The Minority Caucus of Ghana’s Parliament has raised alarm over the United States’ decision to impose a 10% tariff on Ghanaian products, warning of severe economic repercussions for the country’s exporters.
In a press statement, the Caucus criticized the move by the US government, which cited Ghana’s 17% average tariff on American imports as justification for the new levy. The statement, signed by Michael Okyere Baafi, Ranking Member of the Committee on Trade, Industry, and Tourism, expressed concerns about the potential impact on Ghana’s participation in the African Growth and Opportunity Act (AGOA).
AGOA currently grants duty-free access to the US market for about 6,700 products from 35 Sub-Saharan African countries, including Ghana. However, the introduction of a 10% tariff on previously exempt products threatens the competitiveness of Ghanaian goods in the US market.
The Caucus highlighted key sectors likely to be affected, including the apparel industry, which employs over 5,000 young people, and cocoa exports, particularly processed products like cocoa powder and paste. Ghana’s yam exports, which currently benefit from AGOA preferences, also face the risk of losing their competitive edge.
The statement further criticized the NDC government for its lack of a clear export policy to counter the tariff imposition. It contrasted the current administration’s approach with that of the previous NPP government, which emphasized the African Continental Free Trade Area (AfCFTA) as a strategy to reduce dependency on Western markets.
To mitigate the impact of the tariffs, the Minority Caucus proposed several recommendations, including:
• Diversifying export markets by prioritizing AfCFTA and expanding trade with other African countries.
• Providing direct support to exporters through financial assistance, training, and market intelligence.
• Advocating for AGOA extension or replacement to maintain Ghana’s preferential trade status with the US.
• Encouraging value addition in Ghanaian exports to improve competitiveness.
• Engaging in diplomatic negotiations with the US to seek tariff reductions.
The Caucus also called on the government to clarify its policy direction on exports and ensure adequate funding for the National AfCFTA Policy Framework.
With AGOA set to expire in September 2025 unless renewed, the Caucus stressed the urgency of proactive measures to safeguard Ghana’s economic interests in the global trade landscape.
