Professor Paul Kuruk, Deputy Chairman of the Ghana International Trade Commission has advised Parliament to ratify trade agreement with UK.
Beginning today, March 5, 2021, Ghanaian exporters to the UK will begin enjoying the benefits in the signed trade agreement.
He explains that both countries should enjoy benefits of agreement despite varying date of completion.He also said Ghana’s requirements for provisional application put the country in a good position.
“For an agreement like this to enter into effect, it has to be signed and approved by the executive. It also has to be approved by Parliament. You can’t fix a date for the completion of the ratification process because it varies from country to country. This is why there is therefore the need that pending ratification, it should be possible for the parties to begin to enjoy the benefits of the agreement.
“And for us, our requirements for provisional application will make it possible to begin to benefit from the terms of the agreement as of March 5, 2021. What is clear though is that the ratification by Parliament should happen very soon”.
Finalization of trade agreement between Ghana and UK
In a joint statement, on March 2, the two countries announced that they have have finalized negotiations on the Trade Partnership Agreement. This new agreement confirms their interest in consolidating the trade and economic relationship that has existed.
The new agreement will take effect immediately after both countries finalize their internal procedures to accommodate the concessions.
The deal, approved by the executive will provide duty free-quota free access for Ghanaian exports to the UK market.
Ghana’s exports have received a major boost as the trade ministry finalizes the free trade agreement with the United Kingdom. The tariff-free trade agreement will also provide a platform for greater economic and cultural cooperation between the two countries.
The partnership deal is worth £1.2bn and will allow Ghana to export commodities to the United Kingdom market without tariffs. Conversely, the UK will start its exports to Ghana under the tariff-free agreement from 2023.
The partnership will see products such as machinery, electronics, and chemical products brought to Ghana.
Paucity in trade deal threatened Banana Industry
The delay in the trade agreement earlier affected 15,000 direct and indirect jobs in the banana sector. The Banana Producers’ Association of Ghana, at the time risked losing their market to other African exporters. Ghana could not compete with exporters from other origins at the rate of tariffs.
The rising cost of business for these companies as a result of these exorbitant tariffs meant jobs losses.
