CONCERNS are mounting over Ghana’s current trade arrangement with China, particularly the 0% tariff regime granted to some Ghanaian exports.
Critics argue that while this deal appears beneficial on the surface, it may be creating long-term structural imbalances in Ghana’s economy, favouring China’s industrial dominance while stifling local job creation.
Under China’s preferential trade scheme for Least Developed Countries (LDCs), Ghana enjoys duty-free access for a range of exports including cocoa beans, cashew nuts, bauxite, shea butter, gold, timber, and seafood.
While the policy aims to boost trade volumes and promote export growth, observers warn that Ghana continues to export mainly raw materials, missing out on the higher economic returns of value-added goods.
“What is happening is a disguised trap,” a trade analyst noted. “Ghana exports raw materials at zero tariff, but imports a flood of finished Chinese goods. This undermines local industries, drives up unemployment, and strengthens China’s manufacturing base.”
Many believe that this one-sided structure has led to a trade imbalance, with Ghana becoming a major market for Chinese manufactured products, everything from electronics to textiles, often at prices local producers cannot match. The result is increased dependency on imports, loss of industrial capacity, and limited economic diversification.
Some economists are now advocating for a policy shift. They propose that Ghana should impose a 55% tariff on Chinese imports — especially on goods that can be produced locally —while maintaining preferential export terms for value-added products. Others stress the need for Ghana to invest in industrialization, local manufacturing, and agro-processing to reduce over-reliance on raw exports.
“If we must trade, let it be on equal terms,” said a policy researcher. “Let’s export chocolate instead of cocoa beans, furniture instead of logs. That’s how we create jobs and wealth.”
As Ghana seeks to grow its economy and create sustainable employment, the government is under pressure to review trade agreements that may be unintentionally deepening structural dependence rather than fostering real development.
Source: Nationaltymes.com
