RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/194 
17 December 2007  
 
(07-5566) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
GHANA 
 
  
 
This report, prepared for the third Tr ade Policy Review of Ghana, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from Ghana on its trade policies and 
practices. 
 
Any technical questions arising from this report may be addressed to Arne Klau 
(tel:  022/739 57 06) or Jacques Degbelo (tel:  022/739 55 83). 
 
Document WT/TPR/G/194 contains the policy statement submitted by Ghana. 
 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Ghana. Ghana WT/TPR/S/194 
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 CONTENTS 
    Page 
SUMMARY OBSERVATIONS vii 
 (1) T HE ECONOMIC ENVIRONMENT  vii 
 (2) I NSTITUTIONAL FRAMEWORK  vii 
 (3) T RADE POLICY INSTRUMENT  viii 
 (4) S ECTORAL POLICIES  ix 
 (5) T RADE POLICY AND TRADING PARTNERS  x 
I. ECONOMIC ENVIRONMENT 1 
(1) M AJOR FEATURES OF THE ECONOMY  1 
(2) R ECENT ECONOMIC DEVELOPMENTS  2 
(3) T RADE AND INVESTMENT PERFORMANCE  5 
(i) Trade in goods and services 5 (ii) Foreign investment 8 
(4) O
UTLOOK  9 
II. TRADE AND INVESTMENT REGIMES 10 
(1) G ENERAL FRAMEWORK  10 
(2) P OLICY OBJECTIVES  12 
(3) I NVESTMENT REGIME  12 
(4) T RADE AGREEMENTS  13 
(i) World Trade Organization 13 (ii) Preferential tr ade agreements 15 
(iii) Other arrangements 16 
ANNEX II:  TRADE-RELATED TECHNICAL ASSISTANCE 19 III. TRADE POLICIES AND PRACTICES BY MEASURE 22 
(1) I
NTRODUCTION  22 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  22 
(i) Customs procedures and valuation 22 
(ii) Rules of origin 23 
(iii) Tariffs 24 (iv) Other charges affecting imports 29 
(v) Import prohibitions, restrictions, and licensing 30 
(vi) Standards and other technical requirements 31 (vii) Contingency measures 33 
(viii) Other measures 33 
 (3) M
EASURES DIRECTLY AFFECTING EXPORTS  33 
(i) Registration and documentation 33 
(ii) Export taxes, charges, and levies 33 
(iii) Export prohibitions, re strictions, and licensing 34 
(iv) Duty drawbacks 34 WT/TPR/S/194 Trade Policy Review 
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    Page 
(v) Export processing zones 35 
(vi) Export subsidies, finance, insurance, and guarantees 36 
(vii) Export promotion and marketing assistance 36 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  37 
(i) Incentives 37 
(ii) Government procurement 37 (iii) State trading, state-owned enterprises, and privatization 39 
(iv) Competition policy and price controls 40 
(v) Intellectual property rights 41 
IV. TRADE POLICIES BY SECTOR 44 
(1) I
NTRODUCTION  44 
(2) A GRICULTURE , FORESTRY , AND FISHERIES  44 
(i) Overview 44 
(ii) Key subsectors 46 
(3) M INING AND ENERGY  51 
(i) Mining 51 
(ii) Energy 53 
(4) M ANUFACTURING  55 
(5) S ERVICES  57 
(i) Overview 57 (ii) Financial services 59 
(iii) Communication 61 
(iv) Transport 62 (v) Tourism 65 
REFERENCES   67 
APPENDIX TABLES  69 
 
 
    
 Ghana WT/TPR/S/194 
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 CHARTS 
    P a g e  
I. ECONOMIC ENVIRONMENT  
I.1 Structure of merchandise trade, 2000-06 6 
I.2 Direction of merchandise trade, 2000-06 7 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Breakdown of tariff rates, 2007 25 
III.2 Tariff escalation by ISIC 2-digit industry, 2007 27 
IV. TRADE POLICIES BY SECTOR  
IV.1 Tariff protection in the manufacturing sector, 2007 56 
TABLES 
I. ECONOMIC ENVIRONMENT  
I.1 Key social indicators, 1997 and 2003 1 
I.2 Selected economic indicators, 1999-06 2 
I.3 Foreign exchange regulations, 2007 4 
I.4 Balance of payments, 2000-06 4 I.5 Investment inflows by type of activity, 2001-06 8 
II. TRADE AND INVESTMENT REGIMES  
II.1 Main trade-related laws, 2007 11 
II.2 Selected notifications to the WTO, 2007 14 
III. TRADE POLICIES AND PRACTICES BY MEASURE III.1 Structure of MFN tariffs, 2007 24 
III.2 Specific tariffs, 2007 24 
III.3 Summary analysis of the applied MFN tariff, 2007 26 III.4 Fiscal revenue coll ected on imports, 2000-06 27
 
III.5 Tariff and VAT exemptions, 2007 28 
III.6 Import restrictions, 2007 30 III.7 Goods subject to specific export requirements, 2007 34 
III.8 Export processing zones, 1998-06 35 
III.9 State-owned enterprises (SOEs), October 2007 39 III.10 Membership of WIPO treaties, 2007 41 
III.11 Overview of IPR protection, 2007 42 
IV. TRADE POLICIES BY SECTOR  IV.1 Production and exports of cocoa, 1997-07 46 
IV.2 Production of industrial crops, 1998-04 48 
IV.3 Production of food crops, 1998-05 48 IV.4 Livestock population, 1991 and 1995-05 49 
IV.5 Forestry, 2000-06  49 WT/TPR/S/194 Trade Policy Review 
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    P a g e  
IV.6 Annual fish production, 1992 and 1995-04 50 
IV.7 Production of major minerals, 1998-05 51 
IV.8 Types of mineral rights, 2007 52 IV.9 Electricity, 1998-04 54 
IV.10 Summary of sector-specific commitments under GATS, 2007 57 
IV.11 Telecommunication indicators, 2000-06 61 IV.12 Cargo traffic, 2000-06 64 
IV.13 Tourism basic indicators, 2000-06 65 
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT  
AI.1 Structure of exports, 2000-06 71 
AI.2 Structure of imports, 2000-06 72 AI.3 Destination of exports, 2000-06 73 
AI.4 Origin of imports, 2000-06 74 
III. TRADE POLICIES AND PRACTICES BY MEASURE  AIII.1 Tariff averages by HS2, 2007 75 
IV. TRADE POLICIES BY SECTOR   
AIV.1 Import tariffs, by ISIC Rev.2 category, 2007 78 
 
 
 
 Ghana WT/TPR/S/194 
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 SUMMARY OBSERVATIONS 
 
(1) T HE ECONOMIC ENVIRONMENT  
1. Since its last Review in 2001, Ghana's 
macroeconomic fundamentals have improved 
considerably.  Average annual GDP growth was 5.1% between 2000 and 2006, with growth picking up continuously and attaining 6.2% in 2006.  Supported by productivity 
increases, favourable international prices, and 
trade reforms, growth has been mainly driven by agriculture, which accounts for nearly 38% of GDP and some 50% of employment.  Inflation fell from 27% in 2003 to 10.6% in 2006.  However, despite these improvements 
and noticeable achievements in poverty 
reduction, an estimated 50% of Ghana's population of 23 million still lives under one U.S. dollar a day.  Per capita income was some US$450 in 2005, up from US$320 in 2000. 
2. Ghana's fiscal situation has improved 
significantly, with Government revenue increasing from 18% of GDP in 2000 to over 22% in 2006.  Grants from international donors have also helped to keep fiscal deficits at bay.  Nonetheless, the Government remains 
heavily reliant on imports duties (including 
VAT and excise duties), which make up more than 55% of public revenue.  The rationalization of Ghana's tariff regime, through the reduction of the rates and the 
number of bands, and the streamlining of 
customs procedures have somewhat liberalized the trade regime while also significantly improving the duty collection ratio. 
3. Ghana's merchandise exports and 
imports have increased strongly since its last 
Review, at annual average rates of some 14.9% and 17%, respectively.  Cocoa beans, gold, and timber are Ghana's major export products, while its imports remain dominated by manufactured goods.  The European 
Communities (EC) is Ghana's most important 
trading partner, accounting for between 40% and 50% of imports and exports.  Despite steps 
taken towards regional integration under ECOWAS, Ghana's trade with its neighbours remains limited.  Its current account has 
traditionally featured a deficit, financed by official transfers and remittances from Ghanaians living abroad.  Foreign debt has 
been reduced substantially under the HIPC 
initiative.   
4. Ghana has a managed floating 
exchange rate regime for its currency, the Ghana cedi.  The Bank of Ghana follows an 
inflation-targeting policy (with the current 
target rate between 7% and 9% a year), and targets a level of international reserves equivalent to at least three months of imports of goods and services.  In July 2007, the national currency was re-denominated by 
setting ten thousand cedis to one new Ghana 
Cedi.  The 2006 Foreign Exchange Act brought with it a shift away from exchange controls and allows residents to hold foreign currency accounts.   
(2) I
NSTITUTIONAL FRAMEWORK  
5. Ghana's main economic policy 
objective is to achieve middle-income status by 2015 and become a leading agri-industrial country, thereby substantially reducing poverty.  The Ministry of Trade and Industry 
has overall responsibility for the formulation, 
implementation, and monitoring of Ghana's trade policies.  In 2004, Cabinet approved the Ghana Trade Policy, a document to provide broad guidelines and objectives for the 
policies.  The policy aims to, inter alia , 
increase Ghana's regional and global integration, diversify and strengthen its export base, and promote agricultural processing.   
6. Ghana's investment regime is liberal, 
with some sectoral exceptions, including 
small-scale mining, fishing, and retail trade.  Companies with foreign participation must register with the Ghana Investment Promotion Centre.  Investment incentives are available to foreigners and Ghanaians alike.  In most years, 
the mining sector has attracted the lion's share 
of foreign direct investment (FDI).  Important challenges to the investment environment remain and include:  low productivity, the high WT/TPR/S/194 Trade Policy Review 
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costs of and difficult access to financing, 
underdeveloped transport infrastructure, unclear land ownership, frequent power and water cuts, and the low skilled labour force. 
7. Ghana is an original Member of the 
WTO.  It has signed the Fourth and Fifth Protocols to the GATS, but is not party to the Information Technology Agreement or any of the plurilateral agreem ents concluded under 
the WTO.  Ghana extends at least MFN 
treatment to all its trading partners.  It has not been a defendant or complainant in any disputes under the WTO, but has been a third party in one case.  Ghana has difficulties in meeting a number of the notification 
requirements established by certain WTO 
Agreements. 
8. Ghana's regional integration efforts are 
mainly through its membership in the Economic Community of West African States 
(ECOWAS).  ECOWAS members have been 
taking steps to establish a customs union.  To this end, they have been implementing a trade liberalization scheme since 1990, but have been delaying the harmonization of their trade regimes, including the adoption of a common 
external tariff.  In spite of measures taken to 
integrate regional economies, the level of intra-ECOWAS trade has remained low.  Negotiations on an Ec onomic Partnership 
Agreement with the EC have been ongoing 
since 2004;  the agreement is expected to enter 
into force in 2008.  Ghana receives non-reciprocal preferential treatment from several Members, including the EC under the Cotonou Agreement, and the United States under 
AGOA.   
(3) T
RADE POLICY INSTRUMENTS  
9. For all imports of US$2,000 and 
above, the use of an approved destination inspection company is mandatory.  Ghana's applied tariff consists of  four bands (zero, 5%, 
10%, and 20%).  These ad valorem  tariffs 
apply to 99.8% of total lines, with the remaining lines (13 petroleum products) subject to specific tariffs.  In 2007, the average applied MFN tariff was 12.7%, down from 14.7% in 2000.  MFN rates on agricultural 
products (WTO definition) are generally higher, with an average of 17.5%, while non-agricultural products carry an average tariff of 
12%.   
10. Using the ISIC (Revision 2) definition, 
agriculture remains the most tariff protected sector, with an average tariff of 15.7%, followed by manufacturing (12.6%), while 
imports of mining and quarrying products face 
the lowest tariffs (11.2%).  In aggregate, Ghana's tariff displays negative escalation because of the high protection for agricultural commodities. Nonetheless, further disaggregation depicts positive escalation in 
food and beverages, textiles and apparel, 
chemicals and plastics, and non-metallic mineral products industries.  This tariff structure may inhibit the competitiveness of certain industries and may not encourage 
investment in others.  As a solution, Ghana 
grants duty and tax concessions under various incentive schemes.  In the Uruguay Round, Ghana bound less than 15% of its tariff lines, all agricultural tariffs and about 1% of non-agricultural tariffs.  
11. In addition to tariffs, the c.i.f. value of 
imports is subject to a destination inspection fee (1%), the ECOWAS levy (0.5%), and the Export Development and Investment Fund Levy (0.5%);  the "overage" penalty applies to 
imports of vehicles.  Both domestic and 
imported goods are subject to the National Health Insurance Levy (2.5%), the 12.5% value-added tax, and excise duties.  Ghana has bound other duties and charges at zero on non-
agricultural and most agricultural goods, and 
at 15% on some agricultural goods.  It does not have legislation on contingency measures, and has not taken any anti-dumping, countervailing or safeguard measures since its last TPR. 
12. All Ghanaian standards are mandatory 
(technical regulations), and are largely based 
on international norms.  The Government is considering also allowing voluntary standards.  Ghana's technical regulations do not distinguish between imported and domestic 
goods.  Imported products classified as "high-Ghana WT/TPR/S/194 
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 risk goods" must either be accompanied by a 
certificate of conformity or will be inspected at the border.  Ghana has not submitted any SPS notifications to the WTO.  
13. Exports of cocoa and gold are subject 
to a foreign exchange surrender and conversion requirement;  the share to be surrendered and convert ed depends on the 
company and ranges from 20% to 40%.  
Export taxes apply on cocoa and 
hydrocarbons, but have been abolished on timber.  The tax rate for cocoa beans is determined annually by the Minister of Finance and Economic Planning;  fiscal income from export taxes on cocoa is used to 
finance the activities of the Ghana Cocoa 
Board (COCOBOD).  Ghana promotes non-traditional exports through free zones, a duty-drawback scheme, marketing assistance, and an export credit scheme. 
14. In 2003, Ghana adopted a new law on 
government procurement with a view to increasing efficiency and transparency.  While procurement is decentralized, under the Act, a central body was established for public procurement policy formulation and 
monitoring purposes.  Price preferences of up 
to 20% may be granted to a supplier, subject to local-content requirements.   
15. Ghana does not have legislation on 
anti-competitive practices although a bill has 
been under consideration for several years.  
Despite ongoing privatization, state-owned enterprises continue to play a significant role in the economy, notably in the electricity, petroleum, and transport subsectors.  New 
legislation in most areas of intellectual 
property rights was adopted between 2003 and 2005 with a view to meeting the requirements of the TRIPS Agreement;  the Government has also stepped up enforcement efforts.  
(4) S
ECTORAL POLICIES  
16. Agriculture is the driving sector and 
backbone of Ghana's economy;  cocoa is the main cash crop and Ghana's single most important export product.  The recent strong 
growth of the sector has resulted from the performance of the cocoa subsector.  The Cocoa Marketing Company has the monopoly 
right over the exportation of cocoa beans.  
Other cash crops include oil palm, cotton, and coconut.  Production of food crops, predominantly on a smallholder basis, has increased in recent years, but is still 
characterized by low productivity.  Livestock 
production, which is mainly for domestic consumption, has also increased.  The Government assists agricultural producers mainly through extension services and the provision of subsidized seeds.  Log and timber 
production has decreased significantly, and 
export volumes have been stagnating.  Exports of round or unprocessed logs, and raw rattan cane and bamboo are prohibited in order to encourage domestic processing.  Fisheries 
contribute some 4% to GDP, but production is 
mainly for domestic consumption.   
17. The contribution of mining and 
quarrying to GDP has fallen below 5%. Nonetheless, gold remains Ghana's second most important export product, with a share of 
over 30% in total exports in most years.  
Mining rights are subject to fees and royalties;  in addition, the State acquires a 10% stake in each mining company at no cost.  Mining is the most important target sector for foreign 
direct investment in Ghana. 
18. Ghana's energy sector is dominated by 
state-owned enterprises.  Transmission and distribution of electricity are under state 
monopoly.  Although Ghana is a net exporter 
of electrical energy in most years, low water levels at the Volta dam frequently lead to supply shortages and electricity cuts.  Ghana maintains a fuel subsidy, which accounts for a 
large share of government expenditure.  An 
important offshore oil discovery in Western Ghana was announced in June 2007, but production has not yet started.  A major gas pipeline, to supply gas from fields in the 
Western Delta of Nigeria to Ghana, Benin, and 
Togo, is expected to start operating in 2008.    WT/TPR/S/194 Trade Policy Review 
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19. Ghana has a relatively broad and 
diverse industrial base. While most manufacturing activities centre around the processing of agricultural goods, they also 
include textiles, pharmaceuticals, and 
electronics production.  Nonetheless, the contribution of the manufacturing sector to GDP remains modest, at below 10%. Marked positive tariff escalation fo r food products and 
textiles implies high effective protection to 
these industries, and reflects their low competitiveness.  As a result of privatization, the state holds a stake in only a few manufacturing companies. 
20. Ghana's specific commitments under 
the GATS cover tourism, financial services, 
and telecommunications. Ghana has traditionally been a net importer of services.  Travels represent the most important generator of foreign exchange among the services 
categories, while imported services comprise 
mainly freight and merchandise insurance.  Growth rates in the services sector have been particularly high in transport and communications.  New legislation entered into force in the insurance and banking subsectors 
in 2006 and 2004, respectively.  State-owned 
enterprises dominate reinsurance, fixed-line telephony, postal services, inland water transport, and maritime port operations. (5) T
RADE POLICY AND TRADING 
 P ARTNERS  
21. Ghana is committed to the multilateral 
trading system, and it participates actively in 
the Doha negotiations.  Ghana has taken steps 
to liberalize its trade regime through, inter 
alia, the reduction of its applied MFN tariffs.  
This, together with the macroeconomic and structural reforms, has allowed Ghana to 
achieve higher growth rates.  Subject to a 
continuing favourable environment, Ghana's economy is expected to perform well in the mid-term.   
22. Continued reforms, including further 
privatization, the adoption of a competition 
policy, and improvement of Ghana's 
multilateral commitments on goods and services could contribute to better resource allocation and improve the predictability and transparency of its trade regime.  Additional 
investment in infrastructure and human capital 
should improve the investment environment.  Trading partners could help by ensuring that their markets are fully open to goods and services produced in Ghana.