Press "Enter" to skip to content

Ghana, UK Sign $1.6bn Bilateral Trade Deal

By Adedapo Adesanya

Ghana and the United Kingdom have signed a trade agreement worth $1.6 billion in one of the latest bilateral deals since Britain exited the European Union (EU).

In an agreement signed yesterday, the terms will allow duty-free and quota-free access for Ghana to the UK market and preferential tariff reductions for UK exporters to the Ghanaian market.

It means Ghanian products such as bananas, tinned tuna and cocoa can be exported to Britain without tariffs.

Before the UK left the European trade bloc, Britain set up UK Economic Partnerships with 16 African countries so it could continue deals it already had while it was in the EU.

They are the same pacts as what the EU offers Africa, which is African countries do not pay tariffs or duties on exports to the UK.

However, Ghana was exempted from that list, subjecting Ghanian importers to heavy tariffs and extra paperwork.

The UK government said Ghana’s largest exports to Britain include mineral fuels and oil, preparations of fish, fruit, cocoa and cocoa preparations.

“The agreement will enter into effect following the completion of relevant internal procedures required in both Ghana and the UK,” both governments said in the statement.

The UK has said it sees Africa’s potential and showed this when British Prime Minister, Mr Boris Johnson skipped the World Economic Forum (WEF) in Davos to host the UK-Africa investment summit in 2020 where deals worth almost $8 billion were announced.

The country showed its commitment by signing a trade deal with Egypt in December. The agreement will allow British businesses and consumers to benefit from continued preferential access to the market, which will help boost vital trade and investment.

In addition to securing trade, the UK noted that it will strengthen its relationship with Egypt and building co-operation on important issues including education, the environment and human rights.

The total trade on goods and services between the UK and Egypt was worth £3.5 billion in 2019, which the country says it will expand.

Critics have noted that despite this, the UK is likely to prioritise deals with the EU, United States, China, South Korea and Australia ahead of Africa.

Spread the love

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *