Should luck smile on Ghana, its trade future with the United States will be redefined as President John Dramani Mahama has confirmed that negotiations are underway amid the African Growth and Opportunity Act (AGOA) expiration and the 15% trade tariffs imposed on the country’s exports to the US.
Should these diplomatic negotiations be successful, it means Ghana will continue to enjoy duty-free access under AGOA and get a favourable deal as far as the hefty 15% trade tariff is concerned.
Addressing Ghana’s envoys before they depart to assume their postings abroad, the President called for vigilance and clarity on these matters, as the negotiations proceed.
“I wish to inform you that negotiations are ongoing with regard to the trade tariffs of 15% and the renewal of AGOA, which was a 0% tariff on African nations, and so those negotiations are still ongoing. I urge you, as envoys, to check this clarity whenever questions arise,” he cautioned the envoys.
This revelation signals the government’s active engagement in shaping the future of Ghana’s trade relations with the world’s richest consumer market.
First enacted in 2000, AGOA was designed to give African countries preferential access to the U.S. market by eliminating tariffs on thousands of products. For Ghana, it has been a pathway for exporting apparel, cocoa by-products, pineapples, and handicrafts duty-free.
AGOA ensured that Ghanaian goods entering the U.S. market had greater competitiveness and a chance to grow industries at home while earning valuable foreign exchange.
However, AGOA’s doors could slam shut at the end of September. In place is a 15% tariff on Ghanaian goods, which would drastically alter Ghana’s competitiveness in the U.S. market, where margins are already tight.
Already, some Ghanaian exporters are worried as the development threatens the sustainability of their businesses, which could also mean job losses and investment losses.
For now, the stakes are high. Will the President and the government be able to maintain Ghana’s ability to access the U.S. market under AGOA or face tariffs that could cripple exporters?
