The Ghana International Trade Commission (GITC) has imposed a 65 percent quota on all imports of machetes for the next two years, beginning March 30, this year.
The move by the commission is part of safeguarding measures to protect the local machete industry from unfair trading practices such as dumping, subsidisation and counterfeiting by foreign entities.
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Consequently, up to 1534.4 tonnes of machetes can be imported as against the current 2,365.9 tonnes of machetes that are imported annually.
The remaining shortfall of 831.5 tonnes of machetes is expected to be compensated by Crocodile Machetes Ghana Ltd, a local company, to make it competitive and restore its market share.
The Chairman of the GITC board, Nana Dr Adu Gyamfi, who made the declaration in Accra on Tuesday (February 13), said the decision was arrived at after the commission established evidence of imported machetes flooding the domestic market and causing injury to the local industry.
In September 2021, Crocodile Machetes Ghana Ltd petitioned the GITC for remedial measures for unfair trade practices relating to dumping, subsidisation and increasing quantities of imported machetes which were counterfeit and substandard.
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In line with Section 42 of the GITC Act, 2016 (Act 926), the commission commenced investigations into the claims made by the petitioner.
After over two years of independent investigations conducted by the GITC, the commission gave its verdict leading to the recommendations for the safeguard measures.
Verdict
Dr Gyamfi explained that the commission could not establish prima facie evidence on dumping and subsidisation allegations.
“On the other hand, there was evidence of increasing imports of machetes flooding the domestic market and in effect, causing serious injury to the domestic industry; evidence which we found to have necessitated the application of safeguard measures to protect the industry’s demise from such unfair trade practices,” he stated.
Throwing more light on the investigations, he said the commission found out that within the period of the investigation, the average import level of machetes originating from China was 1,766.8 tonnes, Constituting 74.7 per cent of the total imports.
He added that 424.2 tonnes (17.9 per cent) of the imported machetes originated from Colombia while 26.02 tonnes (1.1 per cent) were imported from Brazil.
The GITC board chairman added that under the safeguard measure, the commission had determined that imports from China be limited to 114.9 tonnes and Colombia, to 275.2 tonnes per annum.
In terms of Brazil, the GITC said the import constituted 1.1 per cent of the market and that percentage was negligible because it fell below the three per cent mark to attract any remedial measure as per the World Trade Organisation (WTO) regulations.
Trademark
Regarding the allegations of counterfeiting and sub-standards, he said those issues were referred to the Intellectual Property Office and the Ghana Standards Authority (GSA) respectively for redress since they fell beyond the mandate of the commission.
He explained that the Intellectual Property Office confirmed that both Ralph Martindale Co. UK and Chillington Tool Company Limited UK had duly registered their trademark, although both had expired and were yet to be renewed.
“The commission agrees with the view by the Intellectual Property Office that Crocodile Machetes Ghana Ltd has exclusive rights to the crocodile trademark and therefore would be illegal for any other competitor to use its trademark,” he added.
Dr Gyamfi also said the GSA tested samples of the imported machetes against the established parameters such as dimensional, hardness, tensile strength and marking requirements and the quality evaluation report established that the samples failed to meet the full requirements of a national standard.
Commitment
The Executive Secretary of the GITC, Frank Agyekum, said the thorough investigation by the commission and the outcome of the petition demonstrated the commitment to safeguarding the domestic industry against unfair trade practices.
He said the GITC would continue to collaborate with other state agencies and relevant stakeholders for the effective discharge of its mandate.
Source: graphic.com.gh
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