Ghana to renegotiate trade deals with UK over Brexit

Foreign Affairs Minister, Hanna Tetteh says Ghana will have to re-engage Britain over trade agreements between the two countries following Britain's decision to exit the European Union.

Though she admits that the decision will not significantly affect Ghana's engagements with the EU over the EPA, possible amendments to the UK's foreign policies will make a renegotiation necessary.

“We would now have to consider renegotiation of our bilateral trade agreement with the UK even though this is something that we see coming in the horizon, we also will have to anticipate beginning our bilateral trade with the European Union (EU) as we have significant trade agreements with Germany, France, among others,” she said.

Hannah Tetteh who expressed no surprise at the outcome of the referendum also explained that the impact is not likely to be felt in the interim as it will take the UK about two years to officially conclude her exit from the EU.

“Until Britain formally exits the EU, the trade agreements will continue to apply but we would have to consider the trade and bilateral agreements with the UK,” she stated.

On whether or not the new decision is likely to affect Ghana's current engagements with the EU over the Economic Partnership Agreements, Madam Hannah Tetteh was of the view the current negotiations will remain.

Cedi not to depreciate against British pound

Meanwhile Finance Minister Seth Terkper believes the decision will not affect the cedi's performance within the short to medium term.

This comes despite earlier reports that the British pound plummeted by 10 percent  reaching levels not seen since 1985, on Friday,

His comments also corroborate earlier report by some currency analysts that the cedi will not be significantly affected citing the relatively limited financial support from UK.

Mr. Tekper however says the ministry together with the Central Bank, are monitoring developments in order to stem any imbalances that may be determined.

“Of immediate importance to us is what happens to the value of our currency related to the strength of the dollar, pounds and euro…the economy will also react to the commodity prices. We had actually begun consultations with the Bank of Ghana long before the decision as all ministries and their central banks have been analyzing this situation,” Mr. Terkper indicated.

Brexit not to affect economy
Earlier, Economist Professor Godfred Bokpin had also ruled out any significant impact on some UK companies operating in the country.

“If the UK should exit, it would have different implications on foreign policy, trade partnerships and agreements among others. But I want to believe that even of the UK decide to remain in the Eurozone, things will not change within the short to medium term,” he told Citi Business News.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana