Professor of Economics at the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Peter Quartey, has cautioned that Ghana must implement strong safeguards to protect local industries under the newly announced zero-tariff trade arrangement with China.
Speaking in an interview on Joy FM’s Newsnight on Tuesday, October 14, Prof Quartey stressed that while the removal of tariffs could enhance trade and improve access to goods, it also poses a potential threat to domestic manufacturers if not carefully managed.
“The fact that there is zero tariff doesn’t mean we should allow cheap, low-quality products to enter our market,” he warned.
“We have to regulate and ensure that all products meet the necessary standard protocols so that we get value for money.”
He added that government intervention will be critical in ensuring that local producers can compete fairly.
“Where this arrangement benefits local industries, that’s where government must step in to provide support in terms of capacity, technology, and access to finance to help our local producers match the Chinese firms that will enter the market,” Prof. Quartey explained.
Prof. Quartey’s comments come after Chinese President Xi Jinping pledged China’s support to help Ghana transform its resource wealth into sustainable development and benefit from Beijing’s zero-tariff policy for African countries.
President Xi made the commitment during bilateral talks with President John Dramani Mahama in Beijing, held on the sidelines of the Global Leaders’ Meeting on Women.
The policy, which seeks to deepen China-Africa economic cooperation, offers African nations duty-free access to the Chinese market for thousands of products.
Source: Myjoyonline