Title
INTERIM TRADE PARTNERSHIP AGREEMENT BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, OF THE ONE PART, AND THE REPUBLIC OF GHANA, OF THE OTHER PART
Preamble
PREAMBLE
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, of the one part, and
THE REPUBLIC OF GHANA, of the other part,
HAVING REGARD to the Stepping Stone Economic Partnership Agreement between Ghana, of the one part, and the European Community and its Member States, of the other part, signed in Brussels on 28 July 2016 (the "EU-Ghana Free Trade Agreement");
RECOGNISING that the EU-Ghana Free Trade Agreement ceased to apply to the UK at the end of the transition period; (1)
RECOGNISING the need to establish an interim agreement in order to safeguard the economic and trade interests of the Parties;
CONSIDERING the importance, on the one part, of the links between the UK and Ghana and, on the other part, the common values they share;
CONSIDERING that the UK and Ghana wish to strengthen their close links and establish enduring relations based on partnership, development and solidarity;
MINDFUL of the need to promote the economic and social progress of Ghana in a way that takes account of the need for sustainable development;
REAFFIRMING their commitment to the respect of human rights, to democratic principles and to the rule of law, which constitute essential elements of this Agreement, and to good governance, which constitutes a fundamental element of it;
CONSIDERING their commitment to the principles and rules governing international trade, in particular those contained in the Agreement establishing the World Trade Organization (hereinafter referred to as the "Agreement establishing the WTO");
CONSIDERING the need to strengthen integration between the West African States within the context of the Economic Community of West African States (ECOWAS);
CONSIDERING the need to strengthen integration amongst African States within the context of the African Continental Free Trade Area;
CONSIDERING the need to strengthen relations; between the UK and ECOWAS, on the one hand, and between the UK and African States, on the other hand;
RECALLING that the purpose of ECOWAS is to promote regional cooperation and integration with a view to the establishment of a West African economic union in order to raise the standard of living of the people, maintain and increase economic stability, strengthen relations between the Member States and contribute to the progress and development of the African continent;
HAVING REGARD to the Economic Partnership Agreement between the West African States, ECOWAS and the West African Economic and Monetary Union (UEMOA), of the one part, and the European Union and its Member States, of the other part (the "EU-West Africa free trade agreement"), signed by the UK in December 2014 while it was a Member State of the European Union, and also signed by Ghana in December 2014;
HAVING REGARD to the desire of Ghana and the UK to encourage and support the development of a free trade agreement at the regional level between ECOWAS and the UK which will supersede any bilateral trade agreement between the UK and Ghana;
CONSIDERING that the Sustainable Development Goals of the United Nations General Assembly, in particular the eradication of extreme poverty and hunger, as well as the development targets and principles agreed in the United Nations Conferences, provide for a clear vision and must underpin partnership between Ghana of the one part and the UK of the other part under this Agreement;
REAFFIRMING their commitment to support regional integration within West Africa and in particular to promote regional economic integration as an essential instrument for their integration into the world economy, by assisting them to face challenges related to globalisation and to achieve the economic and social development that they aim at;
TAKING ACCOUNT of the difference in the level of economic and social development between Ghana on the one part and the UK on the other part and the need to strengthen the process of economic development of Ghana;
UNDERLINING that this Agreement is based on the recognition of the difference of economic and social development levels between Ghana and the UK;
REAFFIRMING that this Agreement must be a development tool for promoting, in particular, sustainable development;
CONVINCED that this Agreement will continue the development of a more favourable environment for the relationship in the fields of economic governance, trade and investment and will open perspectives for growth and development.
HAVE AGREED AS FOLLOWS:
Body
Part I. INTERIM TRADE PARTNERSHIP AGREEMENT FOR SUSTAINABLE DEVELOPMENT
Article 1. Objectives
1. The objectives of this Agreement are:
(a) to establish an economic and trade partnership which contributes to sustained economic growth that creates employment, the reduction and eventual eradication of poverty, elevated living standards, increased employment, a diversified economy and increases in real income and output in a way that is compatible with the needs of Ghana while taking account of the Parties' different levels of economic development;
(b) to establish the grounds for the negotiation of a free trade agreement which promotes regional integration, economic cooperation and good economic governance in West Africa and increases intra-regional trade and encourages the formation of a unified and efficient regional market in West Africa;
(c) to contribute to the harmonious and progressive integration of Ghana into the world economy, in accordance with its political choices, its priorities and its development strategies;
(d) to strengthen economic and trade relations between the Parties on a basis of solidarity and mutual interest in accordance with World Trade Organization (WTO) obligations, in a way that takes account of the significant difference in competitiveness between the two countries.
Article 2. Principles
1. This Agreement is based on the essential and fundamental elements as set out in Annex F.
2. The trade relations between the two countries shall be based on reciprocity and the difference in levels of development. Special and differential treatment shall apply to commitments between the two Parties. The Parties shall, in particular, ensure that account is taken of the vulnerability of the economy of Ghana and that the liberalisation process incorporates the principles of progressivity, flexibility and asymmetry in favour of Ghana.
3. While observing the trade commitments made under this Agreement, the Parties shall refrain from undermining the implementation of agricultural and food security, public health, education and any other economic and social policies adopted by Ghana under its sustainable development strategy.
4. For this Agreement to be successful, it is necessary to establish a demanding partnership based on the mutual responsibility of the Parties for its implementation. They therefore undertake to strive to ensure its viability.
5. The Parties reaffirm the commitment they made in the Doha Round to reduce and avoid measures likely to create distortions in trade and their support for ambitious results in this regard.
6. To ensure efficient implementation of this Agreement, the Parties shall set up joint institutions to establish a permanent management and monitoring/evaluation arrangement to make possible any adjustments that are necessary for achievement of the objectives of this Agreement.
Article 3. Development Cooperation In the Framework of this Agreement
The Parties commit themselves to cooperating in order to implement this Agreement and to help support Ghana in the achievement of this Agreementâs objectives. This cooperation takes financial and non-financial forms.
Article 4. Development Finance Cooperation In the Framework of this Agreement
1. Development cooperation for regional economic cooperation and integration shall be carried out so as to maximise the expected benefits of this Agreement.
2. UK financing pertaining to development cooperation between the Ghana and the UK supporting the implementation of this Agreement shall be carried out within the framework for development cooperation as set out in Annex F. In this context, supporting the implementation of this Agreement shall be among the priorities.
3. The UK undertakes to support, through its development policies and instruments, development cooperation activities for regional economic cooperation and integration and for the implementation of this Agreement, both at national and regional levels, in conformity with the complementarity and aid effectiveness principles.
4. The Parties shall cooperate to facilitate the participation of other donors willing to support the efforts of Ghana in achieving the objectives of this Agreement.
5. The Parties recognise the usefulness of regional financing mechanisms established by and for the regions in order to channel the financing at regional and national levels and to implement efficiently accompanying measures to the present Agreement. The UK will provide funding to support implementation of this Agreement with a view to ensuring a simple, efficient and quick implementation.
6. When implementing paragraphs 1 to 5, the Parties commit to cooperate in financial and non-financial ways including through multilateral and regional organisations in the areas defined in Articles 5, 6, 7 and 8.
Article 5. Business Climate
1. The Parties agree that the business climate is an essential vector of economic development and, consequently, that the provisions of this Agreement aim at contributing to this common objective.
2. The Parties commit, in accordance with the provisions of Article 4, to constantly foster the improvement of the business climate.
Article 6. Support to the Implementation of Rules
The Parties agree that the implementation of the trade-related rules, for which cooperation areas are detailed in the various chapters of this Agreement, constitute an essential element for achieving the objectives of this Agreement. Cooperation in this field will be implemented in accordance with the provisions provided for in Article 4.
Article 7. Reinforcing and Upgrading of Productive Sectors
1. In the context of the implementation of this Agreement, the Parties underline their willingness to promote the upgrading of the competitiveness of productive sectors concerned by this Agreement in Ghana.
2. The Parties agree to cooperate through the cooperation instruments as defined under Article 4 and to support:
(a) the repositioning of the private sector vis-A-vis economic opportunities created by this Agreement;
(b) the definition and the implementation of upgrading strategies;
(c) the improvement of the environment of the private sector and the business climate as defined in Articles 5 and 6;
(d) the promotion of a partnership between the private sectors of both Parties.
Article 8. Cooperation with Respect to Financial Adjustment
1. The Parties recognise the challenges that the elimination or substantial reduction of customs duties provided for in this Agreement can pose for Ghana and they agree to establish dialogue and cooperation in this field.
2. In light of the tariff liberalisation schedule adopted by the Parties as part of this Agreement, the Parties agree to establish in-depth dialogue on fiscal adjustment reforms and measures in order to reduce the budget deficit and ultimately ensure a balanced budget for Ghana.
3. The Parties agree to cooperate, in the framework of the provisions of Article 4, notably through the facilitation of supporting measures in the following areas:
(a) contribution in significant proportions to the absorption of the net fiscal impact in full complementarity with fiscal reforms;
(b) support to fiscal reforms so as to accompany the dialogue in this area.
Article 9. Cooperation In International Fora
The Parties shall endeavour to cooperate in all international fora where issues relevant to this partnership are discussed.
Article 10. Regional Integration
1. the Parties Recognise That Promoting Regional Integration In West Africa Is an Essential part of their partnership and a powerful tool for achieving the objectives of this Agreement and agree to give it their strong support.
2. For the purposes referred to in paragraph 1 of this Article, the Parties agree to facilitate progress of customs reforms within West Africa, particularly within the context of the ECOWAS customs union.
Part II. TRADE POLICY AND QUESTIONS CONCERNING TRADE
Chapter 1. CUSTOMS DUTIES
Article 11. Scope
The provisions of this Chapter shall apply to trade in goods between the Parties.
Article 12. Rules of Origin
For the purposes of this Article, the term "originating" applies to goods that comply with the tules of origin defined in Protocol No. 1 concerning the definition of the concept of "originating products" and the methods of administrative cooperation, set out in Annex A to this Agreement. It is the Parties' understanding that this Agreement has the status of an Economic Partnership Agreement as the term is used in the protocols that lay down the rules of origin for the application of the provisions of the UK's agreements with other members of the African, Caribbean and Pacific (ACP) Group of States.
Article 13. Customs Duties
1. Customs duties are taken to refer to the deductions of charges of any kind, including any kind of surcharge or supplement imposed in connection with the import or export of goods; with the exception of:
(a) taxes or other internal charges imposed in accordance with Article 35 of this Agreement;
(b) anti-dumping, countervailing or safeguard measures applied in accordance with Chapter 2 of this Part of this Agreement;
(c) fees or other charges imposed in accordance with Article 14 of this Agreement on fees and other charges.
2. For each product, the basic customs duty to which the successive reductions are to be applied shall be that specified in each Party's tariff liberalisation schedule, set out in Annex Band C.
Article 14. Fees and other Charges
1. The Parties reaffirm their commitment to respect the provisions of Article VII of the General Agreement on Trade and Tariffs 1994 (hereinafter referred to as "GATT 1994").
2. However, fees and other charges related to legal obligations existing at the signature of this Agreement, as referred to in Annex G, shall continue to apply until 14 December 2026. This period may be extended by decision of the Trade Partnership Agreement Committee (hereinafter referred to as the "TPA Committee") if this is necessary to respect these legal obligations.
3. The fees and other charges referred to in Article 13(1)(c) of this Agreement include charges corresponding to the real cost of services provided pursuant to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 set out in Annex 1A of the Agreement establishing the WTO (hereinafter referred to as the "WTO Customs Valuation Agreement") and must not constitute indirect protection of national products or the taxation of imports or exports for fiscal purposes.
Article 15. Status Quo
No new customs duties on imports shall be introduced on products covered by the liberalisation between the Parties, nor shall those currently applied be increased from the date of entry into force of this Agreement.
Article 16. Elimination of Customs Duties on Imports
1. Products originating in Ghana shall be imported into the UK free of customs duties as defined in Article 13 of this Agreement, except in the case of the products indicated and under the conditions defined in Annex C to this Agreement.
2. The Parties, mindful of the fundamental importance to Ghana of Ghana's alignment in due course and subject to all appropriate arrangements to the commercial policy of the ECOWAS and taking note of the factual context of the tariff dismantling schedule agreed by the European Union under the EU-West Africa free trade agreement, and recalling the urgent need for the preservation of continuity of commercial effect for the time being with reference to the tariff liberalisation schedule under the EU-Ghana Free Trade Agreement as applicable immediately before that agreement ceased to apply to the UK, agree as follows in relation to Ghana's customs duty elimination obligations. During the application of this Agreement, Ghana shall progressively reduce and eliminate customs duties, as defined in Article 13 of this Agreement, applicable to products originating in the UK, subject to the following provisions:
(a) During the application of this Agreement, Ghana shall apply customs duties applicable to products originating in the UK in accordance with the tariff liberalisation schedule in Annex B.
(b) Without prejudice to Ghanaâs obligations pursuant to subparagraph (a), Ghana shall apply customs duties to products originating in the UK and imported into its territory that are no less favourable than those applicable to goods originating in the European Union under the EU-Ghana Free Trade Agreement immediately before that agreement ceased to apply to the UK so as to ensure that imports from the UK into its territory are treated no less favourably than products originating in the European Union.
Article 17. Export Duties and Taxes
1. No duties or taxes on exports or charges with equivalent effect shall be introduced which were not applicable immediately before the EU-Ghana Free Trade Agreement ceased to apply to the UK, nor shall those applied in trade between the Parties be applied in an increased amount compared to those applicable at the time immediately before the EU-Ghana Free Trade Agreement ceased to apply to the UK.
2. The export duties, taxes on exports or charges with equivalent effect shall be no greater than the same duties and taxes applied to like goods exported to any other countries that are not party to this Agreement.
3. In exceptional circumstances, if Ghana can justify specific needs for income, promotion for fledgling industry or environmental protection, it may, on a temporary basis and after consulting the UK, introduce export duties, taxes on exports or charges with equivalent effect on a limited number of additional goods or increase the impact of those that already exist.
4. The Parties agree to review the provisions of this Article in the framework of the TPA Committee not later than three years after the date of entry into force of this Agreement, taking full account of their impact on the development and diversification of the economy of Ghana.
Article 18. Classification of Goods
The classification of goods covered by this Agreement shall be as set out in each Partyâs respective tariff nomenclature in conformity with the Harmonized Commodity Description and Coding System.
Article 19. Most Favoured Nation (MFN) Clause
1. The Parties reaffirm their commitment with regard to the enabling clause.
2. The UK shall grant Ghana any more favourable tariff treatment that it grants to a third party if the UK becomes party to a free trade agreement with the third party in question after the signing of this Agreement.
3. With respect to the matters covered by this Chapter, Ghana shall accord to the UK any more favourable treatment applicable as a result of Ghana becoming party to a free trade agreement with any major trading partner after the signature of this Agreement.
4. If Ghana obtains from a major trading partner a substantially more favourable treatment than that offered by the UK, the Parties shall consult each other and decide together on the implementation of the provisions in paragraph 3.
5. The provisions of this Chapter shall not be so construed as to oblige the Parties to extend reciprocally any preferential treatment applicable as a result of one of them being party to a free trade agreement with third parties on the date of signature of this Agreement.
6. For the purposes of this Article, âfree trade agreementâ means an agreement substantially liberalising trade and providing for the absence or elimination of substantially all discrimination between or among parties thereto through the elimination of existing discriminatory measures and/or the prohibition of new or more discriminatory measures, either at the entry into force of that agreement or on the basis of a reasonable time frame.
7. For the purposes of this Article, "major trading partner" means any developed country, or any country accounting for a share of world merchandise exports above 1 percent in the year before the entry into force of the free trade agreement referred to in paragraph 3, or any group of countries acting individually, collectively or through a free trade agreement accounting collectively for a share of world merchandise exports above 1.5 percent in the year before the entry into force of the free trade agreement referred to in paragraph 3.
Article 20. Special Provisions on Administrative Cooperation
1. The Parties agree that administrative cooperation is essential to the implementation and control of the preferential treatment granted in this Chapter and undertake to combat irregularities and fraud regarding customs and related fields.
2. Where one Party has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud, the Party may temporarily suspend the preferential treatment of the product(s) concerned in accordance with the provisions of this Article.
3. For the purposes of this Article, a lack of administrative cooperation shall include the following:
(a) repeated failure to comply with the obligation to verify the originating status of the product(s) concerned;
(b) repeated refusal to conduct a subsequent check of proof of origin and/or to communicate the results thereof, or undue delay in doing so;
(c) repeated refusal to grant authorisation for a cooperation mission to check the authenticity of documents or the accuracy of information of relevance to the preferential treatment in question, or undue delay in granting such authorisation.
4. The application of a temporary suspension shall be subject to the following conditions:
(a) a Party that has made a finding, on the basis of objective information, of a lack of administrative cooperation and/or irregularities or fraud must notify the TPA Committee without undue delay that it has obtained the proof and the established information, and must consult with the TPA Committee to find a solution acceptable to both Parties, drawing on all relevant information and objective evidence;
(b) when the Parties have entered into consultation with the TPA Committee, as provided for above, and have been unable to agree on an acceptable solution in the three (3) months following notification, the Party concerned can temporarily suspend the preferential treatment granted to the product(s) concerned.
Temporary suspension must be reported without undue delay to the TPA Committee.
(c) temporary suspensions under this Article shall be limited to what is necessary to protect the financial interests of the Party concerned. They shall not exceed a period of six (6) months, which may be renewed. Temporary suspensions shall be reported as soon as they have been adopted by the TPA Committee. They shall be subject to periodic consultations within the TPA Committee, in particular with a view to repealing them once the conditions for application no longer exist.
5. At the same time as the notification of the TPA Committee specified in paragraph 4(a) of this Article, the Party concerned shall publish a notice for importers in its Official Journal. This notice for importers shall indicate that, for the product concerned, and on the basis of established information, proof of a lack of administrative cooperation and/or of irregularities or of fraud has been obtained.
Article 21. Management of Administrative Errors
In case of error by the competent authorities in the management of preferential systems for exports, and in particular in the application of Protocol No. 1 concerning the definition of the concept of “originating products” and methods of administrative cooperation set out in Annex A to this Agreement, where this error leads to consequences in terms of import duties, the Party facing such consequences may request the TPA Committee to examine and adopt all appropriate measures with a view to resolving the situation.
Chapter 2. TRADE DEFENCE INSTRUMENTS
Article 22. Objectives
1. The objectives of this Chapter are to lay down the conditions in which the two Parties may take trade defence instruments while at the same time working on the development of trade in goods between them, by way of derogation from the provisions of Articles 15, 16 and 34 of this Agreement.
2. The Parties shall ensure that the measures taken under the provisions of this Chapter are no more than is necessary to prevent or rectify the situations described herein.
Article 23. Anti-dumping and Countervailing Duties
1. None of the provisions of this Agreement shall prevent the UK or Ghana from taking anti-dumping or countervailing measures under the relevant WTO Agreements, in particular the Agreement on Implementation of Article VI of the GATT 1994 and the Agreement on Subsidies and Countervailing Measures which figure in Annex 1A to the Agreement establishing the WTO.
2. For the purposes of applying this Article, origin shall be determined in accordance with the non-preferential rules of origin of the Parties.
3. The special situation of Ghana as a developing country shall be taken into account when the application of anti-dumping or countervailing measures is considered. Before imposing definitive anti-dumping or countervailing measures, the Parties shall consider the possibility of constructive solutions, such as those provided for in the relevant WTO Agreements. The investigating authorities, may, in particular, carry out appropriate consultations for this purpose.
4. The provisions of this Article shall be applicable to all investigations initiated after this Agreement enters into force.
5. The provisions of this Article shall not be subject to the dispute settlement provisions of this Agreement.
Article 24. Multilateral Safeguard Measures
1. Subject to the provisions of this Article, this Agreement shall not prevent either of the Parties from adopting exceptional measures for a limited period in accordance with Article XIX of the GATT 1994, the Agreement on Safeguards which figures in Annex 1A to the Agreement establishing the WTO (hereinafter the "WTO Agreement on Safeguards"), or Article 5 of the Agreement on Agriculture which figures in Annex 1A to the Agreement establishing the WTO (hereinafter the "WTO Agreement on Agriculture").
2. For the purposes of applying this Article, origin shall be determined according to non-preferential rules of origin of the Parties.
3. Without prejudice to the provisions of paragraph 1 of this Article, and in the light of the overall development objectives of this Agreement and the small size of the economy of Ghana, the UK shall exclude imports from Ghana from any measures taken pursuant to Article XIX of the GATT of 1994, the WTO Agreement on Safeguards and Article 5 of the WTO Agreement on Agriculture.
4. The provisions of paragraph 3 of this Article shall apply until 14 December 2021. At the latest one hundred and twenty (120) days before that date, the TPA Committee shall re- examine the implementation of these provisions in light of the development needs of Ghana in order to determine whether their period of application should be extended.
5. The provisions of paragraphs 1 and 2 shall not be subject to the dispute settlement provisions of this Agreement.
Article 25. Bilateral Safeguard Measures
1. Subject to the provisions of this Article, either of the Parties may take safeguard measures for a limited period that derogate from the provisions of Articles 15 and 16 of this Agreement.
2. The safeguard measures referred to in paragraph 1 of this Article may be taken where a product originating in one Party is imported into the territory of the other Party in such increased quantities and under such conditions as to cause or threaten to cause:
(a) serious injury to the domestic industry of like or directly competitive products in the territory of the importing Party;
(b) disruptions in a sector of the economy, particularly where these disruptions produce major social problems or difficulties that could bring about serious deterioration in the economic situation of the importing Party; or
(c) disruption in the markets of like or directly competitive agricultural products (2) or in the mechanisms regulating those markets.