The Ghana Federation of Labour (GFL), has asserted that, the country's unfavorable and deteriorating economic climate poses a threat to the viability of indigenous manufacturing industries, especially the textile industry.

In a letter addressed to the Minister of Trade and Industry, the GFL made this claim. The letter was signed by the GFL's President and General Secretary, Mr. Caleb Nartey and Mr. Abraham Koomson, respectively.

The federation stated in the letter a copy of which is available to the Ghana News Agency, that they were drawing the attention of the sector minister to the resurfaced illegal textile trade and the extremely high cost of local production.

In order to safeguard the struggling industrial sector, it thus pleaded on the Minister to act quickly.

The GFL noted that surveys conducted by its field officers revealed that the market outlets were dominated by over 70 percent pirated and counterfeit fabrics smuggled into the country through unapproved entry borders.

This development, it stated, has reversed the fortunes of the local manufacturing industry and compelled employers to lay staff off or completely shut down.

The Federation recalled that the Ministry of Trade and Industry took steps to address the self-inflicted challenges attributed to illegal trading in products manufactured locally to encourage investment in local production.

While expressing appreciation to the Ministry for the measures put in place to check the smuggling, pirating, and counterfeiting as well as grant zero value-added tax to sustain the local manufacturing companies, it did achieve its aim.

“Unfortunately, the anticipated benefits to boost local production have truncated as a result of the relapse of the problems afflicting the industry,” the GFL added.

The letter also stated that the distressed situation of the industry has been aggravated by the utility price hikes, and the high cost of labour rendering the pricing of products uncompetitive with the smuggled fabrics.