Import restriction: Consumers to be worse off as firms get monopolised –  Food and Beverages Association

The Executive Chairman of the Food and Beverages Association, John Awuni, has conveyed his disappointment with the Trade Minister, Kobina Tahir Hammond’s proposed Legislative Instrument (L.I).

This legislation aims to impose restrictions on the importation of strategic products.

Awuni’s concern centers on the potential consequences of limiting imports, particularly the risk of creating a monopoly and subsequent price increases for locally produced goods within the country.

He argues that such restrictions could lead to a lack of competition, resulting in higher prices for consumers of domestic products.

“Already the demand for local goods is low. For instance, electrical cables produced in this country – Tema- have a price three times as compared to some of the cables that come from Europe…You haven’t given monopoly yet to such a person yet their prices are high, how much more when they are given monopoly?” he asked.

The Minister for Trade and Industry is pushing for the passage of a Legislative Instrument (L.I) in Parliament, intending to impose restrictions on the importation of certain strategic products.

In an interview on Joy FM on Tuesday, November 28, Mr. Awuni expressed his opposition to the proposed Legislative Instrument (L.I). He cited a historical precedent, mentioning that a similar L.I was introduced in the past but did not yield positive results.

“For me, professionally, it is very disappointing because we are going back to the 1960s. These restrictions were imposed in the Nkrumah regime and many ministers fell victim to corruption and rent-seeking…,” he said.

Mr. Awuni emphasized that implementing restrictions in what he termed a ‘labourised economy’ is not the most appropriate approach. He raised concerns that such measures might have repercussions on voters’ choices in the upcoming election, indicating a sensitivity to the potential impact of economic policies on political dynamics.

Furthermore, he called for a more inclusive approach by suggesting that Parliament should invite the Food and Beverage Association to provide input on the Legislative Instrument. This collaborative approach would allow stakeholders to contribute their perspectives and discuss ways to enhance the support for locally produced goods, emphasizing a more consultative and inclusive policymaking process.

Meanwhile, Speaker of Parliament, Alban Bagbin, has given the go-ahead for the L.I to be laid before the House on Thursday, November 30.

The 22 items considered for import restrictions are:

1. Rice
2. Guts, bladders and stomachs of animals (offal)
3. Poultry
4. Animal and vegetable oil
5. Margarine
6. Fruit juices
7. Soft drink
8. Mineral water
9. Noodles and pasta
10. Ceramic tiles
11. Corrugated paper and paper board
12. Mosquito coil and insecticides
13. Soaps and detergents
14. Motor cars
15. Iron and steel
16. Cement
17. Polymers (Plastics and Plastic Products)
18. Fish
19. Sugar
20. Clothing and apparel
21. Biscuits
22. Canned tomatoes