GITC imposes 65% quota on cutlass imports

Ghanaian

The importation of cutlasses into Ghana will be subject to a quota of 65 percent starting from March 30, 2024, for a period of two years, as announced by the Ghana International Trade Commission.

This decision was made following a trade petition filed by Crocodile Machete Ghana Limited. The petition claimed that the influx of imported machetes was impacting the

Read full articlecompany's competitiveness and operational costs.

The quota will limit imports from countries such as China and Colombia, which accounted for 74.68% and 17.93% of imports, respectively, between 2021 and July 2023. Crocodile Machete filed a petition with the GITC on September 29, 2021, citing unfair trade practices relating to dumping, subsidization, and increasing quantities of imported machetes, some of which were counterfeit and substandard.

In October 2023, the company filed another petition stating that the surge in machete imports was affecting its market share and sales, necessitating the imposition of safeguard measures.

On Tuesday, February 13, 2024, GITC delivered its verdict on the petition. According to Dr. Adu Gyamfi, Chairman of the Ghana International Trade Commission, the ruling was made to enable Crocodile Machete to be competitive and restore its market share.

The commission recommends a safeguard measure of 65% quota on all imports of machetes beginning on March 30, 2024, to last for 24 months subject to review, in accordance with the GITC Act 2016, Act 926, and the GITC (Safeguard Measures) Regulations, 2020 (LI 2426).

The 65% quota translates to a total of 1534.4 metric tonnes as against the current 2,365.85 metric tonnes of machetes imported annually.

Crocodile Machete is expected to compensate for the remaining shortfall of 831.45 metric tonnes of machetes to enable it to be competitive and restore its market share.