The governments of Ghana and China will soon sign a special Economic Partnership Agreement to concretise their mutually beneficial partnership, Foreign Affairs Minister Samuel Okudzeto Ablakwa has announced.

The Foreign Minister revealed this information in a social media post on June 12, after a bilateral engagement with the Chinese Foreign Minister, His Excellency Wang Yi, on the sidelines of the ongoing China-Africa summit in Changsha China on Wednesday, June 11.

As part of the productive and impactful talks, the two ministers discussed new industrial projects in line with President John Mahama's vision, including exploiting Ghana's bauxite for an integrated aluminium industry powered by modern rail infrastructure.

Also, the two representatives agreed to work towards establishing an electric car manufacturing plant in Ghana anchored on Ghana's strategic lithium deposits.

Meanwhile, Minister Samuel Okudzeto Ablakwa has revealed that the Chinese government has removed its tariff on all exported goods from Ghana.

According to Mr Ablakwa, "this 0% tariff on 100% of goods from Ghana and other African countries will bolster trade, create jobs and produce more Ghanaian entrepreneurs."

Foreign Minister Samuel Okudzeto Ablakwa and Chinese Foreign Minister, His Excellency Wang Yi,

Impact of 0% tariff

The removal of the import tax, which would have been borne by Ghanaian export companies and subsequently passed on to Chinese consumers, will now allow the Ghanaian businesses to compete more competitively, as the prices of their products would see a reduction, aiding the demand for their commodities.

In the long term, an increase in production due to high demand will result in the creation of more job opportunities for Ghanaian citizens.

For China, the zero tariff will also Chinese consumers purchase Ghanaian imported goods at a relatively cheaper price.

It is important to note that China is Ghana's number one trading partner with last year's trade volume exceeding US$11billion.

Ghana exports raw materials such as gold, cocoa, and oil to China, whereas the Asian country supplies machinery, electronics, textiles, and construction materials to the West African country

The recent economic move by China will deepen its cooperation with Ghana. The Chinese government has over the years aided the development of Ghana in diverse ways—through financial aid and technical support.

In 2018, the two countries signed a number of agreements, including the One Belt, One Road Memorandum of Understanding, Memorandum on Regional Aviation Cooperation, Agreement for Cooperation in the peaceful use of nuclear energy, Cooperation to carry out Maternal and Child Health Project, Framework Agreement on Financing Insurance Cooperation ($ 2 billion Sino-Hydro deal), Economic Cooperation on Phase 2 project of the University of Health and Allied Sciences in Ho, Cooperation on the expansion of the Cape Coast Stadium and Cooperation on the supply of police vehicles to the Ghana Police Service.

Meanwhile, Foreign Affairs Minister Samuel Okudzeto Ablakwa has assured that President Mahama's administration is firmly committed to leveraging diplomacy for the transformation of the country.

"Kwame Nkrumah and Chairman Mao will be proud of what Ghana-China relations has achieved 65 years after they laid the foundation," he said.