Import Restrictions Bill: AGI says it has capacity to meet local demand
Despite AGI’s backing of import restrictions, questions loom over the broader implications of such measures on regional trade dynamics. The delicate balance between safeguarding domestic industries and promoting international cooperation remains a focal point in Ghana’s economic policy discourse.
In a recent interview with PM Express Business, the Chief Executive of the Association of Ghana Industries (AGI), Seth Twum-Akwaboah, underscored the local industry’s capability to meet domestic demand if provided with a level playing field. While refuting accusations of excessive protectionism, Mr Twum-Akwaboah expressed apprehension over the infiltration of the market by cheap and substandard imported goods.
He contended that AGI members are currently producing at full capacity but face challenges due to the proliferation of inferior imported products. Mr Twum-Akwaboah emphasized the necessity of safeguarding local industries from external pressures and asserted that a conducive business environment is crucial for ensuring fair competition.
Addressing concerns about the government’s protective measures, Mr Twum-Akwaboah defended AGI’s stance, stating that empirical data contradicts claims of local industries being sluggish or unwilling to compete. He advocated for a nuanced approach, acknowledging the need for periodic reviews to fine-tune import restrictions.
The AGI’s position aligns with the government’s recent move to limit the importation of selected items, a decision supported by Mr Twum-Akwaboah. However, not all stakeholders share this sentiment. Edward Kareweh, General Secretary of the General Agricultural Workers Union (GAWU), voiced worries about the policy’s implementation, emphasizing the importance of a comprehensive policy program preceding import restrictions.
Economist Professor Ebo Turkson however, raised concerns about the potential repercussions on Ghana’s standing within the African Continental Free Trade Area (AfCFTA). While acknowledging Ghana’s prerogative to impose restrictions under World Trade Organization rules, Turkson cautioned against actions that could send unfavorable signals to fellow African nations.
Despite AGI’s backing of import restrictions, questions loom over the broader implications of such measures on regional trade dynamics. The delicate balance between safeguarding domestic industries and promoting international cooperation remains a focal point in Ghana’s economic policy discourse. As the nation navigates these challenges, it faces the imperative of maintaining a harmonious relationship with its continental partners to avoid any unintended consequences.
Source:norvanreports
