In one of the latest bilateral trade deals since Britain’s exit from the European Union, Ghana and the United Kingdom have signed a trade agreement worth $1.2 billion.
The trade agreement will allow Ghanaian exports to enter the UK market duty-free and quota-free while UK exporters enjoy preferential tariff reductions to the Ghanaian market.
The agreement was signed on 3rd March, by Secretary of State for International Trade Liz Truss and Ghana’s Acting High Commissioner to the UK Peprah Ampratwum, at the Department for International Trade in central London.
Liz Truss joined on a video call by Alan John Kyerematen, the Minister Designate of Trade and Industry, to express her delight in signing the trade deal.
“I am delighted to be able to sign this deal with our friends and partners in Ghana. It provides certainty for businesses that provide vital jobs and livelihoods in Ghana, and it strengthens the ties between our two countries. We can now look forward to deepening and furthering our relationship in future, and working together to secure a broader agreement with the West Africa Region,” Liz Truss expressed.
What this trade deal means for Ghana
Ghana’s largest exports to the UK include crude oil, cocoa, fruits and vegetables, and fish and its top imports from the UK include textile fibres, pharmaceutical and cleaning products.
So, what this trade deal means for Ghana is that, Ghanaian products including bananas, tinned tuna and cocoa can be traded with the UK without tariffs. Without the tariffs, Ghanaian products will be at a lower price for UK consumers making our products competitive in the UK market. It will also allow Ghanaian businesses exporting such products to the UK scale up their business operations by increasing export, improving on quality, creating jobs among others.
It is just as the UK Minister for Africa James Duddridge said: The UK and Ghana have a strong partnership and the signing of today’s agreement marks an important moment for boosting trade, worth £1.2 billion, between our two nations. With tariff free access for Ghana to the UK, it will enable businesses to scale up their operations, support innovation in markets and create jobs as we recover together from the coronavirus pandemic.”
The deal is said to take effect “following the completion of relevant internal procedures required in both Ghana and the UK.”