ECOWAS Trade Liberalization: GUTA urges government to engage Benin

President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has called on government to intervene and engage Benin over their recent withdrawal from the ECOWAS Trade Liberalization Scheme.

The move of their withdrawal, has affected businesses with the Managing Director of Interplast, Hyssam Fakhry recounting losses running into billions of Cedis in revenue due to challenges in exporting goods to Benin over the last six months.

Coupled with this, Benin had simultaneously commenced charging customs duties on products exported from Ghana, a move that has adverse effects on the promotion of regional economic integration.

Reacting to this, Dr. Obeng highlighted the consequences of their exit as one which would put a strain on the businesses of its members trading with the country; a situation he further described as worrying.

 “Interplast and some other companies have started complaining about the fact that they now have to pay duty where they were not paying, so it has really affected them several millions of cedis and that it is becoming difficult for them to trade in their goods. Also, that place also being a serious corridor between Ghana and Nigeria- the biggest player of the West African country, then there is a cause to be worried because of the transit issues and all that might also be a problem. l think the earlier the government of Ghana meets with their counterparts in Benin to iron out things the better. l know they will have confidence in Ghana, and they have respect for Ghana, and they will listen to our plea”.

Additionally, the GUTA boss emphasized that the move by the Benin government may have been influenced by a similar move taken earlier by Nigeria, who had earlier closed its borders over concerns of the dumping its substandard goods on the country’s market.

“This, l can say that is a reciprocal approach that they are adopting, ECOWAS has not been effective. ECOWAS has been  bias towards some of the smaller countries and gained favor of Nigeria which is a big player because if you look at what Nigeria did by closing itsborders to  Benin and all that, it affected their economy.”

Dr. Joseph Obeng

The Member of Parliament for Okaikwei Central, Patrick Boamah, on February 19, 2021, entreated the Ministry of Trade and Industry and other key stakeholders to briskly resolve challenges with the export of goods from Ghana into Benin.

According to him, due to the decision of that country to withdraw from the ECOWAS Trade Liberalization Scheme, some companies such as interplast are facing difficulties in the export of goods.

 “A few of us got letters from companies that export their products to Benin under the ECOWAS trade liberalization scheme and their challenge was that Benin for the past six months has stopped implementing the scheme, and it’s affecting their exports to the Benin market which is a very big market for them. It is making them less competitive because their customers, have sort to look elsewhere for the products, which is affecting them locally.”

He further stated that the withdrawal of Benin from the ECOWAS Trade Liberalization Scheme is affecting a lot of jobs in the country.

“It has implications on jobs in Ghana and that is why I am very concerned because job losses should not be entertained anywhere. As a Member of Parliament, I am sure some of my constituents do work in mass industries like Interplast and others”.