RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/81
29 January 2001
(01-0194)
Trade Policy Review Body Original: English
TRADE POLICY REVIEW
GHANA
Report by the Government
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism
(Annex 3 of the Marrakesh Agreement Establising the World Trade
Organization), the policy statement by the Government of Ghana is attached.
Note: This report is subject to restricted circulation and press embargo until the end of the meeting
of the Trade Policy Review Body on Ghana.Ghana WT/TPR/G/81
Page 3
CONTENTS
I. ECONOMIC OVERVIEW 4
(1) E CONOMIC AND TRADE POLICY ENVIRONMENT 4
(2) T HE BANKING AND FINANCE SECTOR 5
(3) S TRUCTURE OF FINANCIAL MARKETS 5
(4) M ONETARY POLICY AND REGULATION 6
(5) D EVELOPMENTS IN GHANA 'S TRADE POLICY REGIME 6
(i) T ARIFF REGIME 6
(ii) V ALUE ADDED TAX 7
(iii) S PECIAL TAX 7
(iv) I MPORT DUTY EXEMPTIONS 7
II. DIRECTION OF FOREIGN TRADE 7
(1) I NDUSTRIAL DEVELOPMENT 8
(2) S TANDARDIZATION 9
(3) I NVESTMENT OPPORTUNITIES 9
(4) G HANA FREE ZONES PROGRAMMES 10
(5) T HE DIVESTITURE PROGRAMME 11
(6) G HANA AND THE MULTILATERAL TRADING SYSTEM 12
III. IMPLEMENTATION OF WTO AGREEMENTS 12
(1) WTO A GREEMENT ON CUSTOMS VALUATION 12
(2) G HANA AND THE PRE-SHIPMENT INSPECTION AGREEMENT 12
(3) T HE TRIPS A GREEMENT 12
(4) N OTIFICATIONS 13
(5) F UTURE DIRECTION OF TRADE POLICY 13WT/TPR/G/81 Trade Policy Review
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I. ECONOMIC OVERVIEW
1. Ghana has since her first review in 1992, continued her efforts aimed at the transformation of
her economy from a largely state controlled economy to a liberalized market economy. By Ghana's
Vision 2020 development plan, the economy is expected to attain a middle-income status by the year
2020. This process of transformation has seen the private sector increasingly becoming the driving
force of the economy. The government of Ghana has continued pursuing policies with the goal ofcreating an enabling environment for the achievement of these objectives.  These include appropriate
monetary and fiscal policies, financial sector reforms, industrial policies and policies aimed at
attracting investments into Ghana.
2. The major focus of economic policies especially since 1995 has been on macroeconomic
stabilization. To this end, recent fiscal policy measures have centred on central governmentexpenditure restraint and rationalization of the tax regime.  In addition, there is a policy of zero deficit
financing of the budget by the Central Bank (Bank of Ghana). These policy measures achieved some
successes by 1998.
3. In the second-half of 1999 however, Ghana suffered an external terms of trade shock. The
prices of the country's major exports (gold and cocoa) declined at the same time as oil prices on theinternational market increased sharply. These deve lopments have resulted in a shortage of foreign
exchange as well as a deteriorating fiscal position.  The exchange rate of the cedi has depreciated by
40% since September 1999.
4. In response to these external shocks, the Central Bank has further tightened monetary policy
and has increased money market interest rates to 45% to increase the attractiveness of
cedi-denominated securities.  With inflation at 20%, this  implies a real interest rate of over 20%.  It is
envisaged that with the necessary fiscal  adjustments, interest rates will be reduced by the end of the
year. Also, inflation is forecast to fall significantly by 2001 when the economy would have adjusted to
the external shocks.  A single digit inflation level is the objective.
5. Ghana has signed on to be part of a second Single Monetary Zone in the West African
sub-region by 2003. The stability in exchange rates, which the single monetary zone will bring, will
serve to make Ghana even more attractive as an investment destination.
(1) E
CONOMIC AND TRADE POLICY ENVIRONMENT
6. The Ghanaian economy experienced very difficult economic and social conditions during the
1970s and early 1980s as a result of severe drought and declining world market prices for Ghana's
principal exports: cocoa, gold and timber. Cocoa production declined steadily and reached a record
low in 1984, while industrial production also fell markedly. Consequently, real per capita income fellsteadily, and by 1983 it was only about two-thirds of its level in 1960.
7. The initiation of the Economic Recovery Programme (ERP) in 1983, witnessed the beginning
of a marked transformation of the economy from an administrative system of economic management
to a market-oriented system. This included major structural reforms in both the real and financial
sectors of the economy. As a result, there was a steady recovery in per capita income, a sharp drop indomestic inflation, and substantial improvement in the external balance-of-payments.
8. In particular, during 1993-98, real GDP grew at an annual average rate of more than 4%, the
domestic rate of inflation fell markedly to less than 20%, the government overall fiscal deficit
declined to 8.1% of GDP, simultaneously as the domestic primary surplus reached 3.6% of GDP.Ghana WT/TPR/G/81
Page 5
9. Except for 1996, the overall balance of payments recorded continuous surpluses up to 1998
and the ratio of the external current account deficit to GDP fell steadily to 4.7% of GDP in 1998.
10. Since 1999, the economy has been hit by a very severe external terms of trade shock,
stemming from a more than halving of the world price of cocoa, a marked decline in the price of gold,
and a more than tripling of the world price of oil.
11. Consequently, in 1999 the balance of payments recorded an overall deficit of  US$94 million,
while the external current account deficit reached 10.6% of GDP. Also, the government's overall
fiscal deficit worsened to 8.2% of  GDP notwithstanding major rest raint on capital outlays and the
credit depreciated by 1.5% on an annual average basis.  However, with tightened monetary policy, the
domestic rate of inflation, which had fallen to 9.4% by May 1999, ended the year at 13.8% compared
with 15.8% in 1998.
12. Government fiscal efforts in 1998-99 included the introduction of a value-added tax at 10%,
which was subsequently increased to 12.5% in 2000. The year 2000 has seen the worst impact of the
external terms of trade shock. This has given rise to a massive depreciation of the exchange rate, and
sharp increases in both domestic inflation and interest rates.
(2) THE BANKING AND FINANCE SECTOR
13. The banking and finance sector of the economy was liberalized under the Financial Sector
Adjustment Programme (FINSAP) in 1988. The programme which was supported by the World Bank
sought, among others, to enhance the soundness of banks by improving the regulatory framework and
strengthening bank supervision;  restructure financially distressed banks through the infusion of new
capital and management expertise; improve resource mobilization and increase the efficiency of credit
allocation by the banking system.
14. In support of the objectives of FINSAP, the Banking Law was amended in 1989 to provide a
sound prudential and regulatory base for the banking system. Meanwhile, the Bank of Ghana Law was
also amended in 1992 to enhance the regulatory and supervisory role of the Central Bank.
Furthermore, a new Bank of Ghana Law is now before Parliament. This law will enhance the
independence of the Central Bank in the formulation and implementation of monetary policy. Greater
transparency will also be introduced in the operations of the Central Bank.
15. The Bank of Ghana requires that banks in Ghana meet capital adequacy rations that are in
accord with international practice, particularly the Basle Core Principles.  The Bank exercises extra
vigilance in its supervision of financial institutions.
16. Measures have been taken to introduce greater competition into the banking sector. The Bank
of Ghana has lifted the freeze it imposed on the licensing of new banks.  The Government isundertaking a systematic divestiture of its interests in the state-owned banks.
(3) S
TRUCTURE OF FINANCIAL MARKETS
17. Financial markets in Ghana can broadly be classified in:  the Money Market, Capital Market,
and Foreign Exchange Market. The Money Market is the market for short-term bills. This market is
dominated by dealings in Treasury securities with maturities of 3-6 months. The primary dealers inthis market are the banks, discount houses and brokerage firms. Banks account for 94% of the
purchases of treasury bills on the primary money market. The secondary money market in GhanaWT/TPR/G/81 Trade Policy Review
Page 6
includes the inter-bank market, the certificates of deposit market, and the market for commercial
paper, letters of credit and bankers acceptances.
18. The capital market in Ghana comprises the stock market and the bond market.  The stock
market was established in 1990.  Twenty-two companies are currently traded on the Ghana Stock
Exchange, with a market capitalization of about 3.4 trillion cedis.
(4) MONETARY POLICY AND REGULATION
19. After a period of operating a direct system of monetary management, which generally proved
ineffective, the Bank of Ghana introduced reform s leading to a full-fledged indirect-system in 1992.
This entailed deregulated interest rates and remova l of credit ceilings and directed credit regulations.
Under the new system, the Central Bank manages liquidity primarily through open market operations.
The Bank of Ghana introduced repurchase agreements (repos) in 1998 to improve liquiditymanagement.
20. In 1997, the Central Bank directed banks and other institutions to transfer government
accounts to the Central Bank. This was meant to improve the government's financial position with the
Central Bank and generally ensure more efficient management of government funds. The Bank of
Ghana has also completely transferred the financing of the budget deficit from its balance sheet to theother banks and the public.
21. Monetary policy has since the late 1990's aimed at reducing inflation in particular and
fostering macroeconomic stability.
(5) D
EVELOPMENTS IN GHANA 'S TRADE POLICY REGIME
22. Ghana's trade policy reform measures, which began in the mid 1980's, have involved gradual
and systematic reduction and elimination of various forms of price and distribution controls on trade
and the liberalization of the exchange and payment system.  The objective has been to allow themarket system to operate, reduce distortions and thereby improve resource allocation. Consequently,
there has been a significant improvement in the trade policy regime.  Significant developments in
Ghana's trade policy regime relate to the following.
(i) Tariff Regime
23. The policy objective regarding tariffs has been to gradually lower the rates and streamline the
structure to remove administrative lapses and promote compliance in order to improve tax
administration and increase revenue. Tariff reforms have therefore aimed, among other things, at
removing distortions, harmonising rates to achieve parity with sub-regional levels and enhancing the
international competitiveness of local industries.
24. Ghana's tariff structure has been simplified and the rates reduced over the years. The current
system was introduced in 1994 with rates of 0%, 10%, and 25%. Another rate of 5% was added in
1998 to facilitate the shifting of some zero-rated goods to a positive rate. The present import tariff
structure therefore consists of four ad valorem rates of 0%, 5%, 10% and 20%:
0% This rate applies to priority areas such as agriculture, education and health materials 
and investment concessions on machinery contained in the Ghana Investment Promotion Act (478);Ghana WT/TPR/G/81
Page 7
5% This applies to interchangeable tools (handtools) of Chapters 82, 84 and 85 of the 
Customs Harmonised Code and Tariff Schedule, and motor vehicles falling within 
HS 87.03 with capacity not exceeding 1900cc;
10% Concessionary rate for raw materials, producer goods and capital equipment;  and
20% This is the standard rate and applies to all other goods.
25. The most common rates are 10% and 20%.  The standard rate was lowered from 25% to 20%
in the Government Budget Statement for the year 2000 and subsequently incorporated under Act 578
of 2000.
(ii) Value Added Tax
26. This was a flat rate of 10% introduced in December 1998 to replace the Sales Tax. Under the
year 2000 Budget and by Act 579 of 2000, it was increased to 12.5% and applies to both domestically
produced goods as well as imports. Tax credits are allowed for VAT paid on inputs whilst exports are
zero-rated.
(iii) Special Tax
27. A special Tax of 20% is levied on about 28 items covering roughly 6% of the total tariff lines.
This is a temporary measure introduced in February 2000 in the wake of falling exchange receipts and
exchange rate instability. The main objectives are to save foreign exchange on imports, considered
non essential and enhance revenue generation.
(iv) Import Duty Exemptions
28. Ghana's import tariff exemptions fall under three main categories:
(i) Statutory Exemptions - This falls under the Third Schedule of the Customs, Excise and
Preventive Service (CEPS) Act 1994. Exemptions are granted according to end-users, e.g.
Government, Diplomatic Missions, Organisations such as NGOs, Companies such as Volta
Aluminium Company Limited (VALCO), and Volta River Authority (VRA).
(ii) Category II Exemptions - This represents exemptions or reduced tariff rates granted to
certain importers or producers. Under this, ma nufacturers can apply to CEPS for exemption or
concessionary rates on imported inputs, which normally carry a higher rate of duty where inputs are
considered to be used for final consumption. GIPC Exemption Act 478 enables investors to enjoy
exemptions from import duty for machines, plants and spare parts that are not zero-rated under thetariff structure.
(iii) Bonded Ware-Housing Provisions of the CEPS Act (1993) provides temporary
exemption while Free Zones Act (1995) grants duty free import of inputs.
29. The wide range of  exemptions have serious implications on revenue mobilization, hence
efforts are being made to streamline the system to narrow the scope of exemptions. This,
notwithstanding, the exemption system is transpar ent with the power to grant exemption restricted
only to Parliament and also provides very limited scope for discretion by officials.WT/TPR/G/81 Trade Policy Review
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II. DIRECTION OF FOREIGN TRADE
30. Ghana's economy has been characterized by heavy dependence on imports. Overall import
growth has been much higher than exports.  Between 1995 and 1999, average annual growth of
imports was 18.1% as against 11.3% for export. In terms of value, imports increased from
US$2,898 million in 1998 to US$3,228.2 in 1999 showing a growth of 11.5%. However, much of this
increase came from oil import bills which shot up on account of sharp increases in the price of crudeoil on the world market. In spite of the rising trend, the configuration of imports favours the
productive sector of the economy as intermediate goods and raw materials constitute 45-50% of total
imports while capital goods constitute about 20%.
31. Generally, export performance during the same period was below expectation, even though
the performance showed a rising trend from a total of US$1,468.8 million in 1995 to US$2,099.4million in 1999. Total receipts showed a marginal increase of just over 0.4% between 1998 and 1999,
because earnings from Ghana's two principal export  commodities, cocoa a gold, failed to achieve any
significant increase due to sharp drops in average world prices.
32. Ghana trades with a diverse group of countries in Africa, Asia, Europe, Middle East and
North and South America. However, trade with the industrial Western Europe, including theUnited States of America remains dominant. The industrial countries are the main sources for
Ghanaian imports. In 1999, imports originating from these countries amounted to 51%. Within the
past five  years the major countries that accounted for significant amounts of Ghana's imports include
Nigeria (16.1%), United Kingdom (10.3%), and the United States (7.7%). However, imports from
Côte d'Ivoire are becoming significant.
33. To a large extent, the direction of Ghana's export trade follows the pattern for the import
trade. The United Kingdom, the United States and the Netherlands are the major destinations ofGhana's exports. On the West African market, there is a declining export volume to Nigeria and
Côte d'Ivoire, but this is being compensated for by  the increase in the share of Ghana's exports to
Togo.
(1) I
NDUSTRIAL DEVELOPMENT
34. The industrial sector is currently the least contributor to national output, falling behind
agriculture and service. The sector consists of fo ur  sub-sectors, namely manufacturing, mining and
quarrying, electricity and water, and construction.
35. Over the last decade, the industrial sector's performance was below expectation. In the first
five years of the implementation of the Economic Recovery Programme (ERP), the sector posted an
average annual growth rate of 11.2%. This strong performance could however not be sustained. Thesector achieved an average annual growth rate of 4.4% over the last ten years (1990-99).
36. The growth in output of all the four  sub-sectors of the industrial sector, especially
manufacturing has not been consistent. The ma nufacturing sub-sector, however remained the
dominant sub-sector contributing about 60% of total value of industrial production over the years. It
also recorded an average annual growth in output of 3.2% between 1990 and 1999.
37. In recognition of the key role industrial development has to play in the socio-economic
development of Ghana in order to achieve its objective of becoming a middle-income country by the
year 2020, the policy framework within which the manufacturing sub-sector operates is being
enhanced to ensure its competitiveness.Ghana WT/TPR/G/81
Page 9
38. In this connection, policy focus is on the promotion and development of  growth-oriented and
competitive industries which add value to local resources and are export oriented.
39. The country's industrial development hinges critically on a stable macroeconomic
environment, infrastructure, human resource development, science and technology (including
information technology), access to capital and regional integration.
40. With a competitive macroeconomic- environment, the manufacturing sector should be able to
achieve its growth target of 8% per annum in the medium term as envisaged in the Vision 2020.
(2) STANDARDIZATION
41. The Ghana Standards Board is the national statutory body  with overall responsibility for
standardization and quality assurance of goods and services for both the local market and for export. It
is also the national enquiry point on issues relating to the WTO Agreement on Technical Barriers toTrade.
42. The Standards Decree NRCD 173 (1973) establ ished the Ghana Standards Board with the
power to operate and perform its functions as such.
43. The core activities of the Board therefore include the development of standards, analytical
testing, conformity assessment procedures such as inspection and certification of products, forensictesting, calibration and pattern approval for machines, verification of measuring and weighing
instruments used by industries.
44. Ghana Standards Board is a member of the International Organisation for Standardization
(ISO), African Regional Organisation for Standard ization (ARSO) and the Contact Point for the
Codex Alimentarius Commission. The Board is also the appointed competent authority handling the
inspection of fish  and fishery products exported to the European Union.
45. Ghana has started cooperating with Nigeria with the aim of accelerating the implementation
of ECOWAS integration programmes using the fast-track approach.  Standards are being harmonized
and put into use to enhance the operation of the scheme.  Several discussions have been held with the
view to harmonising standards.  Conformity assessment issues are also being tackled.
46. The testing laboratories and quality system rectification bodies of Ghana and Nigeria are
making efforts to operate in accordance with ISO/IEC Guides 25, 62 and 65 to help establish MutualRecognition Agreement on Test/Calibration Reports and Certificates. This would also help other
trading partners for the purpose of elimina ting multiple assessment of conformance to fac ilitate
international trade.
47. As a step towards the removal of some of the technical barriers to trade, the Ghana/Nigeria
Co-operation Committee is conducting a physical study of the import and export rules and regulationsof both countries with the aim of harmonizing them.
(3) I
NVESTMENT OPPORTUNITIES
48. The Ghana Investment Promotion Centre (G IPC) Act, 1994 (Act 478) promulgated on
2 September 1994, has the objective of providing transparency and automaticity in the administration
of investment incentives and to allow the Centre the free hand to promote rather than regulateinvestments.WT/TPR/G/81 Trade Policy Review
Page 10
49. In fulfilment of this objective, the GIPC is expected to provide facilitation services to
enterprises and ensure that the investment process proceed smoothly.
50. The Act entirely opened up the economy to foreign participation except in four areas namely:
petty trading, lotteries, barbering/saloon shops and car (taxi) hiring service (unless with a minimum of
ten  new cars). Act 478 constitutes a clear departure from the previous investment regime which
contained bureaucratic and regulatory procedures  in the Investment Code 1885 (PNDCL 116). The
incentive package under the Act has been made auto matic. All investors, both local and foreign are
entitled to the automatic grant of benefits and incentives administered by CEPS for customs duty
exemption under Section 23 of Act 478 and Internal Revenue Service (IRS) for tax incentives under
SMCD 5. These incentives relate to zero rate for plant, machinery and equipment, immigration quota,
corporate tax and tax holidays.
51. The Act also makes provision for adequate guarantees against expropriation of investments;
repatriation of capitals, profits dividends as well as dispute settlement through internationally
recognized arrangements. The Act does not contain any of the prohibited TRIMS under the TRIMS
Agreement.
52. Ghana has subscribed to the Multilateral Investment Guarantee Agency (MIGA)  Convention.
In addition, Ghana has concluded and ratified several bilateral Investment Promotion and Protection
Agreements (IPPA).
53. GIPC's investment promotional drive is strategically focused mainly on encouraging
enterprises which add value to Ghana's local raw materials, export-oriented enterprises and rural
enterprises with potential to create employment.
(4) GHANA FREE ZONES PROGRAMMES
54. The Government of Ghana implements a Free Zones Programme which is aimed at promoting
economic development by way of attracting foreign direct investment; employment creation; increase
in foreign exchange earnings, transfer of technology, enhancement of technical and managerial
skills/expertise of Ghanaians; and, diversification of exports.
55. The Ghana Free Zones Programme was established by an Act of Parliament (Free Zone Act
504, 1995).  The Free Zones Board commenced licensing of projects in September 1996.
56. The Programme introduces the concept of free ports where bureaucratic impediments and
governmental levies do not apply and thus aims to maximize the utilization of port facilities by
shippers.  It innovates air transportation through the open skies policy by liberalizing airline
companies from heavy regulation and charges formerly applicable to their operations.  Finally, it
combines both enclave and single-factory enterprise schemes designed to promote processing andmanufacturing of goods through the establishment of Export Processing Zones (EPZs), and encourage
the development of commercial and service activities at sea and airport areas.
57. The Programme is linked to the "Gateway" objective of developing private sector sustainable
growth through major economic and social improvements to physical infrastructure and a shift in
attitude and institutional arrangements in favour of the private sector.  The Gateway Programme seeksto promote Ghana as the trade and investment gateway to the sub-region for exports, imports, storage,
transshipment, assembling, distribution, processing manufacturing of goods and services to the
neighbouring countries and beyond.Ghana WT/TPR/G/81
Page 11
58. Under the Free Zones Programme, there is 100% exemption from:  (i) payment of duties and
levies on all imports for production and exports from free zones;  and (ii) payment of income tax on
profits for ten years.  Income tax rate after ten years shall not exceed 8%.  There are no conditions or
restrictions on:  repatriation of dividends or net profit;  payments for foreign loan servicing;  payments
of fees and charges for technology transfer agreements;  and remittance of proceeds from sale of any
interest in a free zone investment.  Investments are guaranteed against nationalization andexpropriation.
59. The Programme requires entities accorded Free Zones status to export at least 70% of their
annual production and may only sell the remaining 30% into the local or domestic economy, which
attracts all necessary import duties and taxes.
60. The Programme also combines two schemes, the enclave and the single-factory zones.  This
is to enable investors tap the varied and scattered raw materials resources of the country.  This makes
the whole of Ghana accessible to potential investors.
61. The Free Zones Act and its implementing regulations provide relief from various bureaucratic
restrictions and other statutory requirements such as expedited investment approval not exceeding 28
working days;  unimpeded issuance of expatriate work and residence permits; accelerated on-sitecustoms inspection;  and the assurance of  wage levels for employees that are not below the
recommended minimum wage prevailing in Ghana at any given time. Furthermore, other workers'
rights and conditions of service are aligned to the relevant International Labour Organization (ILO)
conventions and statutes that have been ratified and incorporated into the various labour laws of
Ghana.
(5) T
HE DIVESTITURE PROGRAMME
62. The Government of Ghana has established the Divestiture Implementation Committee (DIC)
to implement and execute all Government policies in respect of divestiture programmes. The
operation of the Committee is governed by the Divestiture of State Interests (Implementation)
Law 1993 (PNDC Law 326).
63. State Owned Enterprises (SOEs) are divested either as whole entities or in fragmented
divisions. The mode of divestiture is typically through the sale of assets to private investors bycompetitive tender. Other options include the sale of shares, joint venture agreements between the
state and private sector, and long term leasing of assets.  As at 31
st December 1999, the divestiture of
233 SOEs (or parts of SOEs) had been completed.  Ma ny of the SOEs divested have been modernized
and are enjoying increased capacity utilization, higher profit margins and rising employment levels.
These can be found in the manufacturing, agricultural and hospitality industries.
64. The Ghana Government through the DIC has put in place a number of incentives and
procedures which are designed to rid investors of any encumbrances at the start of their operations
when they take over an SOE. For example, divestiture procedures permit investors to start with a
clean slate and select their own levels of future staffing.  It is Government policy, except in special
cases, to terminate all existing contracts of employees upon transfer of ownership. Additionally,except where the mode of divestiture is the sale of shares, the Government usually assumes
responsibility for the discharge of all SOE liabilities. Other advantages and incentives include:
customs import duty exemptions;  locational incen tives;  income tax incentives;  investment
guarantees;  free transfer of capital, dividends and net profits;  preferential access to 15 other markets
on the Economic Community for West African States (ECOWAS).WT/TPR/G/81 Trade Policy Review
Page 12
(6) GHANA AND THE MULTILATERAL TRADING SYSTEM
65. Ghana as a founding member of the WTO remains committed to the objectives of the
Organisation. Ghana actively participated in the Uruguay Round negotiations and made commitments
consistent with her level of development. Sh e also participated in the post-Uruguay Round
negotiations in the areas of Basic Telecommunications and Financial Services and again made
concessions in both areas. The protocols on both the Basic Telecommunications and FinancialServices have been ratified by Parliament.
III. IMPLEMENTATION OF WTO AGREEMENTS
(1) WTO A
GREEMENTS ON CUSTOMS VALUATION
66. Ghana commenced implementing the WTO Agreement on Customs Valuation on
1 April 2000. Prior to that, Ghana operated a valuation system based on the Brussels Definition ofValue (BDV). The bill, which seeks to amend the existi ng legislation to bring it in line with the WTO
Customs Valuation Agreement, is currently undergoing necessary legislative procedures.
(2) G
HANA AND THE PRE-SHIPMENT INSPECTION AGREEMENT
67. Ghana has also discontinued the use of the pre-shipment inspection scheme effective
1 April 2000 and in its place is a new scheme, the Destination Inspection Scheme (DIS). DestinationInspection is inspection of imports at the port of clearance, the DIS is designed to take account of the
inherent threat to effective revenue generation from imports as a result of the implementation of the
WTO Agreement on Customs Valuation. Consequently, the DIS involves three major integrated
schemes, namely:  Transaction Price Database (TPD );  Computer Risk Management System (CRMS);
and Container X-ray Scanning System. The TPD assists CEPS to analyse prices accurately and timely
based on transaction value and correct tariff classification. The TPD is updated automatically with
each transaction providing the most recent price information available. The CRMS is employed todetermine the risk level for each consignment whic h is used to determine whether a consignment can
be cleared through a "green channel", "yellow chan nel" or "red channel". The CRMS thus eliminates
the need for CEPS to examine each and every consignment of goods imported into the country by
applying a concept of selectivity of consignment based on levels of risk.  The X-ray scanning system
uses x-ray technology to verify the content of cargoes arriving at the ports so as to enable CEPS tomake quick and reliable decision to either detain or release a container without devanning it to
confirm its content.  This helps to reduce the dwell time of containers at the ports and provides the
necessary security by eliminating illegal importation of arms and ammunition as well as illegal drugs.
It also provides data for the risk management system.
68. For the efficiency and effectiveness of the scheme, the Government has contracted two
inspection companies namely GSBV Company Limited and Gateway Services Limited (GSL) to
operate the DIS.  GSBV is responsible for imports by air and land and physical inspection of high-risk
goods while GSL is responsible for sea imports.
(3) T
HE TRIPS AGREEMENT
69. In respect of the TRIPs Agreement, draft laws in all the seven areas were presented to
Parliament in September 2000. However, due to the heavy schedule of activities that the House was
confronted with, coupled with the general elections in December 2000, only a limited amount of work
was carried out on the Bills.  It is expected that when the Parliament reconvenes in January 2001,
attention will immediately be focused on the Bills to be passed into law.Ghana WT/TPR/G/81
Page 13
(4) NOTIFICATIONS
70. Ghana has managed to meet, to a substantial degree, her notification obligations as part of the
process of compliance with WTO obligations.  These obligations are as indicated in the various WTO
Agreements.
71. Meeting these obligations by way of compliance and legislation has posed considerable
challenges to Ghana.  Some of these related to capacity problems both human and institutional. Thesechallenges notwithstanding, Ghana will endeavour as much as possible to keep pace with her WTO
obligations.
72. In this regard, recognition is given to the various levels of technical assistance provided by
the Secretariat. Specific mention may be made of the Secretariat's quick responses to Ghana's requests
for such assistance as well as Ghana's inclus ion in the Joint Integrated Technical Assistance
Programme (JITAP).
73. For the future, such assistance will still be critical in Ghana's endeavours at active
participation in WTO activities.
(5) F
UTURE DIRECTION OF TRADE POLICY
74. Ghana's development agenda aims at achieving a middle income status by the year 2020. This
will be realized by creating an open and liberal market economy founded on competition, initiative
and creativity that employs science and technology in deriving maximum productivity from the use of
all our human and natural resources.
75. The private sector is expected to play the lead role in the economy. Therefore, the direction of
trade policy in the coming years will seek to further improve the regulatory environment for the
growth and development of the private sector.
76. Ghana will not flinch in her efforts at pursuing policies which will lead  to sustained growth in
GDP and thus accelerate economic growth and the achievement of  the objectives contained in her
Vision 2020.
__________