Solomon Kotei addressing the media
The Industrial and Commercial Workers Union (ICU) has waded into the ongoing debate in the cement industry on unfair practices which are collapsing local industries.
The ICU said if the government does not act swiftly to stem the influx of cheap imports on the market, the consequences will be dire for Ghana.
At a news conference in Accra yesterday, Solomon Kotei, General Secretary of lCU, criticized government for not stopping the influx of cheap imports on the Ghanaian market.
“The ICU-Ghana is worried at the current happenings in the cement industry which is affecting the employment generation of some cement companies,” he said, adding that the government should offer unconditional support for the local companies in the face of the ongoing unfair practices.
He said that the unfair practices include under-declaration of CIF values and volumes imported, lower tariffs, export subsidies, dumping, as well as abuses at bonded warehousing.
“All of these have affected retail pricing which the cement importers apply to their advantages,” adding “that some Chinese cement importers enjoy certain privileges not granted to the local cement companies which give them an advantage over local producers in terms of pricing.”
Mr. Kotei said “whatever trade protocols, agreements or arrangements that the government or its agencies have made with foreign producers and importers of cement to Ghana must not place our local cement industry at a disadvantage.
“The protocols must not seek to undermine local industry but rather help local industry to grow.”
He said that local cement manufacturers were already overburdened with high corporate taxes and import duties on their raw materials.
They are unfairly competing with foreign importers who fraudulently package finished cement as semi-unfinished cements in order to evade appropriate taxes and excise duties.”
“The unfair trade practices enable the foreign cement importers to flood the market with lowly-priced cement of questionable quality to the detriment of the country. The practices have the potential of crippling the businesses of the local manufacturers leading to retrenchment of workers who are our members.”
He said the practice had worsened what he called “the academia feed into the industry.”
“It is our obligation to protect our country from unhealthy trade practices and unhealthy competition to ensure sustainable development.”
Mr. Kotei said the time has come for the Minister of Trade and Industry Dr. Ekwow Spio-Garbrah to enforce the Legislative Instrument (L.I.) 2240, which set up the Cement Monitoring Committee and allow it to work.
ICU also called on the Minister to place a cap on quotas as recommended by the L.I. 2240, address the issue of license approval process under the instrument and inaugurate the five-member commission to enforce and implement the Ghana International Trade Commission (GITC) Act 926 or 2016 passed by Parliament.
By William Yaw Owusu