The European Union (EU) Ambassador to Ghana, Rune Skinnebach, has underscored the stark contrast between Ghana\u2019s trade relations with the EU and China \u2013 pointing to a significant imbalance with China while describing EU-Ghana trade as largely even.<\/p>\n\n\n\n
Speaking at a media engagement to launch Europe Month in Accra, Mr. Skinnebach said Ghana currently exports very little to China but imports extensively; a situation he believes puts pressure on the local economy.<\/p>\n\n\n\n
According to him, the country\u2019s trade model with China is contributing to job losses in domestic industries, rising foreign debt, lower GDP growth, currency depreciation and increased dependence on foreign economies.<\/p>\n\n\n\n
\u201cThe trade balance with China is incredibly skewed because Ghana is exporting virtually nothing to China and is importing everything from China. With the EU, it is almost balancing. So we are importing almost as much from Ghana as we are exporting to Ghana and that\u2019s a huge and significant difference that affects the Ghanaian economy,\u201d he pointed out.<\/p>\n\n\n\n
He contrasted this with Ghana\u2019s trade arrangement with the EU, which he said is supported by the Economic Partnership Agreement (EPA). The agreement allows duty-free and quota-free trade, helping to maintain a more balanced exchange of goods between both sides. According to him, this framework ensures that the country\u2019s exports to the EU remain competitive and consistent.<\/p>\n\n\n\n
What the figures say?<\/strong><\/p>\n\n\n\n The Ghana-EU trade and investment partnership is anchored in the EPA, which ensures stability, predictability and legal certainty for economic operators.<\/p>\n\n\n\n Since its implementation in 2016, Ghana\u2019s total trade with the EU has increased by 40 percent, reaching \u20ac6billion in 2023 while EU FDI stock in Ghana has grown by 64 percent to approximately \u20ac4billion.<\/p>\n\n\n\n Earlier years saw Ghana importing significantly more from the EU than it exported, driven largely by demand for machinery, vehicles, pharmaceuticals and industrial inputs. However, export earnings from key commodities such as cocoa, gold and oil-related products have improved periodically, helping to moderate the overall deficit.<\/p>\n\n\n\n Recent data indicate a gradual move toward more balanced trade flows, particularly as Ghana\u2019s export revenues strengthen in line with global commodity price movements.<\/p>\n\n\n\n By 2025, available estimates suggest EU exports to Ghana stood at about US$3.74billion while imports from Ghana reached approximately US$4.09billion \u2013 pointing to a near-balanced position in goods trade, depending on classification coverage.<\/p>\n\n\n\n Meanwhile, Ghana\u2019s trade with China over the past five years has been heavily skewed in China\u2019s favour, reflecting a persistent structural trade deficit. The imbalance is driven by Ghana\u2019s relatively low export volumes to China compared with its significantly higher import bill, which is dominated by machinery, electronics, vehicles, iron and steel and manufactured goods.<\/p>\n\n\n\n On the export side, Ghana\u2019s shipments to China are concentrated in a narrow range of primary commodities including mineral fuels, ores, gold and cocoa, which remain highly sensitive to global price fluctuations.<\/p>\n\n\n\n Recent trade data underscore the scale of this imbalance. In 2023, Ghana exported about US$1.38billion worth of goods to China while imports from China stood at roughly US$3.07billion, widening the deficit to around US$1.7billion.<\/p>\n\n\n\n The gap remained substantial into 2024, with bilateral trade expanding further but still weighted heavily toward Chinese exports to Ghana. Overall, the trend over the five-year period points to a consistently widening trade deficit \u2013 reinforcing concerns about import dependence and limited export diversification, according to tradingeconomics.com<\/p>\n\n\n\n EU as a reliable partner<\/strong><\/p>\n\n\n\n Ambassador Skinnebach further positioned the EU as Ghana\u2019s most reliable long-term partner, particularly in development and trade cooperation. While acknowledging that the EU may not always move as quickly as other global players, he stressed that its engagement is built on stability, transparency and mutual respect.<\/p>\n\n\n\n \u201cGhana is certainly our preferred partner. We may not be the most agile or fastest among the partners and offers available, but we are the most reliable,\u201d he stated.<\/p>\n\n\n\n He added that the European Union remains committed to partnerships that support regional stability and sustainable development.<\/p>\n\n\n\n He added that the bloc prioritises responsible engagement by promoting lawful and sustainable economic practices, including in sectors such as fisheries and mining, while maintaining predictable development cooperation and trade relations with partner countries.<\/p>\n\n\n\n According to him, this track record reflects the EU\u2019s reliability as a partner. He noted that the EU intends to build on this foundation by expanding trade, deepening cooperation and identifying shared priorities with Ghana \u2013 including tackling transnational crime, climate change and other global challenges.<\/p>\n\n\n\n On Ghana\u2019s economic performance, the ambassador commended ongoing reforms and noted that recent indicators show progress, with targets under international support programmes being met faster than expected.<\/p>\n\n\n\n However, he cautioned that the current growth is heavily dependent on external factors, particularly high gold prices and debt restructuring efforts.<\/p>\n\n\n\n \u201cThe economy is doing great but it is based on a very fragile pillar, gold prices and possibly even the use of significant gold reserves to maintain exchange rates. It is a development we are following closely and it is positively surprising everyone, including the IMF, with targets under the extended credit facility being reached faster than anticipated,\u201d he mentioned.<\/p>\n\n\n\n \u201cHowever, we must ensure this remains sustainable, as the success is not only based on reforms but also on gold prices and debt restructuring\u2026 which cannot be relied on repeatedly,\u201d he cautioned.<\/p>\n\n\n\n He also highlighted challenges in key sectors such as cocoa and petroleum, warning that these pressures could affect long-term stability if not addressed. In addition, he pointed to inefficiencies in domestic revenue mobilisation, calling for improved and more predictable tax collection systems across the country.<\/p>\n\n\n\n The ambassador explained that the conference was convened to mark 50 years of the European Union\u2019s physical presence in Ghana, a milestone being commemorated with a series of activities.<\/p>\n\n\n\n These include a major reception scheduled for next Thursday, as well as a symbolic seven-day bike-ride from Tamale to Accra involving EU ambassadors and cycling teams.<\/p>\n\n\n\n He added that sporting and engagement events are planned as part of the celebration. Reflecting on the partnership, he noted that the EU has maintained a strong presence in Ghana over the decades and remains the country\u2019s largest development and security partner, its biggest investor and a leading export market.<\/p>\n\n\n\n