President John Dramani Mahama has said prospects for the renewal of the African Growth and Opportunity Act (AGOA) appear dim following the imposition of tariffs by the US on African countries, including Ghana.
Speaking at his first presidential media encounter in his second term, the President noted that Ghana, which previously enjoyed duty-free access to the U.S. market under AGOA, now faces a 15 percent tariff on exports.
“Countries like Africa enjoyed zero tariffs in the U.S. because we were in the developing world. It was a concession the U.S. gave. In comes President Trump with a transactional mindset, and he slapped a 15 per cent tariff on us from zero,” he said.
President Mahama explained that the AGOA framework had been scheduled for renegotiation in September but added that the U.S. administration’s protectionist policies had weakened the likelihood of renewal.
“AGOA is technically dead. There is no way with this 15 per cent tariff that it is going to be renewed. We are just watching carefully,” he stressed.
Since its enactment in 2000, AGOA has been central to U.S. economic and commercial engagement with sub-Saharan Africa. The programme grants eligible countries duty-free access to the U.S. market for more than 1,800 products, in addition to over 5,000 products covered under the Generalized System of Preferences.
In 2015, the U.S. Congress extended the programme to 2025. However, former President Donald Trump’s shift to protectionist trade policies disrupted longstanding trade preferences, creating uncertainty for African exporters.
President Mahama said Ghana would closely monitor developments in Washington but warned that the erosion of preferential access would significantly affect Africa’s ability to compete in the U.S. market.
“Power to impose tariffs lies with Congress, but in this case, the U.S. president pushed the limit. We have to adapt to the new trade environment,” he said.
The President also noted that the end of AGOA could have far-reaching implications for Ghana’s non-traditional exports and called for greater focus on regional trade opportunities under the African Continental Free Trade Area (AfCFTA).
