Minority In Parliament Condemns US Tariffs On Ghanaian Exports
The Minority caucus in Parliament has expressed strong opposition to the United States’ recent imposition of a 10% tariff on Ghanaian products, describing it as a major threat to the country’s economy and export sector.
In a press statement, the Caucus noted that the new tariff, announced by former U.S. President Donald Trump, is a retaliatory measure against Ghana’s 17% average tariffs on U.S. imports.
Although it remains unclear whether the policy directly affects Ghana’s participation in the African Growth and Opportunity Act (AGOA), the caucus warned of severe implications for Ghanaian exports.
Under AGOA, Ghana has benefited from duty-free access to the U.S. market, with about 6,700 products qualifying for the preferential trade agreement.
Sectors likely to be affected by the tariff include apparel, cocoa, and yam exports.
The apparel industry, which employs over 5,000 youth, is particularly vulnerable.
Similarly, approximately 30% of Ghana’s cocoa exports in processed forms (such as powder and paste) benefit from AGOA, making the new tariff a significant setback for the industry.
The statement also criticized the government’s lack of response to the trade policy, arguing that the ruling administration has failed to develop strategies to mitigate the impact of such tariffs.
While the New Patriotic Party (NPP) government had previously emphasized the African Continental Free Trade Area (AfCFTA) to reduce dependence on the U.S. market, the Caucus noted that recent budget allocations for its implementation have been inadequate.
To address the crisis, the Minority Caucus has urged the government to take decisive action.
They called for the prioritization of AfCFTA implementation to diversify export markets and reduce reliance on the U.S. as well as the expansion of exports of manufactured products to other African countries.
Additionally, they emphasized the need for the development of policies and financial support systems to assist affected exporters, along with advocacy for the extension or replacement of AGOA preferences to maintain Ghana’s duty-free access to the U.S. market.
They also stressed the importance of diplomatic engagement with the U.S. government to negotiate a reduction or elimination of the tariffs, highlighting the potential negative impact on Ghana’s economy.
Furthermore, they urged the government to invest in infrastructure and industrial productivity to enhance competitiveness and reduce production costs.
The statement was signed by Michael Okyere Baafi, Ranking Member of the Parliamentary Committee on Trade, Industry, and Tourism.
With Ghana’s economy already facing challenges such as youth unemployment and inflation, the Minority warned that failure to act swiftly could lead to severe economic repercussions, especially for small and medium-sized enterprises relying on U.S. markets.
Source: Ghmessenger.com
