“It defied sound logic” – Minority welcomes suspension of laying of LI to restrict imports

The Minority in Parliament has welcomed the suspension of the laying of the Legislative Instrument to restrict imports of some selected goods into the country.

According to a statement signed by the Minority Leader, Dr Cassiel Ato Forson, the said LI which has generated huge controversy defied sound logic.

This comes after the International Monetary Fund (IMF) made it clear to the Akufo-Addo-led government that it cannot impose or intensify import restrictions for balance of payments purposes.

This is an agreement contained in the IMF bailout package which has pledged to support Ghana’s balance of payment with some $3 billion between 2023 and 2026.

The move led to the suspension of the laying of the LI.

Commenting on the development, the Minority Caucus said “It has noted with relief the announcement by the government to suspend the laying of the proposed regulations on Restriction of imports of Selected Strategic Products, 2023.”

“The Minority has always maintained that these regulations will breed corruption, because not only are they arbitrary and opaque but they are designed to encourage arbitrary exercise of discretionary power in the hands of one person, particularly the Minister of Trade and Industry.”

The NDC MPs also clarified that their fight was not “against against any legal regime or policy that seeks to protect indigenous businesses by regulating imports” rather they said were against “a law that confers unfettered discretionary power on a single individual, in this case a Minister of Trade, to issue import license and to restrict the quantity of certain imports into the country, without any checks and balances.”

Read the full statement here:

PRESS STATEMENT

NDC MINORITY IN PARLIAMENT REACTS TO GOVERNMENT’S SUSPENSION OF LAYING OF IMPORT RESTRICTION REGULATIONS

The Minority Caucus has noted with relief the announcement by the government to suspend the laying of the proposed regulations on the Restriction of imports of Selected Strategic Products, 2023.

The Minority has always maintained that these regulations will breed corruption, because not only are they arbitrary and opaque but they are designed to encourage arbitrary exercise of discretionary power in the hands of one person, particularly the Minister of Trade and Industry.

We have argued that by vesting too much unfettered and unchecked power in the Minister to determine who qualifies or not to be granted a permit to import into the country as many as twenty (24) commodities, the regulations lend themselves to abuse of power, state capture and rent-seeking conduct reminiscent of the days of ‘essential commodities’ and ‘price control’.

Indeed, various stakeholders including the Ghana Union of Traders Association (GUTA), the Food and Beverages Association of Ghana, Importers and Exporters Association of Ghana, the Ghana Institute of Freight Forwarders, Chamber of Automobile Dealership Ghana and the Ghana National Chamber of Commerce and Industry, have all joined us in all kicking against these proposed import restrictions.

The Minority in principle is not against any legal regime or policy that seeks to protect indigenous businesses by regulating imports. What we are vehemently against is a law that confers unfettered discretionary power on a single individual, in this case, a Minister of Trade, to issue import licenses and to restrict the quantity of certain imports into the country, without any checks and balances.

It defied sound logic for this Akufo-Addo/Bawumia government to seek to restrict imports contrary to what it had signed on to with regard to Ghana’s current IMF programme. One of the quantitative performance criteria in Ghana’s current IMF bailout is a requirement to avoid the imposition or intensification of restrictions on imports for balance of payment reasons.

At a time when Ghanaians are facing extreme misery and reeling under countless taxes, including those contained in the 2024 Budget, we do not consider it right that the government would introduce import restrictions that will fuel inflation and hoarding.

We are happy that the government has jettisoned these regulations after stiff resistance and opposition in Parliament by the Minority Caucus.

We wish to assure the Ghanaian people and the business community that the Minority will always be on their side and put their interests first. Ghana First!

**END**

SIGNED.
CASSIEL ATO FORSON, MP (PhD)
MINORITY LEADER

FRIDAY, 8TH DECEMBER, 2023.
ACCRA.