The Ghana Trade and Livelihoods Coalition, (GTLC) has lauded government’s temporary ban on the importation of tomato paste and concentrate into the country, effective November 1, 2007.
GTLC cited unfair trade practices as the reason for the action by the Ministry of Trade and Industry, Private Sector Development and PSI. Currently, Ghana is reported to be the second largest importer of tomato paste in the world.
The country is second only to Germany and consumes an average of 25,000 tonnes of tomato paste in a year at a total cost of about $25 million dollars.
The notice of the ban came barely a week after a news report on the negative effects that under-invoicing of tomato paste and concentrate into the country was having on the economy and local producers of such products.
A release issued in Accra and signed by the National Coordinator of GTLC, Ibrahim Akalbila expressed worry about the situation where local producers would increase production only for the ban to be lifted or not implemented.
It says, “In commending government, the Coalition is however cautious about raising high hopes since the memory of Act 641, which was enacted by parliament in 2003 to protect local poultry and rice farmers, was not implemented due to external pressures.”
GTLC questioned the duration of the ban and the measures government envisages in ensuring that people in the tomato industry take full advantage of it.
It called on government to support local producers of tomato through specific investment programmes that would ensure that the Ghanaian tomato farmer and producer particularly, and the economy at large are the eventual beneficiaries.
GTLC further called on government to consider extending similar protective measures to include rice and poultry products where unfair competition is also rife.
It also commended the Mi-nistry of Health for encouraging Ghanaians through short message service to consume locally produced goods.
According to the GTLC, the liberty to impose a ban or use protective measures to induce productivity and growth of the local small scale agriculture and industrial sectors concerned will be lost if the Economic Partnership Agreement, being negotiated between ACP countries and EU is signed in December 2007.
Apart from the problem of under-invoicing associated with the importation of tomato paste and concentrate, there were fears that starch dominated what had been canned as tomato paste. Available statistics suggest that Ghana is the second largest importer of tin tomato, second to Germany.
In year 2000, Ghana imported about 10 million kilograms of tomato paste at about $8.9 million. This rose to about 12 million kilograms at $9.6 million in 2001, according to an initial story published by Public Agenda on March 20th 2006 edition, titled “ Ghana is 2nd largest importer of tin tomato.”
In 2002 16.4 million kilograms was imported at a total cost of $12.7 million. The European Union alone is reported to have exported 27, 000 tonnes of preserved tomatoes to Ghana in 2003.
Though years 2004, 05 and 06 figures were not available, the trend suggests that in each year, Ghana’s import volume of tomato paste jumps by about 23%.
This is not surprising judging that tomato is used in almost every meal in the country. If the ban on tomato imports is carried out, the jobs of about 1,250 Ghanaian tomato farmers could be secured.
These farmers are mainly from Navrongo and Bolgatanga in the Upper East Region, Buntanga, Gulinga and Libga in the Northern region, Tuobodom in the Brong Ahafo region and Asante Akim in the Ashanti Region.
Tomato farming, processing and distribution could become the biggest employment avenue for many rural dwellers, but for the unbridled trade liberalization that has resulted in foreign tomato taking over the market.
Research shows that about 60 percent of the content of imported tomato is artificial additives, the reason why it is cheaper than local tomato.
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