'Non-tariff barriers are hurting African trade' — Trade Minister calls for seamless borders
Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has called for urgent action to remove non-tariff barriers that continue to hinder trade across Africa.
According to her, non-tariff barriers have become a bigger challenge to intra-African trade than tariffs and must be addressed if the continent is to achieve meaningful economic integration.
Speaking on the sidelines of the Fifth Meeting of ECOWAS Ministers of Trade and Industry on Thursday, June 11, the minister stressed the need for harmonisation of trade rules and seamless border operations among African countries.
She noted that despite years of discussions on regional integration, trade among African countries remains low compared to other regions.
“I keep on saying that I have become a champion of non-tariff barriers. I am not scared of tariff barriers because if the tariff is $5, you can incorporate it into your cost of production. But non-tariff barriers have become a monster for all of us, and we are dealing with it today,” she said.
Mrs. Ofosu-Adjare explained that inconsistent standards, border restrictions and other administrative obstacles continue to frustrate efforts to boost trade within the continent.
She argued that African countries cannot claim to support continental trade while maintaining barriers that make the movement of goods difficult.
The minister observed that intra-African trade currently accounts for only about 10 percent of the continent's total trade, compared to approximately 60 percent within the European Union.
“Africa needs to trade among Africans. West Africa needs to trade among itself. It is the only way to go. We trade among ourselves about just 10 percent. Other people are doing what the EU is doing, about 60 percent. We must up our game,” she stated.
The Minister further disclosed that President John Dramani Mahama has tasked her ministry to champion regional integration and position Ghana as a leader in promoting trade within Africa.
She expressed optimism that digitalisation of border processes would help address many of the challenges affecting cross-border trade.