Ghana Exporting Agricultural Produce to the European Market Date: 7.11.2011
INTRODUCTION stGhana was the 1 country in the Sub-Saharan Africa to get its Independance. Ghanas economy is very high, and there two reasons to that:Because of its agriculture, which makes the main economic grow sector of the countryThe country exports those agricultural produce to the European Market in exchange to technical futures such as machinery, electrical equipment, vehicles.....
Ghanas EconomyThe economy of Ghana is mostly based on Agriculture.She uses those agricultural produce for trading with Europe, that makes increase the country economy.Ghana is the Worlds Fastest Growing Economy in 2011.The country has one of the highest GDP per capita in Africa.
Ghanas AgricultureAgriculture its Ghanas most important economic sector, employing more then half the population with 70% labor force and 35.5% GDP.Cocoa is the most agricultural products harvested in the country.Most European countries use it to make some industrial resources and some other nutritional resources such as chocolate, Beauty oils and can even use it to cure some diseases.
Other ProductsGold too is a major produce of the country that help improve his economy. It is Ghana’s highest foreign exchange earner, it has been widely used throughout the world as a vehicle for monetary exchange.Palm oil can be transform into different kind of diesel, and we all know that they are some cars that only use diesel as fuel.Manganese is essential to iron and steel production by virtue of its sulfur-fixing, deoxyizing.
Labor forcesMost of Ghanaian populations are farmers, they put all their energy in producing many different crops and because of the climate of the country, which is sometimes dry and some other times humid, agriculture is more efficient.Since the economy of the country is mostly based on agricultural produces, the government trades those crops to the European Market in exchange to non-food materials.
The needs of EuropeEurope cannot easily produce agricultural products. Even if they do it will not be as good as those produce in some African countries like Ghana, Cameroon, Cote dIvoire, etc...Most European countries are industrialize , means that they take some products and transform them into different kind of resources. Europe has lot of factories, machines , that can be useful to transform those produce into cream for hand, beauty oil, milk, ice cream, chocolate, etc...Europe also need Palm oil to make diesel for cars and even Maganese to make some chemical reactions.
Ghanas Exchange with EuropeThe structure and composition of Ghana’s exports is still dominated by the production of primary resources, which make up 85% of total merchandise exports. Cocoa and cocoa preparations are Ghana’s leading export, contributing 42% to the total export base. But Ghana need supply of non-food industrial resources such as plant machinery, vehicles, raw materials etc..
Ghanas Export MarketThe EU is by far Ghana’s largest export market, accounting for more than half of all exports. Trade with EU represent nearly 55% of the Ghanas total export. But they are also some other countries like USA , China, India that also represent something in their export.
Ghanas Export and the EPA Market AccessThe EPA Market Access is solution of agreement founded by the EU replace the old one which has expired in 2007.This new agreement will give the opportunity to African countries to keep their preferences and their Market Access, but it will not guarantee an improvement in the Ghanas Market Access to the EU.
Ghanas Export and the EPA Market AccessGhana’s exports to the EU are governed by three alternative arrangements:The Most Favored Nation (MFN) , rate available for all African countriesThe standard Generalized System of Preferences (standard- GSP) available to all developing countriesThe Cotonou Agreement available to all ACP countries which is the most favorable amoung all of them in the way that, even if it expired, an increase in the tariffs will not affect the trade between Ghana and Europe.
CONCLUSIONGhana has lot of agricultural produce that are exported to the European Market in exchange to machinery, vehicles, electrical equipment etc.Europe is a very wide and develop continent, with lot of industries, factories, huge buildings and with a high economy, but the continent needs some support from others countries such as Ghana in terms of agricultural produce.The European Union continues to be an important trade partner for Ghana. Not only is the EU the leading source of Ghanas imports, it is also a major destination of Ghanas export.
Thank you for your attention and we hope you enjoyed it.