GSA whips up interest in trade facilitation

The Chief Executive Officer of the Ghana Shippers Authority, Dr. Kofi Mbiah, has called for the simplification, harmonisation, standardisation and modification of procedures in the trade, transport and logistics industry.

He said the need for change is vital in this era of globalization, wherein there is a need to be constantly updated on new developments within the existing multilateral arrangements which have an impact on the country’s economic development.

“Our time for trade facilitation is now; therefore players in the industry need to adopt effective policies and put in place the necessary schemes, structures and systems that build confidence and predictability in the business community.

“Players must also strive for creditability and transparency in their decision-making processes, and by doing so they can experience the growth they crave,” he said.

Dr. Mbiah made the call at a consultative forum on the World Trade Organisation (WTO) Agreement of Trade Facilitation and the clearance process in Ghana, a programme well-attended by stakeholders, jointly organised by the Ghana Shippers Authority and the Ghana Community Network (GCNet).

The WTO has recognised the need for this change, and its recent multilateral arrangements with respect to trade facilitation signed in Bali, Indonesia, in December 2013 are geared toward effecting the necessary changes for global development and prosperity.

He noted for instance that in 2013 the port of Singapore with a population of 5 million handled 32 million Twenty Equivalent Units (TEUs) of containers, while Ghana with a population of 25 million handled one million TEUs in the same year.

“The WTO agreements called for change in the way we conduct our trade, and if Ghana is to increase its trade and throughput at the ports then it is imperative we take congnisance of the WTO agreement and adopt the necessary changes in the way we conduct our business.

“We cannot continue to do things the way we have done in the past and expect different results. To achieve high growth rates we need to accelerate the pace of job-creation, and our economic diversification.

“We must give true meaning to trade facilitation and not pay lip-service to same,” he added.

Dr. Mbiah said all over the world, trade has been known to be the economic driver of progress and prosperity, and that Ghana must appreciate the contribution of logistics and trade facilitation to our development efforts.

He said trade facilitation will enhance an efficient logistics chain, impact the manufacturing and agro base industry which creates real jobs, impact trading relationships, impact our mining and oil and gas businesses, and livelihoods.

“Our effort to trade facilitation must be geared toward attainment of the blue economy; it must be underpinned by an economic paradigm that is geared toward generating more revenue, creating jobs and being competitive in the global market.”

Adding her voice, Deputy Minister of Transport, Joyce Mogtari Bawa, disclosed that a Trade Facilitation Agreement (TFA) is essentially meant to reduce the time and cost associated with clearing goods for imports and exports, thus ensuring competitiveness for shippers and their countries.

“Inefficient clearance procedures add to cost; over-zealous inspection can actually delay revenue collection, and when authorities are intent on maximising revenue from import duties and other border taxes by checking every consignment that is to be cleared, they cause queues, congestion, and increase costs to shippers and consumers alike.

“As a result of delayed clearance of goods at the countries seaports, importers pay in excess of US$70million annually in demurrage charges and another GH¢30million in rent charges.

There are also costs associated with the movement of containers from the ports to the off-dock terminals, and sending them back to the port for scanning as a result of lacking pre-arrival shipment information to select their appropriate risk channels.

“Importers pay a huge estimated cost of GH¢160million annually associated with the opening of every container at the port, because Customs officers still want to undertake physical inspection as they do not trust the information provided by importers,” she said.

Deputy Minister of Transport underscored the need to look at simple measures in the agreement that will maximise benefits for stakeholders.

Patrick Opoku, Director of Trade Facilitation at the Ministry of Trade and Industry, said the benefits of improved trade facilitation and clearance procedures cannot be overemphasised, as simplified and transparent procedures are a key component of good trade policy, and vital for economic growth.

He explained the trade facilitation agreement is divided into two sections, and section-one deals with the technical aspects and details necessary to improve the agreement.

With regard to section-two of the agreement, WTO members are required to undertake commitments under three categories of provisions consistent with individual development and financial capabilities to implement them.