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WHY SIGNING
ECONOMIC PARTNERSHIP AGREEMENT (EPA)
I
Contact
I
By Dr. Engr. Baba J. Adamu,
Ph.D Sept 1, 2015
Holder of United Nation (UN) Certificate on Global Terrorist
& an ICT & Security Consultant
Vibrant
sustainable economic growth, job creation and lasting
development in Nigeria and of-course sub-Saharan Africa
depends significantly on increasing the competitiveness,
knowledge, innovation and creativity of African
entrepreneurs through expanded economic freedom and
partnership. Nigerian support for Economic Partnership
Agreements (EPA) with Europe and indeed America is
critical to Nigeria’s efforts to replace poverty with
economic freedom and prosperity in the country and indeed
the continent. These
trade
and development agreements
are the drivers
of Change that will kick-start reform and help
strengthen rule of law and fight against corruption in the
economic field, thereby attracting foreign direct
investments (FDIs), so helping to create a "virtuous circle"
of growth and development.
Economic Partnership Agreements (EPAs)
are trade and development agreements between the
European
Union (EU) and African,
Caribbean and Pacific (ACP) countries engaged
in a regional economic integration process to create
a free trade area (FTA).
They are a response to non-reciprocal, preferential
and incompatible trade agreements offered
by the EU, which do not conform to World Trade Organization
(WTO) rules. The
EPAs are a key element of the Cotonou
Agreement of year 2000, the latest agreement in the history
of ACP-EU
Development Cooperation and
were supposed to take effect from 2008, but during the
Extra-ordinary Session of the Conference of African Union
Ministers of Trade in Addis Ababa, Ethiopia in April 2014
ahead of the October 1, 2014 deadline for signing of the EPA
with the 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 (WTO)
negotiations, among others, African leaders rejected signing
the Agreement, saying it will have a long-term negative
impact on the continent’s efforts towards industrialisation
and job creation.
Examining the
Economic Partnership Agreements (EPAs)
The EPAs set
out to help ACP countries
integrate into the world economy and share in the
opportunities offered by globalisation as they are designed
to provide scope for wide-ranging trade co-operation
on areas such as services and standards and go beyond
conventional free-trade agreements, focusing on ACP development,
taking account of their socio-economic circumstances and
include co-operation and assistance to help ACP countries
implement the Agreements. It is also to open up EU markets
fully and immediately (unilaterally by the EU since 1st
January 2008), but allowed ACP countries
15 (and up to 25) years to open up to EU imports while
providing protection for the sensitive 20% of imports.
Although, African leaders rejected signing
the Agreement, saying it will have a long-term negative
impact on the continent’s efforts towards industrialisation
and job creation. It is necessary to look critically at the
issues, thus:
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The Manufacturers of Nigeria (MAN)
claimed that Nigeria does not need EPA now until it has
been adequately industrialised and been able to trade
industrial goods competitively with EU. But what MAN
forgets is that Nigerian industrial sector requires
FDIs, Service Corporation and Standards
to be able
adequately industrialised
and produce
competitively. EPA will provide all that
and create competitive advantage.
-
MAN further argued that 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 (7%
to 3%), stressing further that the
existing trade preferences have not had the intended
effect of helping the ACP countries diversify their
economies into higher value products. MAN should know
that the EPAs precisely are direct response to
non-reciprocal, preferential and incompatible trade
agreements that existed before and are now being
reviewed to give new impetus and economic opportunity to
ACP countries.
-
Those that argued that ACP countries
presently attract only a small portion of the world’s
FDIs,
warning that any attempt to coerce the
country into a free trade arrangement would only succeed
in killing the fledgling manufacturing sector, which has
just started to recover from a long period of comatose.
EPAs are not coercive, rather, they are based on mutual
economic corporation and partnership for the common good
of all and global security. Addressing poverty and
creating jobs in ACP countries is in the interest of EU
and America today more than ever, as it will virtually
reduce economic refuges to Western Countries as being
witnessed today. More so, EPAs will attract large
portion of the world’s
FDIs to ACP countries to address
challenges in areas of
high-cost of production, infrastructure
deficit, inadequate and unstable power supply, poor road
networks, inadequate rail services, as well as poor and
expensive port services. FDIs will come along with Best
Practices and will compliment Government efforts to
fight corruption while streamlining business activities
and challenges of high interest rate on borrowed funds,
dearth of long-term loans, multiplicity of taxes, high
cost of self-generated energy and high cost of local
inputs.
-
Others have argued that Nigeria, being 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.
Yes it may be so in the short-term but in the long run;
Nigeria may become a manufacturing hub and export to
virtually anywhere as it will be “forced” to produce
quality stuff that can match international standard.
Currently, we import common tomatoes worth N16 billion
naira annually because we lack the capacity and
capability to produce, store or process them.
-
It is further argued that 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
industrialised, will witness unbridled importation which
will lead to accelerated shut down of the few surviving
industries in the region. This will further
de-industrialise the region and would have catastrophic
implications on employment generation thereby worsening
the poverty situation in the region. Already cheaper
finished products from China flood Nigerian markets like
flies through smuggling, dumping and faking of
made-in-Nigeria products in China, which have virtually
killed Nigerian Textile Industries for example. EPA will
spark another economic activity in Nigeria such that was
seen in China 20 years ago and in India few years back.
Nigerian are not lazy people, with the right tool,
opportunity and consistent Government policies, the
country will become an industrial hub for the entire
sub-Saharan region and see less and less trade
malpractices such as smuggling and dumping. EPA will
help streamline over-lapping functions of regulatory
agencies leading to duplication and high cost, while
social challenges include insecurity (acts of terrorism,
insurgency, militancy, kidnapping, robbery and area
boys, etc.) and dearth of skilled manpower will be
things of the past.
-
Some say current efforts by Nigerian
manufacturers to export non-oil manufactured products to
the ECOWAS region and beyond will greatly be hampered
after signing EPA is far from truth, as it is a
trade and development agreements between
the
European
Union (EU) and African,
Caribbean and Pacific (ACP) regions; hence EPA will also
increase more trade ties within the West African
Region. In fact under
the terms of the agreement, West Africa
will continue to be able to shield its sensitive
agricultural products from European competition either
by keeping tariffs in place or, when necessary, by
imposing safeguard measures. To support local
agricultural production, the EU has also agreed not to
subsidise any of its agricultural exports to West
Africa. West
African companies will also have more flexibility to use
foreign components while still benefitting from free
access to the EU market. The EU will complement the
market opening effort of the West African partners with
a generous development assistance package of at least
€6.5 billion for West Africa during 2015-2020. The
Economic Partnership Agreement Development Programme
will play a crucial role in ensuring the EPA promotes
trade and attracts investment to West African countries.
This will contribute to development, sustainable growth
and wealth creation.
7.
Nigeria is the
giant of African with the largest economy in Africa with
population of over 170 million and holds huge oil reserves
on the continent. Despite all that,
Nigeria is hobbled by corruption,
lawlessness, security issues, infrastructure deficit,
increasing
poverty, escalating unemployment, bad governance and
Credibility.
But
If Nigeria could address these problems
effectively; the
EU has a duty
and responsibility to support these goals
through creation of
avenues for
international partners to engage, based on
Nigeria’s needs: hence the EPA, as Nigerian economic
development is in the security interest of Europe.
International partners can help by fine-tuning their own
analysis of Nigeria’s political, economic and security
dynamics and pushing for a realistic review of the practices
that have held Nigeria back. The European Union is a
critical partner in this process. It has supported Nigeria’s
efforts to improve its democracy and proceed to a fairer
distribution of power between its central and federated
elements, mediating between national and local interests
whilst preserving internal unity. Attempts to address
national and regional challenges to peace are consistent
with the Union’s values, and reflect the EU’s own security
interest in having a stable regional partner. Corruption has
undermined the credibility of government, impoverished the
country and fuelled insurgency and violence. Nigerians have
come to believe that their government not only condones
corruption, but facilitates it. The EU has the opportunity
to make a difference in Nigeria by promoting democracy and
supporting the fight against corruption and development of
economic activities. It can start by highlighting the
inadequacies of current anti-corruption efforts and
supporting civil society engagement that introduces
constitutional reforms to strengthen the anti-corruption
framework while building capacity. If Nigeria is to play a
leading role in economy, advancing peace and democracy in
Africa then it has to show progress on these fronts at home;
present performance undermines the country’s ability to
lead. Constitutional reform and improved security policies
are the way Nigeria can build its legitimacy and authority
as an advocate at regional and continental level. The EU
should support those goals as it has a stake in Nigeria
progress.
-
After looking at the benefits of the EPAs,
many African states like Ghana, Kenya etc., have decided
to sign the Economic Partnership Agreement (EPA) with
the European Union. West
Africa
accounts for 40% of total trade between the EU and all
the ACP regions. The EU supplies a large part of the
equipment that contributes to the economic growth and
development in the region. European
annual exports are worth approximately €30 billion. West
African exports towards the EU account for €42 billion.
The agreement should increase this figure even more in
favour of African partners. The EU Economic Partnership
Agreements, which aim to help creating a "virtuous
circle" of growth, stem from the Cotonou Agreement
signed in 2000 between the EU and countries of Africa,
Caribbean and Pacific (ACP).
As reported by ProShare, Emir of Kano and
former CBN Governor Mallam Sanusi Lamido Sanusi who wrote in
his own personal capacity in a Financial Times article
stated, “it is time for Africans to wake up to the
realities of their romance with China” described the
relationship as a form of imperialism, whereby China buys
crude oil and Nigeria imports a wide range of goods and
commodities, ranging from textile and fabrics to electronics
and building materials. He suggested that China should be
seen as a competitor rather than a saviour or partner that
will lead Africa out of the night into dawn. He suggested
that Africa was subjecting itself to a new form of
imperialism by relying on China for development. In a
nutshell, African countries were giving more credit to the
Chinese than they deserved. This
is not to
oppose Nigerian-Chinese relations. In fact
Nigeria’s trading relationships with other countries like
Canada and America are beneficial. Just recently, in May
2014, Nigeria signed a
Foreign Investment Protection Agreement (FIPA)
with Canada, a
negotiation that started a year earlier where
the two countries sought increased reciprocal collaboration
on bilateral trade relations, infrastructure (rail,
aviation, road and ICT), power (electricity, oil and gas),
mining, education/vocational training,
anti-corruption/Corporate Social Responsibilities,
agriculture and Foreign Investment Protection Agreement (FIPA).
Similarly,
Unites States of America saw the need to
advance AGOA beyond a trade-preference arrangement with
sub-Saharan Africa to enter into more robust economic
partnership
for reciprocal sustainable economic
development and growth. In this world, no country
should be an island especially if there are gains to benefit
from multilateral relations. Foreign investment not only
produces jobs, but introduces new technology, new management
techniques and new market access. That
is why
signing
economic partnership agreement (EPA) with
European Union will expand our economic horizon, and propels
Nigerian entrepreneurs to raised Standards to compete
globally while having access to cheap funds and technology.
That is why
signing
economic partnership agreement (EPA) with
European Union is apt.
Conclusion
Nigeria has not yet signed the Agreement
which was concluded in 2014 by ECOWAS. But Nigeria must
rise-up to its leadership role in African by either deciding
to unambiguously agree to sign or not. Although, there are
compelling positive reasons to sign, should Nigeria decide
not to sign, it will show the country’s lack of
understanding and capacity to negotiate Economic Trade
Agreements (EPAs).
Dr. Baba J. Adamu has written
a Book “Effect of Global Terrorism & the Niger Delta Crisis”
published in Nigeria in 2007 that highlighted the need for effective
international cooperation on all aspects of counter-terrorism,
especially the denial of safe havens to terrorists engaged in such
incitement and a proactive intelligence gathering strategy in place
backed by technology to forecast or address the
scourge as well as the need to provide solutions to the plight of
millions of Internally Displaced Persons (IDPs).
This Book has been reviewed since
2019 - 2020 with a titled:
Effect of Global Terrorism &
the Nigerian Boko-Haram and Other Crises.
About the Book
This book provides a condensed comprehensive study of
the terrorist phenomenon, orchestrated by so few, but affecting so
many. It looks at the definition and perception of terrorism,
historical terrorist attacks across the world, outlining important
terrorist incidents from the past and present; and examining its
roots cause, development and how to build resilience. It is a
sweeping narrative and analysis of behaviour, goals, motivations and
criteria of terrorists around the world; looking at the pillars of
the UN global counter-terrorism strategy and response. It went on to
look at Islam and terrorism myth or Islam versus the West
connotation, the differences between domestic, international, and
transnational terrorism; and demonstrates how contemporary terrorism
largely emerged out of guerrilla and insurgency warfare. It further
examines counter-terrorism strategy and implementation:
intelligence, surveillance, reconnaissance, counter-radicalization
and the global challenge of cyber-terrorism, the proliferation of
chemical, biological, radiological, nuclear and weapon of mass
destruction.
The book also highlights the need to tackle the
conditions conducive to the spread of terrorism and radicalization,
vulnerabilities such as socio-economic marginalization, failure to
respect human rights, increasingly networked society and fragile
undemocratic States and a lack of good governance. It argues that
the adoption of specific counter-terrorism measures may also have a
direct impact on the enjoyment of economic, social, cultural and
religious rights. It illustrates how a post-race society where
racial equality is still evasive and anti-discrimination measures
have become redundant; how poverty is a multidimensional process, so
engagement to address the scourge of terrorism is not just about
dealing with economic poverty, or income poverty, or material
poverty, which is very important, but it is also about overcoming
social exclusion, it is about overcoming what is known as voice
poverty and inequities. Social change can change attitudes,
behaviours, laws, policies and institutions to better reflect values
of inclusion, fairness, diversity and opportunity.
It further illustrates the unprecedented rise of
al-Qaeda, ISIL, Boko Haram, al-Shabaab culminating in asymmetry
warfare and how Nigeria has become the potential terrorist breeding
ground and examines the Nigerian Boko-Haram and other protracted
crises including youth banditry and kidnappings, drugs and ethnic
and social conflicts. In conclusion, it looks at what Nigeria has
done, can do to prevent terrorism in Nigeria and Africa, and
proffers solution from the point of view of Global Terrorism and
Conflict Resolution; and how the North-East, Niger Delta Crises and
credible leadership can be the testing ground for peace and
beginning of sustainable development in Nigeria.
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