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AfCFTA: We’ll protect you against possible unfair trade practices – Alan assures investors

Ghana Ghana Business News

Minister of Trade and Industry, Alan Kyerematen has assured investors looking to use Ghana as a manufacturing hub for the rest of Africa, ahead of next year’s commencement of the African Continental Free Trade Area (AfCFTA), that government will take the needed steps to protect them from the dumping of inferior goods unto the Ghanaian market.

The comments were made when the Ghana International Trade Commission (GITC), presented its final report on the dumping of aluminium coils and circles originating in or imported from China.

The report came after Aluworks Limited (Aluworks) last year called for investigations into alleged dumping of aluminium products originating from China, an occurrence which saw Aluworks lose revenue and market share to inferior products on the market.

Accordingly, after its investigation, the Commission decided that the following definitive anti-dumping duty of 35.77% be imposed on aluminium coils and circles originating in or imported from China for a period of five years beginning January 2021.

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Prior to the implementation of the tariff, the Ghana International Trade Commission decided to present their final report to the Minister of Trade and Industry.

While commending the leadership of the GITC for the report, Mr. Kyerematen said all steps will be taken to ensure businesses in Ghana derive the utmost benefit from the AfCFTA from next year.

“As we all prepare towards the commencement of the AfCFTA, we want to use the report of the Commission to assure investors who will be attracted to locate their facilities in Ghana to take advantage of the continental market, that the work of the Commission will provide the ecosystem to guarantee them against unfair trade practices that will be occasioned by people who engage in these unfortunate undertakings.”

Background

On May 8, 2019, Aluworks Limited (Aluworks), the manufacturer of aluminium coils and circles in Ghana, submitted an application to the Ghana International Trade Commission (GITC or Commission) to investigate the alleged dumping of aluminium coils and circles originating in or imported from China.

The investigation was initiated after the Commission considered that there was prima facie evidence to show that the Subject product was being imported at dumped prices and causing material and a threat of material injury to the Ghanaian domestic industry. Under Section 54 of the Ghana International Trade Commission Act, 2016 (Act, 926), “dumping” means the introduction of a product into the commerce of Ghana at less than its normal product value in the ordinary course of trade, for the like product when destined for consumption in the exporting country.

On initiation of the investigation, known importers/exporters of the subject product were sent questionnaires to complete. They include Lion Aluminium Products Limited, Olive Aluminium Works, Asadtek Roofing Limited, and Domond Aluminum Limited. The trade representatives of China at the Chinese Embassy in Ghana were also notified of the Commission’s intention to investigate.

The investigation period for dumping was from May 15,2019 to March 13, 2020. The injury analysis involved evaluation of data for the period January 2014 to December 2018.

Following the initiation of investigation and after the consideration of information available, the Commission made a determination that the subject product originating in China is being dumped onto the Ghanaian market causing material injury and a threat of material injury to the Ghanaian industry.

Material injury was in the form of the declines experienced by Aluworks with respect to its sales volume, market share, return on investment, productivity, incoming cash flow, growth and utilization of production capacity.

Accordingly, the Commission decided that the following definitive anti-dumping duty of 35.77% be imposed on aluminium coils and circles originating in or imported from China for a period of five years beginning January 2021.

Citi news


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