The recent imposition of a 10% tariff by the United States on Ghanaian exports has sent shockwaves through the nation’s economic and trade circles. As conveners of the Centre for Democratic Movement (CDM), we view this development not through the lens of politics, but with a deep sense of patriotic duty to our people; particularly cocoa farmers, textile workers, SMEs, and exporters whose livelihoods are now at risk.
This policy, announced by U.S. President Donald Trump, is purportedly in response to Ghana’s average 17% tariffs on U.S. goods. The United States cites “unfair trade practices” as justification. However, the application of such tariffs on Ghana, a long-standing partner under the African Growth and Opportunity Act (AGOA); raises significant questions under the frameworks of bilateral relations and multilateral trade diplomacy.
Understanding the African Growth and Opportunity Act (AGOA) and Its Relevance
Enacted in 2000 and renewed until 2025, AGOA provides Sub-Saharan African countries, including Ghana, with duty-free access to the U.S. market on over 6,700 product lines. This policy has played a central role in shaping Ghana’s non-traditional exports such as garments, cocoa powder and paste, yams, shea butter, leather goods, and cashew.
Section 104 of AGOA outlines that participating countries must establish or make continual progress toward a market-based economy, rule of law, and elimination of barriers to U.S. trade and investment. Ghana has consistently met these criteria. Thus, the application of a blanket 10% tariff on Ghanaian goods; many of which are AGOA-compliant, may contradict the spirit of the agreement if AGOA benefits are not explicitly revoked by the U.S. Congress.
Negative Impact on Ghana’s Economy and Citizens
The implications of this tariff are far-reaching:
• Cocoa Sector: While raw cocoa beans enter duty-free under WTO’s Most Favored Nation (MFN) treatment, about 30% of Ghana’s cocoa exports; particularly processed cocoa products; benefit from AGOA. The 10% tariff will significantly reduce U.S. demand for these value-added exports, hurting cocoa processors and, indirectly, millions of smallholder cocoa farmers.
• Apparel and Textiles: Ghana’s apparel industry, supported through industrial zones and youth employment programs, employs over 5,000 young people. The new tariffs will increase the cost of Ghanaian garments in the U.S., threatening market access, contracts, and thousands of jobs.
• Agriculture and SMEs: Non-traditional exports such as yams, fresh fruits, nuts, and shea products will also face stiff competition. Many small and medium enterprises (SMEs), who have just begun leveraging AGOA and GSP (Generalized System of Preferences), now risk market exclusion.
• Cost to the Ordinary Ghanaian: This is not merely a trade issue; it is a bread-and-butter issue. Loss of income in the cocoa belt, factory shutdowns in Accra, and shrinking SME exports will translate into rising unemployment, weakened rural economies, and declining foreign exchange inflows.
Our Recommendations
In responding to this tariff, we recommend a multi-tiered, non-partisan, and strategic approach based on international trade law, diplomacy, and regional cooperation:
Diplomatic Engagement with the U.S.
Diplomatic efforts should be scaled up. The Ministry of Foreign Affairs’ invitation to the U.S. Ambassador is commendable. However, a higher-level delegation involving the President or Vice President should engage Congress and the Office of the U.S. Trade Representative (USTR) to seek clarity and advocate for exemptions under AGOA or Section 301 investigations (if applicable).
Invoke the AfCFTA Strategy
Ghana must intensify the implementation of the African Continental Free Trade Area (AfCFTA) Agreement, which is legally binding and enforced under the African Union framework. Article 3 of the AfCFTA promotes intra-African trade and industrial development. With Ghana hosting the AfCFTA Secretariat, now is the time to lead by example; diversify export markets, enhance trade with ECOWAS and other African partners, and reduce over-reliance on any single foreign market.
Engage the WTO and ECOWAS
Should diplomacy fail, Ghana may consider raising the matter at the World Trade Organization’s Dispute Settlement Body (DSB). As a WTO member, Ghana has a right to challenge unilateral trade restrictions if they violate MFN or AGOA principles. Additionally, the ECOWAS Commission should be rallied to protect member states from similar punitive measures and strengthen regional trade.
Legislate Export Support Mechanisms
The Parliament of Ghana should expedite legislation to establish a National Export Adjustment Facility. This fund, drawn from petroleum windfalls or levies, could cushion exporters, subsidize trade logistics, and support retooling for affected industries.
Promote Value Addition and Agro-Processing
Long-term resilience lies in transforming our raw materials into finished goods. The 1D1F initiative should be repurposed with an export orientation, targeting sectors most vulnerable to foreign market shocks.
A Call to National Unity
This is not a time for partisanship, blame, or bureaucracy. The livelihoods of cocoa farmers in Sefwi and other parts of the country, garment workers in Tema, and shea processors in Tamale and other parts of northern Ghana hang in the balance. As CDM conveners, we urge all stakeholders; government, opposition, business associations, and civil society, to come together under a common agenda to defend Ghana’s economic sovereignty.
Let our response be measured, informed by law and diplomacy, and driven by the collective good of the Republic. Ghana first. Always.
Conclusion
The imposition of the 10% U.S. tariff is not just an economic hurdle; it is a test of Ghana’s resilience, strategic foresight, and unity of purpose. Our response must reflect a mature, sovereign nation grounded in international law, regional cooperation, and national solidarity. While diplomacy must remain our foremost tool, we must simultaneously invest in local capacity, institutional frameworks, and market diversification to withstand future shocks.
We at the Centre for Democratic Movement (CDM) reaffirm our commitment to promoting democratic accountability and good governance, non-partisan policy advocacy, and the protection of the Ghanaian people’s welfare. It is our hope that this statement will guide constructive engagement and serve as a patriotic roadmap in this critical moment.
Ghana has overcome greater challenges before. With clarity of vision, unity of purpose, and courage of conviction; we shall prevail again.
Thank you.
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