CDM urges gov't to respond strategically to U.S. tariff

The Centre for Democratic Movement (CDM) has called for action. This follows the United States’ 10% tariff on Ghanaian exports. The CDM warns that this decision could reverse years of economic progress. It may also harm key industries and create financial insecurity for many Ghanaians.

In a statement titled “Ghana Must Respond Strategically to U.S. 10% Tariff,” the CDM described the U.S. policy as critical. They stated it is not just a trade issue but affects daily life. Cocoa farmers, garment workers, small businesses, and Ghana’s economy are at risk.

“This is a test of Ghana’s resilience and unity,” said CDM. They rejected the idea that the tariffs are justified due to Ghana's average 17% tariffs on U.S. goods.

The Centre questioned the legality of the U.S. decision. They highlighted Ghana’s status under the African Growth and Opportunity Act (AGOA). This program offers duty-free access to many African exports. CDM argued that Ghana has met its AGOA obligations and has not been removed from its benefits.

“If AGOA remains in effect, then a blanket 10% tariff contradicts our agreement,” they stated. “It undermines trust in U.S.-Ghana trade relations.”

The group warned about specific sector impacts as well. About 30% of cocoa exports, especially processed products, may see reduced demand in the U.S. market. This will hurt cocoa processors and millions of smallholder farmers.

The apparel sector is also at risk, with over 5,000 young people employed there. “These tariffs threaten contracts and jobs,” CDM cautioned. Market access may shrink, leading to factory closures.

CDM called this situation a direct threat to national development. They urged the government to act decisively without partisanship or bureaucracy.

They outlined a five-point response plan:

1. Initiate high-level talks with the U.S Trade Representative for AGOA exemptions.
2. Activate Ghana’s AfCFTA strategy to reduce reliance on U.S markets.
3. Consider dispute resolution through the World Trade Organization if needed.
4. Establish a National Export Adjustment Facility funded by petroleum revenues.
5. Accelerate value addition under Ghana’s One District, One Factory initiative.

“It is time for Ghana to lead by example,” declared CDM.

The statement ended with a call for unity among Ghanaians: “The livelihoods of cocoa farmers and garment workers are at stake.”

As they face what they describe as “a turning point,” CDM reaffirmed their commitment to non-partisan advocacy and accountability.

“We have overcome greater challenges before,” they concluded confidently, emphasizing clarity of vision and unity of purpose will help them prevail again.