Amid the calls for Ghana to ditch the US market following the end of the Africa Growth and Opportunity Act (AGOA) and President Trump’s protectionist policies, exporters are saying it is not that simple and easy for them to just abandon the US market for new markets.
Exporters in Ghana and elsewhere in Africa are witnessing the expiration of the AGOA today, as the Trump administration had sent an earlier signal of its unwillingness to continue with the Act.
The expiration of AGOA comes along with a 15% tariff on Ghana’s exports to the US as part of Trump’s government measures to protect American businesses.
While some analysts and commentators are urging the government to pivot quickly to China, the Middle East, or other emerging markets, one of Ghana’s leading exporters is cautioning against what he describes as “simplistic” bravado.
Nicholas Apokerah, Chief Executive of TradeAid Africa, argues that walking away from the US market is neither realistic nor strategic. In an interview with monitored by The High Street Journal, the US market cannot be easily abandoned due to a number of reasons.
Apokerah argues that the high consumption in the US market is unmatched to the extent that even big economies such as China strive to trade there.
“It’s not so simplistic like that. I mean, even China, the big economies, they’re all looking at the US market, because the consumption there is great. So it’s not as simple as to say, just forget about them and all that,” the exporter warned.
He further adds that for a developing economy like Ghana, no single market can satisfy all needs.
“For us as a developing country, I don’t think one market can actually deal with our needs. So we have to look everywhere to see where we can get the most of it,” he remarked.
Beyond the sheer size of US demand, he points to the language and cultural familiarity. He explains that Ghanaians are more comfortable in that market because of the English, and it’s very easy to communicate in the US as compared to a place like China or even the Middle East..
Instead of calling the bluff of the US, he advocates a dual approach of exploring new opportunities while still engaging Washington for a mutually beneficial trade arrangement.
He argued that, “We are more comfortable in that market because we speak English, and it’s very easy to communicate in the US as compared to a place like China or even the Middle East. We want to explore those other markets, but cannot throw away the US market. We just have to engage them and see how we can come up with a win-win situation that we can all continue to trade among ourselves.”
The exporter’s perspective raises uncomfortable but practical questions. Can Ghana really afford to sideline the US, when even the world’s biggest exporters fight tooth and nail for American consumers? Is the push for diversification simply about pride, or about genuine strategic realignment?
With Ghanaian exporters still eyeing the US market despite the expiration of AGOA and the 15% tariff, Ghana’s economic and trade diplomacy faces a critical test.
