Six business associations have submitted a petition to Parliament opposing the proposed legislative instrument that seeks to impose restrictions on the importation of 22 products in Ghana.
The associations, including 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 would adversely impact prices, hinder the free flow of goods, and potentially cripple businesses.
They call for the immediate rejection of the legislative instrument, emphasising concerns about potential monopolistic or oligopolistic control and disruptions to the flow of goods.
The groups stressed the need for proper consultations and dialogue before any decision is made.
"We vehemently oppose this LI and would appreciate its immediate rejection by Parliament to allow for proper consultations and dialogue to take place,” a petition dated November 26 said.
“We strongly oppose this LI on the following grounds: The price of most products mentioned in the Ministry of Trade and Industry policy proposal will result in serious price hikes, as competition will be severely 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.”
“Typically, orders would normally take a minimum of 3 months from purchase date to delivery, assuming there is no bureaucratic involvement in the decision-making process.”
Meanwhile, The Minister for Trade and Industry, K. T. Hammond, is expected to lay before Parliament today an improved version of the Legislative Instrument (L.I).
The L.I will compel importers of 22 restricted items, including poultry, rice, sugar, diapers and animal intestines (yemuadie) to seek licences from a committee to be set up by the minister.
The Minority in Parliament has, on three occasions, resisted the laying of the L.I on the ground that it was not only dangerous but violated international trade practices and could give too much powers to the minister, a situation which has the propensity to breed corruption.
In order to seek broader consultation and have the buy-in of industry players, leadership of the House led by the Majority Leader, Osei Kyei-Mensah-Bonsu, and the Majority Chief Whip, Frank Annoh-Dompreh, called for "backdoor" discussions after heated arguments on the L.I from both sides of the House last Friday.
