In 2003 the parliament approved a new budget which included increases in tariffs on rice and poultry. The tariffs were to help farmers compete with subsidised imports and were fully consistent with tariff rates allowed by the World Trade Organisation. However, the government lacked 'special dispensation' from the IMF to implement these tariff increases. Following meetings with IMF staff, the government did a U-turn on this policy, telling the customs union to stick with original tariffs, in direct violation of the Ghanaian constitution.
"Kept in the Dark"
http://www.brettonwoodsproject.org/article.shtml?cmd[126]=i-126-52f5a1a95e0d555a2b3d2a24069d1244
They accuse goverment of usurping the powers of Parliament Deeply aggrieved with government's reversal of a 20% levy on imported poultry, announced in the country's 2003 annual budget, the National Poultry Farmers association has resorted to the law courts to challenge the constitutionality of the manner in which the decision was reversed.In an exparte motion filed before an Accra High Court in March and awaiting hearing, against the Customs, Excise and Preventive Service (CEPS), to order it to comply and apply the import rates set in Act 641, the poultry farmers argued that, the suspension of the import duty, which was duly passed by Parliament into law, but withdrawn by the executive without recourse to parliament, is in violation of the law and in contravention of the constitution of Ghana. The exparte motion, among others, stated that it is only parliament that can repeal an Act or suspend the operation of an Act duly passed by it or waive or vary a tax imposed by an Act of Parliament.The import levy, imposed ostensibly to protect the local poultry industry, was according to trade experts, within the World Trade Organisation (W.T.O.) permissible range, and therefore did not contravene any multi-lateral trade rule. The tax, which became effective on May 8 2003, was discontinued on May 12 2003, without any reasonable explanation from government, an action, which is believed to have been instigated by the International Monetary Fund (IMF).According to the Executive Director of the Center for Public Interest Law (CEPIL), (the law firm representing the farmers) Dominic Ayine, the Ghana National Association of Poultry Farmers (GNAPF) has a case, and a legitimate course to seek judicial intervention in the matter, because the law (Act 641) was duly passed by parliament, and therefore, government had no basis to withdraw the tax without first going to parliament."When it came to the decision to stop the levy, the proper thing was for parliament to waive that levy", he pointed out in an interview with Public Agenda. Citing Article 174, of the Constitution, Aryine argued that it is parliament which has the "power to tax and spend", and therefore no public institution has the mandate to waive a duty to pay tax since that would be violating the constitutional principles, which gives that power to the Legislature." He said a case could be made for the GNAPF from two angles, which is from the public policy perspective, and a violation by the executive of the "tax and spend" powers of the legislature.Explaining this, he said, government had raised the expectations of the poultry farmers with the passage of the law and so there must be some level of accountability. "If because of the tax incentive, poultry farmers had invested so much to produce more poultry to meet market demand, only for the tax to be withdrawn, you can imagine what damage would have been done to these individual poultry farmers. That is certainly, a breach of trust on the part of government", Ayine stated. Ayine said, CEPIL took up the case, in the first place, because it wants " to put the matter in the domain of the public through the court mechanism" to generate public debate and also to inform the processes of public policy.He indicated that, if they lose the case, the issue would serve as the basis for an advocacy on trade reforms in the country, and also provide an avenue to task parliament to give concrete meaning to its power to "tax and spend" as stipulated in the Constitution. That is, detail out what the tasks and parameters of the legislature are within this context, if it comes out that the Executive did not usurp the powers of parliament to waive the additional 20 percent tax on imported poultry.
CIVIL SOCIETY DEMANDS TARIFF PROTECTION
FOR RICE AND POULTRY FARMERS
In February this year, the Minister of Finance announced in his budget statement in Parliament to the admiration of many Ghanaians that the government was going to increase tariffs on poulty and rice. However two weeks after parliament amended the Act 641 to empower the Customs, Excise and Preventive Service to start charging the new tariffs, the Ministry suspended the tariffs, explaining that the new tariffs were in conflict with sub regional tariffs.
In her keynote address Ms Kristin Dawkins, Vice President of the Institute for Agriculture and Trade Policy (IATP), U.S.A., sought to explain the dilemmas and controversies that surround the rigged rules of international trade. She provided insight into the circumstances leading to the recent withdrawal of tariffs on imported rice and poultry products in Ghana.
Edward Kariweh of the General and Agricultural Workers' Union (GAWU) of the Trades Union Congress of Ghana (T.U.C.), Charles Abugre, Executive Director of ISODEC, and Adjei Heneku of the Poultry Farmers association of Ghana also addressed the forum.In his presentation, Mr. Kariweh stated that whiles trade has the potential to reduce poverty in developing countries, the current globalisation practices which is rather lopsided in favour of developed countries has created persistent poverty in developing countries. He added that since rich countries and poor countries are at different levels of development, it is therefore not expedient to establish a uniform trade regime like the WTO to cover all countries. In his opinion, a competitive policy from a development perspective will enable the government to assist and promote local firms to survive and develop in order to compete with other foreign products.
Presenting their case, the Poultry Farmers Association stated for agriculture in Ghana to progress, the government would have to be the catalyst in the mobilization of capital. Mr. Heneku added that the association was very pleased with government's decision to increase tariffs on poultry and rice which by the approval of parliament became law under Act 641. It signaled that government was prepared to take bold steps towards rectifying unfair trade system currently prevailing. To them therefore, the abruptness of the reversal of the policy exposes inconsistency and fragility of conviction and the failure to re-enact it is by legislation a disregard for statutes. The association is therefore filing a Writ of Mandamus at the Supreme Court to compel the Minister of Finance to implement the decision to increase tariffs.
Charles Abugre of ISODEC questioned the withdrawal of the proposed tariffs despite massive domestic support for the policy. He indicated that under normal circumstances, once approved by Parliament, the Minister needed to get authority from parliament again to revoke it. In his view this was a very frightening development that could ever happen to parliamentary democracy and that government could lose every opportunity to protect local industries and chart an independence course.Participants were unanimous in their condemnation of the IMF meddling in the national policy formulation process and of government's submission to the dictates of the former, leading to the withdrawal of the imposed tariff, without recourse to parliament, which had enacted an act to implement the policy.In a 12-point resolution, the participants called on the Government of Ghana to uphold its sovereign right to protect its domestic producers, and to reinstate the withdrawn tariffs on rice and poultry products. The resolution also called on the Bretton Woods institutions to respect the national sovereignty and right of Ghana, to pursue its own development agenda.
source: http://www.isodec.org.gh/tradews.htm
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