GUTA, 5 others petition Parliament against passage of Import Restrictions L.I.

The Ghana Union of Traders Associations (GUTA) and five other business groups have petitioned Parliament, asking it to set aside a proposed Legislative Instrument (L.I.) seeking to restrict the importation of some selected strategic items. 

The L.I if passed, will compel importers of 22 restricted items, including poultry, rice, sugar, diapers, cement, canned tomatoes, tripe, and more, to seek licences from a committee to be set up by the Minister of Trade. 

But GUTA, the 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), who have together formed a Joint Business Consultative Forum say the proposed regulation would not work out well for the business community. 

They oppose the L.I on a number of grounds - some including that it would result in “serious” price hikes as competition would be restricted. 

"The Minister is the ultimate decision maker on which companies end up trading in each of these items. This will eventually lead to a monopolistic or oligopolistic position for a few select businesses in the country at the expense of many smaller businesses.

"The permit system will definitely hinder the flow of goods from exporting countries to receivers in Ghana since importers would no longer be able to rely on market demands to dictate the quantities to be ordered, as companies will be at the whims of the Minister of Trade and Industry.

"The introduction of the quota system is going to create high levels of corruption as import permits will be issued to cronies and favorites or to the highest bidder. 

"The document does not inform us of the rules and regulations, if any, that would protect us from the abuse of the protected manufacturer or producer as there will eventually be monopolies. 

“The L.I. in its current form contravenes the WTO trade facilitation agreement. The document failed to address issues of imports made within the Africa Continental Free Trade Area.”

They further accuse the Ministry of Trade for not giving a listening ear to their inputs when the document for the L.I. was prepared.

“We vehemently oppose this LI and would appreciate its immediate rejection by Parliament to allow for proper consultations and dialogue to take place.”

Meanwhile, the Minister for Trade and Industry, K. T. Hammond will this week lay before Parliament a revised L. I. on the Export and Import (Restrictions on Importation of Selected Strategic Product) Regulations, 2023 after it was suspended last week due to a lack of quorum.