Ghana-Canada: A Decade of Diplomatic Relations and Global Cooperation - Essay Sample

Introduction

Ghana and Canada have enjoyed a favorable diplomatic relation for decades. This relationship dates back in1906 when Quebec missionaries arrived in Ghana set up a church in the northern part of the country (Katircioglu et al., 2016). With more than 60 years of global cooperation, the two countries have stable bilateral relations, especially in the commonwealth and in the United Nations (Katircioglu et al., 2016). Thriving democracy, freedom of the press, freedom of speech, and spirited civil society is what defines the political situation in Ghana, and so is Canada (Katircioglu et al., 2016).

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According to Sakyi civil rights, political status, development, and trade go hand in hand. Both economies have been one of the fastest-growing in recent times (Sakyi, 2011). At 7.1%, the growth of Ghana's economy has been significant as of 2019 (Sakyi, 2011). Canada, on the other hand, scores 78.2 in economic freedom, ranking it 9th as one of the freest economies in the world (Ackah et al., 2012). One of the leading exports of Ghana includes; gold, fuels, foodstuffs, capital goods, timber, and cocoa. Among other minor commodities include; manganese, diamonds, wood, gold, and aluminum (Katircioglu et al., 2016). On the other hand, Canada's main exports include; fertilizers, coal, aircraft, and motor vehicles.

The strengths of Ghana in engaging in international trade lies in natural resources and agricultural products, which include; gold, fuels, foodstuffs, capital goods, timber, and cocoa .contrary, Canada specializes in the manufacturing industry for her exports. Manufacturing is the backbone of Canada's economy, constituting $174billion of the country's GDP (Katircioglu et al., 2016). Canada exports more than $354 billion from the manufacturing industry annually, which is more than 65% of the total exports of the country (Tamini et. 2010). Some of the manufacturing goods that are exported by Canada include; fertilizers, coal, aircraft, and motor vehicles. The manufacturing industry and natural resources are the sectors that should emphasize since they are the two leading export products in the two countries.

With the accelerating growth of innovation, fast-growing companies and the implementation of superclusters necessitates the importation of goods from other countries to achieve better results for the Canadians. Industrial clusters, world-class innovation, and reliable technology leadership characterize the economic situation in Canada. The reliance on local goods and services to make all these a reality in Canada can be insensible. With oil as one of the leading exports if Gold Coat, Canada can establish a trade pact with Ghana and import the oil that can be used to fuel the enormous industrialization, innovation, and fast-growing companies.

The exportation of agricultural materials to Canada, which turn out to be 18% unprocessed, can receive sophisticated and quality products (Tamini et. 2010). Exporting the finished products back to Ghana can present an opportunity for local value addition. A trade pact between the two countries can help build the troubled agro-processing and manufacturing industries in Ghana. The incorporation of Canada's technological, industrial, and innovative ideas in Ghana's economy can play a significant role in driving the economy in the right direction. Given that Canada does not provide reliable minerals and agricultural products, Ghana, in the process, can also get a chance to export its agricultural products as well as minerals to Canada.

Ghana and Canada have enjoyed a favorable diplomatic relation for decades. This relationship dates back in1906 when Quebec missionaries arrived in Ghana set up a church in the northern part of the country. With more than 60 years of global cooperation, the two countries have stable bilateral relations, especially in the commonwealth and in the United Nations. Both Ghana and Canada have maintained a diplomatic presence in each other through their high commissions. Canada's high commission is located in Accra, Ghana, whereas consulates in Vancouver represent Ghana in Canada. Over $341 million has been reached as a result of two-way merchandise trade between the Gold coast and Canada. Canada recorded more than $264.6 exports while the imports of Ghana reached $77.2.

Ghana has been designated by export development Canada as one of the prime markets in the continent of Africa. In 1957, Ghana was the first nation in the African continent to enjoy development aid from Canada. Since then, the West African country has received more than $2.5 billion in funding for development. The aids Ghana is benefiting from Canada mainly address healthcare, creating economic opportunities, and taking care of the less-privileged population. Additionally, the regional programming in Africa, a program initiated by Canada, has benefited Ghana in agriculture, infrastructure, economic growth, African trade, and resource governance. These blocs and agreement establish a reliable environment that is conducive for trade between Ghana and Canada

The Culture clash between Ghana and Canada jeopardizes the deal between the two nations. Firstly, in the Ghanaian culture, the first encounter between two or more parties may be formal initially and stiff as well. This contradicts the culture of Canadians whose ritual of greetings is valuable (Tamini et. 2010). Again, indirect communication is a common way of passing information, whereas Canadians are quite expressive individuals. Africans expressions of anger, annoyance, grief, and happiness are regarded as exaggerations to a Canadians' point of view (Tamini et. 2010). Different environments between the two countries can attract more barriers.

Several factors affect the prosperity of trade between Ghana and Canada. Mining is one of the prime drivers of Ghana's economy (Tamini et. 2010). However, the process of mining has led to health and environmental crisis. Some of the problems Ghana is facing include; jeopardizing human health threat, wildlife destruction, soil nutrients depletion, degradation of forest resources, and water pollution. In the case of most tariff barriers, Ghana has suspended trade embargos. It has suspended the necessity of acquiring import licenses before importation to achieve her market success. On the other hand, Canada continues to apply non-tariff measures on the testing requirement, traceability information, and export subsidies, and packaging requirement. The difference in these non-tariff and tariff barriers can affect the trade relationship negatively.

Conclusion

In conclusion, the government of Ghana should focus on the sectors and clusters in each country and how they will benefit from the trade pact. There is a need for raw material to power the drastic growth of innovation, fast-growing companies, and the implementation of super-cluster .minerals such as oil from Ghana can help in running the vast industrial revolution in Canada. .since, Canada does produce.

A trade pact between the two countries can help build the troubled agro-processing and manufacturing industries in Ghana. The incorporation of Canada's technological, industrial, and innovative ideas in Ghana's economy can play a significant role in driving the economy in the right direction. Given that Canada does not provide reliable minerals and agricultural products, Ghana, in the process, can also get a chance to export its agricultural products as well as minerals to Canada.

References

Ackah, C., Aryeetey, E. E., & Morrissey, O. (2012). Tariffs and total factor productivity: The case of Ghanaian manufacturing firms.

Katircioglu, S., Fethi, S., Kalmaz, D. B., & Caglar, D. (2016). Interactions between energy consumption, international trade, and real income in Canada: an empirical investigation from a new version of the Solow growth model. International Journal of Green Energy, 13(10), 1059-1074.

Sakyi, D. (2011). Trade openness, foreign aid, and economic growth in post-liberalization Ghana: An application of ARDL bounds test. Journal of Economics and International Finance, 3(3), 146.

Tamini, L. D., Gervais, J. P., & Larue, B. (2010). Trade liberalization effects on agricultural goods at different processing stages. European Review of Agricultural Economics, 37(4), 453-477.