Minority Slams Government’s Silence on U.S. Tariffs, Warns of Lost AfCFTA Opportunities
The Minority Caucus in Parliament has strongly criticized the government for its lack of response to the recent imposition of a 10% tariff on Ghanaian exports by the United States. They warn that Ghana risks being caught off guard in an escalating trade conflict due to its failure to prioritize the African Continental Free Trade Area (AfCFTA).
In a statement signed by Michael Okeyer Baafi, the Ranking Member on the Trade, Industry, and Tourism Committee, the Minority accused the Mahama administration of failing to take any action to mitigate the impact of the tariffs. They argued that the government ignored a readily available trade strategy that could have shielded the country from external shocks.
“We have yet to see a clear export policy from the NDC government. They have downplayed the importance of AfCFTA in their budget and abandoned export-focused strategies that were yielding results under the NPP,” the statement asserted.
The newly imposed tariff, introduced by former U.S. President Donald Trump, is part of what the Minority describes as a broader tariff escalation targeting several African nations. The decision threatens Ghana’s advantages under the African Growth and Opportunity Act (AGOA), which currently provides duty-free access to over 6,700 Ghanaian products in the U.S. market.
With AGOA set to expire in September 2025 unless renewed, the impact of these tariffs could be devastating, particularly for industries that rely heavily on U.S. trade.
Sectors at Risk
•Apparel Industry: Employing over 5,000 young Ghanaians, this sector depends on AGOA benefits for its competitiveness. The tariffs could lead to significant job losses.
•Cocoa Derivatives: While raw cocoa beans enter the U.S. duty-free, processed cocoa products like powder and paste—critical for Ghana’s value-added exports—are vulnerable to the tariff.
•Yam Exports: As one of Ghana’s staple exports to the U.S., the additional cost imposed by the tariff could reduce its market appeal.
The Minority emphasized that AfCFTA, whose secretariat is headquartered in Accra, was specifically designed to help countries like Ghana reduce their dependence on unpredictable external markets. They highlighted that under the previous NPP administration, the National AfCFTA Policy Framework and Action Plan had facilitated regional trade expansion. Through initiatives like the One District, One Factory (1D1F) program, Ghanaian exports such as iron rods, ceramics, and plastics had gained traction in ECOWAS markets.
However, they argued that the current administration has neglected AfCFTA, providing little funding and strategic attention.
“This government has failed to implement targeted programs to support exporters, diversify markets, or engage diplomatically to counteract these tariffs,” the statement continued.
Urgent Actions Demanded
The Minority is calling for immediate government intervention to prevent long-term economic damage. Their recommendations include:
1.Prioritizing and Funding AfCFTA: Properly implement the AfCFTA Action Plan to strengthen Ghana’s position in regional trade.
2.Engaging Diplomatically with the U.S.: Initiate negotiations to seek exemptions or modifications to the tariffs.
3.Providing Direct Support to Exporters: Offer financial aid, training, and market intelligence to help businesses adapt.
4.Developing a Clear National Export Policy: Establish a long-term strategy to safeguard Ghana’s trade interests and reduce vulnerability to external shocks.
With growing concerns over Ghana’s global trade competitiveness, the Minority warns that inaction could lead to severe economic setbacks.
“This is a time for bold policy decisions and urgent intervention, not silence,” they stated. “Ghana cannot afford to lose its trade standing both in Washington and within Africa.”
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