Trade negotiations : “The loss of tax revenues is going to impact heavy on state budgets”, according to West African Churches

© Afreepress (Lome, the 18th Feb. 2014)-  West African Churches vibrate on ECOWAS Commission for Poor Performance in Trade Negotiations with the European Commission

Lomé, February 11th 2014: West African Churches criticize the compromise agreement reached for fast track conclusion of negotiations of Regional Economic Partnership Agreement (EPAs) between the Economic Community of West African States (ECOWAS) and the European Commission (EC). They call on national governments to not secure national legal frameworks from parliament.

Rev. Dr. Tolbert Thomas Jallah, Jr., Secretary General of the Fellowship of Christian Councils and Churches in West Africa (FECCIWA) welcomes that agricultural products seem to be almost entirely left out of the liberalization process. He acknowledges: “This is a major achievement from ten years of struggle by West African civil society organizations and farmers’ networks. The importance of these products for rural economies and food security in the region has finally been approved”.

However, Rev. Dr. Jallah emphasizes, “This is not enough! There is a high degree of skepticism that the present agreement brings to the minds of faith leaders in West Africa! Africa has the right to proper industrial development and to profit from technical progress. But this Agreement has exposed West African countries to dangers in safeguarding infant industries and sensitive manufacturing products. It will seal in our eternal dependency on imports in manufactured and processed goods. We will stay cursed by these powerful industrialized nations for not being able to build our own domestic industry for raw-materials processing”.

He questions the hasty conclusion of the deal by a handful of ECOWAS representatives, even without proper implication of the responsible Ministerial Monitoring Committee on the EPA (MMC). Therefore, according to Rev. Dr. Jallah, “faith leaders doubt whether it will gain the needed support of national parliaments. We, the people of faith call on respective national governments and Civil Society Activists not to secure legal framework for this agreement. The deal does not fit in the interest of local economies for the people of our region! In contrary, it will disturb our regional integration process into chaos”.

Furthermore, “the loss of tax revenues is going to impact heavy on state budgets”, says Rev. Dr. Jallah. “According to experts, West Africa as a region is going to lose $1.8 billion annually in import tax revenues; whereas the EU only promises 6.5 billion Euros in trade development aid payments for a six year term. This is a “blank cheque” signed by the ECOWAS Commission with the European Commission We are not unwise people; we must question the economic and moral reasons behind the deal!” The deal will lead to reversal of some of the economic and development gains African Countries have made over the years.

Another major concern relates to a clause within the agreement, which will hamper ECOWAS countries in the future to conclude preferential trade agreements with emerging economies such as South Africa, Brazil, China or India. “The so called Most Favored Nation Clause (MFN) will hinder ECOWAS to build South-South partnerships. If African leaders were for instance to support fully South Africa’s vegetable industry, we will not be able to grant them exclusive preferential market access, without opening up the same opportunities to EU countries.” cautions Rev. Dr. Jallah.

Please find, for further information, FECCIWA policy brief "Churches condemn unfair trade agreement between the Economic Community of West African States and the European Union" for download here