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Non-tariff barriers adding up to 20% to cost of trade in West Africa – Trade Minister

Ghana’s Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has described non-tariff barriers as the most persistent obstacle to regional trade in West Africa, warning that they continue to impose significant costs on businesses and consumers across the sub-region.

Speaking at the 5th Joint Meeting of ECOWAS Ministers of Trade and Industry in Accra, the minister said non-tariff barriers are adding an estimated 15 to 20 per cent to the cost of cross-border trade despite ongoing efforts by member states to deepen regional integration and economic cooperation.

“Non-tariff barriers remain the most stubborn obstacle in all of this, adding an estimated 15 to 20 per cent to the cost of cross-border trading in West Africa,” she stated.

According to the minister, tariff barriers are generally easier for businesses to anticipate and factor into their operations because they are visible and predictable.

“I keep saying I am not afraid of tariff barriers. If it is five per cent, you can factor it into your cost of production,” she said.

She explained that the greater challenge lies in the hidden and often unpredictable nature of non-tariff barriers, which continue to frustrate traders and businesses operating across borders.

“But with respect to faceless non-tariff barriers, it continues to create a challenge for us to resolve it,” she added.

Mrs Ofosu-Adjare stressed that the impact of such barriers extends beyond traders, affecting businesses throughout the value chain and ultimately increasing costs for consumers.

“The premium is paid by our traders and absorbed by businesses and passed on to consumers,” she noted.

Her remarks come as member states of Economic Community of West African States intensify efforts to boost intra-regional trade and maximise opportunities under the African Continental Free Trade Area.

The Accra meeting has brought together trade and industry ministers from across West Africa to discuss strategies aimed at removing trade bottlenecks, promoting industrialisation and strengthening economic integration within the region.

Participants at the meeting noted that eliminating non-tariff barriers remains critical to reducing the cost of trade, improving competitiveness and unlocking the full potential of the West African market.

 

Source: AdomOnline

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