The Executive Secretary of the Importers and Exporters Association of Ghana is urging the government to withdraw the Legislative Instrument seeking to restrict the importation of rice, fruit juice, margarine, cement, fish, sugar and 16 other “strategic products.”
This, according to Samson Asaki Awingobit, is because the government has not introduced policies to first increase productivity.
Earlier, some six business associations submitted a petition to Parliament urging the House to reject the import restrictions bill proposed by the government through the Ministry of Trade and Industry.
The Joint Business Consultative Forum, comprising 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), argue that the bill if enacted, would have detrimental effects on their businesses.
Backing this stance, Mr. Awingobit said producers in Ghana will not be able to meet demand.
Speaking on the AM show on Joy Prime, he explained that utility tariffs, bank interests, and crime rates within the country are high. This he said results in low productivity.
“What is the government doing to prune down borrowing rates and interest rates at the bank?What is the government doing to increase the productivity of maize for our poultry producers? What is the government doing to establish rice-producing plants at the farms?,” he asked.
He therefore urged government to rather reduce taxes instead of restricting imports into the country.
Background
The Minister for Trade and Industry is seeking to pass an (L.I) to restrict the importation of some strategic products.
The 22 items considered for import restrictions are:
- Rice
- Guts, bladders and stomachs of animals (offal)
- Poultry
- Animal and vegetable oil
- Margarine
- Fruit juices
- Soft drink
- Mineral water
- Noodles and pasta
- Ceramic tiles
- Corrugated paper and paper board
- Mosquito coil and insecticides
- Soaps and detergents
- Motor cars
- Iron and steel
- Cement
- Polymers (Plastics and Plastic Products)
- Fish
- Sugar
- Clothing and apparel
- Biscuits
- Canned tomatoes
However, on three occasions, the Minority has scuttled plans to lay the regulation which they say they are strongly opposed to because, among other things, it gives the Minister for Trade unbridled power.