The measures taken by the commission are aimed at protecting the local machete industry from unfair trading practices such as dumping, subsidization, and counterfeiting by foreign entities. These actions have resulted in a decision to limit the import of machetes to 1534.4 tonnes annually, compared to the current 2365.9 tonnes.
To offset the shortfall of 831.5 tonnes, Crocodile Machetes Ghana Ltd, a local company, will increase its production to remain competitive and regain market share. This decision follows a petition by Crocodile Machetes Ghana Ltd to the Ghana International Trade Commission (GITC) in September 2021, citing unfair trade practices.
Although the commission did not find conclusive evidence of dumping and subsidization, they found significant evidence of increased imports flooding the domestic market, causing harm to the local industry. Consequently, safeguard measures were deemed necessary to protect against these unfair practices.
During the investigation, it was found that the majority of imported machetes, 74.7%, originated from China, with smaller quantities coming from Colombia (17.9%) and Brazil (1.1%). To address this, the commission has set import limits of 114.9 tonnes from China and 275.2 tonnes from Colombia annually under the safeguard measures.
