WORLD TRADE
ORGANIZATIONWT/TPR/M/81
9 April 2001
(01-1806)
Trade Policy Review Body
26 and 28 February 2001
TRADE POLICY REVIEW
GHANA
Minutes of Meeting
Chairperson:  H.E. Mr. Pekka Huhtaniemi (Finland)
Page
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3
II. OPENING STATEMENT BY THE REPRESENTATIVE OF GHANA 4III. STATEMENT BY THE DISCUSSANT 6IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY 10V. REPLIES BY THE REPRESENTATIVE OF GHANA AND ADDITIONAL
COMMENTS 13
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 16
ANNEX I ADVANCE WRITTEN QUESTIONS 18
ANNEX II ANSWERS PROVIDED BY THE DELEGATION OF GHANA 31WT/TPR/M/81
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I. INTRODUCTORY REMARKS BY THE CHAIRPERSON
1. The second Trade Policy Review of Ghana was held on 26 and 28 February 2001.  The
Chairperson welcomed the delegation of Ghana, led by the Hon. Dr Kofi Konadu Apraku, the
Minister of Trade and Industry, and the discussant , Mr V.P. Haran (India). As usual, the discussant
would speak in his personal capacity.  In accordance with established procedures, the discussant had
made available in advance a broad outline of the themes he intended to raise (document
WT/TPR/D/60).
2. The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of
the procedures of the meetings.  The Report by the Government of Ghana was contained in document
WT/TPR/G/81 and that of the Secretariat in document WT/TPR/S/81).  Copies of advance written
questions, submitted by Switzerland;  Canada;  Hong Kong, China;  the European Union;  Japan;  and
the United States, were transmitted to the delegation of Ghana (Annex I).  Written replies to these and
other questions provided by the Ghanaian delegation are reproduced in Annex II.WT/TPR/M/81
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II. OPENING STATEMENT BY THE REPRESENTATIVE OF GHANA
3. The representative of Ghana expressed his pleasure at participating, as the new Minister of
Trade and Industry of the incoming Government, in Ghana's second Trade Policy Review.  His
attendance reflected the Government's high priority and importance attached to the Review.
4. During 1993-98, Ghana's real GDP had grown at an  annual average rate of more than 4%, and
the inflation rate had fallen to less than 20%.  Th e overall fiscal deficit had declined to 8.1 % of GDP,
simultaneously the primary surplus had reached 3.6% of GDP.  Except for 1996, the overall balanceof payments had recorded continuous surpluses up to 1998, and the external current account deficit
had steadily declined to 4.7% of GDP in 1998.
5. Since 1999, the economy had been hit by a severe external terms-of-trade shock, and had
experienced a difficult macroeconomic situation in 2000. It faced a rapid and large depreciation of the
cedi, deteriorating prices for cocoa and gold, and a sharp rise in world oil prices. There was also asignificant shortfall in external aid receipts. The convergence of these factors contributed to a
deterioration both in Ghana's internal and external financial balances in 2000.  Real GDP growth fell
from 4.7% in 1998 to 4.4% in 1999 and provisionally to 3.7% in 2000, below the projected level of
5%.  The overall fiscal deficit on a commitment basis worsened in 2000 to 9.3% of GDP, from 8.2%
in 1999, mainly due to higher external interest costs associated with the cedi depreciation. This wasagainst a targeted level of 5.5%. Divestiture receipts also fell substantially short of target. These
circumstances resulted in higher domestic borrowing than planned.  Externally, the balance of
payments recorded an overall deficit of US$194.7 million, while the current account deficit including
official grants rose to 10.6% of GDP.
6. In an effort to minimize the debilitating effects of these negative developments on Ghana's
economy, the new administration was immediately tackling the huge deficit to balance the budget by
end 2004. Ghana's economic transformation from a largely state-controlled economy to a liberalizedmarket economy remained a key objective of the Government. Policy focus continued to be on
macroeconomic stabilization. Fiscal measures would be strengthened and focused principally on
restraining central government expenditure and rationalizing the tax regime.
7. As a small economy with a very limited domestic market, Ghana had opted for an export-led
strategy as the key to accelerated growth in the medium to long term. Its current trade policyobjectives therefore reflected this export-led strategy. As an exporter of a few primary commodities,
vulnerable to fluctuating international prices, the principal objective was to expand the export base
and to diversify production, especially of value-added products. The success of the Government's
Gateway Programme would be important;  it was also aimed at linking Ghana to the ECOWAS
subregion. Another trade policy objective was to develop an internationally competitivemanufacturing sector capable of efficient production and expanding trade opportunities in export
markets.
8. Recent policy reforms were aimed at removing distortions in the tariff regime and
harmonizing duty rates with regional levels in order to enhance the international competitiveness of
local industries. Tariff reforms were now directed at narrowing the scope of exemptions; reducing the
dispersion in rates; and lowering overall levels. The present import tariff structure consisted of four
ad valorem  rates: 0% and 5% for primary products, cap ital goods and some basic consumer goods;
10% for intermediate/raw materials; and 20% for consumer goods.
9. In April 2000, a special import tax of 20% had been introduced as a temporary measure on
some 32 items covering about 7% of total tariff lines. Its objectives were to save foreign exchange onimports considered non-essential and to raise govern ment revenue in the wake of the drastic fall in
prices of Ghana's major exports of gold, cocoa, and timber, combined with steep rises in oil prices and
sluggish capital inflows. The coverage of the sp ecial import tax was recently reviewed and reduced toWT/TPR/M/81
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26 items, representing about 5% of tariff lines, and would be further reviewed to ensure transparency
and enhanced competition in Ghana's trade regime. A value-added tax, introduced in December 1998and increased from 10% to 12.5% in the December 2000 budget, was applied both to domestically
produced goods and imports.
10. Ghana's Destination Inspection Scheme (DIS) replaced the preshipment inspection scheme
from 1 April 2000. A major component of the ne w system was the Computer Risk Management
System (CRMS), by which information was collected and assessed to determine the risk level of eachconsignment.  The total risk level, or "risk score", was used to determine whether a consignment was
cleared through a "Green", "Yellow" or "Red" Channel. The CRMS therefore embodied selective
inspections that should ensure faster clearance for the genuine or bonafide importer.
11. Another component of DIS was the Transacti on Price Data Base (TPD). This assisted
Customs in analysing current prices accurately and enabled Ghana to effectively implement the WTOCustoms Valuation Agreement. The third component, the Container X-ray Scanning System, helped
determine the contents of a container. This enabled inspectors to quickly and reliably decide which
containers to hold or release without opening. This reduced the time needed to perform physical
inspections to confirm the container's contents. It also significantly saved on the time containers spent
in the ports, thereby making Ghana's ports less expensive.
12. The main objectives of the new scheme were to facilitate trade and provide an efficient means
of import verification so as to check revenue losses by providing an impartial assessment of the duties
and taxes to be collected, and thereby limiting the possibilities for fraud, fiscal evasion, and price
discrimination.  Like any new sche me, the DIS has had teething problems. Delays continued to occur
on a number of occasions, principally because some importers did not fully comply with the
procedures. However, with time and education it was hoped that these problems would be overcome.
13. Ghana had faced difficulties in fulfilling WTO obligations due to its inadequate capacity. For
instance, Ghana was unable to pass necessary intellectual property legislation within the transition
period provided by the TRIPS Agreement, in spite of considerable efforts to do so. This was,
however, at the top of the legislative programme of Ghana's new Parliament. As Ghana laboured to
fulfil its obligations it had been unable to take full advantage of the technical assistance opportunities
offered by the WTO because of inadequate supply capacities and supply-side constraints.
14. Ghana intended to make commitments in the on-going negotiations on agriculture and
services, commensurate with its level of development, to help make its trade and investment regimes
more predictable. But Ghana would also expect its trading partners to reciprocate by addressing issues
most crucial to it. In particular, the problems of implementation of the WTO Agreements in general
and the operationalization of the special and differential provisions had to be urgently resolved.
15. Ghana appreciated the immense technical assist ance received from the WTO Secretariat, and
its inclusion in the Joint Integrated Technical Assistance Programme (JITAP). Ghana would continue
to request various types of technical assistance to enhance its participation in the WTO and it hoped
that this would be forthcoming.  He urged the WTO to quickly approve the proposed increased
funding from the regular budget for technical assistance.
16. The thrust of Ghana's trade policy in future would be to further improve the policy and
regulatory environment so as to facilitate private-sector growth and development.  This was stated in
the President's recent Sessional Address to the nation. The partnership between the private and public
sectors was at the heart of the Government's strategy. Entrepreneurs would be encouraged to make the
private sector more vibrant, dynamic, and innovative so as to better compete within the global market.
The ultimate objective was for Ghana to be a leading agri-based industrial country in Africa by the
year 2010.WT/TPR/M/81
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III.  STATEMENT BY THE DISCUSSANT
17. The discussant (Mr V. P. Haran) referred to the new Government's continued commitment to
liberalization and to assurances from the Ghanaian delegation that the Government would be working
to accelerate its pace.  Significant developments had taken place in Ghana on the political and
economic fronts over the last decade.  Democratic roots had strengthened with the participatory
approach now adopted in formulating trade and economic policy, including the preparation of Ghana-
Vision 2020 as the framework for Ghana's National Development Policy. Ghana's goal was to becomea middle-income country by 2020 by achieving 8% annual growth based largely on exports. While
this was an enormous task, Ghana appeared determined to succeed despite the many problems.
18. Ghana's economic strategy since 1992 had focussed on macro-stabilization and structural
reforms in a democratic environment. Transparency and accountability were increasing, with
economic growth based on establishing an open and liberal market economy receptive to privateinvestment. The Government's continued outward-or iented trade policies  were being accompanied
with monetary and exchange rate reforms. Public-sector involvement was being limited to core tasks,
and divestment had progressed, albeit slowly.
19. Real GDP growth, at 4% during 1993-98 a nd 4.5% in 1999, had remained below the
Government’s initial target of 5.5%. Per capita GNP, currently at US$390, had grown at around 1.5%,due largely to increased population.  Fiscal deficits had escalated sharply in the mid 1990s to 10% of
GDP, and inflation had reached 60% in 1995. Real interest rates had risen exorbitantly.  Recent
external shocks from increased energy prices and falling prices for Ghana's main exports of gold and
cocoa exposed the economy's vulnerability. Foreign exchange reserves fell to tenuous levels covering
only 57 days of imports. An annual monetary growth target of 18% was introduced in 1998 to control
inflation, which fell to 12.4% in 1999. Fiscal measures introduced to reduce the budget deficit to 6%
of GDP in 1999 included tighter spending control and the introduction of the VAT, currently at12.5%. Excessive budget deficits strained the financial system and generated pressures on inflation,
interest rates, and exchange reserves, and would need constant monitoring and attention by the
Government.
20. Ghana's external debt, presently at 78% of GDP, was mainly medium to long term and of a
concessional nature. Ghana deserved compliments for servicing its debts largely without rescheduling,
while still a highly indebted poor country. Writing off this debt would benefit Ghana immensely and
release funds for development projects.
21. Export diversification was limited;  more than 75% of Ghana's exports were of traditional
items like cocoa, logs, minerals, gold, and electricity. Export growth had been sluggish, partly due
until recently to the exchange rate policy of central bank intervention to support an over-valued rate.This resulted in an effective appreciation of  the currency, which reduced the international
competitiveness of Ghana’s products. Maintaining a realistic exchange rate to provide sufficient
incentives for domestic production and export was important for Ghana, and the recent devaluation of
the cedi following cessation of Central Bank intervention should be beneficial in the medium and long
term.
22. In January 2000, the Government started consultations to prepare a new national policy
framework for the second five-year period, 2001-05, as part of its Vision 2020. The second phase of
the reform was expected to concentrate on promoting sustainable economic growth and poverty
reduction. The Government’s plan was for agriculture's share of GDP to fall to less than 20% and for
that of industry to rise to 37% by 2020. Population growth was to be reduced to 2% by 2020.Measures had been implemented to protect vulnerable groups from the adverse effects of economic
reforms. However, financing difficulties strained their implementation.WT/TPR/M/81
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23. Although Ghana was conscious of the need for macroeconomic stability and had taken several
welcome steps recently, these needed to be sustained in the long term.  An ongoing independentassessment of trade and economic policies might help, and serious consideration could be given to
creating a statutory body to fulfil this role.
24. Ghana's major trade policy objectives were to develop an open, outward-looking and export-
oriented economy. It had taken several difficult steps towards creating an open and transparent trade
regime. Non-tariff barriers had been largely eliminated, and the tariff regime streamlined andsimplified. Ghana’s industrial development strategy was aimed at removing bottlenecks to private
industrial development, and the tariff structure afforded a reasonable level of protection. The
Government was committed to the development of micro and small enterprises. Ghana’s trading
partners could assist in its reforms by ensuring stable, increased access to their markets, especially in
agricultural products where its competitive advantage was strongest.
25. Exports and imports as a share of GDP had both expanded, from 18% and 29% in 1993 to
28% and 39% in 1998.  Export growth trailed other countries of similar development. Although non-
traditional exports like food, timber, and aluminum now accounted for 20% of exports, compared with
3% in 1986, there remained an urgent need to widen the manufacturing base and to diversify exports.
26. Tariffs remained Ghana's main trade policy instrument. Its simplified structure, currently of
four ad valorem  rates, namely, 0%, 5%, 10% and 20%, was designed to encourage value addition in
Ghana. A special tax of 20% – introduced in Fe bruary 2000 as a temporary measure – was levied on
many products to conserve foreign exchange and generate revenue as well as to protect domestic
industry from unfair trading practices of foreign traders.  The simple average tariff had fallen from
17% in 1992 to 13% in 2000, but subsequently rose following the imposition of the special import tax.
The Government’s objective was to lower average tariffs to below 10% within three years.
27. Duties were ad valorem.  Import duty exemptions were granted to bonded warehouses and
some importers or producers. Nearly 40% of imports were exempt from tariffs, and the widespread
use of exemptions, often discretionary and poorly administered, was non-transparent and provided
tailor-made protection to some industries. These exemptions facilitated leakage in revenues and there
might be a case for streamlining them and narrowin g their scope. The Government was already taking
steps in this regard, and such details would be useful to Members.
28. While 14.8% of tariff lines were bound, including all agricultural items, only 1.1% of
manufactured products were bound. Since Members preferred predictability provided by bound tariffs
they would be interested in hearing Ghana's reasons for having a low level of tariff bindings and any
proposals to raise them. Tariffs were now levied on transaction value. Details declared by importers
might be verified in the exporting country by an affiliate of the inspection agency. It would be usefulto hear about Ghana's experience on the cooperation received from other members for such
verification.
29. Ghana applied no import quotas.  Few formal non-tariff trade barriers existed, and it had no
legislation on contingency protection measures. Its few import restrictions mainly protected human
health and national security, and standards did not discriminate against imports. Quarantineregulations were based on FAO or the inter-African Phyto-Sanitary Council. Export taxes were levied
on cocoa and some air-dried sawn timber. Ghana had no export quotas or voluntary export restraints
and no export subsidies per se. Tax incentives however promoted exports. Trade taxes, especially
tariffs, were an important revenue source, and accounted for nearly one third of total tax receipts in
1998. Government procurement arrangements favoured domestic suppliers by providing a 12.5%price preference.WT/TPR/M/81
Page 8
30. VAT was applied equally to domestic and imported products.  However, the system appeared
to discriminate against the production of VAT exempt goods, as VAT paid on inputs was notrefunded. Ghana might wish to inform Members of the reasons for this discrimination.  Ghana
provided generous export incentives via free zones and concessional income tax schemes. The tax
benefits favoured free-zone enterprises. Other firms depended on inefficient duty drawback schemes
to refund duties paid on imported inputs.
31. Ghana was implementing its commitments under the TRIPS and Customs Valuation
Agreements and looked to multilateral donors for technical assistance and support. On the TRIPS
Agreement, draft laws were still to be enacted, and it would be useful to hear when this would occur.
Trade marks and goods were protected under the Trade Marks Act of 1995. According to WIPO,
Ghana's legislation had some shortcomings, such as non-protection of trade marks for services, and
exclusive rights conferred on registered owners to protect against the use of identical and similarmarks.
32. Investment in Ghana had increased from 6.1% of GDP in 1980 to about 25% in 1998 and to
an estimated 27% in 2000. However, investment in human capital had lagged behind physical
investment. Average educational attainment had declined, even though primary school enrolment had
risen.  There was a clear need for more investment in human capital.
33. The Ghana Investment Promotion Centre Act of 1994 opened the economy for foreign
participation, except in four areas.  It streamlined the FDI regime:  Ghana’s investment legislation and
the constitution provided guarantees against expropriation and nationalization. It had concluded
several bilateral investment promotion and protection agreements and subscribed to the Multilateral
Investment Guarantee Agency Convention. Free-z one programmes attracted FDI;  however, inward
foreign investment was below expectations and totaled only US$1.5 billion between 1994 and 1998.
This could be due to low investor confidence arising from economic uncertainties and inadequateinfrastructure facilities. Ghana’s views on the reasons for low capital inflows would be particularly
relevant as some Members were interested  in discussing investment in the WTO.
34. The divestiture programme focused on small and medium-size enterprises and had been
implemented unsatisfactorarily. Many large state enterprises had not been divested. Of the large and
strategic enterprises targeted for privatization, only Ghana Telecom had been divested by 1998;  and asubstantial portion (about 25%) of the proceeds of some divested enterprises remained outstanding.
Further privatization delays would raise the costs of divestment:  the Government might wish to
explore ways to accelerate divestments. Divestiture was open to foreign investors, who currently held
about 10% of divested ownership.
35. Ghana was committed to regional integration. It granted tariff preferences to ECOWAS
members. Ghana’s trade with ECOWAS members currently accounted for 17% of exports and 27% of
imports;  an ECOWAS customs union and common market were also planned. Regional integration
offered Ghana the best opportunity to expand its economic space and to optimize utilization of its
economic resources. An indication from Ghana on the road map for greater economic integration of
ECOWAS members would be useful.
36. Ghana had experienced difficulties in implementing some of its WTO commitments, due to
its limited institutional and human resource capacity and the short transitional periods provided in the
various Agreements. It believed that imbalances existed in agreements, like TRIPS. It also considered
that developed countries were not fully implementing the S&D provisions. Ghana was concerned
about the possible inclusion on the WTO agenda of non-trade issues such as labour standards,environment, and investment.WT/TPR/M/81
Page 9
37. Ghana was predominantly a rural economy, heavily dependent on agriculture, particularly
cocoa, and on natural resources, most notably minerals. Primary production accounted for nearly halfof GDP and the manufacturing sector for just 10 %. Agriculture and mining accounted for nearly 93%
of total exports;  manufactures and semi-manufactures accounted for just 7%.  Agriculture, dominated
by subsistence farming, provided employment for 70% of the workforce. Agricultural development,
including food self-sufficiency was an important  component of the Government’s Vision 2020. The
strategy involved achieving annual real growth of 6% in the sector, based substantially on exports.
38. Agriculture had considerable potential. Cultivated land could be expanded to provide a strong
foundation for output and export growth. The community ownership of agricultural land had deterred
investment in agriculture and limited the sector's access to credit.
39. Cocoa was very important to the Ghanaian economy, accounting for 27% of exports.  In
1999, Ghana’s share of world production was 13%, and production efficiency was relatively lowcompared with other major producers, such as Indonesia and Côte d' Ivoire. The low prices paid to
Ghanaian producers was perhaps an important reason for this inefficiency.  A medium-term cocoa
development strategy was announced in April 1999. The strategy envisaged more liberal cocoa
marketing arrangements in the medium term. Producers' share of prices were to be increased from
about 60% in 1999-2000 to 70% by 2004-05. Other reforms being implemented included the levelingof the field for licensed buying companies, through equal access for finance and warehousing
facilities.  Cocoa production was targeted to increase to about 500,000 tonnes by 2004-05 and to
900,000 tonnes by 2009. Presently, only 10% to 20% of cocoa beans were processed domestically.
Ghana could focus on exporting more processed cocoa products.
40. Forestry and timber was also an important sector. Logging rates exceeded sustainable levels,
aggravated by substantial illegal felling. In 1995, all log exports were suspended to enable Ghana to
implement sustainable forestry management practices and to promote value-added exports.
41. Manufacturing contributed about 10% of GDP. Electricity generation was highly dependent
on hydro sources, namely from Lake Volta, and had not kept pace with increased demand. Textiles
accounted for 14% of manufacturing output, and provided export potential.  Ghana's challenge was to
diversify its production and export base to become less dependent on agriculture. Its development
plan envisaged industry contributing 37% of GDP in the long term.
42. The share of services in GDP had remained stable during the 1990s, at between 42% and
45%. Ghana had consistently recorded substantial trade deficits on services. Its GATS commitments
were in tourism and related services, maritime transport, construction, education, and banking
services. Under the financial sector adjustment programme, Ghana had begun privatizing several large
state-owned banks.  Legislation to enhance central bank supervision and enforcement of prudentialregulations was under way.  Foreign insurance companies could enter Ghana, subject to certain
conditions. Basic telecom services, now supplied by a statutory duopoly instead of a monopoly, had
achieved only limited success in promoting telecom services.WT/TPR/M/81
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IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY
43. Members welcomed the incoming Government's continued commitment to trade and
investment reforms and Ghana's support of the multilateral trading system.  Many Members  noted
their country's strengthening bilateral trade, investment, and aid ties with Ghana.
44. The representative of Canada referred to the smooth democratic change in government
following the December 2000 elections and the incoming Government's efforts to restore fiscal
discipline based on debt management and financial re-engineering.  She welcomed Ghana'scommitment to enhance central bank independence, which would help monetary management and
currency stability.  Establishing or strengthening key regulatory agencies as well as greater judicial
independence would also facilitate trade and investment.  Canada applauded Ghana's commitment to
more open trade and investment, including the Government's objective to lower average tariffs to
below 10% within three years.  This would require reduced reliance on tariffs for governmentrevenue.  On-going modernization of its customs regime would promote greater transparency and
predictability for its trading partners. Canada commended Ghana for efforts in meeting its WTO
commitments in intellectual property and custom s valuation.  Ghana had encouraged some important
regional initiatives within ECOWAS to lower regional tariffs and non-tariff barriers.
45. The representative of Hong Kong, China appreciated Ghana's multilateral efforts, especially
the policy objective of lowering average tariffs to below 10% within three years.  He noted that Ghana
had bound only 1% of its industrial tariffs, and encouraged it to extend these bindings.  Ghana was
urged to improve the transparency of the schemes providing duty concessions on imports.  While
Ghana was not a member of the Government Procurement Agreement, Hong Kong, China was
pleased that Ghana was considering codifying its procurement rules.  He encouraged Ghana to make
these more transparent and ultimately to remove the 12.5% price preference for local suppliers.
Hong Kong, China had submitted questions on the special import tax of 20% on consumer goods, andstandards requirements.
46. The representative of the European Union referred to Ghana's traditional free access to the EU
market for almost all exports, and the importance of the Cotonou Agreement.  The EU believed that
development cooperation between the two countries was important to help reduce poverty and to
consolidate democratic principles as well as good governance, human rights, and the rule of law.  Hesought specific details on how the Government envisaged meeting its ambitious goals of achieving
middle-income status by 2020, and on the proposed timetable for implementation.  He also enquired
about the status of trade in Ghana's development strategy, including in its Poverty Reduction Strategy.
He agreed with Ghana on the crucial importance of  receiving technical assistance  to ensure full
compliance with its WTO commitments, and sought specific information on Ghana's assistance needs.Ghana would benefit from integrating itself into the global economy and from a strengthened
multilateral trading system.  The EU placed great importance on policy coherence between trade and
development policy, and believed that this was facilitated by the Cotonou Partnership Agreement.
47. The representative of Japan referred favourably to Ghana's gradual and systematic reduction
and elimination of various forms of price and distribution controls on trade, and exchange rate
liberalization.  Japan encouraged the privatization of state-owned enterprises and the opening of the
economy to foreign investment.  Capacity build ing to enable Ghana to implement the WTO
agreements was important.  She sought clarification on the non-transparent imposition of the special
import tax to counter unfair trading practices, and noted that Ghana had no anti-dumping legislation.
Ghana was encouraged to expand its coverage of tariff bindings on industrial products above thecurrent level of 1%.  While Ghana had no export subsidies as defined under Article 2 of the Subsidies
Agreement, Japan regarded the generous income tax concessions provided to exporters as export
subsidies, and sought Ghana's views.WT/TPR/M/81
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48. The representative of the United States referred to enhanced market access provided to Ghana
as part of its African Growth and Opportunity Act (AGOA) of 2000.  He supported Ghana's reform
efforts since the initiation of the Economic Recovery Program in 1983, including the progressive
elimination or reduction of import quotas and licensing, and of average tariffs from 17% to 13% in
2000.  Ghana had made commitments in both the basic telecommunications and financial services
negotiations.  The United States was committed to providing both bilateral and multilateral technical
assistance to help Ghana meet its WTO obligations .  For example, it was providing a direct grant to
the WTO of US$650,000 to support technical assistance for African countries.  He was pleased that
Ghana had taken the important step to apply transaction value from 1 February 2000 as per the
Customs Valuation Agreement, and had replaced mandatory preshipment inspection with destination
inspection in April 2000.  The United States welcomed assurances that enacting WTO-consistent
intellectual property legislation was a high priority of the new Ghanaian Parliament.
49. Ghana's difficult economic situation reflected macroeconomic instability induced by
expansionary fiscal deficits and adverse movements in its terms of trade.  However, such volatility
would continue to be a factor in Ghana's trading environment, and the United States urged Ghana to
abolish the special import tax imposed in March 2000 because it would not solve Ghana's structural
problems.  Schemes providing tariff concessions and exemptions as well as the governmentprocurement guidelines needed to be made more transparent and consistent.  The United States
supported Ghana's privatization programme:  Ghana was urged to privatize basic infrastructure
services, such as electricity, ports, and water, and to liberalize key services, such as basic
telecommunications, including enhancing its GATS commitments.
50. The representative of India noted Ghana's extensive reforms since its previous Trade Policy
Review in 1992.  It had improved the macroeconomic situation, including reducing inflation to around
12% in 1999, and had serviced its external debt largely without rescheduling.  Competition had beenincreased in the banking sector, the tariff restructured, the economy opened to foreign investment, and
state-owned enterprises divested, all at a difficu lt economic time.  Ghana remained dependent on two
commodities, cocoa and gold, and manufacturing accounted for only 10% of GDP.  India therefore
welcomed Ghana's emphasis on development of growth-oriented competitive export industries that
added value to local resources, as well as efforts to diversify export markets.  Greater market access,especially for agricultural products, would facilitate Ghana's reforms.
51. The representative  enquired about when the temporary special import tax would be removed;
and asked Ghana to elaborate on specific technical assistance needed to implement its WTO
commitments.  India supported the provision of such assistance to expand Ghana's human and
institutional capacity.  It also was greatly encour aged by Ghana's commitment to adhere to WTO rules
and its development strategy embodied in its Vision 2020 plan.
52. The representative of Malaysia referred to the economic challenges facing Ghana, including
tightening of monetary and fiscal policies and adverse terms of trade movements due to poor export
prices.  Nevertheless, Ghana had achieved some policy successes, including lower inflation, positive
growth rates, and no rescheduling of external debt.  She emphasized the importance of Ghana'sdiversification from over-dependence on commodity exports in its economic recovery efforts, and of
greater foreign investment to strengthen its industrial base.  In so doing, a well executed divestiture
and privatization programme would contribute to Ghana's reforms and help it meet the 2004 balanced
budget target.
53. The representative of Kenya commended Ghana for its democratic achievements, which
augered well for its economic progress.  He referred to the similarities between Ghana and Kenya,
including export dependence on a few commodities and reliance on the EU market and trade
preferences.  Kenya welcomed the Cotonou Agreement and recent U.S. initiatives aimed at helpingWT/TPR/M/81
Page 12
African countries by improving market access.  Ghana, like Kenya, was committed to regional
integration, especially in ECOWAS and the Organization of African Unity, as building blocks toAfrican economic integration, subject to their multilateral obligations.
54. The representative of Mauritius noted Ghana's extensive trade and investment liberalization
since the early 1990s, and its large fiscal deficits.  Corrective action, including an annual monetary
target, introduction of a VAT, and tighter spending controls, was insufficient to curb the budget
deficit in the short term, although it had fallen to 6% of GDP in 1999.  She commended Ghana formeeting its debt service obligations, largely without rescheduling, despite difficult economic
conditions. Mauritius saw opportunities for Ghana to further diversify its exports and for developing
manufacturing activities aimed at regional or international markets.  Ghana's preferential access to the
EU, along with enhanced access to the United States as well as other markets under GSP and GSTP
schemes  would help.  However, Ghana needed to attr act more foreign investment if it was to meet its
objective of becoming a middle-income country by 2020.  This would require the removal of
bottlenecks to private-sector development, as planned, and creation of more efficient infrastructure
services as well as on-going privatization.  Tourism and other services offered potential.
55. The representative enquired why Ghana had no anti-dumping, countervailing or safeguards
legislation.  She noted that tariffs were the main trade policy instrument, and that removal of thespecial import tax would improve Ghana's tariff structure.  She asked whether its removal was in any
way linked to the introduction of contingency protection legislation.
56. The representative of Nigeria referred to the boost to investor confidence provided by the
recent successful democratic elections held in Ghana.  He noted that Ghana and Nigeria were major
forces behind regional integration, especially in ECOWAS.  Ghana had taken some crucial reform
steps despite its fragile economy.  Nigeria welcomed Ghana's commitment to the multilateral system
and efforts to meet its WTO commitments despite the obvious constraints.WT/TPR/M/81
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V. REPLIES BY THE REPRESENTATIVE OF GHANA  AND ADDITIONAL
COMMENTS
57. The Chairperson invited the representative of Ghana to focus his responses on three main
themes:  (i) economic environment; (ii) trade policy measures, and (iii) sectoral policies.
(i) Economic environment
58. The representative of Ghana presented his delegation's preliminary written responses to
questions raised by Members in advance and during the meeting (Annex II).
59. The discussant commented on the importance of policy continuity following changes in
government, and welcomed assurances from the Ghanaian delegation that liberalization and an
increased role by the private sector remained key government policies.  Although a number of steps
had been taken to reduce the budget deficit, he queried how the Government intended to achieve a
balanced budget within three years.  He wondere d how the Government would reconcile the need to
curtail government expenditure while maintain ing essential investment in human resource
development, infrastructure, and various development schemes.
60. On privatization, a substantial share (25%) of such receipts remained outstanding, and this
aggravated the budgetary situati on.  Moreover, while many of the small and medium-sized entities
had been successfully privatized, Ghana appeared hesitant in privatizing larger entities.  He askedwhether Ghana had conducted any assessment of the social impact of privatization.
61. Despite Ghana's efforts to attract foreign investment, including through providing
constitutional protection to foreign investors, and its involvement in bilateral and multilateral
investment promotion and guarantee agreements, fo reign investment inflows remained disappointing.
He asked what additional factors might have contributed to this, other than inadequate infrastructure
facilities and uncertainty towards Ghana's economic fundamentals.  He also requested further
information on Ghana's road map for achieving greater regional integration within ECOWAS, and theGovernment's efforts to consult with civil society in policy formulation, especially on the operation of
the Structural Adjustment Participatory Review Initiative programme.
62. The representative of Ghana referred to recent initiatives to allow the private sector greater
input into budgetary deliberations;  this consultative process would continue.  He confirmed the
efforts being undertaken by Ghana to attract foreign investment, including improvements toinfrastructure.  The incoming Government had decided not to privatize one major entity because of its
adverse social impact, especially in rural areas.
(ii) Trade policy measures
63. The representative of Ghana presented his delegation's preliminary written responses to
questions raised by Members in advance and during the meeting.
64. The discussant noted that Ghana would consider binding more industrial tariffs during the
next round of negotiations.  He also noted that the special import tax applied to unbound items; was
not an anti-dumping measure; and would be eliminat ed as soon as possible.  Ghana was taking steps
to reduce the problems associated with tariff exemptions and leakages to government revenue.  While
the new system of destination inspection was better than the previous preshipment inspection scheme,he wondered whether the requirement for the impor ter to submit the import declaration form 21 days
in advance was practical for imports by air and from neighbouring countries.  Excessive delays also
continued in clearing goods through customs.WT/TPR/M/81
Page 14
65. He agreed with Ghana that income tax concessions afforded to exporters did not constitute
export subsidies, and appreciated Ghana's offer to notify such arrangements if necessary.  He alsoreferred to the potential contribution of contingency protection measures in promoting Ghana's
manufacturing sector.
66. The representative of the European Union stated that Ghana's imports and customs measures
had become characterized by low industrial bindings, special import taxes, widespread use of
discretionary exemptions, and inefficiency in the administration of certain schemes, such as dutydrawback,  bonded warehouses, leakages from free zones, and long customs clearance delays.  There
was a vital need for Ghana to strengthen and modernize its customs procedures comprehensively, with
trade facilitation in mind.  The introduction of destination inspection to replace preshipment
inspection was a positive move, and he sought assurances that the transaction price database was not,
in practice, operating to set minimum prices.  He also sought assurances on the WTO-consistency ofthe additional inspection fee of 1% levied on imports, and the ECOWAS levy of 0.5%.
67. The representative of Japan sought details on the operation of the Export Promotion Council
and the schemes used to promote exports.  While encouraged by the top priority given to enacting the
new TRIPS legislation, she asked whether Ghana expected to be able to participate in the June review
of the TRIPS Council.  She also sought confirmation that the new legislation was TRIPS compliant,including in its protection of undisclosed information.
68. The representative of India noted Ghana's intention to eliminate the special import tax when
the situation improved.  His country shared Ghana's concerns regarding the implementation of WTO
Agreements and he hoped that this matter would be resolved.  India understood Ghana's position of
not wishing to take on additional commitments, such as joining the Government Procurement
Agreement, until it had the capacity to implement them.
69. The representative of the United States sought clarification on the WTO-consistency of the
ECOWAS levy of 0.5% and asked whether it had been notified to the WTO.  He referred to the use of
several unclear guidelines on government procurement and asked whether Ghana intended to simplify
these arrangements.  On intellectual property rights, he encouraged Ghana to pass the new legislation
quickly.  He also sought details of Ghana's HIV aids programmes.
70. The representative of Ghana stated that the objective of the ECOWAS customs levy was to
finance a fund to compensate ECOWAS members for loss of revenue from liberalization.  He
confirmed that Ghana was prepared to negotiate additional tariff bindings on industrial goods
provided its concerns were met, especially in the area of tariff escalation.  Ghana had taken on board
many of the matters raised, especially the need to rationalize tariff exemption schemes.  He indicated
that it was unlikely that Ghana would be ready to have its new intellectual property legislationreviewed by TRIPS Council in June.
71. The representative of Malaysia encouraged Ghana to remove the special import tax
introduced for balance-of-payments reasons as soon as possible, but pointed out that the tax was
WTO-consistent since it applied to unbound items, and had not therefore raised tariff rates above
bound levels.
72. The representative of the European Union suggested that while coverage of tariff bindings
was to be negotiated, greater bindings would benefit Ghana by increasing predictability among its
trading partners, thereby facilitating trade and foreign investment.WT/TPR/M/81
Page 15
(iii) Sectoral policies
73. The representative of Ghana presented his delegation's preliminary written responses to
questions raised by Members in advance and during the meeting.
74. The discussant referred to the potential impact on world prices of Ghana's ambitious plans to
boost cocoa production.  He also queried the suitability of Ghana's overseas cocoa marketing
arrangements.  Ghana would benefit from processing a greater share of its cocoa production.  He
noted that the relative contribution of agriculture to GDP was envisaged to fall substantially inGhana's Vision 2020, and wondered how this could be reconciled with Ghana's objective of becoming
a leading African agri-based industrial country.  This would require improved infrastructure, better
production methods, and developing value-added pr oducts, such as food processing.  Ghana could
also review the surrender requirements of 98% of export receipts, to promote private-sector
involvement in cocoa marketing.
75. The discussant sought details on which areas of manufacturing were expected to expand in
Ghana.  He also referred to Ghana's energy requirements, and its dependence on hydro-electricity
from Lake Volta, and the scope for foreign investment to raise power generation capacity.
76. The representative of India emphasized the need for Ghana to diversify its export and
production base, and to reduce its dependence on the EU market.  This would strengthen Ghana's
economy.  He sought details on Ghana's views in this regard.
77. The representative of Canada was pleased that Ghana was further privatizing key services,
especially telecommunications, and sought further details on how this would occur.
78. The representative of Ghana indicated that the Government intended to focus on food
processing, textiles, packaging, and wood and wood products in its efforts to broaden the country's
manufacturing base.  Problems preventing diversific ation included lack of technology and credit.WT/TPR/M/81
Page 16
VI. CONCLUDING REMARKS BY THE CHAIRPERSON
79. Our discussions have provided an open and informative second Trade Policy Review of
Ghana at a critical time for the economy.  Members were heartened by Ghana's commitment to trade
and economic reform, reaffirmed by the incoming Government elected to office in December 2000.
They acknowledged Ghana's active participation in the multilateral trading system and welcomed
continued efforts to open its market by refraining from using non-tariff measures and relying on tariffs
as the main instrument of protection. The central role to be played by trade, investment and the privatesector in Ghana's economic restructuring and improving its international competitiveness was widely
recognized, and Ghana was urged to pursue further  liberalization.
80. While appreciating Ghana's efforts, the review highlighted the urgent need to restore
macroeconomic stability through sound fiscal and monetary policies. The Ghanaian delegation
referred to the incoming Government's commitments to immediately tackle the large deficits andbalance the budget by end-1994.  Members noted that adverse terms of trade were part of Ghana's
international trading environment and that the most effective means of coping with such movements
was to promote economic resilience through sound economic management and diversification. This
was essential if the Government's ambitious Visi on 2020 objective of achieving middle-income status
and of making Ghana a leading agri-based industrial country in Africa by 2010 were to succeed.
81. Members supported Ghana's principal trade policy objectives of export-led growth through
broadening of the economy's export base and promoting a more competitive manufacturing sector.
However, some Members questioned the use of direct incentives via generous income tax concessions
to subsidize exports. Revitalization of the privatization programme, linked to greater liberalization of
key infrastructural services financed from increased foreign investment, was also encouraged.  In
addition, Members welcomed efforts to improve customs administration to facilitate trade, such as the
recent implementation of the transaction valu e in line with Ghana's WTO commitments and
termination of preshipment inspection.
82. While members welcomed the Government's policy objective of reducing the average tariff to
below 10% over the next three years, they questioned the recent imposition of the "special import tax"
of 20% on many consumer goods.  Members sought cl arification on its role in protecting industries
against unfair trading practices abroad and on proposed timing for its elimination.  The Ghanaiandelegation reaffirmed that it was a temporary measure to save foreign exchange on "non-essential"
imports.  The Government had recently reduced the coverage of the tax from about 7% to 5% of tariff
lines and intended to further review the measure.
83. Members asked about Ghana's government procurement policies, including the 12.5% price
preference afforded domestic suppliers, and eventual participation in the Government ProcurementAgreement.  Questions were also raised regarding its low level of tariff bindings on industrial
products and the widespread use of tariff concessions and exemptions. The useful role played by
having an independent statutory body to review economic and trade policies was also mentioned by
some participants.  Ghana's regional initiatives, including ECOWAS and within the African Economic
Community, were also questioned.  Members sought details on Ghana's sectoral policies, especiallyfor cocoa where they supported efforts to liberalize production and marketing aimed at revitalizing the
sector.
84. Additional details were sought on a number of other issues, including:
• WTO implementation and technical assistance needs,
• no anti-dumping, countervailing and safeguards legislation,
• protection of intellectual property and impending legislative changes; andWT/TPR/M/81
Page 17
• development policies, including greater private sector participation, poverty reduction
and coherence between trade and developmental policies.
85. Members expressed their appreciation of the written and oral responses provided by the
Ghanaian delegation and looked forward to r eceiving the additional material foreshadowed.
86. I feel that we have had a successful Trade Policy Review that has contributed greatly to
improved transparency and understanding by Members of Ghana's trade and other economic policies,
in the context of its difficult economic situation and immense developmental challenges.  Many
constructive suggestions were raised on how Ghana may proceed on its trade and economic reforms.Ghana has reiterated its strong commitment to the multilateral system and Members have expressed
assurances of help through providing bilateral and multilateral technical assistance.  I hope that
Members will also be able to help Ghana's liberalization by extending open access to its exports,
including in agriculture where its comparative advantage appears strongest.WT/TPR/M/81
Page 18
ANNEX I
ADVANCE WRITTEN QUESTIONS
SWITZERLAND
Intellectual property rights
1. Please indicate at what date it is planned that Ghana national IP legislation will comply with
the TRIPS Agreement.
2. Please give details about the way the new legislation foresees protection of undisclosed
information.
CANADA
WTO Secretariat Report (WT/TPR/S/81)Summary observations(1) Economic Environment; para. 6:
In the February 15, 2001 State of the Nation address, the President of Ghana set the goal of
achieving a zero  budget deficit by year 2004.  Please outline the actions the Government of Ghana
intends to take to achieve a balanced budget.
(2) Trade and Foreign Direct Investment; para. 13:
According to para 13, over half of Ghana's inward FDI is in services.  The Secretariat Report
indicates, however, that despite a liberal investme nt regime, with new legislation aimed at extending
national treatment to overseas investors, FDI remains "erratic" due to policy and economic
uncertainties.  Has the Government of Ghana considered the benefits of reflecting investmentliberalization initiatives in GATS asa means of encouraging foreign investment?
(3) Institutional and Legislative Framework; para. 19:
According to para 19, the Government's industrial development strategy will remove
bottlenecks to private-sector development such as by improving  the effectiveness of the  duty
drawback scheme.  Will the duty drawback scheme be improved to ensure that exporters receive
credits that could be applied against future import duties instead of  making them wait for years for
payment of such duty drawback?  If no, please  explain how the Government of Ghana plans to
improve this scheme.
(4) Trade Policy Features and Trends; para. 20;
According to para 20, Ghana is neither a signatory, nor an observer, to the WTO Plurilateral
Agreement on Government Procurement.  What is the intention  of the Government of Ghana with
respect to both accession to the WTO Agreement on Government Procurement and seeking status as
an observer to the Agreement?   What actions are being taken to establish transparent procedures forthe government procurement?WT/TPR/M/81
Page 19
Please explain the rationale behind the "made in Ghana" directive and the formal 12.5% price for
domestic suppliers regarding a government procurement.
Para. 28:
According to para 28, the widespread use of  discretionary exemptions, often administered
under poorly specified authority, is non-transparent and risks providing "tailor made" protection to
some industries.   What changes will be implemented to prevent the frequent use of discretionary
exemptions by authorities without specific direction from parliament?
Para. 29;
According to para 29, import delays of up to seven days occur under the newly implemented
destination inspection system.  What actions will be taken to reduce or eliminate these delays?
Para. 45; and IV. Trade  Policies by Sector; (I) Overview: para. 5:
According to the above noted paras, the monopoly on basic telecommunication services held
by Ghana Telecom was terminated in 1997 and has been replaced by a duopoly until 2002.  This
arrangement has had, however, only limited success in promoting telecommunication services  as
neither carrier has met its network expansion or service quality target.  The Secretariat Report also
states that the Government will consider allowing  additional carriers from March 2002.  Recognizing
that the provision of an essential infrastructure service such as a telecoms is key to economicdevelopment, and that in Canada's experience the telecommunications services sector thrives in an
open competitive environment, please, advise if the Government of Ghana plans to open up this area
in advance of the 2002 target date?  If no, please explain why not,
Para. 50; and  IV. Trade Policies by Sector; (5) Services; (iv) Financial services; para. 96:
According to the above noted paras, fore ign insurance companies may enter Ghana as
subsidiaries, subject to a maximum foreign-equity limit of 40%.  Government equity of 20% is
required, and Ghanaians must own another 40%.  Foreign insurance branches are therefore not
permitted.  The Secretariat Report also states that the Government intends to privatize the GhanaReinsurance Company and the State Insurance Company by 2003.  Will foreign insurance companies
be allowed to take equity participation in the privatiz ed entities?  If yes, will they be subject to equity
limitations as reflected in Ghana's Schedule of Specific Commitments?  Will the privatization of the
Ghana Reinsurance Company and the State Insurance Company prompt the Government to consider
removing equity and form of establishment limitations in the insurance sector as a whole?
I. Economic Environment
(5) Outlook; para. 33:
According to para 33, Ghana's "development continues to be constrained by a number of key
factors, such as inadequate infrastructure, insufficient  managerial and administrative expertise, fiscal
mismanagement, lack of accountability, weak institutions and poor governance."  What actions are
being taken to improve Ghana's governance and strengthen its institutions such as the judiciary, the
court system (concerning commercial litigation) and regulatory agencies?WT/TPR/M/81
Page 20
II. Trade Policy Regime:  Framework and Objectives; (4) Trade Agreements and 
Arrangements; (ii) Regional  agreements, Economic Community of West African States (ECOWAS); para. 35:
According to para 35, the revised ECOWAS Trea ty of 1993 included among its objectives the
establishment by 2000 of a common market involving, inter alia , the removal of  obstacles to the free
movement of persons, goods, services, and capital as well as the right of residence and establishment.What  progress has been made to date towards reaching  these objectives under this agreement?
Please outline any other actions the Government of Ghana is pursuing to increase its exports
to its ECOWAS neighbours?
III. Trade Policies and Practices by Measure
(1) Introduction; para. 2:
According to para 2, in April 2000, a "temporary" additional "special import tax" of 20% was
imposed, mainly on consumer products.  When will this current "Special Import Tax" of 20% be
removed and what assurances or policy changes will be made to ensure that such a tax cannot be
introduced in the future?
(2) Measures Directly Affecting Imports;  (iii)Tariffs and special import taxes; para.  29:
According to para 29, Ghana increased its coverage of bindings during the Uruguay Round
from zero to 15% tariff lines.  In agriculture, all tariffs were bound, mainly at a ceiling rate of 99%,
effective in 2004.  Lower bound rates of 40% and 50% were set on a few agricultural products, to
apply from 1995.
1 Very few industrial  tariffs – 1% of tariff  lines were bound, at ceiling rates of
mainly 30% and 40%, but also at 35% and 45%.  These bindings were limited primarily to
agricultural inputs, such as fertilizers, as well as  tools and equipment.  Is the government of Ghana
planning to extend the coverage of tariff bindings beyond the agricultural sector?  If yes, when?
(3) Measures Directly Affecting Exports; (vi) Free Trade Zones; para. 93:
According to para 93, monitoring and control systems for free zones are reportedly weak, and
substantial leakages to the domestic market are thought to occur.  The Government is concerned about
this aspect and is endeavouring to stop such leakages.  At  this time, what actions are being considered
to eliminate the leakage of domestic sales from free-zone enterprises into the domestic market above
the 30% permitted share of production?
(4) Measures Affecting Production and Trade; (iv) Competition Policy; para. 106:
Para 106 states that efforts are underway to put in place legislation on competition.  Does the
Government of Ghana have an institutional structure in place to implement existing competition
legislation? Given the importance of a competitive domestic sector in cocoa production and marketingto Ghana's development prospects, what measures does the Government of Ghana intend to take in
promoting greater competition within the cocoa sector that currently has 18 licensed buying
companies and one produce buying company?
                                                     
1 Product subject to a 40% bound rate included live poultry, milk and cream, wheat, and oil cakes.  Tea
was bound at a rate of 50%.WT/TPR/M/81
Page 21
IV Trade Policies by Sector; (2) Agricultural and Other Primary Products; (ii) Policy
Developments; para. 13, and III. Trade Policies and Practices by Measure; (2) MeasuresDirectly Affecting Imports; (iii) Tariffs and Special Import Taxes; Chart III.3:
According to para 13, one of the elements of the Government of Ghana's "Accelerated
Agricultural Growth and Development Strategy in Support of Vision 2020" includes the development
and improved access to technology for agricultural development.  The Secretariat Report also notes(in Chart III.3) that in 2000 the tariff average by ISIC 2-digit category for capital goods on chemicals,
fabricated metal products, and other manufacturing ranged from between 15 – 20%.  Given the
importance of high-tech capital goods in these sectors in the modernization of the Ghanaian
agricultural sector, what is the intention of the Government of Ghana with respect to reducing tariffs
and special taxes on inputs such as machinery and other high-tech inputs?
General question on the WTO's built-in agenda:
What are the Government of Ghana's objectives in the services and agricultural negotiations?
HONG KONG, CHINA
A. Tariffs and Anti-dumping Duties
(WT/TPR/S/81, p. 33, para. 25;  and p. 42, para. 54)
We note from the tariff section of the Secretariat Report that Ghana imposes a "temporary"
additional "special import tax" of 20% on consumer goods.  We also note from the anti-dumping
section of the Report that the special import tax was recently introduced on some products partly to
counter unfair trading practices of foreign exporters selling at prices assessed to be unrealistically low
and partly to provide other relief (such as "to reduce pressure on the country's critical foreign
exchange" as indicated in footnote 28).  The tax arrangements are however not made public and allowno formal appeal procedures.   We are interested in knowing the legal basis on which these special
taxes are introduced.  Has Ghana has any plan to abolish these temporary taxes in the near future or
made the taxation system more transparent?  Should Ghana consider these special import tax similar
to the anti-dumping duty allowed for under the WTO Anti-dumping Agreement, how does Ghana
ensure that the investigation and collection procedur es of these taxes are in conformity with the AD
provisions of the WTO?
B. Standards and Other Technical Requirements
(WT/TPR/S/81, pp. 42-43, para. 57)
It is noted that all Ghanaian standards are mandatory but Ghana's objective is to replace these
with voluntary standards.  We are interested in knowing more about the timeframe and plan of Ghana
to implement this objective and whether such chan ge would make Ghana rely less on the standards of
only a few WTO Members.
EUROPEAN UNION
Report by the Government
(WT/TPR/G/8)
Page 13, paragraph 74-75: It is indicated that the Government in the aim of creating a middle
income status by the year 2020 wants to create and open and liberal economy and that the privateWT/TPR/M/81
Page 22
sector is expected to play the lead role in th e economy. Is there a timetable relating to specific
measures for obtaining this goal.
Page 12, para 69 in relation to intellectual property rights, Ghana has noted some delay in its
plan for implementing the TRIPs agreement but that progress was expected by January this year. It
would be appreciated if Ghana could inform us of whether matters have progressed and to what
extent.
Page 7, para 27 and Secretariat report page 37: how long does Ghana intend to apply the
special tax of 20% on about 28 items?
Report by the Secretariat
(WT/TPR/S/81)
I. Trade policy regime: Framework and objectives
Page 22, para 34: Could Ghana provide information on when the target of tariff reduction
among the ECOWAS partners would be fully achieved? Do the exports from Ghana to ECOWAS
partners suffer from the apparent lack of tariff reductions?
Page 21, paragraph 27 and also the Government report paras 70-71 states that problems in
implementing WTO agreements remain due to a lack of human as well capital resources. At the same
time Ghana has entered into or is in the process of entering into a number of regional or bilateral
agreements.  Is there any analysis on the economic impact of these initiatives? What are consequencesin terms of human resources and technical capacities in key ministries and needs for capacity
building? How far is the private sector involved in the setting up of these regional trading
arrangements?
The EU would be grateful to obtain more information on how Ghana consults with civil
society, including NGOs and the private sector, in order to define its trade policy.
The Secretariat report as well as the Government report (para 72) confirm that technical
assistance is viewed by Ghana as essential for en suring full compliance with its WTO obligations. It
would be useful to know if Ghana has undertaken  efforts to specify and inventory its Technical
assistance needs in the various areas of WTO activities.
II. Trade policies by measure
Tariffs on textile and clothing products: Page 34, para 26: See reference to tariff escalation.
Chart IV.6 rates as high as around 38% for clothing. We would be grateful for more information on
what average rate textile and clothing products (raw materials, yarns and fibres, fabrics, made-ups and
clothing) are in fact subject to?
Special tax regime: Page 34, para 25 and point 5iii if the Government report: It would be
interesting to know to which textile and clothing products the "special tax regime" applies to. Chart
III.2 suggests that they apply to HS chapters 58, 61, 62 and 63 (special fabrics, etc., clothing and
made-ups), but the lines are not specified.
Effective duties: What would for HS chapters 50-63 be the average effective duty for textile
and clothing imports (taking into account import tariffs, the special tax regime and any other
applicable duties, such as VAT)?WT/TPR/M/81
Page 23
"Standards and other technical requirements" Page 42 paras 56-63): We welcome the use by
Ghana  of international standards. Nevertheless, it is very unclear what is meant by the sweeping
statement that all standards are mandatory. From a TBT viewpoint, this would make them technical
regulations and has potential to act as significant barrier to trade. We would be grateful if Ghana
would clarify this point further.
AD/countervailing/safeguards:Page 42, paragraphs 53 & 54:  We note that Ghana does not
have any national legislation for anti-dumping, countervailing or safeguards.  Indeed this what was
notified by Ghana herself to the WTO (e.g. G/ADP/N/1/GHA/1 dated 6 May 1999 for antidumping).
In view of this, what is the justification for effe ctively imposing anti-dumping measures in the form of
a `special import tax'? What plans does Ghana have to bring these measures into conformity with the
respective WTO Antidumping Agreement, i.e. to conduct an investigation based on publishedprocedures leading to a determination whether there is dumping causing material injury to the
domestic industry, and to make the investigation public, allow interested parties to comment and
provide for formal judicial review?
Subsidies/export assistance: Page 47-48, paragraphs 86 through 93 contain a description of
several programmes which appear to constitute subsidies contingent upon export performance
("concessional income tax rates", "Ghana Free Zone Programme").  However, Ghana's most recent
notification to the WTO under Article 25.1 of the Agreement on Subsidies and Countervailing
Measures (G/SCM/N/48/GHA, G/SCM/N/60/GHA dated 29 September 2000) states that  "Ghana
does not maintain any subsidies as defined in Article 1, paragraph 1, of the Agreement". While the EC
commends Ghana for providing a subsidy notification under Article 25.1 ASCM and notes that as a
developing country Ghana has the right to give otherwise prohibited export and import substitutionsubsidies, the notification appears to be incomplete as it does not include the above programmes
(under this provision all "specific subsidies" must be notified). In this respect, it may be recalled that a
tax concession in the form of government revenue foregone is a subsidy in terms of Article 1.1 ASCM
and that, by virtue of Article 2.3 ASCM, all subsidies contingent upon export performance or the use
of domestic over imported goods are deemed to be specific. Can Ghana please indicate when theseapparently specific subsidy programmes will be notified to the WTO under Article 25.1 ASCM?
JAPAN
Report by the Secretariat
(WT/TPR/S/81)
III. Trade Policies And Practices By Measure, (2) Measures Directly Affecting Imports
Tariffs
(p. 32, para. 20)
Please explain "special import tax" in a concrete manner.
(p. 34, para. 29)
The Report states the "[v]ery few industrial tariffs – 1% of tariff lines – were bound".Please explain the perspective for expanding the coverage of tariff bindings in industrial
products.WT/TPR/M/81
Page 24
Customs valuation
(p. 41, paras 46 and 47)
The Report states that "Ghana converted to the transaction valuation of imports in accordance
with the WTO Customs Valuation Agreement from 1 February 2000".  Is "special valuation
arrangements" applied for imported second-hand motor vehicles, mentioned in para. 47, consistentwith the WTO Customs Valuation Agreement?
Anti-Dumping
(p. 42, para. 54)
According to para. 54 of the Report, Ghana introduced a special import tax on some products
partly designed to counter unfair trading, but "these arrangements allowing the use of special imports
taxes to provide anti-dumping or other relief are not public and allow no formal appeal procedures".
Furthermore, according to para. 53, Ghana has currently no national legislation on anti-dumpingmeasures.  Japan considers this is a problem, in the light of the purpose of Article VI of the GATT as
well as of Anti-Dumping Agreement.  Ghana has not only had no national legislation on anti-dumping
measures, but has also not publicized the arrangements referred to in para. 54, since these
arrangements are not called AD though they are recognized as such in practice.  Japan requests Ghana
to improve this situation.
(3) Measures Directly Affecting Exports
Export assistance
(p. 47, para. 87)
According to the notification under Article 25 of the Agreement on Subsidies and
Countervailing Measures, Ghana does not provide any subsidies which are specific within the
meaning of Article 2.  On the other hand, the Report states the "Ghana assists exporting companies by
providing concessional income tax rates.  Non-traditional exporters are taxed at a company tax rate of
8%, instead of the standard rate of 35%, regardless  of export performance.  Moreover, another scheme
still provides direct export incentives through comp any income tax rebates to all exporters, according
to export performance".  Japan considers these measures as export subsidies.  What is Ghana's view in
this respect?
Export promotion and finance
(p. 49, para. 95)
The Report states that the Ghana Export Promotion Council funds a variety of schemes to
promote exports and mentions the Export Producti on Village Programme as an example.  Please
indicate other measures taken by the Council.WT/TPR/M/81
Page 25
(4) Other Measures Affecting Production and Trade
TRIPS
(p. 53, para. 110)
Ghana's transitional period under the TRIPS Agreement ended on 1 January 2000.  According
to the Report Ghana is undertaking changes in its intellectual property legislation aimed at meeting its
commitments under the TRIPS Agreement.  Kindly give the planned schedule for the legislative
process.
Ghana postponed the review of its legislation, which was scheduled in the TRIPS council for
November, by reason of the delay of its establishing its domestic regulations.  Is Ghana ready to
undertake its review during the TRIPS council scheduled for June?  If so, Japan would like to request
a notification of its revised legislation or a draft version, as early as possible, to ensure a smooth
review.
(p. 53, para. 110 and p. 54, para. 114)
How will the protection of undisclosed information be ensured by the revised legislation?
Will it be ensured within the framework of anti-competitive laws, or by establishing a sui generis
legislation?  Please indicate the planned schedule for its legislative process.
UNITED STATES
Report by the Secretariat
I.  Economic Environment, (1)  Introduction ,
Para.  2
The Secretariat’s report notes that Ghana’s manufacturing sector remains underdeveloped and
suffers from many inefficiencies, suggesting that ther e are substantial gains to be realized from further
trade liberalization.  What steps is the government planning to take to further liberalize and improve
efficiency in the manufacturing sector?
Para. 3
The level of Ghana’s merchandise exports as a percentage of GDP  increased steadily from 18
percent to 28 percent between 1993 and 1998.  Ghana has also begun to diversify its exports from
almost total dependence on traditional commodities in 1986.  What is the government doing to
encourage these positive trends towards increased exports of both traditional and non-traditional
goods?
Para. 4
We understand that the Ghanaian government has announced  a policy of zero tolerance for
corruption.  The Secretariat notes that public-sector corruption is to be targeted by effective
investigation and prosecution by the Serious Fraud Office, an independent agency.   We commend
this emphasis.  What other steps is the government planning to take to implement this policy?WT/TPR/M/81
Page 26
(2) Recent Economic Developments
Para.  6
Since the inception of the economic recovery program in the early 1980' s, Ghana has
progressively reduced and eliminated many barriers and obstacles to trade.  The Secretariat’s report
notes that many structural problems persist, co mpounded by fiscal and other stabilization imbalances
that worsened during the mid-1990's, which have penalized the economy’s traded sector.  What is the
Government doing to continue to overcome this burden on the traded sector?
(3) Macroeconomic Policies, (i)  Fiscal policies
Para. 10
The Secretariat’s report notes that at the heart of Ghana’s economic crisis have been
expansionary fiscal policies, leading to unsustainable budget deficits, and that fiscal discipline has
been impaired by a lack of budgetary checks and c ontrols.  What is the government doing to achieve
greater transparency and accountability in this area?
(ii) Monetary policies
Para. 13
The Secretariat’s report notes that high real interest rates are severely curtailing business and
economic investment, but that sustainable reductions are unlikely while excessive government
borrowing continues to strain the banking system.  Has government borrowing from banks now begun
to decline and to free up resources for the private sector ?
(4) Trade Performance and Foreign Investment, (i)  Commodity pattern of merchandise 
trade
Para. 18
Ghana’s non-traditional exports have grown during the 1990’s.  However, the Secretariat’s
report notes that export diversification has slowed.  What is the Government doing to try to continue
the growth in non-traditional exports?
(5) Outlook
Para. 28
The Secretariat’s report notes that Ghana’s external position and weak currency seem set to
continue until urgently needed macroeconomic and structural reform are implemented and allowed
time to work.  While improvements in Ghana’s terms of trade will help relieve the short-termeconomic situation,  volatile movements in Ghana’s terms of trade will continue to be a factor within
its trading environment.   What is the Government doing to improve economic management to ensure
longer term growth?
Para. 29
Ghana is one of the pilot countries in the World Bank’s Comprehensive Development
Framework (CDF).   How is trade being mainstreamed into Ghana’s CDF?WT/TPR/M/81
Page 27
Para. 33
The Secretariat’s report notes that Ghana’s development continues to be heavily constrained
by a number of key factors, such as inadequate infrastructure, insufficient managerial and
administrative expertise, fiscal mismanagement, lack of accountability, weak institutions and poor
governance. The report suggests that comprehensive reforms in these areas, including continued tradeliberalization and parastatal reform, will be vital to Ghana’s developmental prospects.  What is
Government’s strategy to re-energize privatization and parastatal reform?
II.  Trade Policy Regime: Framework and Objectives, (3) Policy Objectives
Para. 14
The Government remains committed to trade and investment liberalization as part of its
longstanding Economic Recovery Program begun in the early 1980’s. The Trade and Investment
Reform Program (TIRP) is designed to assist in developing a policy agenda including examining howtariff reform can be implemented as a means of reducing trade distortions and promoting
competitiveness. Tariff reforms in Ghana have had a significant impact on production incentives at
the company level by generating a lower and more uniform level of effective protection;
manufactured  exports have reacted positively to the reforms.  Is the Government planning to reduce
tariffs further to increase the competitiveness of the manufacturing sector?
.
III. Trade Agreements and Arrangements, (ii)  Regional agreements
Para. 32
According to the Ghanaian authorities, trade preferences have been important for the
development of Ghana’s exports, including the r ecent growth of traditional exports. We would
appreciate learning more about how Ghana has been able to make use of these important programs.
Para. 34
When will Ghana’s tariff reduction schedule for the Economic Community of West African
States (ECOWAS)  member countries be fully implemented?    Has Ghana notified the WTO of the
trade provisions of ECOWAS?
III. Trade Policies and Practices by Measure, (1) Introduction
Para. 2
A ”special import  tax” of 20 percent, introduced in February 2000, was levied on about 28
items covering 7 percent of the total  tariff lines.  The Government said this is a temporary measure
introduced in the wake of falling exchange receipts  and exchange rate instability.  However, the
Secretariat’s report suggests the recent introduction of a “special import tax” was partly a response to
concerns over the negative effect of import competition on domestic industry.   Please explain this
discrepancy and the purpose of the special  import tax.  Is this a balance of payments measure?  If it is
temporary, when will it be rescinded?WT/TPR/M/81
Page 28
(2) Measures Directly Affecting Imports, (i)  Registration and documentation
Para. 9
Ghana’s registration, documentation and customs clearance requirements appear to add
significantly to the difficulties of importing.  The WTO recommends that importers not have to secure
approval at  more than one office, if possible, and in any case not more than three.  Do Ghana’simporting requirements meet this WTO recommendation?
(ii) Customs inspection and clearance
Para. 14
Backlogs of cargo at Tema Port are hurting Ghana’s business climate.  What are Ghana’s
plans to address this problem?
(iii) Tariffs and special import taxes, (c) other duties and taxes
Para.  30
The United States commends Ghana for its commitment to agriculture reform through bound
tariff rates on all agricultural products. However, the tariff exemptions that have been applied over the
years make the tariff system less transparent. Will Ghana please provide a detailed list of tariff
exemptions on agricultural goods accompanied by the authority who is responsible for administratingeach exemption?
Para. 34
The Secretariat’s report states an ECOWAS customs levy of 0.5 has been applied to imports
from non-ECOWAS members since April 2000.  Has this been notified to the Committee on Regional
Trade Agreements?   What are the legal grounds for this levy?  How is this levy consistent with
Ghana’s GATT commitments?
(e) Concessions and exemptions
Para 37
The Secretariat’s report notes that Ghana maintains several schemes providing tariff
concessions and exemptions on certain imports administered under often poorly specified authority.Rationalizing the use of such exemptions could improve efficiency by making the tariff structure
more transparent and removing many of the anomalies generated by the current system of exemptions.
How is the Government planning to address this issue?
(iv) Customs Valuation,
Para. 46
Ghana converted to the transaction valuation of imports in accordance with the WTO
Customs Valuation Agreement as of February 1, 2000.  Furthermore, the authorities saw the
replacement of the mandatory pre-shipment inspection with the destination inspection  in April as an
integral part of Ghana’s implementation of its WTO commitments.  Has the relevant customslegislation been fully implemented?WT/TPR/M/81
Page 29
(vi) Anti-dumping, countervailing duty and safeguard measures
Para. 53
Does the government of Ghana intend to introduce any antidumping or countervailing duty
trade legislation?
(viii) Government procurement
Para. 71
Currently several guidelines are used by the Government  to purchase equipment and
supplies, which in some cases, makes the process difficult to understand, especially for foreign
businesses.  An August 1999 directive allows tenders to be awarded to local suppliers even if their
prices are 12.5 percent higher than imported goods.   What criteria are used in determining winning
bids?  What is the government doing to make the process more transparent?
(3) Measures Directly Affecting Exports, (v) Export Assistance, (vi) Free-trade Zones, 
(vii) Export promotion and finance
Paras. 86-97
For the sake of increased transparency, when will Ghana notify its export assistance, free-
trade zones and export promotion and finance programs to the WTO?
(4) Measures Affecting Production and Trade, (i)  Investment Incentives
Para. 98
Problems related to Ghana’s violations of priv ate sector land and property rights are hurting
Ghana’s investment  climate.  Does Ghana have any strategies to address this problem?
(vi) Protection of intellectual property rights
Para. 111
A bill that would bring Ghana into compliance with its TRIPS requirements was introduced in
Parliament in 2000, but was never brought to a vote.  When will the new Government reintroduce andenact this bill?
IV. Trade Policies by Sector, (2) Agricultural and  other Primary Products, (ii) Policy 
Developments
Para. 13
In a discussion of Ghana’s agricultural export strategy, “target tax incentives” is one aspect of
the strategy mentioned.  Can you please explain more fully the targeted tax incentives that will be
used to develop Ghana’s export market?  Against which sectors will the tax incentives be directed?
What will the tax incentives include?WT/TPR/M/81
Page 30
(iii) Policy by product category
Para. 17
The United States is pleased that Ghana has relaxed the export monopoly on cocoa it
maintains through the Cocoa Marketing Board. Does Ghana plan to continue its liberalization of
cocoa marketing in Ghana, and if so what is the timetable?
(3) Mining and Energy, (i) Mining
Para. 1
Can you please provide further information on the fiscal incentives for miners which are
provided under the “Mining and Minerals Law of 1986" and the “Minerals and Mining Amendment
Act of 1994”?  For the sake of transparency, will Ghana notify this program to the WTO?
(5)  Services, (iii). Telecommunications
Para. 89
Ghana has adopted the reference paper on regulatory principles.   The National
Communications Authority (NCA) set up to regulate  the market has yet to become an effective
mechanism to resolve mounting complaints of un competitive practices by Ghana Telecom, the
State-owned national telecom operator.  Does the Government have any strategy to make telecomservices more transparent by strengthening the institutional capacity of the NCA?
What is Ghana’s strategy towards regulating e-commerce based services?WT/TPR/M/81
Page 31
ANNEX II
ANSWERS PROVIDED BY THE DELEGATION OF GHANA
I. ECONOMIC ENVIRONMENT:
Canada, United States, discussant
Please outline the actions the Government of Ghana intends to take to achieve a balanced budget.
What is the Government doing to improve economic  management to ensure long-term growth?
As set out by the President in his Sessional Address to Parliament on 15 February 2001, it is
the goal of the Government to balance the budget by the end of his first term in office.
Actions to be taken by Government towards this goal of balanced budget will include the
following short- and medium-term measures:
Short-term measures
Domestic debt reduction programme
Excessive domestic borrowing which was over US$1.3 billion as at year 2000 has had a
debilitating effect on the economy.
Therefore, in the short term the Government will explore ways of partly replacing short-term
Government domestic debt with long term instrument s with a view to easing the short-term interest
burden.  Currently interest payments on the domestic debt account for 31% of total domestic revenue.
The Government will present a domestic debt reduction programme in which it will seek
donor grant and concessional funds to use to further reduce the domestic debt.
Divestiture receipts will be used to purge dow n the stock of domestic debt thereby reducing
domestic debt service which has become the single largest expenditure item.
Petroleum Product Prices
There is a structural problem in the petroleum sector which requires rationalization of
petroleum product prices.  The Tema Oil Refinery’s (TOR’s) total exposure is currently estimated to
be over US$ 300.0 million.  This is mainly as a result of its inability to fully recover its costs.
To resolve this problem, petroleum prices have, as from Friday 23 February, 2001, been
increased by between 15.0% for liquefied petr oleum gas (LPG) and 64.3% for premium gasoline.
Government has also established a pricing formula that will adjust ex-refinery prices of petroleum
products automatically in line with international crude oil prices and the prevailing exchange rate.
The formula which includes taxes and petroleum related levies would also allow petroleum products
to contribute to Government revenue.WT/TPR/M/81
Page 32
Other measures will include:
- Expanding discipline at Ministries, Depart ments and Agencies (MDAs) and tightening of
monetary policy of Bank of Ghana such as  Central Bank financing of Government to
bring down inflation and macro-economic stability.
- Curtailing of new major expenditure commitments.
- Improving efficiency of revenue agencies.  To this end, Government will put in place the
Revenue Agencies Governing Boards for Internal Revenue Service, Value Added Taxand Customs Excise and Preventive Service; and
- Acceleration of the collection of arrears in tax payments owed to Government.
Medium-term measures
In the medium-term Government will:- Professionalize and make transparent tendering and procurement procedures to avoid
over-charging of Government and to instil confidence in the public about the
Government’s probity.
- Consider allowing Oil Marketing Companies to buy from TOR or import crude and have
it refined by TOR for a fee or import products directly, depending on which is the
cheapest option.
- Consider privatizing TOR and keeping a government agency to maintain strategic
reserves of petroleum products.
- Mount quickly a thorough audit of Government Arrears to the private sector, and legally
challenge those that appear questionable.
- Review all contracts signed, but for which implementation has not started, and exercise
legal remedies to drop economically dubious ones.
- Strengthen the Budgeting, Expenditure Monitoring and Control, Accounting, and
Treasury Functions.
- Similarly, strengthen the Bank of Ghana, particularly the parts dealing with Government
finances and Treasury Management.
- Grant independence to Bank of Ghana to pursue monetary/anti-inflation policy; Bank of
Ghana to stop retail operations.
- Improve the capacity of revenue collection agencies.
- Re-invigorate the Privatisation process and make it more transparent.
- Focus Government expenditure on key development priorities - i.e. education, health,
agriculture, and rural infrastructure – and away from commercial ventures, which have
almost invariably been politicized and have become loss-making.WT/TPR/M/81
Page 33
- Reach out to Private Sector - actively facilitate it to promote growth and employment
(partly to act as a "shock-absorber" for publ ic sector down-sizing) and to Diversify the
export base, which would reduce the economy’s vulnerability and thereby also
strengthen the tax base.  Create a forum for regular Government-private sector dialogue -
fiscal and monetary policy should be pursued with a conscious aim of producing a
macroeconomic environment favourable to private sector market-based production.
Canada
Has the Government of Ghana considered the benefits of reflecting investment liberalization
initiatives in GATS as a means of encouraging foreign investment?
Ghana already has taken some investment libera lization initiatives in GATS in its schedule of
commitments.  These are likely to be expanded depending on the extent to which the on-going
negotiations cover its interests.
What actions are being taken to improve Ghana’s governance and strengthen its institutions such as
the judiciary, the court system and regulatory agencies?
The policy of Government is to strengthen the existing institutions that are constitutionally
mandated in this regard.  These institutions include the Commission on Human Rights and
Administrative Justice, the Judiciary, the Natio nal Commission for Civic Education and even the
media as a whole.  Also to be strengthened are the Auditor-General’s Department, the Accountant-
General’s Department and other civil society instit utions such as the Trade Union Congress and the
Ghana Bar Association.  If they are strengthened, and are performing their functions effectively, good
governance will be ensured.  Specific actions would include provision of additional resources to
strengthen capacity.  For instance the budget for the judiciary is being doubled.
Does the Government of  Ghana have an instituti onal structure in place to implement existing
competition legislation?
Discussant
What measures does the Government of Ghana intend to take in promoting greater competition within
the cocoa sector that currently has 18 licensed buying companies and one produce buying company?
In the first place Ghana does not have legislation on competition yet.  There is, however, a
draft bill which is undergoing the necessary legislative process.  Government, therefore, has noinstitutional structure in place for implementing legislation on competition.  Government intends to
seek technical assistance from organizations such as UNCTAD and from bilateral sources to establish
the requisite institutions and train those who will man them as soon as the legislation is enacted.
As regards measures to promote competition in the cocoa industry, first of all the Produce
Buying Company which used to be the sole buying agent of the Government, is now a privatizedcompany listed on the Ghana Stock Exchange.  To date about 27 buying companies have been
licensed, and other applications are being processe d for participation in the internal marketing of
cocoa.
Canada
What actions are being taken to improve Ghana's governance and strengthen its institutions such as
the Judiciary, the court's system and regulatory agencies?WT/TPR/M/81
Page 34
What are the Government of Ghana’s objectives in the services and agricultural negotiations?
In the area of services, among others, Ghana will seek to achieve the full implementation of
Articles IV (increasing participation of developing  countries) and XIX (Progressive Liberalization);
credit for autonomous liberalization and opening of sectors in which it has actual and potential
competitive advantage in order to take advantage of market access opportunities, particularly in
mode 4.
Ghana will identify services sectors in which it needs to open in order to have access to new
technologies which will reduce production costs and allow producers to compete more effectively as
well as lower costs to consumers.  Among others Ghana will also be seeking the maintenance of the
architecture of the GATS intact.  Furthermore, Ghana is interested in the negotiated reduction or
elimination, if possible, of MFN exemptions.
With regard to agriculture, in the area of market access, Ghana will seek the elimination of
tariff escalation, tariff peaks and the maintenance of preferential margins.  It is also Ghana’s position
that developing country tariff reductions should be based on bound rather than on applied rates.  The
use of the Special Safeguard Mechanism (SSG) should also be made available to developing
countries.
In the area of domestic support, Ghana will seek a substantial reduction in trade distorting
domestic support, tightening of disciplines in the use of Green Box measures, possible elimination of
Blue Box measures and flexibility for developing countries with zero AMS support to be able to
provide support under their development programmes. Ghana will strive for the creation of a
Development Box which will permit developing countries to take measures to develop their
agricultural sector.
Concerning export competition, among others, Ghana supports the elimination of export
subsidies by developed countries whilst some developing countries, along the lines of the provisionsof Annex VII of the Agreement on subsidies and co untervailing measures (SCM), should be allowed
to subsidize.  Article 10.2 must be implemented, ta king into account the special needs of NFIDCS and
LDCS.
European Union
Is there a time-table relating to specific measures for attaining the goals of Vision 2020?
The goals of Vision 2020 are to be achieved through a series of  Medium-Term Development
Plans drawn up by the National Development Plan ning Commission which contain measures needed
to implement various programmes in order to achieve the set goals.  The plans will have targets,
time/schedules for achieving targets, estimated costs, and indicate implementing agencies.  Their
implementation will be monitored and evaluated.  The first of such plans has already been drawn upand covered the period 1997-2000.
The whole of the Vision 2020 programme is, how ever, being reviewed to reflect current
realities with new targets and new time-bound frames.
How does Ghana consult with civil society including NGOs and the private sector in order to define
its trade policy?
The Ministry of Trade and Industry maintains regular quarterly consultative meeting with
civil society including private sector groups to review policies, monitor progress and togetherWT/TPR/M/81
Page 35
recommend solutions to problems facing the trade and industry sector.  Inputs from such meetings
help to define Ghana’s trade policy.
Private sector groups that are involved in consultative meetings include the following:
1. Ghana Employers Association (GEA)
2. Trade Union Congress (TUC)
3. Ghana Union of Traders’ Association (GUTA)
4. Ghana National Chamber of Commerce and Industry (GNCCI)
5. Federation of Association of Ghanaian Exporters (FAGE)
6. Private Enterprise Foundation (PEF) and
7. Association of Ghana Industries
PEF is actually an umbrella organization for various private sector groups that serves to promote the
interest of the private sector by influencing policies and regulations affecting the private sector.
United States
Many structural problems persist compounded by fiscal and other stabilisation imbalances that
worsened during the 1990s which have penalised the economic traded sector.  What is the
Government doing to continue to overcome this burden on the traded sector?
A major concern of Government is the restoration of macroeconomic stability, deal with the
problem of escalating interest rate with a view to lowering it as well as stabilize the cedi.  When this is
achieved, production will improve.
What is the Government doing to improve econom ic management to ensure longer growth?
Government is proceeding to improve and strengthen all oversight agencies to ensure
effective check on government expenditure closely to ensure that Government stays within approved
revenue items.  A law is being enacted in conformity with the relevant constitutional provisions to
make the Central Bank more independent.
Has Government, borrowing from banks, now begun to decline and to free up measures for the
private sector?
The new administration is committed to balancing the budget and will, therefore, stop
excessive borrowing.  Also recourse to public borrowing will be stopped systematically.
What is the Government doing to try to con tinue the growth in non-traditional export?
The problem here is supply-constraint resulting from limited access to capital, obsolete
technology and high production cost.  Packaging is another problem.  These have rendered the sector
uncompetitive.  The new administration has declared its intention to address these problems as a
matter of urgency.WT/TPR/M/81
Page 36
II. TRADE POLICY MEASURES
Japan
Is the "special valuation arrangements" applied for imported second-hand motor vehicles, consistent
with WTO Customs Valuation Agreement?
These arrangements are not considered to be inconsistent with the WTO Customs Valuation
Agreement.  This is because the valuation of imported second-hand motor vehicles is based on their
home delivery values (HDV) furnished by the various motor-vehicle companies.  These values areappropriately depreciated according to the age of the vehicles concerned.
United States
Has the customs valuation legisl ation been fully implemented?
As indicated, Ghana commenced implementation of the Customs Valuation Agreement on
1 February 2000.  The situation about the relevant legislation is that a draft law has been prepared andcurrently going through the necessary legislative procedures.
Canada
Will the duty draw-back scheme be improved to ensure that exporters receive credits that could be
applied against future import duties instead of ma king them wait for years for payment of such duty
draw-back?
Government is already considering this proposal.  There is the likelihood that it would be
adopted.
What is the intention of the Government of Ghana with respect to both accession to the WTO
Agreement on Government Procurement and seeking status as an Observer.
Ghana’s decision to join or not to join a plurilateral agreement is based on a cost/benefit
analysis.
Already Ghana is labouring to fulfil its WTO obligations under the various Agreements on
account of its inadequate capacity.  Where avoidable, it does not intend to assume more obligations
until its implementation capacity improves.
With regard to transparency procedures for government procurement the Government does
not consider the present procedures as lacking in transparency, though they favour domestic suppliers.
However, the contemplated reform of the procurement system by codifying the various rules
to be administered by a central body, would include making the system more transparent.
Please, explain the rationale behind the "made in Ghana" directive and the formal 12.5% price
preference for domestic supplies  regarding government procurement?
Following Ghana’s rapid, across-the-board trade liberalization, many local industries have
been finding it difficult to survive.  Their problems have been compounded by the deep depreciationof the cedi, hikes in interest rates, and difficulty in obtaining long-term credit.  This is leading to a
phenomenon of de-industrialization.  In the face of these difficulties, however, the Government is
determined not to resort to policy reversal.  It has rather been exhorting and encouraging Ghanaians toWT/TPR/M/81
Page 37
buy "made-in-Ghana" goods as a means of assisting the floundering industries to recover and also of
saving foreign exchange.  It may interest Members to know that since 1985 Ghana’s trade balance hasconsistently been negative except in 1986.
The formal 12.5% price preference for domestic supplies regarding government procurement
is explained by the same reason.  It is intended to assist domestic industries.
Delays up to seven days occur under the newly im plemented destination inspection system.   What
actions will be taken to reduce or eliminate the delays?
Delays have occurred mainly because of non-compliance with the procedures by importers.
Importers are expected to submit certain documents 21 days prior to the arrival of the goods to enable
the verification process to begin.  These are (i) The Import Declaration Form (IDF); (ii) Proforma
Invoice and (iii) Supplementary Information 10 days prior to the arrival of the goods (1) the final
invoice; (2) the packing list and (3) the shipping documents must be submitted.  Other informationrequired consists of the correct tariff code; detailed and accurate description of the goods – product,
brand, model, packaging and condition (used or new); quantity, origin and price.
More often importers fail to fully comply w ith these procedures and this had accounted for
the delays.  This, should not, however, have been unexpected since the system was new.  These were
teething problems.  Now the days are about four days.  A lot of importers are now familiar with theprocedures and the situation is expected to further improve.  This system is far better than the Pre-
Shipment Scheme in terms of delays.
Canada, Discussant
What changes will be implemented to prevent the frequent use of discretionary exemptions by
authorities without specific direction from Parliament?
As part of the tariff reform programme it is the objective of the Government to narrow the
scope of exemptions, reduce the dispersion and ultimately make tariffs low and uniform.  This wouldalso certainly include defining the circumstances under which exemptions should be granted and thus
prevent the frequent use of discretion.  According to the Constitution only Parliament can grant
exemptions and this is going to be enforced.
European Union
To which textiles and clothing products does the special import tax apply (tariff lines)?
Hong Kong, China; India
When will the "Special import tax of 20% be removed?
European Union
How long does Ghana intend to apply the Special import tax?
What is the justification for imposing anti-dumping measures in the form of special import tax?What plans does Ghana have to bring these measures into conformity with the Anti-Dumping
Agreement?WT/TPR/M/81
Page 38
Japan
Please explain the special import tax in a concrete manner.
The special import tax of 20% was introduced in April 2000 under the Customs & Excise
Duties and Other Taxes (Amendment) Act 2000 (Act 578) as a temporary measure.  The tax originally
covered the following 32 items which was about 7% of the total tariff lines. 61.01, 61.02, 61.04,
61.05, 61.06, 61.07, 61.08, 61.09, 61.10, 61.11, 61.12, 61.13, 61.14, 61.15, 61.16, 61.17, 62.01, 61.02,
61.04, 61.03, 61.04, 62.05, 62.06, 62.07, 62.08, 62.09, 62.10, 62.11, 62.12, 62.13, 62.14, 63.09.
The objective was to save foreign exchange for use in the productive sectors of agriculture,
export and manufacturing and enhance revenue generation following the drastic fall in the prices of
Ghana’s major exports (gold, cocoa and timber), steep rise in oil prices and sluggish inflow of
external resources.
True to its being a temporary measure, in September 2000 its scope was reviewed to cover
26 items representing only 5% of the total tariff lines.  All articles falling under HS chapters 58, 61,
62 and 63 are no longer subject to special tax.  The tariff lines excluded are:
61.01.10.00.00 - 61.17.90.00.00
62.01.11.00.00 - 62.12.90.00.00
62.14.10.00.00 - 62.17.90.00.0063.09.00.00.00
It must be stressed that the special import tax is not an anti-dumping measure.  The alternative could
have been increased tariffs since tariffs on the items covered by the tax are not bound.  This was,
however, avoided in order not to increase the dispersion of the tariffs.
Government intends to eliminate the special import tax as soon as the situation which gave
rise to its imposition improves.
Canada
Is the Government of Ghana planning to extend the coverage of tariff bindings beyond the
agricultural sector?  If yes, when?
Japan
Please explain the perspective for expanding the coverage of tariff bindings in industrial products?
The extent of bindings of industrial tariffs will be determined by the extent to which Ghana
can achieve tariff reductions on products of interest to her in the next round of tariff negotiations,
particularly in the area of tariff escalation.
Canada
What actions are being considered to eliminat e the leakage of domestic sales from free zone
enterprises into the domestic market above the 30% permitted share of production?
The Government is very concerned about the leakage and a number of measures have been
instituted to eliminate it.  In the first place, approval of new industries is deliberately biased towards
companies producing items that have proven foreign markets.  Other measures include:WT/TPR/M/81
Page 39
(a) reducing the approval of commercial enterprises that apply for free zone licences;
(b) ascertaining the true state of affairs regarding the loopholes that allow the incidence
of spillage into the domestic market;
(c) employing more monitoring officers at the Free Zones Board and increasing the
frequency of random checks at factories;
(d) redesigning the reporting procedure such that more reliable information can be
recovered from documents submitted by the free zone enterprises; and
(e) severely sanctioning free zone enterprises found to be deliberately indulging in such
practices.  Sanctions include revocation of licences and imposition of  back taxes.
Efforts are also being intensified to improve access of free zone products into the
ECOWAS market by encouraging the enterprises to secure the ECOWAS Trade
Liberalization scheme (ETLS) licence, thereby making the external market moreattractive.
European Union, Switzerland, United States and Japan
Progress in the implementation of the TRIPS Agreement?
A bill covering all the areas (industrial designs; protection of plant varieties; lay-out designs;
topographies and integrated circuits; geographical indications; trade marks; and patents) is currentlybefore Parliament, and its passage is at the top of the legislative agenda.  Due to its heavy legislative
schedule the previous Parliament could not pass the bill.  The bill’s importance is being impressed
upon Parliament; and it is hoped that it would be passed soon.
European Union
Human Resources and Technical Capacities Needed to Implement WTO Agreements and Regional or
Bilateral Agreements.  How far is the private sector involved in the setting up of regional trading
arrangements?
From our experience, given the complexity of WTO Agreements, resources required to
implement WTO Agreements are far greater in te rms of institution-building and capacity-building
than those for the implementation of regional or bilateral agreements.  The private sector is involved
in setting up regional trading arrangements through the participation of the Private Enterprise
Foundation (PEF) which is the umbrella organizatio n of private sector associations in Ghana.
Ghana’s technical assistance needs in the various areas of WTO’s activities?
Ghana has indicated its technical assistance requirements under the WTO Secretariat Training
Division’s 2001-2003 Three-year Technical Assistance  Plan.  Areas of interest to Ghana indicated
include:
- WTO reference centres
- Domestic legislation on trade remedies
- Integrated Data Base
- Understanding Specific WTO AgreementsWT/TPR/M/81
Page 40
European Union and Japan
The various tax concessions granted by the Government are subsidies, whereas its notification does
not include the programmes under which these tax concessions are granted.  Can Ghana indicate
when these apparently specific subsidy programmes be notified to the WTO?
Japan considers concessional income tax for exporters  as export subsidies.  What is Ghana’s view?
Ghana does not consider these as subsidies but rather as incentives which are generally
available.  However, if it is the view of Members that they have to be notified steps would be taken tonotify them soon.
Hong Kong, China
Time frame and plan regarding the change from mandatory to voluntary standards?
All Ghanaian Standards are mandatory as stipulated under Legislative Instruments LI 662.
LI 664 of 1970 (Ghana Standards Certification Mark Rules 1970, LI 662).
It is, however, the Board’s objective to replace these with voluntary standards and apply
selective mandatory certification to products with health and safety implications only.
Draft of the Law to support the Selective Mandatory Certification is being processed by the
Attorney-General’s Department and is expected to  go through Parliament soon.  Though we cannot
give a specific date of promulgation, we expect the law will come into force later this year (2001).WTO Secretariat and Member States will then be notified accordingly.
Canada and Discussant
Progress made to-date towards reaching objectives under the revised ECOWAS treaty of 1993?
(a) There is in place a-ninety day free visa for all ECOWAS members for the free
movement of persons.
(b) There is an ECOWAS travel certificate.
(c) An ECOWAS passport was launched in May 2000, and it is being issued alongside
national passports for an interim period of five years to allow for national passports to
be phased out.
For goods, all physical barriers along the borders of member countries have been removed
except one in each country.  With respect to services, capital as well as the right of residence and
establishment, very little progress has been made.
Canada
Actions Government of Ghana is pursuing to increase its exports to its ECOWAS neighbours?
Other actions the Government of Ghana is pursuing to increase its exports to its ECOWAS
neighbours include Free Zone Programme, Gateway Programme and the fast track approach.WT/TPR/M/81
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United States
Do Ghana’s importing requirements meet the WTO recommendation of securing approval at not more
than one office and in any case not more than three?
The only import document currently required is the Import Declaration Form (IDF) which is
issued automatically by the Ministry of Trade and Industry.  No approval is required for this.  The
form is submitted for destination inspection 21 days prior to arrival of goods.  Thereafter customs
clearance takes place.  Other requirements include providing certain import documents to the GhanaShippers Council.  Import and clearance procedures will continue to engage attention to ensure that
such procedures are reduced to the barest minimum.
III. SECTORAL POLICIES
Canada
Advise if Government plans to open up the telecommunications services (the duopoly) in advance of
2002.  If no, please explain why not?
Government intends to review the duopoly agreement with the intention of opening up that
sector for more private sector participation.  Ghana Telecom is, therefore, going to be divested further
soon and allow more private sector participation.
Will foreign insurance companies be allowed to take equity participation in the privatized entities?
Yes, Government will allow equity participation but the whole question is currently under
review.
United States
What steps is the Government planning to take to further liberalize and improve the efficiency in the
manufacturing sector?
The main problem is the poor level of technology.  Government intends to improve this
negative situation through transmission of research and development results to the manufacturing
sector and provision of incentives to re-tool the sector.
Government is establishing the Ghana Investment Fund, a venture capital, to provide long-
term capital to enable access to capital for modernization of plant and equipment.
Switzerland and Japan
Please give details about the way the new legislation foresees protection of undisclosed information.
Section 5 of the new bill which protects undisclosed information is as follows:
1. "Any act or practice in the course of industria l or commercial activities, that results in the
disclosure, acquisition or use by another person of secret information without the consent of the
rightful owner of that information and in a manner contrary to honest commercial practices constitutes
an act of unfair competition.WT/TPR/M/81
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2. Disclosure, acquisition or use of secret information by another person without the consent of
the rightful owner may, in particular, result from:
(a) industrial or commercial espionage;
(b) breach of contract;
(c) breach of confidence;
(d) inducement to commit any of the acts referred to in paragraphs (a) to  (c
(e) acquisition of secret information by a third party who knew or was grossly negligent
in failing to know, that an act referred to in paragraph (a) to (d) was involved in the
acquisition.
3. For the purposes of this section, information is "secret information" if
(a) it is not, as a body or in the precise configuration and assembly of its components,
generally known among or readily accessible to persons within the circles thatnormally deal with the kind of information in question;
(b) it has commercial value because it is secret; and
(c) it has been subject to reasonable steps under the circumstances by the rightful owner
to keep it secret.
4. Any act or practice, in the course of industrial or commercial activities, shall be considered an
act of unfair competition if it consists or results in:
(a) an unfair commercial use of secret test or other data, the origin of which involves
considerable effort and which have been submitted to a competent authority for the
purposes of obtaining approval of the marketing of pharmaceutical or agricultural
chemical products which utilise new chemical entities; or
(b) the disclosure of such data, except where:
(i). it is necessary for the protection of the public; and(ii). steps are taken to ensure that data are protected against unfair commercial 
use."
United States
Fiscal incentives for Miners under the Minerals and Mining Law 1986.  Will Ghana notify these
incentives?
The fiscal incentives under the above law include:
Capital Allowances:
(a) depreciation or capital allowance of 75% of the capital expenditure incurred in the
year of investment and 50% in subsequent years;WT/TPR/M/81
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(b) investment allowance of 5%;
Additional Benefits:
(a) exemption from payment of customs import duties in respect of plant, machinery,
equipment and accessories imported specifically and exclusively for the
commencement of the mineral operations and may after establishment receive
additional relief from payment of customs and excise duties as provided in the
Mining List:
(b) exemption of staff from payment of in come tax relating to furnished accommodation
at the mine site;
(c) personal remittance quota for expatriate personnel free from any tax imposed by any
enactment for the transfer of external currency out of Ghana.
Steps will be taken to notify these incentives soon.
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