Implementation of 10% tariff on Ghanaian products to the U.S, Minority urges gov't to show working

The Minority in Parliament is urging the government to intervene. They want support for local manufacturers and exporters. This comes amid an international trade war affecting Ghanaian products.

Recently, the U.S. imposed a 10% tariff on Ghanaian goods. This was in response to Ghana's 17% average tariff on U.S. imports. Michael Okyere Baafi, Ranking Member on Parliament's Trade Committee, expressed concerns about this impact.

Baafi noted that the tariff will hurt Ghanaian manufacturers and exporters. Many of these businesses previously enjoyed duty-free access to the U.S. market.

In a press statement, the Minority called for trade diversification measures. They emphasized focusing on the African Continental Free Trade Area (AfCFTA). They also urged enhanced diplomatic engagement with the U.S. government to review or abolish the new tariff.

Baafi mentioned uncertainty about how this policy affects Ghana’s participation in AGOA. However, its implementation seems likely to have implications.

Ghana currently benefits from AGOA alongside 34 other Sub-Saharan African countries. This act allows about 6,700 products from Ghana to enter the U.S. duty-free.

U.S. importers can bring in these goods without tariffs, enhancing price competitiveness for Ghanaian products. These preferences are valid until September 2025 unless extended or replaced.

Baafi highlighted that many qualifying AGOA products may be impacted by the new tariff. These include textiles, clothing, motor vehicles, agricultural products like nuts and yams, and more.

He pointed out that the apparel industry employs over 5,000 young people and is particularly vulnerable now.

The NPP government had prioritized AfCFTA implementation as a response to trade shocks. They aimed to diversify exports of manufactured goods within Africa through policies like One District One Factory (1D1F).

However, Baafi criticized the NDC government's lack of clear export policies in response to U.S tariffs.

He stated that how they address this issue is crucial for exporters, especially those in apparel manufacturing.

The NPP government initiated a National AfCFTA Policy Framework and Action Plan to help SMEs enter new markets under AfCFTA.

The Minority believes that recent budget allocations downplay AfCFTA's importance in addressing current challenges.

They argue that there has been no effective response from the current government regarding tariffs imposed by the U.S.

To counteract this situation, they recommend prioritizing AfCFTA implementation for market diversification and reducing reliance on U.S exports.

They also suggest leveraging trade diversion opportunities due to retaliatory measures from major trading partners while developing support programs for affected exporters.

Additionally, they call for financial assistance and training for exporters adapting to new trade conditions while advocating for AGOA's extension or replacement for continued preferential access to the U.S market.

Encouraging commodity diversification is also essential; reducing reliance on traditional products can enhance export earnings and competitiveness while improving local consumption levels.

Finally, they urge investment in infrastructure development to lower transportation costs and improve market access overall.

Baafi concluded by stressing that clear policy direction is needed regarding exports and responses to U.S tariffs.