BAN ON CHEAP TEXTILES SOON-MINISTER OF TRADE

PRESS STATEMENT FROM THE MINISTRY OF TRADE & INDUSTRY

It has been brought to our attention that in the interaction held on Friday the 17th of April with the various media houses on 100 days of President Atta Mills’s administration the Minister is alleged to have said that there would be a "ban on the importation of cheap textiles" soon.
We would like to thank the media for the interest shown in the event and the subsequent publicity given to the comments. However we would also like to point out that no statement was made to the effect that there would be a ban on the importation of cheap textiles, and therefore would appreciate it if the statement is corrected.
We think it would be useful however if the issues raised were restated so that in the minds of the public there could be a little more clarity on the matter at hand.
The point made was that the Ghanaian textile-manufacturing sector was in decline and that it did not need to be in that situation. It was also noted that this did not have to be the case if we as a country had the political will to enforce our laws.
The problem as stated by the textile companies in meetings that they have held with Officials of the Ministry of Trade & Industry is that imported "cheap textiles" that are both cheap in price and quality are having a detrimental effect on the Ghanaian textile industry.
Frequently, these textiles are illegally smuggled into the country and evade the payment of customs duties and other levies. Further the evidence available shows that frequently designs developed by local textile firms are copied in these "cheap" knock-off products and in some cases the logo and/or the name of one or the other local textile manufacturing firms is also printed on the edges of the textile fabric.
This means that the designs of our local textile firms are being, as it were "stolen". The other issue is that the reputation of these Ghanaian brands that have been built up by the local textile companies after investing considerably in the advertising and promotion of their products are also being used to sell other counterfeit products and the sales proceeds are not going to the owners of the brands.
The Ministry has had consultations with the textile companies and together we will first work to create public awareness on the extent of the challenge that we face. We have undertaken to draw attention to the impact on the Ghanaian textile sector in terms of infringement of trademarks and copyrights, and its impact on Government in terms of the loss of revenue due to evasion of import duties and other levies.
After discussions with the textile companies and other stakeholders, we have identified some measures to help deal with the problem. Namely, re-routing all textile imports through one port, as was done previously; taking steps to check smuggling through our borders and/or unauthorized routes; and conducting random point of sale inspections on textile products sold on the market.
We would welcome other suggestions from the public on effective ways of dealing with the problems. While we appreciate criticisms in order that we can re-examine our intended actions and refine them, we would be much more appreciative of suggestions that can provide solutions to the issues raised.
We in the Ministry believe that the Ghanaian textile companies concerns are legitimate and need to be addressed. We think it important to give opportunities to Ghanaian cotton farmers, create more opportunities for Ghanaian textile manufacturers and designers to create beautiful Ghanaian products and protect Ghanaian jobs. The Ministry of Trade & Industry will continue to think through these challenges and do its best to promote Ghanaian businesses like the local textile industries who continue to demonstrate that in spite of the challenges that they face, they are still able to produce products that are excellently made in Ghana.



Hon. Hanna Tetteh
Minister of Trade & Industry.