Ghana and the Netherlands have started renegotiating their 34-year-old Bilateral Investment Treaty (BIT) in order for the agreement to conform to current global economic dynamics.
A BIT is an international agreement establishing the terms and conditions for private investment by nationals and companies of countries which choose to partner for business.
The current BIT was signed on March 31, 1989 and operationalised on July 1, 1991, for the trading of agricultural products like cocoa beans, fresh fruits, and vegetables from Ghana, and machinery, agricultural inputs, chemicals, and electronic equipment from the Netherlands.
At a ceremony to begin exploratory talks in Accra last Wednesday, the Deputy Minister of Foreign Affairs and Regional Integration, KwakuApratwum-Sarpong, announced new proposed areas for the BIT, expected to be ready in approximately two years.
They included knowledge sharing and supporting the professionalisation of the horticultural industry, the processing of cocoa in Ghana and promotion of sustainable development and corporate social responsibility.
Describing the areas as major to Ghana's economic growth and leap in trade between the two countries, MrApratwum-Sarpongsaid the government was keen on maintaining investor confidence by exploring opportunities to create a conducive and transparent investment climate.
He said Ghana's hosting of the African Continental Free Trade Area (AfCFTA) secretariat, the political stability and security, made the country the preferred investment destination.
MrApratwum-Sarpong said the new BIT would boost the formal relations between the two countries which dated back to November 1, 1701 when King William-Alexander of the Netherlands sent a diplomatic mission to congratulate Nana Osei Tutu I on the establishment of the Ashanti Kingdom.
This visit, he said, led to the signing of a treaty to protect Dutch trade interest in the then Gold Coast, following which the relations had bolstered at the social, political and economic fronts.
"The Netherlands remain key to Ghana's economic growth. Dutch companies have invested in many sectors of the economy including agriculture, building and construction, manufacturing, services and tourism and many others totalling in value to about $994.20 million," he said.
The Dutch Vice Minister for Foreign Economic Relations, HannekeSchuiling, said the Netherlands was one of Ghana's most important trading partners, with total trade between the two countries amounting to 2.2 billion Euros in 2020.
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She said Dutch companies, numbering more than 150, had invested more than two billion Euros in Ghana, making the Netherlands one of the largest foreign investors in the country.
"This demonstrates the strong economic ties between our two nations and the potential for further growth and development in the years to come," she said.
Besides exports, she said her country was keen on investing in transfer of knowledge given that her country was the second agricultural exporter of the world.
She said the exploratory talk would centre on issues including promotion and protection of investments, sustainable development and responsible business practices, and transparent and predictable dispute settlement procedures.
Present at the ceremony were negotiators from both countries.
