Effects of trade disagreements on international relations a study of Nigerian and Ghanaian traders in new Juaben south municipality, Ghana

Abstract

The bilateral relations between Ghana and Nigeria dates back to pre-colonial times. However, intermittent disagreements between Nigerian retailers and their Ghanaian counterparts in Ghana have serious repercussion on their bilateral relations. The purpose of the study was to analyse the effects of these trade disagreements on international relations using the case of Nigerian and Ghanaian traders in the New Juaben South Municipality, Ghana. The study used the qualitative research approach and a semistructured interview guide to obtain primary data, which were subsequently analyzed using thematic analysis. The study found that the Nigerian retailers use both approved and unapproved routes to enter the New Juaben South Municipality. The study also revealed that the business climate in the municipality, the legal frameworks for protecting ECOWAS citizens and the settlement plans of the Nigerian retailers constitute the reasons for the increased Nigerian retailers in the New Juaben South Municipality. The study also revealed positive and negative effects of the activities of the Nigerian retailers where the local economy is boosted but lawlessness abounds, taxes are evaded, the growth of Ghanaian businesses decline and inaccessibility of credit facilities to support Ghanaian businesses is commonplace. The study further revealed that Ghana may not attract foreign investors due to the implication that it is a hostile country to foreigners. The study found that there is the possibility of being sanctioned by international organisations which frown on trade impasse and a probable weakening cordial relationship that exists between Ghana and Nigeria. As a consequence of the alternating trade disagreements between Ghanaian and Nigerian retailers, the study recommends strict enforcement of immigration laws, start-up capital for retailers to enhance their trading activities and laws that deter foreigners especially traders unnecessarily should be waived in Ghana.