- targets value addition, sustainable development et al.
Ghana and the Netherlands have commenced steps to revise the existing Bilateral Investment Treaty (BIT) as part of efforts to strengthen trade and investment relations.
The renegotiation would position the BIT, signed in 1989, to deliver mutual benefits for both economies and reinforce the bilateral economic ties between the two countries.
It comes on the back of the two countries having experienced significant changes in their approaches to international investment, with the renegotiation expected to result in new terms that reflect these changes and to keep up with current global economic dynamics.
In 2020, total trade between the Netherlands and Ghana amounted to €2.2billion.
Deputy Minister of Foreign Affairs and Regional Integration Kwaku Apratwum-Sarpong revealed this in Accra and noted that some of the proposed new areas of the BIT include knowledge-sharing, supporting the professionalisation of the horticultural industry, domestic cocoa processing, and promotion of sustainable development and corporate social responsibility.
He said: “These are areas that hold significance to the country’s economic growth and it is a longstanding commitment by the government to maintain the confidence that investors have in Ghana by exploring opportunities to ensure a conducive and transparent investment climate, while creating an attractive environment for businesses to thrive and grow”.
For her part, the Vice Minister for Foreign Economic Relations of the Kingdom of the Netherlands, Hanneke Schuiling, reiterated that the exploratory talks would ensure that investments reflect the evolving economic landscape and guarantee a fair and transparent investment climate for both countries.
“We recognise the importance of promoting and protecting investments in both our countries. It is important that we facilitate investments, and that we provide a transparent legal framework to investors. In order to do so, it is necessary to modernise and expand provisions on investment facilitation and protection. This will be crucial to fostering investor confidence. At the same time, we need to ensure that our respective governments’ right to regulate is enshrined in the treaty,” she said.
She further emphasised that it is crucial to incorporate sustainable development and responsible business conduct to encourage best practices.
This, she said, can help promote transparency and accountability, which would build trust between trading partners and create a more stable and predictable business environment while encouraging long-term economic growth, protecting the environment and promoting social well-being.
“It is our ambition to include provisions for transparent and predictable dispute settlement procedures. This will provide both governments and investors with greater certainty and confidence in the investment process, which is essential for promoting investment flows between our countries. We hope that a modernised treaty will reflect important discussions that are being held on dispute settlement,” she said.
The Deputy Chief Executive Officer of the Ghana Investment Promotion Centre, Yaw Amoateng Afriyie, added that the negotiations are pertinent, especially in light of the post-COVID-19 environment, which places the onus on countries to forge new partnerships and linkages for mutual benefit.
“As such, we must work collaboratively to devise bilateral cooperation tools that reflect the dynamics and needs of our countries to facilitate economic growth and jobs and address many level-playing-field issues that may impede doing business,” he said.
