ACCRA, 4 March 2021 – Certain goods from Ghana and the United Kingdom (UK) will enjoy tariff-free access and tariff reductions, according to a new $1.6 billion trade deal sealed by the two countries.
“This deal secures tariff-free access for products that British shoppers love – and supports jobs in Ghana – paving the way for further economic growth as we build back better from COVID-19,” said Ranil Jayawardena, the minister for international trade of the UK.
The deal is part of a series of post BREXIT negotiations that the UK is now forced to seal with counties that previously traded with the UK under deals concluded with the European Union (EU).
New trade agrements focus on products not covered by the roll over of deals negotiated while the UK was part of the EU.
The deal will minimize disturbance in ongoing trade with Ghana and the UK by ensuring that exporters and importers from both countries do not face additional tariffs or the obligation to comply to additional paperwork.
Without the new deal, a shipment of Ghanaian exports of bananas arriving Portsmouth (UK) last January was charged 17,500 pounds .
Under the new deal, such additional duty will be wiped away, allowing Ghanaian products like bananas, tinned tuna and cocoa to benefit from tariff-free access to the UK.
In exchange, machinery, electronics and chemical product exports from the UK will also benefit from a reduction in import duty taxes coming into Ghana.
Ghana’s biggest exports to the UK include mineral fuels and oil, fish, fruit, cocoa and cocoa preparations, according to a statement on the website of the UK government.
Ghana imports mostly textiles, machinery, chemical products and mechanical appliances from the UK.
Ghana’s exports to the UK were valued at $415.12 million in 2019, according to the United Nations COMTRADE database on internaitonal trade, with more than half of those exports ($241.9 million) described as mineral fuels, oils and distillation products.