Lack of agreed trade deal with Ghana means banana farmers will face tariffs

Lack of agreed trade deal with Ghana means banana farmers will face tariffs

Reacting to the news that Ghana has agreed the principles of a trade deal with the UK Government, the Fairtrade Foundation said that though this was promising, the lack of a signed deal meant that tariffs would apply to goods such as Ghanaian bananas and processed cocoa products, which would likely be passed to the farmers and workers.

Head of Policy for the Fairtrade Foundation Tim Aldred said;

‘The Fairtrade Foundation is pleased to hear that the Government has agreed the principles of a trade deal with Ghana. However, we are disappointed and concerned that no deal is in place, despite repeated warnings about this risk and its implications.

Without a signed deal Ghanaian bananas and processed cocoa products must now pay a substantial tariff increase, the costs of which are likely to be borne by farmers and workers growing these products. Fairtrade bananas now face tariffs equivalent to 9.5p / kg, where previously no tariff applied.

We urge the UK Government to clarify the timetable for finalising its agreement with Ghana, and to put in place provisional mechanisms so that Ghanaian banana and cocoa exports can continue tariff free until an agreement is finalised.’

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