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

This decision was reached on Wednesday, June 11, during a bilateral engagement between the Ghanaian minister and the Chinese Foreign Minister, His Excellency Wang Yi, on the sidelines of the ongoing China-Africa summit in Changsha China.

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."

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.

Ghana and China will soon sign a special Economic Partnership Agreement to concretise the mutually beneficial partnership, Mr Ablakwa further noted in his post on Facebook on June 12.

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.

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.