Ghana: Domestic tariff and non-tariff barriers threaten effective AfCFTA implementation

In the pursuit of realizing the ambitious vision of a liberalized African trade market under the African Continental Free Trade Area (AfCFTA), the formidable barriers of tariffs and non-tariff restrictions persist as a formidable challenge, casting a shadow over the continent’s economic integration ambitions. Despite Ghana’s legal framework staunchly advocating for free trade, a recent study has unveiled the stark reality that tariff barriers persist in the form of import taxes and duties, while non-tariff barriers (NTBs) loom large, encompassing protectionist policies that hinder foreign trade. This twin challenge, when combined, threatens to undermine the noble concept of a unified continental free trade market.

Under the AfCFTA’s directive to incrementally slash tariffs and eliminate non-tariff obstacles, Ghana stands tasked with a decade-long roadmap to liberalize tariffs and dismantle non-tariff barriers. The imperative behind these maneuvers is clear: the removal of these fetters holds the potential to catalyze a substantial surge in intra-African commerce, a seismic shift for the continent’s economic landscape.

The exhaustive “Situational Analysis of Ghana’s AFCFTA Preparedness,” crafted by Ishmael Yamson & Associates and Sam Okudzeto & Associates on behalf of the University of Professional Studies-Accra (UPSA) Law School, articulates the pressing need to grapple with certain intrinsic challenges nested within the domestic legal framework, serving as a critical catalyst for the effective implementation of AfCFTA.

Chief among these obstacles is the absence of harmonization in laws, regulations, and standards across the continent. The report prescribes synchronization with the legislative tenets of fellow African nations, envisaging a streamlined flow of goods and services across borders as a direct consequence.

Beyond legal harmonization, the report spotlights chronic inadequacies in funding for policy execution and a deficiency in the requisite skill set to navigate the labyrinthine corridors of policy implementation. Transparency deficits, regulatory inconsistencies, and a ponderous, costly bureaucratic system compound the dilemma, rendering enforcement arduous and compliance a quagmire, thereby impeding Ghana’s meaningful participation in the free trade area.

In response to these revelations, Dr. Fareed Arthur, Head of the National AfCFTA Coordination Office, expressed appreciation for the comprehensive study while subtly indicating areas of divergence in opinion. Dr. Arthur underscored the dynamic nature of AfCFTA and the inevitability of continuous adaptation, likening it to a perpetual experiment. Nevertheless, he acknowledged that the report’s insights would be instrumental in the government’s pursuit of harnessing the vast benefits that AfCFTA holdsAs the curtain rises on AfCFTA, ushering in the world’s most expansive free trade zone, spanning 55 nations, uniting 1.3 billion people, and commanding a collective GDP valued at US$ 3.4 trillion, its potential to lift 30 million individuals out of extreme poverty is nothing short of historic. Yet, this monumental promise hinges upon the comprehensive implementation of substantive policy reforms and the facilitation of cross-border trade.

Deputy Trade and Industry Minister, Michael Okyere Baafi, who unveiled the report, underscored that the concept of a unified African trade landscape is a game-changer, offering Africans the opportunity to unlock and leverage the continent’s immense potential. He envisages this transformative development as a means to elevate Africa to a global zenith, replete with prosperity and self-sufficiency.

“We are exploring Africa to see the opportunities available. So, let’s make sure that Africans take advantage of all the opportunities available in Africa. This is the way to make the continent rich and avoid traveling to the West for loans,” he asserted resolutely. He went on to emphasize that, as the host of the AfCFTA secretariat, Ghana must bear the torch of leadership, ensuring that the concept does not falter but instead flourishes.

The advent of AfCFTA ushers in a new era for Africa, brimming with possibilities and opportunities. However, the path forward is rife with challenges, chief among them the need to dismantle tariff and non-tariff barriers, harmonize legal frameworks, and surmount bureaucratic hurdles. The commitment to the success of AfCFTA remains unwavering, with the belief that, as a beacon of political liberation, Ghana must now excel in economic integration to pave the way for a prosperous African future.

Source: norvanreports