chains therefore involves the ability of this country to attract investments from all walks of life either to transform local raw materials or to semi-finished products elsewhere and the EPA is one of the ways to achieve this.”

    Meanwhile, Director General, LCCI Mr. Muda Yusuf believes that with proper assessment of the options, the country come to considerable conclusion that there are opportunities in other sectors besides manufacturing.

    “It is a very contentious matter particularly from the supply perspective. But I think it’s something that we need to discuss, to see if we can find a middle ground to be able to also allay the fears of the manufacturers. Those who are in non oil sector are also seeking opportunities in Europe but unfortunately it is weak for now.   There are strong arguments from both sides whether to sign or not.”

     

  • MAN cautions Fed Govt on EPA

    MAN cautions Fed Govt on EPA

    The Manufacturers Association of Nigeria (MAN) has again cautioned the Federal Government to be wary of the Economic Community of West African States (ECOWAS) – European Union (EU) Economic Partnership Agreement (EPA).
    Its Director–General, Mr. Segun Ajayi-Kadir said the Organised Private Sector (OPS) remained deeply concerned about agreement, arguing that EPA Market Access should be addressed before the country endorses the agreementthe way it was done before the take-off of the ECOWAS CET
    He said MAN’s position was to ensure that the nation is not used as a dumping ground for finished products from the EU.
    He said MAN had submitted a position paper at the inception of the current administration where it recommended strongly that EPA should not be signed in its present form. This he said is as a result of the inherent negative consequences it would have on local manufacturing in particular and the economy in general, especially in the areas of job creation, loss of investment and revenue to government.
    He said: “Nigeria, at various stages in the EPA negotiation process, voiced strong opposition to the agreement and raised concerns that it would lead to de-industrialisation as it is structured to limit the growth of manufacturing in West Africa, particularly in Nigeria. The implication of this is that our economy will remain a provider of raw materials and importer of finished products.”
    He also stressed that MAN’s concern is premised on the fact that from all parameters, West African states, including Nigeria, are not at the same level of economic development with any European country and therefore not in a position to conclude a reciprocal trade relationship as espoused in the trade agreement with EU.
    The MAN chief said based on the country’s national interest, the last and the current administrations took a decision not to join other West African states in endorsing the EPA in its present form as it is not development oriented but designed to turn Nigeria into a dumping ground for European products.
    He said the nation can ill-afford to rely on exporting raw commodities such as crude oil, natural gas, solid minerals and unprocessed agricultural products, urging on the need to break the circle and invoke deliberate efforts to industrialise our economy.
    He advised that government’s decision should henceforth be dictated by our national industrial aspiration to develop a virile manufacturing sector. He insisted that our national interest currently dictates that we should not sign the ECOWAS-EU EPA which is structured to destroy our industries both in the short and long run.

  • MAN, OPS reject EPA

    MAN, OPS reject EPA

    • EU: Nigeria can’t live in isolation

    THE Organised Private Sector (OPS) and Manufacturers Association of Nigeria (MAN) have rejected the appeal by the European Union (EU) to Nigeria to ratify the Economic Partnership Agreement (EPA), arguing that signing the agreement in its present form will hurt the manufacturing sector.

    However, the EU has continued its push for the ratification of the agreement, insisting that with globalisation, Nigeria cannot live in isolation.

    Speaking on the sideline of  a dialogue session on Nigeria International Trade Relations organised by the Lagos Chamber of Commerce & Industry (LCCI),  Head of  Trade & Economics at the  EU to Nigeria and West Africa, Fillippo Amato, said the OPS has nothing to fear as far  as EPA is concerned, as the EU has shown goodwill with the release of 12 million euro to support the enhancement of the National Quality Infrastructure,  to improve quality,  safety, integrity and marketability of Nigerian goods and services.

    Amato said smaller countries, such as Ghana, Rwanda, Gambia, Cameroun, Mauritania and the Southern African countries under SADEC have signed on.

    He said the EPA can diversify the economy, lead to the integration of the Nigerian economy into global trade and economic investment. As he put it: “The agreement is reciprocal but asymmetrical to market opening with flexible rules of origin. The country is already loosing so much by the rejection of beans and other product export into EU because of the presence of a pesticide known as dichlorvos which is harmful to health.”

    He said other countries that have taken advantage of the agreement and improved on the quality of their products, are enjoying the mutual benefit of international trade among countries. Furthermore, he said, the EU is working with the relevant agencies of government, such as  the Federal Ministry of Industry, Trade and Investment, United Nations Industrial Development Organisation (UNIDO), Standards Organisation of Nigeria (SON), National Agency for Food, Drugs and Administration and Control (NAFDAC),  Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Nigerian Export Promotion Council (NEPC), among others to ensure that relevant stakeholders are carried along.

    He said the EPA has a large number of safeguards to protect sensitive sectors, arguing that Nigeria will be better off with it.

    Experts have said that for over 50 years, Nigeria got away without proper standardisation, but that now, the nation cannot afford to live in isolation and must do the needful to meet international standards especially now that the country is looking towards diversification of the economy.

    MAN) President, Dr. Frank Jacobs, articulated his members’ position on the controversial deal. He said: “EPA will confine the Nigerian economy to a mere market extension of the EU since we cannot compete with Europe on all grounds. It is on this ground that we believe that Nigeria does not need EPA now until we have been adequately industrialised and able to trade industrial goods competitively.”

    He described EPA as a design to create free trade between the EU and Africa, Caribbean and Pacific (ACP) countries, adding that duties on goods imported and exported between the parties are reduced and eventually removed because of the agreement.

     

     

    He argued that Nigeria is mainly a commodity goods producing country with very limited capability to produce and export industrial goods.  He maintained that most of the industries in the country are undeveloped and are plagued by lack of supportive infrastructure. The production plans of industry players are constantly distorted by the interplay of macroeconomic variables such as inflation, exchange rate and interest rate variations, he added.

    To the manufacturers, although, EPA may appear to be a good course in the document proposal, it may be catastrophic if implemented as it will stifle the slowly recovering manufacturing sector in the country.

    He said the implementation could worsen the unemployment situation and the standard of living of the people.

    According to him, Nigerian manufacturers have nothing against free trade, it could be better done in a situation of equal economic development as any attempt to coerce the country into a free trade arrangement would only succeed in killing the fledging manufacturing sector.

    To him, the industrialisation goal of government, through the Nigerian Industrial Revolution Plan (NIRP) would be a mirage if EPA is embraced. Besides, they said it would increase social unrest and insecurity, due to surge in unemployment.

    Rather than EPA, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, said real sector operators have been concentrating on promoting competitiveness on a sustainable basis.

    He spoke of the need to put in place the right policies and infrastructure either in the context of EPA or ECOWAS to achieve this.

    Lagos State Commissioner for Commerce and Industry, Mr. Rotimi Ogunleye said the time to diversify is now so as to achieve a vibrant and virile economy to withstand external pressure. We need to adjust the various imbalances in our economy besides addressing the EPA challenges, he added.

  • MAN advises Fed Govt against EPA

     •Berates NSC’s introduction of ICTN levy 

    The Manufacturers Association of Nigeria (MAN) has advised the Federal Government against signing the European Union (EU) Economic Partnership Agreement (EPA), saying it runs against  the nation’s industrialisation objectives.

    Giving the advice, MAN President Dr. Frank Udemba Jacobs said  signing the agreement would heavily disadvantage local manufacturers and harm the economy.

    He said this was because the nation’s infrastructure is not developed and cannot compete with the developed economies’, or with their products because of differences in the operating environment and cost of funds.

    Jacobs, who spoke with The Nation in his Lagos office, gave instances of countries which closed their borders to imported items until they became self-sufficient in certain products. He listed the countries to include India, China, Britain and Malaysia. He, therefore, urged the  government to borrow a leaf from these countries.

    He also said the International Cargo Tracking Note (ICTN) levy reintroduced by the Nigerian Shippers’ Council (NSC) should be scrapped.

    Cargo tracking is a global initiative put in place to monitor and verify cargoes on transit. It is mandatory for all International Maritime Organisation (IMO) member-countries. In US, it is called 24-hour rule; in Europe it is known as EU Advanced Cargo Declaration; China, 24-hour Advanced Manifest Regulation, etc.

    The policy was first introduced in Nigeria in 2010 and implemented through the Nigeria Ports Authority (NPA). However, it was discarded by the Federal Government in 2013 on the request of the operators in the manufacturing sector due to additional cost to cargo clearances at the ports. However, attempts to re-introduce it has not gone down well with MAN

    In a related development, the MAN boss disclosed that the Standards Organisation of Nigeria (SON) has granted manufacturers a 25 per cent reduction on all administrative charges. He said the association recorded remarkable success in its collaboration with SON, the Nigeria Customs Service and the Federal Government.

    He added that SON had eased importation by issuing annual import permits to manufacturers while also exempting them from the mandatory SON Conformity Assessment Programme in respect of importation of spare parts, machinery, raw materials as well as packaging materials.

    Dr  Jacobs also said there had been improvement in the implementation processes of the Pre-Arrival Assessment Report (PAAR) in conjunction with the Nigeria Customs Service, as MAN members have been profiled for special clearance and admission to the Fast-Track system.

    He added: “A Conflict Resolution Committee has also been set up, made up of the Nigeria Customs and MAN officials to sort out and resolve any issue arising from PAAR  for those that had queries or were not satisfied with the valuation of their imports.

    “The NCS is also addressing the issue of high charges arising from arbitrary upliftment of the values of members’ imports. In fact, the Comptroller General of Customs ordered immediate release of members’ cargoes that were hitherto detained following our interventions.”

    He listed other achievements of the association as securing government’s position on a home-grown policy that promotes import substitution and patronage of made-in-Nigeria products; the partnership the association formed with strategic stakeholders on the maritime value chain to oppose the implementation of ICTN that would have further added to the cost profile of manufacturers.

    He added that the association also partnered relevant agencies to establish the MAN Centre for Entrepreneurial Development, an entrepreneurial academy for aspiring manufacturers.

  • Volkswagen to recall 500, 000 cars in U.S

    German carmaker Volkswagen has been ordered by United States regulators to recall half a million cars because of a device that disguises pollution levels.

    The “defeat device” allows cars to pass laboratory testing even though they actually emit 40 times the emissions standard, the BBC reports.

    The U.S Environmental Protection Agency (EPA) has been taking a more aggressive stance on car pollution and violations of the country’s Clean Air Act.

    The recall could cost the carmaker up to $18bn (£11.5bn).

    It affects 2009-2014 Jettas, Beetles, Audi A3s and Golfs and 2014-2015 Passats.

    “Using a defeat device in cars to evade clean air standards is illegal and a threat to public health,” said Cynthia Giles, assistant administrator for the Office of Enforcement and Compliance Assurance.

    The illegal system allowed cars to detect when they were undergoing smog emission test and lowered the rate of pollution. Those emission controls were then turned off during ordinary use.

    The state of California which assisted in the investigation has also issued a notice of violation to Volkswagen.

    In 2014 the EPA fined Korean automakers Hyundai Motor and Kia Motors $300m for misrepresenting the fuel economy in 1.2 million of their cars. That settlement is the highest to date.

     

     

  • Nigeria ‘ll lose N210tr to EPA, says MAN

    The President, Manufacturers Association of Nigeria (MAN), Dr Fran Jacobs has warned that signing the Economic Partnership Agreement (EPA) would cost Nigeria about N210 trillion ($1.3trillion).

    Speaking with The Nation, Jacobs said apart from this loss, EPA would have a negative effect on local manufacturing range from the shutdown of local industries and job losses due to unfair competition.

    He said this is because Nigeria is mainly a commodity-goods-producer country.

    He said: “The EPA is a reciprocal preferential trade agreement being promoted by the European Union (EU) to create a Free Trade Area (FTA) between the EU and the African, Caribbean and Pacific Group of States (ACP) through six regional economic communities into which the ACP is divided.

    “Signing the EPA in its present form, would cost Nigeria alone $1.3 trillion revenue losses from finished goods coming from the EU while the negative effects EPA would have on local manufacturing range from shutdown of local industries and job losses due to unfair competition.

    “Nigeria is mainly a commodity-goods-producer country and would trade same in an EPA free trade arrangement. It has very limited capability to produce and export industrial goods. Most of the industries in the country are undeveloped and are plagued by lack of supportive infrastructure. The production plans of industry players are constantly distorted by the interplay of macroeconomic variables such as inflation, exchange rate and interest rate variations.  EPA, therefore, may appear to be a good course in the document proposal but may be catastrophic if implemented, as it will stifle the slowly recovering manufacturing sector in the country.

    “This will therefore lead to untold hardship to the country as the unemployment situation and the standard of living of the people will worsen. EPA will also confine the Nigerian economy to a mere market extension of the EU since we cannot compete with Europe on all grounds. It is on these grounds that we believe that Nigeria does not need EPA now until it has been adequately industrialized and be able to trade industrial goods competitively.

    Moreover, after 30 years of preferential market access, the ACP countries still export just a few basic commodities to the EU.  At the same time, the ACP share of the EU market is steadily declining.  The existing trade preferences have not had the intended effect of helping the ACP countries diversify their economies into higher value products. Today, the ACP countries attract only a small portion of the world’s foreign direct Investment.

    “Nigerian manufacturers are not averse to free trade cooperation but such should be better done in a situation of equal economic development. Any attempt to coerce the country into a free trade arrangement will only succeed in killing the fledging manufacturing sector which has just started to recover from a long period of comatose.”

    Jacobs said manufacturers  have serious constraints, which will make their products uncompetitive not only in the European countries but globally.

    He added that Nigeria, as a commodity-goods-producer country, can only export agricultural products to Europe while Europe will export industrial goods such as machinery and so on, which Nigeria lacks the capacity and capability to produce. Consequent upon the above challenges are also constantly distorting interplay of macroeconomic variables such as inflation, exchange rate and interest rate variations.

    “EPA will stifle existing manufacturing industries as they will be uncompetitive as cheaper finished products from European countries will flood Nigerian markets. The ECOWAS region, especially Nigeria which is more industrialized, will witness unbridled importation which will lead to accelerated shut down of the few surviving industries in the region. This will further de-industrialize the region and would have catastrophic implications on employment generation thereby worsening the poverty situation in the region.

    “The various initiatives to develop input materials locally will be killed as the EU, being the world largest producers of industrial chemicals, steel, etc will have a more competitive edge,” Jacobs said.

    Recently, the EU offered a 6.5billion Euro (about $8.94 billion) package over the next five years (2015-2019) to Economic Community of West African Countries (ECOWAS) under the EPA Development Programme. The ultimate objective of the EPA is that ECOWAS would open up 75 per cent of its markets, with its 300 million consumers, to Europe over a 20-year period (2000-2020).

     

  • ‘Fed Govt to reassess EPA, CET deals’

    ‘Fed Govt to reassess EPA, CET deals’

    Althouhgh it was  dead on arrival when it was  first proposed, the trade liberalisation agreement being pushed by the European Union (EU) under the Economic Partnership Agreement (EPA) and Economic Community of West African States (ECOWAS) Common External Tariff (CET) might get the Federal Government’s nod.

    The Minister of State for Finance, Ambassador Bashir Yuguda, said the deal, which the government and stakeholders considered not to be in the interest of manufacturers and the economy might be endorsed by the Federal Government.

    Under the EPA, the EU will offer the 15-member ECOWAS and non-member states access to its markets. In return, ECOWAS will open up 75 per cent of its markets, with its 300 million consumers, to Europe over a 20-year period.

    Nigeria did no sign the deal. According to the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, this was because of the high level premium the Federal Government placed on the economy. Aganga, whose ministry played a major role in the EPA negotiations, said certain provisions of the agreement, which Nigeria was expected to sign, were not in the interest of the economy.

    The Manufacturers Association of Nigeria (MAN) also opposed the EPA, which is a scheme to create free trade area (FTA) between the EU and African, Caribbean and Pacific (ACP) Group of States, arguing that it does not offer the required protection instruments in its current state.MAN raised concerns that the agreement could only lead to deindustrialisation in West Africa, with economic and employment consequences for Nigeria because of her 60 per cent share of the regional market and Gross Domestic Product (GDP). MAN said its opposition is premised on the fact that from all parameters, West African states, including Nigeria are not at the same level of economic development with any European country to warrant the conclusion of a reciprocal trade relationship espoused in the trade agreement with EU. 

    But Ambassador Yuguda said “The government is actively encouraging the African Union (AU) and ECOWAS to reconsider endorsing the EPA in its state. The government is critically assessing options that will improve competiveness and ensure that local manufacturers are adequately protected.”

    As guest lecturer at an event organised by the Manufacturers Association of Nigeria (MAN) in Lagos, the minister said in reassessing the EPA, the government would continue to push for a favourable deal to ensure that Nigeria does not go into an arrangement that would  affect the growth of the manufacturing sector.

    He stressed that the government would only adopt economic measures that would promote the growth of the economy in line with Vision 20:2020. He said: “Government is negotiating a strong CET agreement with its ECOWAS partners, which will enable us to protect our strategic industries where necessary, so that optimal tariff lines are reflected in the deviation instrument.”

    Similarly, the Minister said the Export Expansion Grant (EEG), an incentive introduced to encourage the export of Nigerian products, is being reviewed to make it more efficient.

    He stressed that MAN would be carried along in the review. The Minister explained that the aim was to “ensure that the grant returns economic value that is equal to the large amounts being conceded to exporters in the scheme.”

    Yuguda said the government had initiated many policies and programmes aimed at stimulating growth in the manufacturing sector and boosting its competitiveness, including the National Industrial Revolution Plan (NIRP), National Automotive Policy, National Integrated Infrastructure Master Plan (NIIMP), a special funding arrangement for manufacturers as well as massive road construction and rehabilitation.

    Encouraging manufacturers to make the Transformation Agenda of the administration a success, he said: “There is still work to be done, but it is evident to all that this administration has pioneered a transformation that has set the pace and planted the building blocks for a prosperous future. The task before us all now is to increase platforms and strategies for collaborating with the private sector, with a greater emphasis on accelerating the productive capacity of the manufacturing industry.

    “We will continue to dialogue with the private sector and vigorously pursue measures to reduce the binding constraints faced by the private sector in their efforts to sustain and grow their business.”

  • MAN lauds govt for rejecting EPA

    MAN lauds govt for rejecting EPA

    The Manufacturers Association of Nigeria (MAN) has  commended the Federal Government for rejecting the Economic Partnership Agreement  (EPA ), having taken into consideration the negative effects  it would have on the manufacturing sector.

    MAN said it supports the government’s initiative in seeking other  African Union (AU) members’ support  in throwing away the EPA, adding that it should continue in its efforts at convincing other Economic Community of West African States (ECOWAS) member-states on the dangers of the agreement.

    The EPA is a reciprocal preferential trade Agreement being promoted by the European Union (EU) to create a Free Trade Area (FTA) between the EU,  African, the Caribbean and Pacific Group of States (ACP).

    The Nation learnt that the ECOWAS Commission, which is one of the six regional economic communities, is negotiating the deal on behalf of the 16 countries in West Africa, including Nigeria.

    MAN President,  Chief Kola Jamodu, insisted  that no country can develop without protecting its industries. He said the nation  stands the risk of having its market flooded with European goods with the resultant negative effect on our industries and economy if the EPA is approved.

    He stressed the need for employment generation, noting  that the Transformation Agenda and the Nigerian lndustrial Revolution Plan (NIRP) requires that local manufacturing be protected.

    He further said MAN is delighted that Nigeria’s position has been vindicated by the support it received at the extraordinary session of the Conference of African Union Ministers of Trade in Addis Ababa, Ethiopia on aligned with Nigeria’s position on EPA by expressing their dissatisfaction with the agreement because of its negative impact on the continent’s effort to industrialise and create jobs.

     

     

    He commended the  lndustry, Trade and lnvestment  ministry for the strong will not to succumb to internal and external mercantile interests and pressures whose objective is to turn  the nation into a dumping ground for imported consumables to the detriment of local and foreign investors in manufacturing in the country.

    He  reiterated the support of MAN  to government’s position on EPA   noting  that to do otherwise  would  have a  negative impact on  the industrialization process in  the country and may  lead to the shutdown of our industries.

  • EPA: African leaders support Nigeria’s no deal position

    EPA: African leaders support Nigeria’s no deal position

    • Resolve to protect continent’s economy

    African Trade Ministers and experts on Trade and Regional Integration are aligned with Nigeria’s position on the trade liberalisation deal with the European Union under the Economic Partnership Agreement (EPA), saying the European Union’s position, if adopted, will have long-term negative impact on the continent’s efforts towards industrialisation and job creation.

    The ministers spoke yesterday during the Extra-Ordinary Session of the Conference of African Union (AU) Ministers of Trade in Addis Ababa, Ethiopia, convened to discuss Africa’s common position ahead of the October 1 deadline for signing of the EPA with EU; the establishment of the Common Free Trade Area (CFTA) by 2015; extension of African Growth and Opportunity Act (AGOA) by the American Government for 15 more years, and Africa’s strategic response to World Trade Organisation negotiations, among others.

    While reiterating Nigeria’s position on EPA, the Minister of Industry, Trade and Investmen,Olusegun Aganga, said: “Nigeria’s position on EPA is very clear. Africa is on the rise. It is a very big and strategic market for any trading partner. That is what the EU wants from us but Africa must jealously protect what it has.

    In a statement, the Senior Special Assistant (Corporate Communication) to the Minister, Mrs. Yemi Kolapo,  quoted  Aganga as urging African Trade Ministers to leverage “our abundant natural resources and large market to develop our industries; create jobs for our people; increase intra-African trade and achieve regional integration. We must not be in a hurry to give away what we have. We must not sign an agreement without first of all carrying out a robust economic analysis of the overall impact the agreement will have on the region, our children and future generations”.

    Zambian Minister of Commerce, Trade and Industry, Mr. Robert Sichinga, said he agreed with Nigeria’s position, noting that rather than jeopardising their industrialisation and job creation drive by hastily signing the EPA, African countries should work towards enhancing regional integration and intra-African Trade through value addition of their abundant raw materials, “especially in the areas where they have competitive and comparative advantage”.

    He said: “Just like Nigeria has pointed out, before we sign the EPA, we should consider the impact on our children and the future of the continent in terms of industrialisation, job creation and regional integration. I want to state that as long as we have not appended our signatures to the agreement, then there is no agreement. Also, I believe that it is better not to sign an agreement at all than to sign a bad one.”

    The AU Commissioner for Trade and Industry, Mr. Fatima Haram, also agreed that signing the EPA would have a negative impact on Africa’s industrialisation, job creation and regional integration of African countries.

    Haram said: “Just as Nigeria’s Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, has pointed out, industrialisation is an issue that is very critical to the economic and political survival of African countries. If we sign the EPA as it is today, it is going to be difficult for us to integrate because of different Custom Areas.

    “Let us be realistic and look at our statistics. The population of Africa is growing very rapidly. Statistics shows that more than 50 per cent of our population are between 18 and 30 years. If we sign the EPA, how do we create the jobs that we require for our growing population; how do we stop the illegal migration of our youths to developed countries?”

    Similarly, the Minister of Trade and Private Sector Promotion, Republic of Niger, Mr. Alma Oumarou, said there was the need for African countries to evaluate the impact of EPA before signing.