Tuesday, 2 May 2017

Why Should We Allow Adherance To WTO Rules To Enable Shoddy Foreign Imports To Decimate Ghana's Manufacturing Sector?

It is most unfortunate that as a result of our adherence to debilitating World Trade Organisation (WTO) rules, there is not a single policy in place to ensure that Ghanaian manufacturers are protected from unfair competition from dumped shoddy foreign goods imported into Ghana.

Unfortunately, that slavish adherance to WTO rules by our ruling elites has resulted in the decimation of most of our national economy's industrial sector.

Yet, we all acknowledge that youth unemployment threatens the stability of our homeland Ghana and is therefore a national security matter. Does the fact that youth unemployment poses an existential threat to Ghanaian democracy not overide any commitments made by our leaders to the WTO?

Yesterday was International Labour Day. Today, as we speak, many younger generation Ghanaians desperately seek work - and those lucky to have jobs want the products that their employers produce to be protected from cheap shoddy imported foreign substitutes flooding local markets across Ghana.

The question is: If even giant America is embarking on a policy of protecting American manufacturing companies from being put out of business by cheap foreign imports, why should we continue to allow Ghanaian manufacturers to suffer from unfair competition by dumped imported shoddy products from overseas manufacturers, because of WTO rules?

Who does the WTO answer to - and why should we allow the WTO's rules to ruin Ghanaian manufacturing companies providing much needed jobs for our teeming youth: a dangerous situation that has grave national security implications? It is an intolerable and untenable situation that must not be allowed to continue any longer. Not even for a day.

A creative way (such as requiring importers to pay for the Ghana Standards Authority (GSA) to inspect and approve their products overseas before they are permitted  to be shipped to Ghana) must definitely be found to circumvent those nonsensical WTO rules destroying our manufacturing sector. Full stop.

Today, we have culled and posted an Investopeadia article by Justin Kuepper entitled: " Solar Petition Could Boost Domestic Solar Firms "  that we hope both local manufacturers and government policy  makers in Ghana will draw inspiration from.

Please read on:

 "Solar Petition Could Boost Domestic Solar Firms (FSLR) By Justin Kuepper | April 28, 2017 — 11:06 AM EDT

" high-efficiency crystalline silicon photovoltaic solar cells and high-power solar modules, recently filed for bankruptcy under Sections 201 and 202 of the Trade Act of 1974. The petition calls for “global safeguard relief” from the import of crystalline silicon solar photovoltaic cells and modules, which the company says has driven it to bankruptcy as foreign suppliers undercut it on price.
International trade agreements typically prevent protectionist measures – such as tariffs – but Section 201 provides a loophole when imports are causing serious injury to domestic products. If the petition is approved, President Trump will have the option to institute “relief or remedy” to adjust the industry to the import competition. This could mean higher taxes on imported solar cells and modules, which could provide a boost to domestic manufacturers.

The biggest beneficial would be domestic manufactures like First Solar Inc. (FSLR), which designs, manufactures, and sells photovoltaic solar modules with a thin-film semiconductor technology, and is a leading U.S. solar manufacturer.

From a technical standpoint, First Solar rebounded sharply from its lows made in early-April to its pivot point and 50-day moving average at $30.51. Traders should watch for a breakout from these levels to R1 resistance at $33.63 or the 200-day moving average at $35.21. Looking at technical indicators, the RSI appears lofty at 60.70 but the MACD appears to have experienced a bullish crossover in early- to mid-April, suggesting a trend higher.

The long-term outlook for solar has been dampened by President Trump’s pro-energy industry stance, but his tendency towards protectionism could increase the odds of a Section 201 trade action in support of the domestic solar industry. Traders may want to keep an eye on First Solar and other stocks in the domestic solar industry as the situation unfolds.

Charts courtesy of StockCharts.com. Author holds no position in stock(s) mentioned except through passively-managed index funds."

End of called Investopeadia article by Justin Kuepper.


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