Brexit Will Affect Ghana, UK Trade Relations – Hanna Tetteh

Ghana’s Minister of Foreign Affairs, Hannah Tetteh, has said the UK’s  decision to leave the European Union will affect Ghana’s trade with that country.

The Brits voted on Thursday to exit the European Union after more than four decades of joining the common market. “With regard to the UK and the European Union, what that will impact is our trade relations. Even that, I don’t see that having an impact immediately because, they will now begin the process of negotiating their exit from the European Union. What we have to do now, is to watch how the rest of the European Union reacts to this. Because we don’t know whether or not this is going to trigger similar calls for other EU countries which would have even more significant implications than just the Brexit vote,” she added. 

Speaking on the Citi Breakfast Show on Friday, Hanna Tetteh also explained that, Ghana would have to renegotiate trading and bilateral agreements with the UK. Recent statistics shown that, trade between Ghana and the United Kingdom has reached £1.3 billion.

Ghana is currently the UK’s fifth largest trade partner in Sub-Saharan Africa.

“Even though Britain has not formally exited the EU, and the UK remains bound by previous agreements signed under the EU, Ghana will immediately start talks with the UK on a bilateral trade agreement,” the Minister added.

She also said the country would have to pay attention to the UK and EU negotiations “so that we will know what kind of processes they will continue to have, and how that should influence whatever subsequent negotiations we will have with them.”

“Until Britain formally exits EU, the trade arrangement will continue to apply, but we have to consider the negotiation of bilateral trade arrangement with the UK,” she added.

Meanwhile, experts have predicted that the UK and EU negotiations will last for about two years.

We’ll consider emerging markets for $750m bond

The Minister of Finance, Seth Terkper, has also said Ghana is considering emerging markets for its $750 million bond. According to him, with Ghana’s experience in the core matured markets, the exit of Britain from the EU would have an effect on the European and American bonds markets; hence it will be prudent to study other markets to maximize Ghana’s output.

“We are also watching the emerging markets. When we talk about emerging markets, we are talking about the bonds markets involving bonds issued in Brazil, China, India and others. Those are the emerging markets,” he said.

Source: citifmonline.com