Economist and professor at the University of Ghana Business School, Prof. Godfred Bokpin, has cautioned that China stands to benefit far more from the recently signed zero-tariff trade agreement with Ghana than Ghana itself.
Speaking on JoyNews’ PM Express on Tuesday, October 15, Prof. Bokpin explained that the trade arrangement should be viewed primarily through China’s strategic economic lens, not Ghana’s.
“China needed this more,” he said. “China wants to reduce its exposure to the US market and diversify. China has been doing this consistently.”
According to him, the deal fits neatly into China’s long-term plan to expand its global trade footprint, particularly across Africa. “If you look at the expansion in terms of trade openness between China and Africa, you can see China is very strategic. They want to reduce their exposure to the US, and they need markets,” he noted.
Prof. Bokpin pointed out that Chinese goods already dominate Ghana’s market, even under existing tariff regimes. “Do you want it to get worse? Even with some level of tariffs, Chinese goods are all over the place,” he stressed.
He criticised the government’s lack of broad consultation with key stakeholders such as the Association of Ghana Industries (AGI) and the Ghana National Chamber of Commerce before entering into the agreement.
“They are the big players, the ones doing the numbers,” he said. “You needed broad-based consultation to understand how they see it.”
While the agreement may appear mutually beneficial on paper, Prof. Bokpin argued that it mainly advances China’s broader economic strategy. He revealed that a team of Chinese experts recently visited Ghana to scout for investable projects, describing it as “part of a bigger picture China has for Africa.”
Asked whether Ghana had a choice in signing the deal, Prof. Bokpin responded candidly:
“We don’t have an option. China is quite powerful as a trading partner and a development partner. Given what we have seen in the last 20 years with Paris Club creditors and the rise of non-Paris Club creditors, we don’t have many options.”
He lamented that Africa lacks a coherent trade strategy, despite having frameworks such as the African Continental Free Trade Area (AfCFTA).
“Have we sat down to develop a strategy? Does Africa have a strategy to engage the rest of the world?” he asked. “Having AfCFTA doesn’t mean we are taking advantage of it. It’s like saying that because Africa has more slots in the World Cup, it will win. It depends on how you prepare your players and who your industrial sector actors and investors are.”
Prof. Bokpin also drew attention to structural economic weaknesses that make Ghana uncompetitive, even with tariff protections.
“Our economic orientation is not designed to favour exports. Everything we are doing here is import-driven,” he observed. “Look at our financial system—it supports imports, not production. The portion of private sector credit that goes to agriculture and manufacturing is small compared to what goes to services that fund trade.”
Prof. Bokpin’s comments highlight the delicate balance Ghana faces in its trade relations with global powers like China, underscoring the need for a robust national strategy to ensure that trade agreements deliver sustainable benefits to the local economy.
Click the link Puretvonline.com | WhatsApp Channel to join the WhatsApp channel
GOT A STORY?
Contact/WhatsApp: +233243201960 or manuelnkansah33@gmail.com