GUTA Reaffirms Opposition to Marine Cargo Act, Citing Lack of Consent and Competitive Concerns

The Ghana Union of Traders’ Associations (GUTA) has reiterated its firm opposition to the Marine Cargo Act, which mandates that importers secure local insurance for their goods. Former GUTA President Joseph Obeng has clarified that the association never officially consented to the implementation of this legislation, pointing to significant unresolved issues that continue to burden the business community. While the policy is strategically intended to strengthen Ghana's local insurance sector by retaining capital within the country, trade leaders argue that the mandatory nature of the law overrides the fundamental principles of a free and competitive market.

Obeng’s objections center on the imposition of insurance services on businesses without their agreement or adequate consultation. He contends that rather than relying on legislative mandates to secure patronage, local insurers should focus on enhancing their service delivery and pricing structures to become naturally competitive against international alternatives. The former GUTA president also expressed frustration over the enforcement of penalties for non-compliance, viewing them as an unnecessary financial strain on importers. He emphasized that the policy, as it stands, forces businesses to utilize specific local services regardless of whether those services offer the best value or comprehensive coverage for their cargo.

The standoff highlights a persistent gap in communication between government authorities and key stakeholders in the trade sector. For GUTA to endorse the Act, Obeng insists on a more comprehensive engagement process that genuinely addresses the specific grievances and operational realities of importers. Until these structural concerns are resolved, the association maintains that the Act remains an unwelcome imposition on the trading community. This conflict reflects a broader challenge within the Ghanaian economy: finding the right balance between protective legislation designed to grow local industries and the operational freedom required by the private sector to thrive.