Prof. Ebo Turkson, an economist, has voiced serious concerns about the proposed Legislative Instrument (LI) on Export and Import from the Trade and Industry Ministry. He has focused in particular on issues related to the limitation of specific strategic products.
In an interview with Ghana360news, the economist questioned the reasoning behind the policy and drew a comparison to earlier attempts at import substitution industrialization under Dr. Kwame Nkrumah, the first President of Ghana, when import restrictions were put in place but were unsuccessful.
Prof. Turkson believes that strong support for domestic companies to increase their capacity should go hand in hand with such policies.
“It is totally unnecessary. It should not be a policy that should be supported at all. As for import restrictions, it’s okay. We need to make sure that we domesticate our consumption. But this has to be data-driven,” he said.
He brought attention to a critical facet of the problem when he said that only 5% of the demand is currently being met by local poultry farmers in Ghana.
He said that although local producers were being helped, it would take time for production to greatly increase.
Prof. Turkson questioned the wisdom of imposing restrictions in light of the fact that there is insufficient supply of both imported and locally produced goods to meet demand.
The economist emphasized the significance of using a thorough, data-driven process to inform policy choices.
He recommended that any decision to impose import restrictions be well-informed by knowledge of the present level of production and the capacity of home industries to satisfy consumer demand.
An enhanced version of the LI was presented to Parliament on Monday by Trade and Industry Minister K.T. Hammond, following its blockage last week due to insufficient quorum and consultation.
The LI will force importers of 22 prohibited goods, such as rice, sugar, diapers, chicken, and animal intestines (Yemuadie), to apply for licenses from a committee that the minister will appoint.
Three times now, the minority in parliament has opposed the laying of the LI, arguing that it could give too much information and was unsafe in addition to breaking international trade regulations.
The laying of the LI has been opposed three times by the Minority in Parliament on the grounds that it could give the minister too much power and violate international trade laws, all of which have the potential to encourage corruption.
Source: Ghana360news.com
