Audio By Carbonatix
The business community has asked the Ghana Standards Authority to completely cancel the proposed Ghana Conformity Assessment Programme (G- CAP).
They argue that the G- CAP will increase the cost of imports, which will be passed on to consumers, and cannot achieve its targeted aim of clamping down on fake and substandard goods imports.
They argue that what G- CAP seeks to achieve are already being done, and only strict enforcement of the current law can clamp down on fake goods, not introducing G-CAP.
The businesses making the call are the Food and Beverages Association of Ghana (FABAG), the Association of Ghana Industries (AGI), Ghana Union of Traders Association (GUTA), Ghana Automobile Dealers Association(GADA), Ghana Institute of Freight Forwarders (GIFF), Ghana Shippers Authority, Ghana Pharmaceutical Chamber of Commerce, Private Enterprise Federation (PEF), and Ghana Imports and Exporters Association.
"In any case, Ghana ranks higher than all the African countries practicing the G-CAP in terms of restricting counterfeit and sub-substandard goods, and what do we stand to gain by going there?" Mr John Awuni, a member of FABAG, said.
According to them, the introduction of G-CAP would only make Ghana less competitive in the ease of doing business, which will further plummet the economy.
To buttress his point, he said Ghana is currently ranked 67th in the world in terms the ease of doing business, far better than countries such as Nigeria, Burundi, Tanzania and Uganda that are implementing G-CAP. For example, he said Nigeria, Burundi, Tanzania and Uganda ranked between 125th and 150th in the world, and wondered if that would rather not mar Ghana's ease of doing business.
Mr Awuni said "G-CAP is time-consuming, problematic, expensive and will wipe out the small and medium-scale traders who buy mixed goods from the open market as additional cost will be shifted to them."
He explained that implementation of G-CAP would also be duplicated as they were already using the destination inspection regime.
Mr Awuni, who is also the Corporate Affairs Director of the FINATRADE Group of Companies, recommended to governmant under the Ghana Standards Authority to enforce laws by arresting and prosecuting people engaged in the trade of substandard goods.
He appealed to them to develop "and harmonise standard in the sub-region conduct research on the levels and kinds of substandard goods in the country and improve and strengthen border controls.
Mr Awuni explained that based on export figures for 2013, SGS and BIVAC, which have been appointed by GSA to do the inspection, would make about $90 million a year and give GSA about 20% of the amount.
Mr Kofi Amponsah-Bediako, Head, Public Relations at the Ghana Standards Authority argued that G-CAP would reduce, if not eliminate, fake and substandard goods imports.
He explained that inspecting goods in the country of origin would ensure that fake and substandard goods imports do not enter the country.
The G-CAP, which was proposed to become operational on October 1 this year, had to be suspended on account of teething challenges within stakeholders and the implementation bodies.
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