18 hours Ago By Ghana News
The country’s fragile export strategy has been laid bare as the United States slaps a 10% tariff on Ghanaian goods, a move the Minority Caucus in Parliament says could cripple key industries and threatens thousands of jobs. The Caucus has condemned the government’s lack of a clear policy response, warning that exporters, especially those in the apparel, cocoa, and yam sectors, will bear the brunt of this sudden trade shift. The tariff, announced by former U.
S. President Donald Trump, comes as a retaliation against Ghana’s 17% average tariff on U.S.
imports. While it remains unclear if the measure will directly affect Ghana’s African Growth and Opportunity Act (AGOA) status, the financial implications are already raising alarms. Under AGOA, Ghana enjoys duty-free access to the U.
S. market for over 6,700 products, including textiles, agricultural goods, and manufactured exports. The imposition of tariffs means Ghanaian products, once competitive due to AGOA benefits, will now face additional costs, making them less attractive in the U.
S. market. Key Sectors at Risk • Apparel Industry : Over 5,000 young workers rely on exports to the U.
S. The new tariff threatens jobs and profits in a sector that has long struggled to gain a foothold in international trade. • Cocoa Exports : While raw cocoa beans enter duty-free , processed cocoa products (powder and paste) —which make up nearly 30% of cocoa exports —stand to be hit by the tariff, reducing incentives for value addition.
• Yams : A staple of Ghanaian exports to the U.S., yams currently enjoy AGOA benefits.
A 10% tariff could erode this advantage , reducing the appeal of Ghanaian yams in American markets. The Minority Caucus has accused the government of failing to prioritise export diversification, leaving Ghana overly dependent on the U.S.
market. The NPP administration had initiated policies under the African Continental Free Trade Area (AfCFTA) to boost intra-African trade and reduce exposure to global trade shocks. However, the NDC government, they argue, has neglected these efforts, offering no clear plan to counter the U.
S. tariff. “How will the government respond to this sweeping tariff? We have yet to see any specialized program to support exporters or expand Ghana’s production base,” the Minority statement read.
Despite efforts to increase exports to ECOWAS countries through the One District, One Factory (1D1F) initiative—leading to a rise in the trade of iron rods, ceramics, and plastics—the broader export strategy remains weak. The Caucus also noted that budget allocations for AfCFTA implementation have been disappointingly low, signaling a lack of commitment to economic resilience. To cushion the impact of the tariffs and safeguard Ghana’s exporters, the Minority Caucus is demanding immediate action: • Diversification of Export Markets: Fast-track AfCFTA implementation and reduce overreliance on the U.
S. by boosting intra-African trade. • Government Support for Exporters: Provide financial assistance, training, and market intelligence to help businesses adjust.
• Product Diversification & Value Addition: Shift focus from raw material exports to processed goods to increase profitability and global competitiveness. • Diplomatic Engagement: Open urgent negotiations with the U.S.
to clarify the tariff’s impact on AGOA and push for a reduction or elimination of the new charges. • Policy Clarity: The government must provide a definitive roadmap on how it plans to navigate the tariff shock and protect Ghanaian businesses. DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
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