Stringent border rules impede ECOWAS trade protocols
The Minister of Finance, Mr Seth Terkper, has stated that the failure of the Trade Liberalisation Scheme (ETLS) of the Economic Community of West African States (ECOWAS) to achieve its objectives of economic integration was due to the stringent cross-border barriers of member countries.
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In his presentation of the 2016 budget statement to Parliament on November 13, the finance minister called for the removal of trade bottlenecks that were impeding the implementation of the ECOWAS trade protocols.
“While some progress has been made in reducing tariffs, they have not been fully eliminated. Progress towards removing non-tariff barriers such as seasonal import and export bans has been slower. The failure to implement the instruments on the ECOWAS Trade Liberalisation Scheme (ETLS) is affecting economic growth in the sub-region”, he said.
The ETLS initiative was expected to provide impetus to the process of economic integration and development in the West African sub-region and provide easier access to markets in other ECOWAS-member countries.
It also sought to encourage local manufacturing outfits to compete favourably with cheap imported products and nurture entrepreneurial development through the provision of preferential treatment in specific areas among member states.
Mr Terkper, however, explained that in spite of the regional backing and benefits that accrue to member countries, its objectives, to a large extent, had not been achieved as both tariff and non-tariff barriers to trade between member states still persisted.
Ghana under ETLS
The minister explained that Ghana’s export to the sub-region, under the ETLS, had seen a steady increase over the years and offered Ghanaian export manufacturers the opportunity to expand their market share in the community.
“For example, the number of ECOWAS certificates of origin issued increased from a little over 3,000 in 2012 to 4,286 in 2013 and 5,951 in 2014. Trade between Ghana and Nigeria has improved over the period. Export to Nigeria stood at GH¢365.6 million as at June 2015, compared to an estimate of GH¢210.7 million as at June 2014,” he said.
The scheme, he explained, had also introduced competition among community industries, leading to reasonable product price to the consumer.
The finance minister also said the screening and updating of the current database of Ghanaian companies with ETLS status were ongoing and expected to be completed by June 30, 2016.
“Since the beginning of 2015, about 18 Ghanaian industrial companies have been given approval to benefit from the scheme. Ghana will continue to vigorously pursue the implementation of the ETLS,” he said.
