Abimbola Akosile
8 January 2008
Lagos — The European Union (EU)'s plan to increase customs tariffs on all Nigerian non-oil exports by 15 percent as from January 1 this year, was yesterday described as unlawful.
Above description was made by Barrister Ken Ukaoha, President of the National Association of Nigerian Traders (NANTS), and Vice Chairman of Nigeria's technical committee on trade negotiations, in a telephone chat with THISDAY on the issue.
Ukaoha, an outspoken critic of the current form of the proposed Economic Partnership Agreements (EPAs) between the EU and the African Caribbean and Pacific (ACP) countries, disclosed that Nigeria had applied to the EU for enhanced Generalised Systems Preferences (GSP +), which the EU is yet to officially confirm.
The lawyer, who decried a situation whereby Nigeria would be arm-twisted into signing unfavourable trade deals, expressed support for the general decision taken by members of the Ministerial Monitoring Committee (MMC) of EPA negotiations between West Africa and the European Union (EU), who reiterated their stand and preference to conclude an EPA that would meet the various development objectives of the region.
Ukaoha spoke while reacting to a report in a national daily where the EU planned to exclude Nigeria and other ACP countries who fail to sign EPAs with it (EU) before the December 31, 2007 deadline, from benefiting from its assistance through a 22 billion euros European Development Fund (EDF).
According to him, "on November 27, 2007, Nigeria applied for the GSP+ and the EU has not officially informed Nigeria whether they will accept or reject the application. It is unlawful for the EU to raise their tariff on non-oil exports. An official response ought to come from the EU to either ECOWAS or Nigeria. The tariff hike ought to be considered in tandem with the GSP+ application".
The NANTS President, who has been privy to most of Nigeria's trade negotiations, reiterated Nigeria's desire to continue with the EPAs negotiations and the conclusion of an EPA, which is capable of contributing to the economic and social development of the West African region.
He insisted that signing the trade agreements in their current form would only serve to fragment the region and impoverish the people further, which would negate the underlying principle behind the negotiations, to promote regional integration and development.
"Right now, there are eight ACP regions as against the previous six because some regions became polarised and some members nations signed the agreements. Nigeria wants a development- friendly EPA because she already has the National Economic Empowerment and Development Strategy (NEEDS). If the EPAs go against NEEDS II, then development will be slowed", he said.
Ukaoha also said the EPAs must be in tandem with the 7-point agenda of the President Umaru Yar'Adua administration, in order to allow Nigeria realise the Vision 2020 economic plan. "The whole world is talking about Millennium Development Goals (MDGs) and the EPAs must help realise these goals", he said.
On when Nigeria or the ECOWAS region can successfully negotiate a favourable EPA, he said the region needs about 18 months to conclude on the agreements; and that the onus lies on the EU to respond to the demands of reduction of poverty as far as the West African region is concerned.
The EU had in a statement said, "if Nigeria fails to sign the agreements, she will have to pay higher customs duties of an estimated 15 per cent on non-oil exports to the EU, including shrimps, cocoa and textiles".
The 10th EDF is expected to provide 22bn euros to ACP countries that sign the agreements between 2008 and 2013, to help them implement the trade deals. The former waiver on the standard GSP expired on December 31, 2007 while implementation of the EPAs are expected to have kicked off on January 1, this year.
The ECOWAS region's latest position, contained in a declaration adopted at the end of the MMC meeting held recently in Ouagadougou, Burkina Faso, was taken ahead the expiration of the ultimatum issued by the European Commission (EC) to the ACP members countries.
Members of the committee also reaffirmed the attachment of all the countries of the region to regional integration and the conclusion of an EPA, which is capable of contributing to the economic and social development of the West African region.
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