Nigeria and Ghana agree expanded bilateral trade framework

Presidents John Mahama and Bola Tinubu signed a Comprehensive Bilateral Trade and Investment Framework in Abuja on Thursday, removing tariffs on 320 product categories traded between Ghana and Nigeria, establishing a joint border management authority and committing both countries to harmonising their standards certification systems within two years.nnThe agreement, which took two years of technical negotiations to finalise, covers agricultural produce, manufactured goods, building materials, processed foods, textiles and digital services. Automotive parts and pharmaceuticals, which had been contentious in earlier rounds, are included with a three-year phase-in period.nnGhana’s Trade Minister Kobby Okyere Darko called it “the most commercially significant bilateral deal Ghana has signed since joining the World Trade Organisation” and said it would open a market of over 300 million consumers to Ghanaian exporters.nnBusiness associations in both countries welcomed the deal with particular enthusiasm. The Ghana Union of Traders Association said it would dramatically reduce the informal cross-border trade that currently accounts for an estimated $2.5 billion in annual value but operates outside formal channels with no regulatory protection for traders.nnThe joint border management authority will be based in Aflao and will initially cover the main Ghana-Nigeria land routes before expanding to include air and sea freight. A joint anti-smuggling intelligence unit will be established within the authority.nnImplementing the agreement will require legislative action in both countries’ parliaments. The Nigerian National Assembly and Ghana’s Parliament have both committed to fast-tracking ratification before the end of the current legislative year.