The United Kingdom (UK) and Ghana have finalized a trade agreement following UK’s exit from the European Union.
Contained in a release, the two nations’ joint statement stated that there was now an “Interim Ghana-UK Trade Partnership Agreement” that would replace existing trading deals.
The new agreement is expected to provide duty-free and quota-free access for Ghana to the UK market and preferential tariff reductions for UK exporters to the Ghanaian market.
The statement further noted that the deal would enter into effect following the completion of relevant internal procedures required in both Ghana and the UK.
“Today Ghana and the UK are pleased to announce that they finalized negotiations on a new Interim Ghana-UK Trade Partnership Agreement. This Agreement will provide for duty free and quota free access for Ghana to the UK market and preferential tariff reductions for UK exporters to the Ghanaian market.
“The new Agreement reaffirms the deep interest of both Ghana and the UK to strengthen their longstanding trade and economic relationship. The Agreement also reflects the importance of integration between the West African States within the context of the Economic Community of West African States (ECOWAS) and amongst African States within the context of the African Continental Free Trade Area. The Agreement further underscores their shared ambition to enhance relations between the UK, ECOWAS and African States more broadly”.
Ghana and the UK on 31st December 2020, announced that they had reached a consensus on the main elements of a trade agreement that would replicate the effects of the trade relationship between Ghana and the UK prior to the end of the Transition Period following the withdrawal of the UK from the European Union.
They stated their intention to finalize the text of the agreement to reflect progress made in relation to rules of origin, cumulation arrangements, time-bound commitments, provisions for development cooperation and commitments to human rights and good governance.
Fairtrade Africa had earlier urged the government of Ghana and the United Kingdom to finalize a trade agreement to save fruit exporting companies.
It disclosed in a statement that, although it welcomed the joint announcement by the Ghanaian Ministry of Trade and the UK Department of Trade earlier this month that an agreement had been reached to allow tariff free access, the delay was impacting negatively on players in the industry.
According to the United Nations COMTRADE database on international trade, Ghana’s exports to the United Kingdom was US$415.12 million in 2019.
On the other hand, Britain also exported goods and services worth £722 million to Ghana in 2019 and imported £498 million worth of goods – mostly oil, fish, cocoa and fruit.
Reuters reports that Britain has signed “continuity” agreements with 63 other countries to safeguard terms on £885 billion ($1.21 trillion) of trade, including partners like Canada and Switzerland.
