Economist and Professor of Finance at the University of Ghana Business School, Godfred Bokpin, has welcomed the news of China’s zero-tariff policy for African countries, but warned that the real benefits to Ghana will only materialize if the country strengthens its export competitiveness.
Speaking on the Channel One Newsroom on Sunday, October 19, following President John Dramani Mahama’s recent bilateral talks with Chinese President Xi Jinping in Beijing, Prof. Bokpin said while the announcement may appear to be good news on the surface, the actual impact will depend on Ghana’s ability to take advantage of the opportunity.
“Ordinarily, one could say this is good news. Whatever way you look at it, you can say good news,” he noted. “But whatever advantages or other benefits we talk about now they could be more theoretical, hypothetical. I am saying so because translating the intended objective, benefits into actual will depend more on the hard work that has to be done by our exporters.”
China’s zero-tariff policy, discussed during President Mahama’s visit for the Global Leaders’ Meeting on Women, is part of a broader commitment by China to deepen cooperation with African countries and boost trade. President Xi expressed hopes that Ghana would soon benefit from the policy, which eliminates tariffs on selected goods exported from Africa to China.
However, Prof. Bokpin cautioned that Ghana must focus on building a competitive advantage in its export sector to benefit meaningfully from such trade preferences.
“When we talk about our exporters we are talking about competitive advantage that we have also created to enable our exporters to be able to take advantage of such zero tariffs.”
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