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Home Business Economy

Ghana-UK Trade Agreement: British companies begin rejecting Ghanaian imports

February 4, 2021
in Economy, Top Stories
0
Ghana-UK Trade Agreement: British companies begin rejecting Ghanaian imports
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UK companies have begun rejecting imports from Ghana as the country and Britain have failed to reach a trade agreement, post Brexit.

So far, banana farmers have lost 20% of their exports to the UK and could lose about 70% more by next week.

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The three leading banana exporters; Golden Exotics, Volta River Estates and Blue Skies have indicated that this could result in major layoffs.

Administrative and Corporate Affairs Manager of Golden Exotics, George Kporye told Joy Business “our buyer is getting extremely concerned that if this problem is not resolved quickly, from next week, he intends to divert a large portion of our supply to another country that already have been able to secure an agreement with the U.K.”

“So, that will mean we’ll lose substantial part of our business. From what the importer is saying, he’s only threatening to take 30 percent but that can quickly transform into larger volumes,” he emphasized.

The three companies together employ 5,000 workers directly and about 25,000 workers indirectly.

Meanwhile, Aunty Patience who has been in the banana industry for 19 years, fears her life will be hopeless should Ghana lose out on exporting to the U.K.

According to her, there is no life without a job, stressing “we can’t stay without working, we’ll become useless”.

Brexit and implications on global economy

Brexit has become the major change on the European economic and political landscape since the fall of the Berlin wall in 1989.

The economic implications of UK’s exit from the European Union and its impact on the British and global economies were widely discussed and in some cases hotly debated in the months leading to the referendum.

However, it effect on sub-Saharan African economies was not part of the discussions.

Many were of the view that Brexit should not and will not have any impact on the Ghanaian economy, as any trade agreement that exists, but it seems otherwise.

Exporters and businesses will be hoping that the Ghanaian authorities can quickly talk out issues with their British counterparts to resolve any repercussion that Brexit will impose on them.

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Source: myjoyonline
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