Interplast, others lose billions as Benin exits ECOWAS trade liberalization program

Interplast Managing Director Hyssam Fakhry says manufacturing companies in Ghana are losing billions of cedis in revenue due to difficulties in exporting goods to Benin.

The West African nation has over the past six months passed the implementation of the ECOWAS Trade Liberalization Scheme (ETLS). It has imposed tariffs on products exported from Ghana, a measure that has adverse effects on the promotion of regional economic integration.

“A customer who imports goods recognized by ETLS from Ghana must now pay the duty on the said goods. The implication is that we, Ghanaian exporters, are no longer competitive with our peers in other countries. In addition, customers began to cancel their orders and buy elsewhere. We have already lost important projects because of this situation, ”he told Joy Business.

If the situation were to disappear, Hyssam Fakhry, warned against job losses and the dissipation of the clientele of the French-speaking market if urgent interventions are not taken.

“We have no choice but to throw away staff. Our profits will also drop dramatically and this will affect the Ghanaian economy, ”he warned.

One of the main objectives of ECOWAS is to promote the economic integration of the region by establishing, among other things, a free trade area. The instrument created for this purpose is the SLEC, which guarantees the free movement of products in the region without payment of customs duties and taxes.

The ETLS is a tool which aims at the operationalization of the free trade area. The ETLS mechanism guarantees the free movement of originating products without payment of customs duties and taxes of equivalent effect upon importation into ECOWAS Member States.

ETLS was established in 1979 and at that time only covered agricultural products and handicrafts. Then, in 1990, it was extended to industrial products.

This enlargement required the formulation of rules relating to the definition of the concept of “products originating” in ECOWAS. The “rules of origin” have therefore been stated.