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Business News of Tuesday, 18 February 2003

Source: Accra Mail

Unfair Competition Killing Poultry Industry

The Poultry Farmers Association of Ghana has complained about unfair competition because of the trade liberalisation policy accorded by the World Trade Organisation (WTO).

Mr. Kenneth Quartey, President of the association, said local poultry farmers are suffering because of the influx of poultry products from developed countries and called on the government to do something about this.

At a media workshop in Accra organised by Third World Network-Africa (TWN-Africa) in collaboration with the Association of Ghana Industries (AGI) and the Trades Union Congress (TUC), Mr. Quartey said the local poultry sector is being virtually wiped out by those in the developed countries who enjoy subsidies on production and export, and therefore sell their products at 25-30% below local cost of production.

The workshop is part of a series of activities aimed at raising awareness on the on-going international trade negotiations and the challenges of trade policy for Ghana (how they affect Ghanaian producers, consumers, workers and farmers) to mark this year's Ghana Trade Policy Week.

It also to inform journalists of issues of concern to Ghana and other developing countries in the preparation for the Fifth Session of the Ministerial Meeting of the WTO, which take place in Cancun, Mexico in September 2003.

Mr. Quartey said in 2000, the association imported $11 million worth of poultry products into the country to boost local production. In 2001, imported products increased to $26 million.

He said with the support of the government, local poultry farmers could boost their production from the present 11% to 95% in ten years time.

Mr. Gyekye Tanoh, of TWN-Africa, said the government should be cautious in agreeing to WTO initiatives, which he said give major benefits to the developed countries and are detrimental to developing countries.

He said the neo-liberalisation conditions that the WTO is proposing for instance would restrict the government's liberty to take any expenditure venture.

He said the Procurement Bill, which is currently in Parliament could undermine the development of the nation, and cited the economical impact it would have on the country's domestic market as a typical example.

Mr. Kofi Larbi, a Trade Expert at the Ministry of Trade and Industry gave the assurance that, the government would thoroughly review all the initiatives through forums and other procedures to ensure that Ghana opts for the best at the WTO meeting.

He said the country would fight against high tariffs and export subsidies that distort trade in developing countries, so that Ghana and other developing countries could also develop.

Mr. Kwesi Adu-Amankwah said it is important for the national populace to participate in WTO issues and for their interventions to be heard by the government, so that the government would in turn ensure that WTO trade policy it agrees upon, benefits Ghana.

Dr. Yao Graham, Co-ordinator TWN-Africa, Mr. Tetteh Hormeku, TWN-Africa and Mr. Kofi Ofei Nkansah, Deputy-General Secretary, General Agricultural Workers of Ghana (GAWU), expressed dissatisfaction with the "undemocratic" policies of the WTO that are designed to suit the developed countries, and the pressures that are exerted on developing countries to accept the policies.