Exports to the United Kingdom (UK) by some big companies in the country are under threat following a trade agreement between the Government of Ghana (GoG) and the UK.
Challenges faced by Government in the trade deal if not resolved can result in the shutdown of some big companies in the country as well as major job losses.
The challenge faced by Government follows the UK’s insistence that GoG replicate its current trade agreement with the European Union (EU) with the UK or face higher duties and reduced quotas on exports into its market.
Ghana’s current trade agreement with the EU allows for duty free and quota free exports and imports between the two sides.
The UK’s demand follows its imminent exit from the EU.
Government has however, noted that it is not in support of the UK’s trade demand as an acceptance of the demand will send wrong signals to country members of the AfCFTA, as Ghana as the host of the AfCFTA Secretariat is supposed to be seen to be championing multilateral trade and not bilateral trade.
The UK is the biggest market for some of Ghana’s big export companies and an unfavourable trade agreement would adversely impact their operations.
Already, the companies affected have argued that they are not ready to pay the additional duties should the UK decide to implement them noting that the move will make them uncompetitive.