UK finalises post-Brexit trade deal with Ghana
The United Kingdom (UK) and Ghana have finalised a trade agreement following the former’s exit from the European Union (UE).
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 completed on February 4, 2020, 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 release said the deal would enter into effect following the completion of relevant internal procedures required in both Ghana and the UK.
The two countries began the processes on December 31, 2020, following the withdrawal of the UK from the European Union.
UK Secretary of State for International Trade, Rt Hon Liz Truss had engaged in an online meeting with Ghana’s Minister of Trade & Industry, Alan Kyerematen on New Year’s Eve.
“Today, we are pleased to announce that we have reached a consensus on the main elements of a new trade agreement. This provides the basis to replicate, the effects of the existing trade relationship between the UK and Ghana – a relationship which is underpinned by our strong people to people connections and has driven economic growth, created jobs and inspired creativity and innovation in both our countries,” Rt Hon Truss is quoted to have said.
Why is the UK negotiating new deals?
A treaty was finalised on New Year’s Eve which grants the UK to stop following EU rules as replacement arrangements for travel, trade, immigration and security co-operation came into force.
Subsequently, the UK has embarked on a move to secure partnerships that will spur the growth of its economy in a new era of independence.
The UK officially left the 27-member political and economic bloc on 31 January, three and half years after the UK public voted to leave in the 2016 Brexit referendum.
But it stuck to the EU’s trading rules for 11 months while the two sides negotiated their future economic partnership.
UK-Ghana trade
Ghana exports to the United Kingdom was US$415.12 million during 2019, according to the United Nations COMTRADE database on international trade.
On the other hand, Britain also exported goods and services worth £722 million to Ghana in 2019 and imported 498 million 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.