MOTI condemns export barriers

Accra, (Greater Accra) 14 July '99,

The Ministry of Trade and Industry on Wednesday expressed concern about the nature of tariff and non-tariff barriers that exporters face within the sub-region and the rest of the international market.

Speaking at a two-day Round-Table Conference on "Opportunities of Globalization: Export Barriers" organised by the West African Enterprise Network(WAEN) Ghana, Mr Peter Wiafe Peperah, deputy minister of trade and industry, said some of these are in the form of "tariff escalation and rigid technical regulation standards".

The WAEN, an international non-governmental organisation that brings together over 450 businessmen and women in 13 countries in West Africa, was established in 1993.

It has a dual mission of improving the business climate in member countries and promoting cross- border trade and investment in the sub-region.

Mr Peperah explained that export of raw materials from Ghana and other developing countries enter the developed countries duty free.

"The picture changes considerably as soon as we attempt to add value in order to earn more. Higher tariffs are immediately imposed on such value-added products.

"This situation, I will say, does not augur well for our efforts at going into the production of manufactures."

He said although international trade is governed by internationally agreed standards and regulations, some countries develop higher standards whose immediate compliance poses considerable problems for Ghanaian exports.

Mr Peperah condemned the quota and licensing requirements authorised by some countries and said the existence of such barriers is a major source of concern and creates a great deal of anxiety among businesses.

He said new and emerging developments in international trade also have the potential of "serving as barriers limiting the expansion of our exports".

He said though there are discussions going on about these issues in terms of labour, trade and environment, the conclusions would move more towards the direction of trade enhancement.

Mr Peperah regretted that the movement of goods and services in the sub-region is impeded greatly by the existence of numerous physical checkpoints and tedious bureaucratic procedures at the borders.

"This tends to make trade in the region a costly venture", he said, and asked for the designing of appropriate measures which will facilitate free flow of trade.

"Happily, our gateway programme is designed to address some of these problems," he added.

Mr Ashim Morton, co-ordinator of WAEN Ghana, said the two-day conference will examine the motives of current export promotion and regulation system and its impact on potential and present exporting firms.

It will also deliberate on ways of determining the appropriate mechanisms for a better export-led economy.

Thirty-five delegates from professional trade associations, as well as from the private and state sectors, are attending the conference.