RESTRICTED WT/TPR/S/298 16 April 2014 (14-2369) Page: 1/105 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT GHANA This report, prepared for the fourth Trade Policy Review of Ghana, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Ghana on its trade policies and practices. Any technical questions arising from this report may be addressed to Jacques Degbelo (tel.: 022 739 5583) and Catherine Hennis-Pierre (tel.: 022 739 5640). Document WT/TPR/G/298 contains the policy statement submitted by Ghana. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Ghana. This report was drafted in English. WT/TPR/S/298 • Ghana - 2 - CONTENTS SUMMARY ........................................................................................................................ 7 1 ECONOMIC ENVIRONMENT ........................................................................................ 10 1.1 Major Features of the Economy .................................................................................. 10 1.2 Recent Economic Developments.................................................................................. 13 1.3 Developments in Trade and Foreign Direct Investment ................................................... 18 1.4 Outlook ................................................................................................................... 24 2 TRADE AND INVESTMENT REGIMES ........................................................................... 25 2.1 General Framework .................................................................................................. 25 2.2 Trade Policy Objectives ............................................................................................. 27 2.3 Trade Agreements and Arrangements .......................................................................... 27 2.3.1 World Trade Organization ........................................................................................ 27 2.3.2 ECOWAS .............................................................................................................. 28 2.3.3 The Economic Partnership Agreement (EPA) with the European Union (EU) .................... 30 2.3.4 Other agreements .................................................................................................. 31 2.4 Investment Regime .................................................................................................. 32 2.4.1 Overview .............................................................................................................. 32 2.4.2 Legal framework for businesses ............................................................................... 33 2.4.3 The new Ghana Investment Promotion Centre (GIPC) Act ............................................ 34 2.4.4 Incentives granted to investors ................................................................................ 34 2.4.5 Restrictions on foreign investment ............................................................................ 35 2.4.6 Land policy ........................................................................................................... 35 2.4.7 International Investment Agreements (IIAs) and dispute settlement ............................. 36 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 37 3.1 Measures Directly Affecting Imports ............................................................................ 37 3.1.1 Registration requirements ....................................................................................... 37 3.1.2 Customs clearance and other import procedures ........................................................ 37 3.1.3 Transit ................................................................................................................. 39 3.1.4 Tariffs and other charges ........................................................................................ 41 3.1.4.1 Overview ........................................................................................................... 41 3.1.4.2 Applied MFN tariffs .............................................................................................. 42 3.1.4.3 Tariff bindings .................................................................................................... 45 3.1.4.4 Other duties and charges ..................................................................................... 46 3.1.5 Rules of origin ....................................................................................................... 47 3.1.6 Tariff preferences .................................................................................................. 48 3.1.7 Duty concessions and exemptions ............................................................................ 48 3.1.8 Import prohibitions, restrictions, and licensing ........................................................... 50 3.1.9 Contingency measures ........................................................................................... 50 3.2 Measures Directly Affecting Exports ............................................................................. 50 3.2.1 Export procedures.................................................................................................. 50 WT/TPR/S/298 • Ghana - 3 - 3.2.2 Foreign exchange surrender and conversion requirements ........................................... 51 3.2.3 Exports under preferential regimes ........................................................................... 51 3.2.4 Export taxes, charges, and levies ............................................................................. 52 3.2.5 Export prohibitions, restrictions, and licensing ............................................................ 52 3.2.6 Export duty drawback ............................................................................................. 52 3.2.7 Export subsidies, finance, insurance, and guarantees .................................................. 52 3.2.8 Export processing zones ......................................................................................... 53 3.3 Measures Affecting Production and Trade ..................................................................... 55 3.3.1 Standards and other technical requirements .............................................................. 55 3.3.1.1 Ghana Standards Authority (GSA) ......................................................................... 56 3.3.1.2 Food and Drug Authority (FDA) ............................................................................. 57 3.3.1.3 Marking, labelling, and packaging .......................................................................... 57 3.3.1.4 Sanitary and phytosanitary measures .................................................................... 58 3.3.1.5 Environmental regulations .................................................................................... 59 3.3.2 Intellectual property rights (IPR) .............................................................................. 59 3.3.2.1 Legal and institutional framework .......................................................................... 60 3.3.2.2 Main areas of intellectual property rights ................................................................ 60 3.3.2.3 Enforcement ....................................................................................................... 62 3.3.3 Research and development support .......................................................................... 62 3.3.4 State-trading and other state-owned enterprises ........................................................ 63 3.3.5 Competition policy ................................................................................................. 64 3.3.6 Local content requirements ..................................................................................... 65 3.3.7 Government procurement ....................................................................................... 65 4 TRADE POLICIES BY SECTOR ..................................................................................... 67 4.1 Agriculture .............................................................................................................. 67 4.1.1 Agricultural policy .................................................................................................. 68 4.1.1.1 Income tax measures .......................................................................................... 69 4.1.1.2 Irrigation ........................................................................................................... 69 4.1.1.3 Subsidized farm equipment .................................................................................. 69 4.1.1.4 Fertilizers, insecticides, and fungicides ................................................................... 69 4.1.1.5 Seeds ................................................................................................................ 70 4.1.1.6 Agricultural research ........................................................................................... 70 4.1.1.7 Rural finance