The Minister of Trade and Industry, Kobina Tahir (KT) Hammond, has urged United States (US) investors to explore mutually beneficial trade ventures with Ghanaian counterparts through the government’s industrialisation agenda.
He cited the One District One Factory (1D1F) initiative as one of the potential areas of partnership that US businesses could consider, saying the programme had very attractive incentive packages.
The Minister, who is on an official visit to the country capital, Washington, D.C., made the call when he visited the offices of the Corporate Council on Africa (CCA) and the US Chamber of Commerce.
In separate discussions with the two entities, KT Hammond said the purpose of the visits was to familiarise himself with the workings and priorities of the two bodies in order to explore opportunities for collaboration and support.
He added that the government was also encouraging garment manufacturers to set up in Ghana, citing Dignity DTRT as an example of a garment manufacturer which had established a state-of-the-art garment factory and had a linkage with an American company that was importing its garments.
The Minister, however, expressed concern about the expiry of the Africa Growth and Opportunity Act (AGOA) and urged the Chamber to help push for its renewal.
He said Ghanaian textile and garment dealers were very concerned about the impact the possible expiry of AGOA could have on their businesses.
Since its enactment in 2000, AGOA has been at the core of US economic policy and commercial engagement with Africa, according to the official website of US Trade Representative.
AGOA provides eligible sub-Saharan African countries with duty-free access to the US market for over 1,800 products, in addition to the more than 5,000 products that are eligible for duty-free access under the Generalised System of Preferences programme.
To meet AGOA’s rigorous eligibility requirements, countries must establish or make continual progress toward establishing a market-based economy, the rule of law, political pluralism, and the right to due process.
Additionally, countries must eliminate barriers to US trade and investment, enact policies to reduce poverty, combat corruption, and protect human rights.
“By providing new market opportunities, AGOA has helped bolster economic growth, promoted economic and political reform, and improved US economic relations in the region,” the website notes.