The Import Restrictions bill


…WTO compliance and historical insights

Ghana, like many other nations, faces the intricate challenge of balancing domestic economic interests with international trade obligations. Recently, government has proposed a regulation to restrict imports of strategic products such as rice, fruit-juice, margarine, cement, fish, sugar and other essential goods. This move, spearheaded by Trade Minister Kobina Tahir Hammond, aims to bolster the national currency and stimulate local industries. However, concerns have been raised by the minority in parliament, asserting that the proposed regulation may open avenues for corruption and cronyism – particularly in the issuance of import licences.

WTO Compliance and Non-Discrimination

At the heart of concerns raised by the minority is potential violation of World Trade Organisation (WTO) principles. The WTO, a global arbiter of trade rules, advocates for non-discrimination among member-nations. Any trade policy that unfairly favors certain importers, potentially linked to political affiliations, could be perceived as a breach of this fundamental principle. As Ghana navigates these waters, it is imperative to ensure that the proposed import restrictions adhere to non-discriminatory practices – treating all WTO members equally.

Transparency and Bound Tariffs

Transparency is a cornerstone of successful international trade relations. The WTO encourages member-countries to maintain openness in their trade policies by regularly notifying the organisation about changes in tariffs and other trade-related measures. If Ghana proceeds with the proposed import restrictions, it must prioritise transparency; providing clear information on the criteria for obtaining import licences and any adjustments to bound tariffs. Transparent communication ensures that other WTO members are well-informed and can anticipate changes which might impact their trading interests.

Quantity Limitations and WTO Guidelines

The WTO provides guidelines on the use of quantity limitations, emphasising that such measures should be justified and not arbitrarily applied. Ghana’s consideration of restricting the importation of specific goods raises questions about potential use of quotas or quantity limitations. If implemented, these restrictions must align with WTO rules; considering legitimate reasons such as public health or the conservation of natural resources. Government must tread carefully to avoid arbitrary discrimination and ensure that any quantity limitations are in line with international trade norms.

Special and Differential Treatment for Developing Countries

As a developing nation, Ghana is entitled to special and differential treatment under WTO agreements. This recognises that developing countries may need different conditions and timelines for their economic development. In the proposed import restrictions context, Ghana should carefully assess how its actions align with these provisions. Striking a balance between economic development goals and international trade obligations is crucial to avoiding potential disputes and ensuring fair treatment within the global trading system.

Stakeholder Engagement and Consultation

The WTO emphasises the importance of stakeholder engagement and public consultation in the formulation of trade policies. Ghana’s government should actively involve various stakeholders – including business associations (AGI, GUTA, etc.), importers and civil society organisations – in discussions about the proposed import restrictions. Public consultation provides an opportunity to gather diverse perspectives, identify potential challenges and enhance the proposed measures’ overall effectiveness. By fostering dialogue with stakeholders, government can build trust and make informed decisions which reflect the broader community’s interests.

Local Production and Economic Development

The goal of stimulating local production and bolstering domestic industries is a commendable objective for any nation aspiring to economic self-sufficiency. In the case of Ghana’s proposed import restrictions, the intention is to nurture a thriving environment for local businesses, create employment opportunities and reduce dependency on foreign goods. However, a critical aspect that demands close scrutiny is whether current domestic capacity can adequately meet the anticipated surge in demand for targetted products.

It is crucial to recognise that some of the products listed for import restrictions lack sufficient local capacity to meet prevailing demand. This raises concerns about the potential consequences of such restrictions, particularly likelihood of high prices and scarcity in the market. The World Trade Organisation (WTO) acknowledges the delicate balance required when implementing trade restrictions, emphasising the need to avoid disruptions that could adversely impact consumers and businesses.

If the proposed measures are enacted without due consideration of existing gaps in local production, Ghana may face a scenario wherein the restricted products become scarce; leading to inflationary pressures and potential market imbalances. Consumers – already grappling with economic challenges – could bear the brunt of these consequences, facing higher prices and reduced access to essential goods.

Historical Lessons from the Justice Ollennu Committee Report of 1967

In the annals of Ghana’s trade history, the Justice Ollennu Committee Report of 1967 stands as a crucial reference point. The committee was tasked with investigating corruption and malpractices related to import licences. The findings highlighted a system susceptible to misuse, with individuals exploiting import licences for personal gain.

The committee’s recommendations, echoing through time, emphasised the need for reform and transparency in import licencing. The lessons from this historic report should serve as a cautionary tale in the current debate. Transparent and accountable import licencing mechanisms are crucial to ensuring that mistakes of the past are not repeated, fostering an environment conducive to fair trade and economic development.

After more than five decades since the Justice Ollennu Committee Report’s release, it is disconcerting to witness a potential regression toward a system that had previously been deemed unsustainable. The committee’s findings, back in 1967, underscored the flaws in Ghana’s import licencing system – emphasising the need for reform and transparency. Given this historical context, the current proposal to restrict imports raises questions about the nation’s commitment to lessons learned and progress made over the years.

Reverting to a system that was once labelled as outmoded and prone to corruption is, unequivocally, unacceptable. The Justice Ollennu Committee’s recommendations were aimed at modernising trade practices, fostering transparency, and preventing rent-seeking behaviours. To entertain the possibility of returning to a similar system not only contradicts the historical lessons but also poses a risk to fair trade practices and the integrity of Ghana’s economic landscape.


As Ghana contemplates the Import Restriction bill, it becomes imperative for government to acknowledge the Justice Ollennu Committee Report’s significance and ensure that proposed import restrictions align with the principles of transparency, fairness and accountability. Ignoring lessons of the past could undermine the nation’s progress and credibility on the international stage.

In this dynamic landscape, Ghana has an opportunity to set a precedent for responsible trade policy-making, fostering a conducive environment for economic growth while upholding its commitments to the global community. The path forward requires a delicate balance, whereby the pursuit of local development aligns harmoniously with international trade norms; ultimately contributing to a fair and sustainable global trading system. The Justice Ollennu Committee Report’s historical lessons underscore the importance of learning from the past to navigate challenges of the present and shape a more prosperous future.

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