The Minority Caucus in Parliament has expressed concern over the United States’ recent imposition of a 10% tariff on Ghanaian products, warning that the move could negatively impact the country’s economy and exporters.
Addressing the issue in a press statement, the Ranking Member of the Committee on Trade, Industry, and Tourism, Michael Okyere Baafi, stated that Ghana finds itself among other African countries affected by the tariff escalation, which was announced by former U.S. President Donald Trump.
According to Mr. Baafi, the U.S. cited unfair trade practices as justification for the tariff, pointing to Ghana’s 17% average tariff on U.S. imports.
He, however, noted that it remains unclear whether this policy affects Ghana’s participation in the African Growth and Opportunity Act (AGOA).
Ghana is currently one of 35 Sub-Saharan African countries benefiting from AGOA, which grants duty-free access for about 6,700 products to the U.S. market.
Some of the key products covered under AGOA include textiles and clothing, motor vehicle parts, agricultural products such as nuts and yams, leather goods, and machinery.
Mr. Baafi emphasized that the newly imposed 10% tariff could significantly reduce the price competitiveness of Ghanaian exports, particularly in industries such as apparel, cocoa processing, and yam exports.
The apparel sector, which employs over 5,000 young Ghanaians, is expected to be among the hardest hit.
The Minority further criticized the government’s approach to trade and export policies, arguing that the National Democratic Congress (NDC) administration has failed to prioritize export growth.
The statement noted that under the New Patriotic Party (NPP), the implementation of the African Continental Free Trade Area (AfCFTA) and the One District One Factory (1D1F) initiative helped Ghana expand its exports, including iron rods, ceramic tiles, and plastics to the ECOWAS region.
“The current government has no response to the tariff slap. It has no specialized programme or policy to support exporters, expand production, or diversify markets,” the statement read.
The Minority Caucus proposed several measures to address the situation, including:
Diversifying export markets by prioritizing AfCFTA and expanding manufactured exports to African countries.
Providing government support for exporters, including financial assistance and market intelligence to mitigate the impact of the tariffs.
Encouraging product diversification and value addition to reduce reliance on raw material exports.
Engaging in diplomatic negotiations with the U.S. government to clarify the policy’s impact on AGOA and explore possible exemptions.
Enhancing Ghana’s trade competitiveness by improving infrastructure and reducing production costs.
Ensuring policy clarity on export strategies and committing to the full implementation of the National AfCFTA Policy Framework.
The Minority Caucus urged the government to take swift action to prevent further economic losses and protect the livelihoods of exporters affected by the tariffs.
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