Integrating trade promotion into our country’s foreign affairs ministry for the very first time, after the last general election victory, was logical.
The last term in government saw our missions overseas, plus non-resident ambassadors build on their solid diplomatic relationships and increase business interactions to help Malta’s economy become one of the fastest-growing in Europe: GDP growth is expected to increase by 4.6 per cent this year and 4.4 per cent next year (the Central Bank of Malta). But we have only just begun.
With the help of TradeMalta – an agency dedicated to helping Malta-based businesses extend their operations into international markets, promote Malta and attract foreign investment – now housed in our Ministry, we are finding new ways to develop existing markets and open new ones in non-traditional destinations. Even in countries where we don’t have diplomatic representation, yet.
We are doing this by restructuring and bolstering our ministry resources, and leading exploratory trade missions.
The first of these missions was to Ghana, which I joined just six weeks after becoming Minister for Foreign Affairs and Trade Promotion. We chose Ghana due to the interest shown by the local business community, resulting in 21 companies joining the delegation from ICT to waste management businesses, education to aviation.
Furthermore, Ghana is the only sub-Saharan country to have full diplomatic representation in Malta and, over the past five years, Malta has enjoyed a trade surplus of €12.3 million in 2015, with exports rising to a record €20.7 million last year.
During the Ghana trade mission – which had the added prestige of also being a State visit due to the attendance of HE the President of Malta, Marie-Louise Coleiro Preca – company representatives had the chance to meet and make business contacts, as well as my building on bilateral relations by discussing areas of collaboration from trade to tourism, inter-country adoptions to negotiations on the signing of a double taxation agreement.
I believe the opportunities on both sides are bountiful. We know Ghana is one of the largest economies within the Economic Community of West African States, making it a trade gateway for us into this under-tapped region.
And Malta could be the economic gateway into the EU for Ghana through the Economic Partnership Agreement which provides for duty-free and quota-free access into the EU market for an unlimited period for all imports originating in Ghana. In return, Ghana and other West African countries will liberalise their imports from the EU over a period of up to 20 years.
This provides for an effective framework under which Malta and Ghana can increase economic connectivity and delve further into these opportunities.
Feedback post-trade mission has been positive: 100 per cent of those answering said they generated useful leads and plans are already in the pipeline for companies to return in the next six months.
On our side, the ultimate goal is to open a High Commission in Ghana, and then start work on other regions, from Latin America to the Gulf.
But ultimately the enhanced Foreign Affairs and Trade Promotion Ministry will now, more than ever before, make the best possible use of our diplomatic networks to continue building relationships, identifying trade opportunities, showcasing our economy, culture, and enhancing Malta’s reputation overseas, as well as continuing the high quality traditional foreign affairs work from consular to aid.
Carmelo Abela is Minister for Foreign Affairs and Trade Promotion.