Liberia: RPAL supports Weah’s Executive Order No. 124 on Rubber

The Rubber Planters Association of Liberia (RPAL) has expressed its support for President George Weah's recent Executive Order No. 124, which places a moratorium on the exportation of unprocessed natural rubber.

In a press statement delivered by Joe Karnwea Gartor, the Executive Director of RPAL, the organization highlighted the detrimental effects that the exportation of unprocessed rubber has on the sector's revenue generation and the overall prosperity of rubber production in Liberia.

Gartor emphasized that natural rubber is a crucial raw material used in the production of various products, including medical devices, surgical gloves, tires, pacifiers, and clothing. He further stated that approximately 85% of the global natural rubber supply comes from smallholder farmers, underlining the potential of rubber in poverty reduction.

RPAL endorsement of the order comes barely 24 hours after the Consortium of Rubber Sector Actors of Liberia (CORSAL), called on the incoming members of the 55th National Legislature to revoke the order. 

CORSAL said it believes in the free-market system and holds dear its valuable principle of competition, which promotes and sustains free trade. 

President Weah issued Executive Order No. 124 last month banning the exportation of unprocessed natural rubber. 

In the wisdom of the President, the sector has been greatly affected by abuse, misuse, and theft over the period. Therefore, to curb the situation, he believes that further strategy is necessary so that proper policies can be developed and an appropriate institutional and regulatory framework can be established to curb retrogression, sustain the development of the industry, and stimulate growth. 

“From the date of this Executive Order, there shall be no exportation of unprocessed natural rubber from Liberia until otherwise advised,” the executive order declared. “Unprocessed natural rubber shall be defined as the raw material tapped from rubber trees, not having gone through any processing to change its physical or chemical composition; or natural latex, coagulum, cup lump, tree lace, bark scrap, ground scrap, and any other form of unprocessed or processed natural rubber (including concentrated latex and dry rubber produced or derived from the latex produced by rubber trees).”  

The order said that the Ministry of Commerce and Industry, the Ministry of Finance, or any other government agency shall not issue or authorize the issuance of any export permit for unprocessed natural rubber from Liberia. 

“That within 30 days of the issuance of this Executive Order, the Ministry of Commerce and Industry, in conjunction with the Ministry of Agriculture, shall make a special effort to provide access to domestic markets for Liberian rubber farmers in remote areas who rely primarily on cross-border trade in unprocessed natural rubber,” it read. 

It further mentioned that all customs officers and law enforcement authorities at points of entry to and exit from the Republic of Liberia, whether by land, sea, or air, shall stop and prohibit the exportation of all consignments of unprocessed natural rubber from the Republic of Liberia. 

However, CORSAL strongly opposes the executive order, describing it as heartless and seeking to suppress the already struggling masses. The group called on all Liberians to join them in opposing the executive order.

But for RPAL, the order is in the right direction, noting that The organization argued that the exportation of unprocessed natural rubber undermines value addition, diminishes revenue, and adversely affects the economy.

Gartor said at Thursday’s press conference that the economic significance of the rubber industry in Liberia, stating that agriculture, including rubber production, accounts for 31% of the country's 2021 real Gross Domestic Product (GDP). Rubber is the dominant revenue generator, contributing 12.5% to total export receipts in 2021.

He pointed out the historical importance of rubber plantations as a major source of employment in Liberia, while also expressing concern over the drop in rubber prices faced by smallholder farmers and the negative impact on their incomes.

Additionally, RPAL raised concerns about the evasion of legitimate funds in the sector, highlighting the need for robust regulation and traceability in rubber sales. In conclusion, RPAL officially supported the government's moratorium on the exportation of unprocessed natural rubber.

The organization urged the government to enact legislation that would encourage value addition and the establishment of rubber processing plants in Liberia. Adding value to natural rubber could generate higher profits, decrease unemployment rates, and contribute to income generation for the impoverished population.

RPAL President Tokpah J. Mulbah urged stakeholders in the rubber industry to support the establishment of processing plants within the country to create jobs and allow for better traceability of rubber production.

Meanwhile, RPAL’s endorsement of the executive order reflects its commitment to improving the rubber industry in Liberia and maximizing its potential benefits for the country and its citizens.