In late May this year, the Liberian Senate voted to uphold Executive Order 124, which bans the export of unprocessed rubber until a controlling law is enacted. They also voted to create a National Board for Rubber to fairly determine monthly rubber prices. This board will regulate rubber prices in Liberia.
The Senate’s decision came after a thorough investigation by its Agriculture Committee, which recommended forming a board to oversee and regulate rubber market activities. The decision, made on Thursday, May 23, 2024, followed a lengthy debate in the Senate’s Joint Committee on Agriculture and Judiciary.
Pending the board’s establishment, the Senate agreed to maintain the current export moratorium on unprocessed rubber. The Agriculture Committee was tasked with collaborating with stakeholders to draft legislation for the National Rubber Board and ensure market stability through regulation.
The moratorium, introduced by Executive Order 124, has been controversial since former President George Manneh Weah issued it in 2023. His successor, President Joseph Nyumah Boakai, continued the moratorium, stating it was necessary for improving the rubber industry long-term by increasing production, job opportunities, and government revenue. However, Boakai allowed a two-month grace period for unprocessed rubber exports starting May 22, 2024, due to unexpected losses faced by local producers.
Executive Order 124 aims to prevent abuse and theft in the rubber industry, but some stakeholders argue it harms smallholder farmers and brokers who depend on unprocessed rubber trade. Others believe the moratorium is essential for adding value and creating jobs in the rubber sector.
Similar orders were issued during former President Ellen Johnson-Sirleaf’s term to protect the rubber industry. Currently, lawmakers and industry stakeholders are divided on the moratorium.
The Senate Agriculture Committee, led by Rivercess County Senator Wellington Geevon-Smith, noted concerns from rubber planters about handling unprocessed rubber and potential workforce reductions if the moratorium continues. The committee also reported issues with tax remittances from small farmers not reaching government accounts.
The committee recommended establishing a National Rubber Board through legislation, with representation from all stakeholders, to ensure fair monthly pricing and support rubber factory owners.
