Minority Caucus Questions Gov’t Response to U.S. 10% Tariff on Ghanaian Exports
The Minority Caucus in Parliament has expressed concerns over the government’s response to the recent imposition of a 10% tariff on Ghanaian exports by the United States. In a statement signed by Ranking Member Michael Okeyer Baafi, the Caucus criticized the lack of a proactive strategy to address the tariff issue, emphasizing the potential risks to Ghana’s trade relationships.
Highlighting the importance of the African Continental Free Trade Area (AfCFTA), the Minority warned of the consequences of neglecting this crucial trade agreement. They pointed out the need for a clear policy direction on exports and raised questions about the government’s commitment to leveraging AfCFTA for Ghana’s benefit.
The recent tariff escalation by the U.S. President Donal Trump was described as a threat to Ghana’s progress under the African Growth and Opportunity Act (AGOA) set to expire in September 2025, particularly impacting sectors such as apparel, cocoa derivatives, and yam exports. Under the African Growth and Opportunity Act (AGOA), Ghana currently enjoys duty-free access to over 6,700 Ghanaian products in the US market. The potential implications on employment, especially in the apparel industry, were underscored as a looming crisis that requires immediate attention.
The Minority emphasized the role of AfCFTA in reducing Ghana’s dependence on external markets and criticized the current administration for inadequate focus on this strategic initiative. They highlighted past successes in regional market penetration under the previous government and called for renewed efforts to support exporters, diversify markets, and engage diplomatically to address tariff challenges.
In light of these concerns, the Minority urged the government to take urgent actions, including prioritizing and funding the AfCFTA Action Plan, engaging diplomatically with the U.S. to clarify tariffs and negotiate exemptions, and providing direct support to exporters through financial assistance, training, and market insights.
It is crucial for Ghana to navigate these trade challenges effectively to safeguard its economic interests and promote sustainable growth in the face of evolving global trade dynamics.
A coordinated national export policy is crucial to prevent future vulnerabilities, as highlighted by the Minority. There are growing concerns that Ghana’s delayed response could negatively impact its global competitiveness and trade diversification objectives.
Urgent and decisive policy decisions are needed now, as emphasized by the Minority, to ensure Ghana maintains its standing in both Washington and Accra.
