Ghana signed a trade agreement worth $1.6 billion with the United Kingdom on Wednesday. The agreement is one of the latest bilateral deals since Britain opted out of the European Union (EU), reported Africa News.
According to a statement published on the UK government website, the agreement will allow Ghana to export duty-free and quota-free products to the UK market and preferential tariff reductions for UK exporters to the Ghanaian market.
This means Ghanian products like bananas, cocoa, and tinned tuna can be traded to Britain without tariffs. UK exports will also benefit from tariff liberalization from 2023, including machinery, electronics, and chemical products.
Before the UK exited the EU, Britain had 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 that the EU offers Africa, which is African countries don’t need to pay any tariffs or duties on exports to the UK.
But as Ghana was not included, Ghanian importers faced tariffs and extra paperwork in absence of a trade deal. In December, the UK also signed a trade deal with Egypt.
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,” the Ghana and UK governments said in the statement.
The UK is willing to trade big with African countries and sees the continent’s potential.
The latest deal means the UK has now secured trade agreements with 65 non-EU countries, representing trade worth £217 billion in 2019. This accounts for 97% of the value of trade with non-EU countries that was set out to secure agreements at the start of the trade continuity program.
