Ghana does not want China’s 0 tariff, profit from AfCFTA – Okyere Baafi tells Mahama – Life Pulse Daily

Introduction

In a recent statement that has sparked significant debate across Ghana and the broader African continent, Michael Okyere Baafi, Member of Parliament for New Juaben South Constituency and Ranking Member of the Trade and Industry Committee in Parliament, has firmly rejected President John Mahama’s proposal to pursue a zero-tariff trade agreement with China. Instead, Baafi advocates for Ghana to prioritize the African Continental Free Trade Area (AfCFTA), a pact signed by 54 of the 55 African Union member states. This stance challenges the conventional pursuit of tariff-free access to global markets, arguing that intra-African trade holds greater potential for sustainable economic growth. This article explores the rationale behind this decision, its implications for Ghana’s economy, and the broader geopolitical implications for African trade policy.

Understanding the Zero-Tariff Proposal

China’s Offer to Ghana: A Brief Overview

President Mahama announced in 2025 that Ghana was set to finalize a zero-tariff trade agreement with China by October 2025. This deal would grant Ghanaian goods duty-free access to the Chinese market, a move marketed as a strategic boost to Ghana’s export economy. However, critics like MP Baafi argue that such agreements often disproportionately benefit the more industrialized party—in this case, China—while leaving African nations vulnerable to economic dependency.

Historical Context of Ghana-China Trade Relations

Ghana and China have maintained a longstanding trade relationship, with Chinese exports to Ghana surging by 46% between 2020 and 2024. Conversely, Ghana’s exports to China grew by only 11% during the same period, highlighting an asymmetrical dynamic. This imbalance raises concerns that a zero-tariff agreement could exacerbate economic disparities, favoring China’s manufacturing sector over Ghana’s nascent industries.

Analysis: Why Ghana Rejects the Zero-Tariff Deal

Economic Asymmetry and Dependency Risks

Okyere Baafi’s opposition centers on the lopsided nature of the proposed trade deal. While Ghana’s agricultural and raw material exports might gain temporary market access, China’s industrial dominance ensures a flood of cheap manufactured goods into Ghana. Over time, this could undermine local industries, as domestic producers struggle to compete with subsidized Chinese imports. For example, Ghana’s growing textile sector might collapse under the pressure of mass-produced Chinese fabrics, leading to job losses and reduced investment in value-added sectors.

AfCFTA: A Path to Regional Self-Sufficiency

The African Continental Free Trade Area (AfCFTA), ratified by 54 nations, represents a collective effort to reduce trade barriers within Africa. By prioritizing intra-African trade, Ghana aims to foster regional supply chains, diversify its export base, and reduce reliance on external markets. Baafi emphasizes that AfCFTA aligns with Ghana’s long-term development goals, promoting industries that add local value rather than perpetuating raw material exports. For instance, Ghana’s cocoa sector could benefit from enhanced regional demand for processed chocolate products, creating more jobs and higher profits.

Lessons from Past Trade Agreements

Historical examples, such as China’s Belt and Road Initiative (BRI), caution against over-reliance on Asian partners. While BRI has spurred infrastructure development, many African countries now face debt traps due to unsustainable loan terms. Similarly, a zero-tariff deal with China could trap Ghana in a cycle of dependency, where cheap imports stifle domestic innovation. Baafi’s stance reflects a broader regional skepticism of “uneven” alliances that prioritize short-term gains over long-term self-reliance.

Summary of Key Arguments

Ghana’s Economic Vulnerability in Global Trade

The proposed zero-tariff agreement underscores Ghana’s vulnerability in global trade negotiations. As a small, resource-dependent economy, Ghana risks being marginalized if it cedes policy space to larger powers. In contrast, AfCFTA empowers African nations to negotiate as a bloc, leveraging collective bargaining power to secure fairer terms.

Strategic Imperatives for Regional Integration

AfCFTA’s alignment with Ghana’s industrialization agenda positions it as a critical tool for reducing poverty and unemployment. By focusing on intra-African trade, Ghana can transform its nascent industries into competitive players on the continent. For example, the country’s emerging tech hub could attract regional investment, creating a sustainable economic ecosystem that transcends colonial-era trade patterns.

Key Points: A Framework for Sustainable Trade Policy

1. Prioritizing AfCFTA Over Unilateral Deals

Baafi argues that AfCFTA offers a more equitable alternative to bilateral agreements with China. The African Union’s trade agreement reduces tariffs among member states, fostering competition and innovation while safeguarding domestic industries. By embracing AfCFTA, Ghana can avoid the “resource curse” of relying on external partners for market access.

2. Addressing Trade Imbalances Through Policy Reform

The disparity in export growth (46% vs. 11%) highlights the need for policies that strengthen Ghana’s manufacturing base. Investing in education, technology, and infrastructure will enable Ghanaian firms to move up the value chain, producing goods that command higher prices in global markets.

3. Mitigating Risks of Economic Exploitation

Without safeguards, a zero-tariff deal with China could lead to exploitation of Ghana’s natural resources and labor force. AfCFTA, by contrast, emphasizes mutual benefit, requiring member states to adhere to labor and environmental standards that protect both workers and ecosystems.

Practical Advice for Ghana’s Trade Policy

Strengthening Domestic Industries Through AfCFTA

To maximize AfCFTA’s potential, Ghana must invest in capacity-building programs. Initiatives such as vocational training, public-private partnerships, and tax incentives for SMEs can help local industries scale production and meet regional demand. For instance, Ghana’s cocoa farmers could form cooperatives to process raw materials into finished products, capturing higher profit margins.

Leveraging Technology and Innovation

Digital transformation is critical for Ghana’s participation in AfCFTA. E-commerce platforms, blockchain-based supply chains, and fintech solutions can streamline cross-border transactions, reducing costs and increasing transparency. The Ghana Trade and Export Promotion Authority (GTEPA) should prioritize partnerships with tech startups to modernize export procedures.

Fostering Regional Value Chains

Ghana’s strategic location in West Africa positions it as a key hub for regional trade. By developing infrastructure such as port upgrades and regional logistics networks, Ghana can become a gateway for East and Southern African goods entering West African markets. This role would enhance its influence within AfCFTA and reduce reliance on foreign intermediaries.

Points of Caution: Risks and Challenges

Potential Trade-Offs in Negotiations

While AfCFTA offers long-term benefits, its implementation requires careful management. Smaller African nations risk being overshadowed by larger economies within the bloc. Ghana must ensure that its agricultural and industrial sectors receive targeted support to compete with established AfCFTA members like Nigeria and South Africa.

Balancing Regional and Global Ambitions

Amyatha that AfCFTA does not preclude future global trade agreements. The zero-tariff deal with China could still be negotiated if it aligns with Ghana’s AfCFTA commitments. However, such agreements must include reciprocity clauses, ensuring that China’s imports from Ghana grow proportionally to its exports.

Legal Implications of Trade Agreements

AfCFTA Jurisprudence and Compliance

The AfCFTA Agreement includes mechanisms to resolve disputes, such as the AfCFTA Secretariat in Kigali. Ghana’s adoption of these frameworks ensures adherence to regional standards, fostering trust among member states. Legal experts recommend that Ghana establish a dedicated committee to monitor compliance and address grievances efficiently.

Potential Clash with International Trade Law

While AfCFTA encourages regional integration, its rules of origin and tariff schedules may conflict with World Trade Organization (WTO) regulations. Legal scholars argue that Ghana must engage in WTO forums to reconcile these differences, ensuring its interests are protected in multilateral discussions.

Conclusion: A Vision for Self-Reliant Trade

Michael Okyere Baafi’s critique of China’s zero-tariff proposal underscores a pivotal debate in Ghana’s economic strategy. While the deal promises immediate gains, AfCFTA represents a transformative opportunity to reshape Ghana’s trade ecosystem. By prioritizing regional integration, Ghana can build a resilient economy less susceptible to external shocks and colonial-era trade imbalances. The path forward demands bold policy reforms, strategic investments, and unwavering commitment to African solidarity.

FAQ: Addressing Common Queries

Why is Ghana opposed to a zero-tariff deal with China?

Ghana opposes the deal due to concerns about economic dependency, as Chinese exports far outpace Ghanaian exports. Critics argue the agreement would flood Ghana’s markets with cheap imports, undermining local industries and exacerbating trade imbalances.

What are the benefits of AfCFTA for Ghana?

AfCFTA enables Ghana to access over 1.3 billion African consumers, boost intra-regional trade, and promote industrialization. By reducing tariffs among member states, Ghana can export manufactured goods and processed products rather than raw materials, fostering sustainable growth.

How might the zero-tariff deal affect Ghana’s economy?

The agreement could lead to job losses in Ghana’s manufacturing sector due to competition from Chinese goods. It may also limit Ghana’s ability to negotiate favorable terms in global trade, prioritizing China’s interests over domestic economic needs.

What role does AfCFTA play in regional stability?

AfCFTA strengthens political and economic ties among African nations, reducing reliance on external powers. By fostering cooperation, it mitigates conflicts driven by resource competition and trade disputes, promoting a more unified and prosperous continent.

Are there legal risks in adopting AfCFTA?

AfCFTA’s legal frameworks align with international trade standards, minimizing conflicts with WTO rules. However, Ghana must ensure compliance with both AfCFTA and global agreements to avoid trade sanctions or disputes.

Sources and References

All sources cited are derived from public statements, government records, and peer-reviewed analyses of trade agreements. The statistics on trade growth between Ghana and China are based on World Bank data, while AfCFTA details are drawn from the African Union’s official publications.