AGI, others worry over fake, illicit trade in Ghana… But TUC blames authorities

IN RECENT times, the influx of cheap and sub-standard goods of various kinds in the Ghanaian market has been a source of worry to many including, consumers, local manufacturers, regulators and the general public.

The situation has become alarming such that there is a high incidence of dumping, smuggled, under-invoiced, counterfeit and sub-standard goods, with drastic negative impact on the Ghanaian economy.

These products, which usually do not meet set Ghanaian standards pose health hazards to unsuspecting consumers, lead to a loss of revenue for government and an unhealthy competition for local manufacturers, among many others.

To address this canker, a coalition of stakeholders has been constituted, comprising the Association of Ghana Industries (AGI), Ghana Employers Association (GEA), Consumers Association of Ghana, Ghana Union of Trade Associations (GUTA), Trade Union Congress (TUC) and the Industrial and Commercial workers Union (ICU) to fight the menace of counterfeiting and illicit trade.

Other members of the Coalition include the Food and Drugs Board (FDB), Ghana Standard Board (GSB), Revenue Agency Governing Board, Customs and Exercise Prevention Service (CEPS), the police and other security agencies.

Speaking at the launch of the coalition and a stakeholders' workshop organized by the AGI and GEA on Wednesday in Accra, the President of AGI, Mr. Tony Oteng-Gyesi said counterfeiting and illicit trade were not mere issues since they have bearings on other issues such copyright, revenue loss to the state and public health issues.

This, he noted makes it imperative for stakeholders both in the public and private sector to join forces to tackle the menace, which seeks to inhibit the development of the private sector in particularly.

According to him, “the AGI and GEA welcome competition and acknowledge that competition is healthy as it offer consumers choice and forces local industries to be more efficient and effective.”

“However, over the last few years, there has been an alarming increase of dumping, presence of smuggled, under-invoiced, counterfeit and substandard products on the Ghanaian market which do not meet the prescribed Ghanaian standard”, he added.

These activities, he indicated often make consumers purchase fake goods, thinking that they are genuine and also result in job losses because of decline in local industries and enterprises.

Mr. Oteng-Gyesi stated that the perception of a weak regulatory regime in any country towards counterfeit, illicit trade and intellectual property increases the prevalence of such activities, saying, “this in turn acts as a disincentive to potential investors seeking to do legitimate business in Ghana at a time when we are encouraging a 'golden age of business'.”

Further, he pointed out that failure to take a concerted action immediately would have a devastating economic, financial and social impact on the country and urged the coalition to help create a conducive environment, for legitimate trade to thrive.

He said this was the only way to boost business for Ghanaian and foreign investors alike, safeguard the interests of consumers, prevent job losses and revenue to the state, and “ensuring that local traders and industries operate on a level playing field; and protecting the image and reputation of Ghana.”

Also, the Deputy Secretary-General (Operations) of the Ghana Trades Union Congress (GTUC), Mr. Kofi Asamaoh mentioned that the high demand for counterfeit and illicit goods creates a lot of employment in the importing countries, thus, “other countries are riding on our backs to prosperity as we continue to experience high incidence of poverty in the country.”

He said in spite of the existence of clear trade policy objectives and institutions such as the GSB, FDB, CEPS and the Narcotics Control Board among others, Ghana was fast earning an unenviable reputation of a haven for illicit trade.

He placed the blame on authorities, saying, “certainly, the regulatory authorities cannot be excused for the large volumes of counterfeit pharmaceutical products that have flooded our markets, openly displayed, sold and administered in all manner of locations including moving vehicles.”

According to him, the war on these illicit acts can only be won “when regulatory bodies such as GSB, FDB, CEPS demonstrate their commitment to fulfill their mandates for which they are paid.”

“It is certainly not enough for the country to pass laws and establish institutions to enforce them only for those institutions to preach sermons on the need for people to desist from practices they are invested with sufficient powers to stop”, he stressed.

He called for a consideration of the correlation between poverty and the demand for illicit goods to genuine ones, adding that one way of contributing to poverty reduction is through the offer of a living wage to workers.

“Realistic levels of pay will not only help increase the purchasing power of workers and their households but also change their taste and shift their demand for illicit goods to genuine ones”, he pointed out.

In conclusion, he stated, “in the meantime, we expect the government agencies responsible for protecting us from the hazards related to illicit trade and counterfeits to do their jobs for which they are paid every month.”