Enhancing Ghana’s trade competitiveness: Insights into the GITC Act, 2016 (Act 926)

In light of recent US international trade policy regarding tariff adjustments and their implications for Ghana's trade policy reorientation; it is essential for the country to focus on its key institutions responsible for negotiating international trade policies. 

The primary entity in this context is the Ghana International Trade Commission (GITC), which commenced operations in 2019 following the enactment of the GITC Act, 2016 (Act 6926).

The GITC is governed by the treaty stipulations of the World Trade Organization (WTO) and the overarching principles of international trade law.

The purpose of the GITC is to regulate Ghana's international trade in accordance with the WTO standards and to address associated concerns.

The functions of GITC encompass adjudicating trade disputes, enforcing anti-dumping, countervailing, sanitary, and phytosanitary measures, and guaranteeing adherence to Ghana’s trade regulations. 

Mandate

This extensive mandate necessitates that the Commission, among other responsibilities, supervises Ghana's adherence to international trade laws and regulations; guarantees fairness, efficiency, transparency, and objectivity in the implementation of measures influencing international trade and the utilisation of global trade standards; ensures equitable competition for individuals involved in domestic production and international trade; and safeguards the domestic market from the repercussions of unfair trade practices during international trade activities.

These objectives assess the nation's recognition of the significance of international commerce in its pursuit of sustainable economic advancement.

The Commission's responsibilities are substantial and necessitate careful consideration to guarantee its efficiency, particularly during this era of global trade volatility and geopolitical maneuvering.

It is crucial to focus on the Commission, as its Executive Secretary is tasked with monitoring and evaluating Ghana's international trade patterns and advising the Minister of Trade on issues impacting trade and industry. If the nation disregards this common understanding, it is unprepared for genuine advancement. 

Discourse

Many analysts lauded Ghana for the enhancement of international trade and economic diplomacy following the enactment of Act 926.

Regrettably, there has been limited discourse around the Commission and its influence on trade policy and lobbying owing to multiple causes. 

The inaugural Executive Secretary of the Commission exerted considerable effort but encountered numerous practical problems, including financial and other limitations, which hindered many Ghanaians from recognising the value of that institution.

The appointment of a new Executive Secretary raises expectations that the government will align the nation’s trade policy with the Commission's aims and mandate to achieve its full potential. 

Proficiency

The GITC mandate necessitates technical, legal, and economic proficiency, which demands substantial resources. The present insufficient or unreliable funding for the Commission hampers the prompt fulfillment of its duty and enforcement.

To render the Commission operational, the subsequent measures must be meticulously evaluated. The state should establish a designated financial line within the ministry's annual allocation, expressly reserved for GITC operations.

I shall once more advocate for a trade remedies fund, financed through a share of customs charges or levies on trade remedies, particularly for research, advocacy, and institutional capacity development.

The Commission's interaction with the public is currently limited and unclear. A multi-year financial plan is essential for the GITC to execute long-term technical initiatives, training, and stakeholder engagement.
 

Technical expertise

GITC requires proficient leadership for efficient trade regulation and necessitates sufficient manpower and interagency collaboration.

This necessitates commissioners possessing expertise in international trade law, economics, and policy.

The need for staffing with technical expertise, especially in trade law, data analysis, and economic injury assessment, cannot be overstated. 

Coordination procedures between GITC and entities such as the Ghana Revenue Authority (Customs Division) and the Attorney-General’s Department are essential to ensure enforcement and legal clarity on its purpose. 
Many Ghanaian firms, trade associations, and some policymakers are ignorant of the interventions GITC can provide, resulting in the underutilisation of its mandate. 

Awareness campaign

The GITC ought to be authorised to conduct awareness campaigns via media and local trade events to inform stakeholders about trade remedies; provide training sessions and user manuals for private industries on filing complaints or requesting investigations into unfair trade practices; and establish a stakeholder engagement unit within the GITC to consistently communicate with private sector associations such as AGI, GNCCI, and GUTA, as well as civil society, to identify issues and foster confidence in its operations.

In conclusion, Act 926 establishes a crucial legal framework for protecting Ghana's trade interests, and to boost its domestic and international competitiveness in the wake of unfair trading practices in the global trading system; yet, the complete efficiency of GITC relies on deliberate investments in institutional capacity, stakeholder awareness, and committed financial resources.

The writer is a lecturer in International Trade Law at UCC and UGSoL, and Consultant on Trade and MSME Finance at CATIPs-Ghana