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04.08.2005 Business & Finance

Ghana works to reverse huge trade deficit with China


Accra, Aug. 4, GNA - Ghana's perennial huge trade deficit with China is to be reversed through effective trade cooperation in various fields, Mr Huo Jianguo, Head of Chinese Government Delegation, said on Thursday.

Ghana imported items worth 510 million dollars from China in 2004 as against her export of only 80 million dollars. This huge imbalance became the thrust of analysis when a 19-member Chinese delegation currently in the country met with the Ghanaian business community to find better ways of building synergies and joint partnership in order to ensure fair trade. The Ghana National Chamber of Commerce and Industry (GNCCI) organised the meeting.

Mr Jianguo said China's current trade and development strides in the last two years were attained largely on the basis of an open economy and market-oriented economic policy.

He said the delegation made up of officials of the Chinese government and investors from its business community both in China and Ghana would explore opportunities through joint cooperation for mutual beneficial trade.

"Having found Ghana as the ideal economy with high investor confidence, it is now time for China to increase her imports and seek areas where she could invest," Mr Jianguo said.

He identified areas such as timber, steel manufacturing, cocoa production and processing, the garment and textile industry and other agricultural products as some of the areas identified so far. "These are all fields that Ghana has a better advantage and potential and we hope China will cooperate better in these areas," he said.

Mr Jianguo called on the Ghanaian business community to take advantage of fairs in China in order to build and sustain more joint partnerships.

China's Gross Domestic Product (GDP) growth rate currently stands at 9.5 per cent with inflation of 1.9 per cent.

Mr Wilson Frofah, Vice Chairman of GNCCI, said such collaboration when effectively achieved would support Ghana's production efforts so that she could raise the volume and values of her trade with China. He said it was important to note that total trade between the two countries was low. "This is a challenge, which the chambers of Commerce of Ghana and China must endeavour to overcome."