Mr Speaker, the ratification will allow this Agreement to be the legal framework for trade between the United Kingdom of Great Britain and the Northern Ireland and Ghana. Mr Speaker, there was a sad beginning of this Agreement. We knew years back that the United Kingdom (UK) was planning the European Union (EU), and so, negotiation began in
2018.
Unfortunately, by December 2020, we had not finalised the Agreement, and the UK imposed stiff sanctions on specific products which originate from Ghana. Mr Speaker, it affected profitability and the competitiveness of Ghanaian businesses. We met these traders, and they have not recovered up to this point.
Mr Speaker, there is a clear lesson to be learnt from this experience that we must project and make sure we are ahead of the board that this will not happen again. As some of the traders explained to us, it would be difficult for them to even recover because within that period where they
were not competitive, a lot of countries took their businesses, and they are struggling to recover from that. Clearly, there are a lot of lessons to be learnt.
Mr Speaker, there were very good points in this Agreement. What is really important in this Agreement is that it recognises that we would sign this legal agreement with the UK so that our efforts at economic integration in the sub-region is fundamental. That is why the text itself was taken from that Agreement. It is very important.
Mr Speaker, that must tell us that if we look at this Agreement closely, where we as a country would get an advantage would not come from an agreement with the UK; it would come from an agreement within our Economic Community of West African States (ECOWAS) region or within the continent. That is why for example, we must be so focused on the African Continental Free Trade Area (AfCFTA). We have talked about the advantages in it.
Even while we approve this Agreement, we have to understand that the panacea for our economic independence and freedom would never come from this Agreement with the UK. However, let me point out that this is very important because if
you look at the non-traditional export to the EU, as this Report has stated, almost 35 per cent of them go to the UK. It means that the UK market is very critical for us. That is why this Agreement is very important.
As it has been stated, one critical element has to do with trade liberalisation. There are products originating from Ghana that would be imported into the UK free of custom duties.
And Mr Speaker, clear advantage; we have to look at where we are with our industries, we have to look at the type of products we export and the value addition advantage that UK has.
So the question must really be asked about the benefits. We asked in discussions with the Ministry for the cost benefit analysis. Originally, that was not brought but when it was finally brought to us, it became obvious that in first year for example, 2021, Ghana would lose revenue to the tune of over GH¢115 million, representing 10.16 per cent of total revenue. In the coming years, the revenue that we were going to lose, were not provided and I think we have asked the Ministry to make sure that that information is forthcoming.
Mr Speaker, a point that was made was that there was cost of some fiscal adjustment in terms of support that we would get from the UK to really help cushion these losses we have talked about, which is very important. Also, very important, is that there are certain sensitive export products that we have excluded from this regime to ensure for example that we can protect our poultry industry in the agriculture sector and certain critical areas that we want to be able to be strong on.
Mr Speaker, this Agreement is very important and so we must just sign it but we must not take our eyes off the ball. For example, one of the things we asked the Ministry of Trade and Industry to do is the issue of monitoring; they should strengthen the monitoring regime to ensure that indeed, we are following the spirit and letter of this Agreement. Mr Speaker, on that note, I ask that this House approves this Agreement. Mr Speaker, I thank you very much.
Question proposed.