Ghana has received strong advice to exercise caution to prevent adverse effects on the business community with the introduction of the import restrictions bill.
Tensions escalated last Friday as the Minister of Trade and Industry, KT Hammond, sought to present the legislative instrument in Parliament, facing strong opposition from the Minority.
The proposed bill aims to limit the importation of 22 products into the country.
Six business associations, collectively known as the Joint Business Consultative Forum, which includes the Ghana Union of Traders’ Associations (GUTA), Food and Beverages Association of Ghana (FABAG), Importers and Exporters Association of Ghana, Ghana Institute of Freight Forwarders (GIFF), Chamber of Automobile Dealership Ghana (CADEG), and Ghana National Chamber of Commerce and Industry (GNCCI), have submitted a petition to Parliament opposing the legislation.
During an interview Sylvester Bagoro, a Policy Analyst at Third World Network, raised concerns about the government’s approach to addressing supplier constraints in the value chain.
Highlighting the importance of protecting local economies, Bagoro urged caution in implementing the Minister of Trade and Industry’s intentions, emphasizing the need to consider accompanying measures for dealing with supplier constraints.
He suggested that Ghana could invoke World Trade Organisation provisions to increase tariffs on selected products rather than resorting to import restrictions.
Bagoro proposed an alternative approach, stating, ” Instead of going the quantitative restrictions, you can go the tariff way, and that will be better, like what Malaysia did. If you want to grow your rice, just raise tariffs on the rice and use it to support the production of the same products. And you can be justified under the WTO rules.”
