Professional Documents
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PARTNERSHIP
(GHANA)
Working Paper: #6
consumer education is self‐preservation
CONSUMER PROTECTION IN
THE GHANA TRADE POLICY
2010
The development of the Trade Policy for Ghana has been accomplished
through a comprehensive and inclusive process based on well
researched analysis and wide consultation of stakeholders in Ghana.
This Policy is set within the context of Ghana's long term strategic vision
of achieving middle income status by 2012 and becoming a leading
agro‐industrial country in Africa. The Policy provides clear and
transparent guidelines for the implementation of Government's
domestic and international trade agenda. It is also designed to ensure a
This Working Paper was compiled by Jean Lukaz MIH
THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
consistent and stable policy environment within which the
private sector and consumers can operate effectively and
with certainty.
In this paper we have concentrated on the reproduction of
all elements in the Ghana Trade Policy related to Consumer
Protection. A discussion on the adequacy of the Ghana Trade
Policy and how these policy descriptions will reflect in the
new Consumer Protection Law and import of its content will
follow in another paper.
According to the Ministry of Trade, the Ghana Trade Policy approved
by Cabinet in 2004 is set within the context of Ghana’s long‐term
strategic goal of achieving middle‐income status and becoming a
leading agro‐industrial country in Africa. It was designed to provide
the Ministry with clear guidelines for implementing Government’s
domestic and international trade agenda as well as ensure a
consistent and stable policy environment within which the private sector can operate with certainty. To ensure
that these policy objectives are met through the structured implementation of policy prescriptions, a detailed
implementation blueprint – the Trade Sector Support Programme (TSSP) ‐ was developed and launched in
February 2005. It details out specific activities in 10 thematic areas (which together contain 27 sub‐projects) to be
undertaken annually for the achievement of the policy prescriptions contained in the Ghana Trade Policy.
The fundamental principle underlying the Trade Policy Is that the private sector is the engine of growth, with
Government providing a trade enabling environment to actively stimulate private sector initiatives. This is to be
achieved through the full spectrum of trade policy instruments across the ten (10) thematic areas that have been
the basis of the Ghana Trade Policy Objectives:
1. Multilateral Trade:‐ To improve access to export markets through effective participation in WTO,
ECOWAS, EPA and bilateral negotiations
2. Import‐Export Regime:‐ To provide simple and clear import and export rules to support the
development of competitive local industries.
3. Trade Facilitation:‐ To ensure speedy and efficient customs clearance and standards inspections for
exports, imports and transit goods and ensure effective management of ports, airports and land borders.
4. Enhancing Production Capacity:‐ To increase production volumes and enhance competitiveness
5. Export Trade Support Services:‐ To provide effective support services to enhance the competitiveness
of the export sector.
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6. Standards:‐ To protect the health and safety of consumers through effective development and
enforcement of standards on imported and locally produced goods.
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THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
7. Domestic Trade and Distribution:‐ To ensure that adequate financial, market and transport
infrastructure is provided to efficiently distribute goods and services within Ghana
9. Consumer Protection:‐ To ensure that national product standards are effectively enforced on locally
manufactured and imported goods
10. Intellectual Property Rights:‐ To protect and effectively administer intellectual property rights
CONSUMER PROTECTION IN THE GHANA TRADE POLICY (TSSP) 2004
5. DOMESTIC TRADE AND DISTRIBUTION
An efficiently functioning domestic market is essential for the development and distribution of products for both
local consumption and export. It also promotes consumer welfare.
5.1 DOMESTIC PRICES
POLICY CONTEXT:
The majority of both primary producers and consumers in Ghana are vulnerable, so there is a need for an
appropriate balance between prices paid by consumers and prices paid to producers, particularly of
agricultural products.
POLICY OBJECTIVE:
To ensure fair return to producers and fair prices to consumers.
POLICY PRESCRIPTIONS:
Government will maintain operation of a free market system, with minimum Government intervention.
Government will move towards the liberalization of the petroleum sector within the context of the
National Energy Policy.
As a last resort, Government will selectively intervene in farm gate prices of strategic products to stabilise
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prices for consumers and producers who are vulnerable.
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Government will encourage downstream processing to increase demand for primary production.
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THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
Government will develop measures to promote all year round production to increase earnings and
stabilise supply.
Government will support and strengthen farmer based organisations to improve the bargaining position
of producers and reduce the potential for exploitation.
5.2 ENCOURAGING DOMESTIC TRADE
POLICY CONTEXT:
Considerable proportions of domestic trade are undertaken on an informal basis which limits the scope
for growth, development and efficiency gains.
POLICY OBJECTIVE:
To bring traders into the formal sector, broaden the tax base and enable micro and small traders to access
formal institutional support to expand their businesses.
POLICY PRESCRIPTIONS:
Government will improve the speed and efficiency of business registration and licensing through
computerisation and simplification of procedures.
Government will introduce lower tax rates for micro and small traders so that taxation is not a
disincentive to formalising business.
5.3 CREDIT FOR TRADE
POLICY CONTEXT:
Lack of credit, especially in agricultural trade, raises the cost of doing business and limits the scope for
growth.
POLICY OBJECTIVE:
To lower costs through provision of adequate and competitively‐priced credit to agricultural traders and
producers.
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POLICY PRESCRIPTIONS:
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THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
Government will promote credit catalysts and rural service centres where larger traders and associations
can access credit and on‐lend to small traders and peasant farmers.
Government will assist peasant savings and credit unions to become more efficient and effective.
Government will provide incentives including reduction in capital‐debt ratio, tax rebates, lower reserve
requirements, guarantee funds and refinance schemes to banks to increase rural agricultural lending.
5.4 TRADE INFRASTRUCTURE
POLICY CONTEXT:
Infrastructure and other facilities can greatly affect the cost of distribution and domestic prices. Provision
of such facilities improves the speed and efficiency of delivery and sale, and reduces prices.
POLICY OBJECTIVES:
To facilitate delivery from producers to markets and reduce costs of transport.
To modernise market places and ensure the existence of necessary facilities appropriate to the goods on
sale.
POLICY PRESCRIPTIONS:
Government will provide an adequate and well maintained road network, including feeder roads.
Government will promote and support the development of an effective and efficient railway and inland
waterways network.
Government will ensure the provision of effective market infrastructure, especially in the major cities.
Government will promote and support an efficient and widespread telecommunications network
throughout the country.
5.5 PROMOTION OF LOCALLY MANUFACTURED PRODUCTS
POLICY CONTEXT:
Patronage of locally manufactured goods creates the demand that stimulates production, employment
and growth. It also provides a critical market for the development of new products and increases export
potential. Imports are often perceived as superior to locally produced products. Moreover, local
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producers and consumers are often unaware of the wide variety of inputs, goods and services produced in
Ghana.
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THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
POLICY OBJECTIVES:
To stimulate demand for locally produced goods and services.
To promote local industry, lower costs and improve competitiveness.
To encourage national pride in producers and consumers for locally produced goods and services.
POLICY PRESCRIPTIONS:
Government will facilitate dialogue between producers, consumers, and traders to increase awareness of
sources of domestically manufactured goods and services.
Government will actively promote Made‐in‐Ghana Products in domestic and international markets.
STATUS OF IMPLEMENTATION 2009
DOMESTIC TRADE AND DISTRIBUTION
1. One of the key proposed policy interventions to promote Made‐in‐Ghana products, the National Friday
Programme has been implemented, with the campaign launched in 10 regions in through 2007.
2. Technical drawings for three model markets for district, municipal and metropolitan assemblies have
been completed by the Ministry as part of efforts to develop modern market infrastructure in Ghana, and
improve the marketing and distribution systems for Ghana made products.
3. In August, 2008 a project aimed at improving access to domestic markets/garages and their respective
distribution systems and services was launched. The Domestic Trade and Industrial Services Project
(DOTIP) has two components, namely complementary interventions to improve the physical conditions
under which local traders and artisans operate; and a business development services component focused
on training and facilitating access to finance. The project covers 30 markets and artisanal industrial sites
and locations.
4. In order to promote Made‐in‐Ghana goods, consultants have engaged to develop a web‐based Product
Gallery (a virtual shop window) for the display of quality products manufactured in Ghana to support the
private in product marketing and branding. It is also intended to institute the ‘Best Made‐in‐Ghana’
Products Award scheme by the end of the year.
5. A campaign proposal has also been developed, the Buy Ghana First national campaign to integrated
and coordinate various programmes and initiatives to promote made in Ghana projects under a single
coordination mechanism led by the private sector. These include the following trade policy prescriptions:
national product galleries, national friday wear, consumer credit scheme, industrial subcontracting,
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promotion of local content in public procurement, exclusive made in Ghana fairs and exhibitions, export
trade houses, foreign trade representation.
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THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
6. CONSUMER PROTECTION AND FAIR TRADE
An environment that affords protection to consumers and promotes fair trade is important for the development of
efficiently functioning markets and enhances consumer welfare.
6.1 CONSUMER PROTECTION
POLICY CONTEXT:
Government has a duty to protect consumers from unfair practices which adversely affect health, safety
and economic interests.
POLICY OBJECTIVE:
To ensure the well‐being and rights of consumers.
POLICY PRESCRIPTIONS:
Government will develop clear, transparent, comprehensive and consolidated consumer protection rules
to facilitate the exercising of consumer rights.
Government will establish mechanisms and instruments such as small claims courts to provide speedy
remedies which are accessible to all consumers.
6.2 HEALTH AND SAFETY OF CONSUMERS
POLICY CONTEXT:
Poor quality, dangerous content and poor handling of products can endanger the health and safety of
consumers.
POLICY OBJECTIVE:
To ensure the health and safety of consumers.
POLICY PRESCRIPTIONS:
Government will ensure the enforcement of legislation that prevents the sale of unsafe and poor quality
goods on the local market which creates health hazards to consumers.
Government will continue pre‐market controls and phase‐in the more efficient and effective post‐market
control system as and when both public and private sectors acquire sufficient capacity.
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THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
6.3 ECONOMIC INTERESTS OF CONSUMERS
POLICY CONTEXT:
The presence of defective products, short‐weight and unfairly priced goods on the market adversely
affects the economic interests of consumers.
POLICY OBJECTIVE:
To protect the economic interests of consumers so that they are treated fairly and assured that products
are fit for the purpose for which they are sold.
POLICY PRESCRIPTION:
Government will strengthen the regulatory and enforcement framework for protection of economic rights
of consumers. This will include trading standards such as those on weights and measures and use of the
metric system, regulations on liability of defective products, competition rules and price marking of all
consumer goods.
6.4 ACCESS TO ADEQUATE INFORMATION
POLICY CONTEXT:
Consumers require accurate and adequate information to make informed purchase choices.
POLICY OBJECTIVES:
To ensure that consumers have sufficient information to make informed purchase choices.
To ensure that consumers are not misled by false or inaccurate information.
POLICY PRESCRIPTIONS:
Government will ensure that there are clear and sufficient rules on the labelling of products, including
foodstuffs. *
Government will facilitate the establishment and enforcement of a code of practice on advertising.
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6.5 CONSUMPTION AND THE ENVIRONMENT
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THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
POLICY CONTEXT:
Long term growth in Ghana depends on maintaining a fair balance between economic interest,
consumption patterns and environmental protection.
POLICY OBJECTIVE:
To contribute to sustainable development and long‐term growth through the promotion of sustainable
consumption patterns.
POLICY PRESCRIPTION:
Government will promote environmentally‐friendly consumption.
6.6 CONSUMER REPRESENTATION
POLICY CONTEXT:
Effective consumer protection depends on the ability of consumers to fully participate in decision‐making
on consumer issues.
POLICY OBJECTIVE:
To ensure that the interests of consumers are adequately reflected in decisions and policies on consumer
issues.
POLICY PRESCRIPTIONS:
Government will develop and implement national consumer awareness programmes.
Government will support consumer associations to ensure that they can effectively lobby and represent
consumer interests.
Government will encourage the formation of consumer associations specialising in sector and geographic
areas to ensure coverage of all products and people in Ghana.
Government will ensure the representation of consumers on relevant national bodies.
6.7 COMPETITION POLICY AND GOVERNMENT PROCUREMENT
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POLICY CONTEXT:
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THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
An environment which promotes efficiency, encourages the development of the productive sector and
protects the consumer, requires a level playing field for all firms.
POLICY OBJECTIVE:
To ensure that no individual or group of traders or producers conspire to engage in unfair trade practices
to the detriment of either producers or consumers in Ghana.
POLICY PRESCRIPTIONS:
Government will establish rules for competition and ensure effective enforcement to rectify any abuse.
Government will ensure transparency in the government procurement system to increase competition,
resulting in effective and value‐for money public services.
STATUS OF IMPLEMENTATION 2009
COMPETITION AND CONSUMER PROTECTION
1. The drafting of a new Competition Bill has been completed awaiting re‐submission to Cabinet.
2. Technical assistance has also been secured from UNCTAD for the development of a Competition
Commission in 2009. This will also cover the elaboration of draft policy guidelines for Consumer
Protection.
3. The process of procuring consultancy services for the preparation of and comprehensive Framework
Law on Consumer Protection has also commenced.
7. PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
POLICY CONTEXT:
New inventions, innovative ideas, design and creativity contribute to social and economic growth.
Protection of intellectual property rights encourages the development of new technologies to increase
agricultural and industrial production, promotes domestic and foreign investment, facilitates technology
transfer and improves competitiveness.
POLICY OBJECTIVE:
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To stimulate innovation and technology development in Ghana.
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THE CONSUMER
PARTNERSHIP
Consumer Protection in the Ghana Trade Policy 2010 (GHANA)
consumer education is self‐preservation
POLICY PRESCRIPTIONS:
Government will provide effective rules to protect intellectual property rights and a coordination
mechanism to ensure effective administration of copyright and industrial property rights.
Government will design and implement a programme of awareness and education on intellectual
property rights. This will involve nongovernmental organisations, industry representatives, academic
institutions and research bodies.
Government will promote the use of local products and services in government procurement to support
local industry.
STATUS OF IMPLEMENTATION 2009
INTELLECTUAL PROPERTY RIGHTS
a. The project agreement for the funding and implementation of a 3‐year technical assistance project has
been signed with the Swiss Government Measures to support the IPR component of the Ghana Trade
Policy, which prescribes measures to enhance, protect and effectively administer intellectual property
rights including the modernization of Intellectual Property offices and laws.
BIBLIOGRAPHY
Ghana Ministry of Trade website: www.moti.gov.gh
Ghana Trade Policy
Status of Implementation – 2009: Trade Sector Support Programme and Industrial Policy Formulation
Photos Credit: Cartoon on page 1 was sketched by Kwadwo Frimpong [KNUST]
© 2011 The Consumer Partnership, Ghana. All rights reserved
The Consumer Partnership‐Ghana [The‐COP]
PMB KD28
Kanda‐Accra
Ghana
Tel: +233 207 198 999; +233 275 315 135; +233 244 736 924; +233 277 736 924
Email: jytlukaz@gmail.com; theconsumerpartnership@gmail.com; etreku@gmail.com
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The Consumer Partnership (THE‐COP) is a non‐profit Consumer Protection Promotional Organization with the
aim of promoting Consumer Education, Consumer Participation in the Standardization Process in Ghana and
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encouraging Consumer Comparative Shopping.
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