“HIGH CUSTOM TARIFFS UNDERMINE LIBERIAN BUSINESSES, GOV’T MUST STRENGTHEN LIBERIANIZATION POLICY” LIBA CHAIR ON TRADE, COMMERCE ASSERTS

By Jeremiah S. Cooper

jeremiahcooper105@gmail.com

Monrovia: The Chairman of Commerce and Trade of the Liberia Business Association (LIBA), Dominic Nimely, has alarms over the impact of high customs tariffs imposed on goods imported into the country on the growth and sustainability of Liberian-owned businesses.

Nimely expressed concern that the steep duties imposed on imported goods are hampering the country’s struggling economy and making life increasingly difficult for ordinary Liberians. “The high tariffs are not just a burden on businesses; they are a significant barrier to the importation of goods, which most Liberian entrepreneurs cannot afford,” he stated.

According to Liberian Businessman Nimely, the situation has led to a rise in consumer prices as businesses are forced to pass on the costs to buyers to offset their customs expenses. Nimely highlighted a growing trend of Liberian businesses turning to neighboring Guinea for importation, where tariffs are comparatively lower, and transporting goods back to Liberia by land.

This, he argued, illustrates the severity of the local tariff structure’s impact on the business community. The LIBA trade chair also pointed out challenges that retailers faced. “Liberian small businesses have lost their 100 percent retailer rights, as foreign importers are now doubling as both wholesalers and retailers,” he lamented.

To address these challenges, Mr. Nimely called on the Liberian government to implement the Liberalization Policy, a set of laws and guidelines designed to promote and protect Liberian-owned businesses. He emphasized that enacting and enforcing these policies is essential for creating an enabling environment for local enterprises to thrive and contribute to national development.

Liberanization policy is a government policy that reduces or removes restrictions on economic activities, trade, and business operations. This policy also loosens or relinquishment of government control over a sector. Liberia implemented Liberianization policies in the mid-1980s to improve macroeconomic stability and economic growth.

This help in eliminating subsidies, government reduced reserve requirements to allow for a more market-based allocation of refinancing. The Liberian government through the policy updated stock market legislation and transferred the management board to the association of brokerage houses. Liberalization policies can lead to several benefits, including increased economic growth, improved efficiency, access to new markets, and greater consumer choice