Business News of Thursday, 23 April 2009

Source: GNA

Authorities take measures to protect textile industry

Accra, April 23, GNA - All textile imports are to be re-routed through one port, as was done previously, as the Ministry of Trade and Industry and stakeholders take measures to close the door to imported cheap textiles that are having a detrimental effect on the Ghanaian textile industry.

The Ministry said after discussions with the textile companies and other stakeholders, steps were being taken to check smuggling through the borders and/or unauthorized routes. The stakeholders are also conducting random point of sale inspections on textile products sold on the market, a statement released by Ms Hanna Tetteh, Minister of Trade and Industry, in Accra said on Thursday.

It said the point had been made that the Ghanaian textile manufacturing sector was in decline and that it did not need to be in that situation if there was the political will to enforce the laws. "Frequently, these textiles are smuggled into the country and evade the payment of customs duties and other levies. "Further the evidence available shows that designs developed by local textile firms are copied in these cheap knock-off products and in some cases the logo and/or the name of one or the other local textile manufacturing firms is also printed on the edges of the textile fabric."

The Ministry said this meant the designs of our local textile firms are being stolen.

It noted that the other issue was that the reputation of these Ghanaian brands that had been built by the local textile companies after investing considerably in the advertising and promotion of their products were also being used to sell other counterfeit products and the sale proceeds were not going to the owners of the brands. The statement said the Ministry had had consultations with the textile companies and together "we will first work to create public awareness on the extent of the challenge that we face".

It said the Ministry had undertaken to draw attention to the impact on the Ghanaian textile sector in terms of infringement of trademarks and copyrights and its impact on Government in terms of the loss of revenue due to evasion of import duties and other levies.

"We in the Ministry believe that the Ghanaian textile companies' concerns are legitimate and need to be addressed. We think it is important to give opportunities to Ghanaian cotton farmers, create more opportunities for Ghanaian textile manufacturers and designers to create beautiful Ghanaian products and protect Ghanaian jobs," the statement said.